[closing bell ringing] david: the bells are ringing on wall street. boy, what a day. we're off the highs. we were above 200. but we're now trading at 187. that is nothing to sneeze at at you will. all the indices are up. russell 2000 didn't quite make it into the 1% jump range. it is doing quite well. all the indexes. you're looking around, liz for areas that did poorly today, you can't find any. liz: janet yellen hit that page. david: they like what they heard. liz: they sure did. the new fed chair janet yellen making her first appearance before congress since taking the job at the beginning of this month and delivering the message, and the word, continuity in the fed policy. she said the recovery in the labor market is far from complete. david: barclays is planning to cut up to 12,000 more jobs this year. including 5000 in the international operations. the bank will also increase bonuses for investment bankers.

liz: nicole talking about cvs. let's take a deeper look. they got a pop after upbeat quarterly earnings report. cvs last week, remember, said it would stop selling tobacco products, reporting a 12% gain in fourth quarter profits. david: "the wall street journal" says microsoft is turning to an unlikely partner, google, to help boost the struggling nokia smartphone business. they said google's android software could be used in nokia phones in developing countries. liz: boeing is higher after the aerospace giant is studying the possibility of a medium-range version of its long haul 787 airliner. could be a replacement for the 757 jet which is no longer in production. david: speaking of airlines, virgin america is declining to comment on a report it is getting ready to go public after posting its first year of profits. financial times says an ipo could come as soon as second half of the year. a huge day on the markets. you want to stick with us.

"after the bell" starts right now. liz: yes. the markets saw quite the rally today. let's break down all the act shun with our panel. we have randy swan, swan wealth advisors president who thinks the bull run could be over soon. on the other hand, david lutz, stiffle nicolaus managing director is predicting a double-digit gain for stocks in 2014. let's start with larry shover joining us from the pits of the cme. was this all janet yellen or part washington, d.c., possible debt deal? does it matter? stocks jumped today. >> i don't know, liz. this was like a six 1/2 hour bull rush. something i have not seen in years. when you consider how quickly and violently stocks dropped last week, this is quickly as violent as people came out in all senses of urgency, getting exposure to the stock market. what is striking is how quickly positioning fellas week.

what that tells me is that sentiment is so stinkin' fragile. something we spoke about week after week. i still think investors at their very heart lack conviction and are afraid of this market. thus, we will continue to ratchet higher. david: well, david lutz, you look at this market, i don't see much else except for conviction right now. i'm wondering if the pullback is over, david? >> i tell you, guys, a lot of what we saw at gypping of the year was short selling. a lot of people were hedging their books and logging in gains and protecting what went on in 2013. but what we saw last couple sessions is lot of protection coming off. when the market was hit we didn't see big mutual fund clients selling. we saw them nibble after the market had nice retracement from the january high around the 1750 level. today it felt like there was tremendous amount of actions in the futures pit. a lot of hedges coming off. people getting ready for possible upside move.

that felt like a big driver in stocks. liz: randy swan, is perhaps the voice of reason? we're not sure. randy you feel we'll be flat to lower for 2014, even though as we had jeremy siegel, the professor from wharton who called many a bull and bear market saying these are the correct conditions for stocks to move higher. why do you disagree? >> i think 2014 is going to be a transition year similar to 2007. i think we're going to see flat to down market with increase in market volatility. liz: why? >> well i think we've had a five-year bull run. i think there is extreme bullish sentiment at this point f we're frank, the fed has not taken off the training wheels in the economy yet. david: well, larry, kind of gets to your point whether the conviction is really there. again, one day does not a trend make so we'll have to wait and see what happens tomorrow, larry but is it conceivable the pullback is over and that this is the beginning of a trend? >> yeah, absolutely. let's keep in mind, conditions

are changing, they're not collapsing. we're seeing cool-downs in the united states and china. but we're seeing upside momentum in europe some in general we're not collapsing. we're just cooling off a little bit and it is okay for the market to sit and just gather momentum for a while. what we saw the last couple weeks is an outlyer mixing up position with sentiment. that is really all it was. i do believe deep in my heart we'll see a 10% rally in 2014. liz: now, david, i will take randy's side of this saying we are due for not necessarily a meltdown, that would be a little too dramatic to say but when you have the melt-up we saw at end of 2013, melt-ups are usually preceding meltdowns at some point. you don't see that. at what point do we shake out excess enthusiasm in this market? >> i think you saw a lot of that going on in the last two weeks, liz with the market getting hilt. the sentiment was terrible.

i was starting to get rattled. a lot of traders were starting to get rattled. but we were not seeing tremendous volume especially from the big fund that are selling there are things that could certainly derail this market this year. we could see wheels coming off with emerging markets. emerging markets were acting well today. we could see inflation ripping higher. right now we're not seeing that. we could see a big spike in energy costs. that is big worry. and possibly weighing on the market with nat-gas. last but not least a geopolitical turmoil or midterm elections or something going on in asia. it feels like the climate is right with the u.s. economy improving. a lot of overenthusiasm came out last couple weeks and markets could go higher. david: so far, randy, we've seen pretty much interest rates trend down as people went into treasury bond when they were worried about equities. that trend may be changing though, no? don't you think it is time interest rates ticked up little bit? >> well, actually i do think

interest rates are probably somewhat priced into the cake at this point. david: you think this level is what they will remain at for the rest of the year. >> relatively speaking, yes. david: wow. david, do you see that as well? >> well, you know, it is kind of stunning. i've been watching ten year as a lot of traders. it has been gravitating from 2 1/2% to 3% t could certainly stay in that range. if we start to see a gradual move higher, dave, that will be fantastic for equities. that will flush money out of bond market looking for is somewhere else to invest. that could be equity market. that is phenomenon last couple years when a lot of money came out of equities into bond. do i see is going to 3 1/2% this year? no. i certainly hope not but i could see us around 3%. liz: david, what would you tell investors watching right now where to put their money if that is the case? >> there are a couple of places to look, liz. first of all the gold complex is

really getting interesting. i like to invest in areas most hated sectors. last year gold was absolutely hated sector. >> the miners were hammered. you're saying go there now? >> absolutely. look at gdx and the gdx is a gold mining etf. that is forming a base and upside moving averages and picking up momentum. looks like a lot of etf liquidation that weighed on the complex is over. a big tell for the gdg will be on thursday. two largest components, barrick and goldcorp both reporting there is so much negative sentiment built around earnings reports for some of these miners feels like a lot of the bad news, if not all the bad news is baked in, liz. david: david, talk about retailers very quickly. thief been beaten down since beginning of the year. we have advanced retail sales coming out on thursday. in advance of that number is it time to buy retail? >> certainly feels that way. retails were one of the leading

groups. in front of that advanced retail seas, gold everybody knows the terrible news. we've seen all the economic data coming out about the weather that really weighed on a lot of these retailers. i've been watching xrt as a lot of traders. it feels like a lot of the fading is over there. one of the worst-performing sectors so far this year. definitely feels like it could pick up momentum to the upside, david. david: want to buy low, retail sales come on thursday. xrt is the e-tf david -- etf david likes. randy, thank you very much. larry shover will be with us in a few minutes when the cme closed. liz: guess what, we are speaking with the woman, the only person who sat down exclusively with the the game's creator. were there bigger and more powerful forces at play if his decision to stop the money flow? david: interesting story there. also, the markets, once feared tapering but we saw a big move

higher today, over 200 points at one point, despite janet yellen saying it is full speed ahead for the taper. why such bullishness from the markets? two fed insiders reading between the lines coming next. liz: tell us what you think. yellen was good for markets. today will investors continue to like what they hear from her? tweet us@ft --@fbnatb. we'll read your answers later this hour. >> ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, ally 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. research tool on thinkorswim. from td ameritrade. you make a great team.orswim. it's been that way sincthe day you met. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can bemore t in your ability to be ready. and the same cialis is the only daily ed tablet approved to trt ed and symptoms of bph like needing to go frequently or urgently.

tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take alis if you take nitrates for chest pain, as this may causan unsafe drop in blood pressure. do not drink alcohol in excess with ciali sideffects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immiate medical hp for an erection lasting more than 4 hours. if you have any sudden decree or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathg or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. so ally bank has a that wothat's correct.rate. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd.

if our rate on this cd goesp, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally. david: trip advisor, one of the orlando's largest travel sites, reporting earnings moments ago. liz: let's go back to nicole petallides on floor of the new york stock exchange with those numbers. >> looking at a meet and a beat. break it down for trip advisor which is training higher in after-hours. this is the meet, 21 cents a share versus estimates of 21 cents. closing value, 84.20. bid ask in the 86-dollars range. nearly 76 bucks. revenues, as i noted a beat there, 212.7 million, beating analyst estimates of 205.46 some what is interesting about this as well, is the total traffic in the fourth quarter. total traffic for trip advisor in the fourth quarter grew 50%

year-over-year. so that's some good news there i was also looking at the click revenue and that was on the rise as well. so it is looking good for trip advisor. that came on heels of good news from expedia we heard recently. people are booking trips with air fares and hotels. david: we'll be watching that stock tomorrow. we'll see if it stays at that $87 range. thanks, nicole. >> the s&p futures are closing in less than one minute. let's head back to larry shover in the pits of the cme. larry? >> traders know even though we punched through some key technical levels it will take a lot more to get to the next level. we'll need growth metrics, not just jawboning from central banks. so with that traders will be closely watching china's trade numbers tonight as well as all the pmi, flash pmis next week. also keep in mind one mistake we made we tend to contemplate positioning with sentiment and we can not do that. because being long does not mean being bullish. so there are two very different

things. and that is a mistake that a lot of us made this past week. liz: larry, thank you. thank you, larry shover in chicago. david: as you can see the markets seem to love today's testimony by new federal reserve chair janet yellen. to understand why you have to read between the lines of her testimony which is exactly what our next guests have been spending their professional life doing. jon hilsenrath, "wall street journal" chief economics correspondent. john tannenbaum, northern trust chief economist and former chicago fed senior vice president and head of the risk division. gentlemen, thanks for coming out. jon what is the headline for today's testimony? >> the headline doesn't require reading between the lines because janet yellen said it at very bin beginning of six hours of testimony. david: thanks for ruining my setup, jon. there is some reading between the lines. you always do that. >> sorry about that. continuity. she said she is continuing ben bernanke's policies. what that means, short-term interest rates stay near zero

into 2015. the fed keeps pulling back on the bond-buying program unless something rad can call happens to the forecast. that is the bottom line. >> carl, i think the word radical jon used gets to my opening point which is it is going to take a lot of bad news to get them to stop the tapering right? >> agreed. i think the market took heart not just from a message ever continuity and reinforced the fed's forecast is yet to be affected by weather-related distortions in recent data or emerging market trauma spreading across the globe. she expressed herself well, avoided a lot of potential potholes that congressman through in front of her. she offer ad great performance not just for representatives but to the investment community who perhaps who real audience. david: she was just trying to avoid -- >> sorry, i'm stepped on your line. david: go ahead. >> the most interesting thing to me today was not anything she said about monetary policy. it was political. the fed and it wasn't anything

she did. wasn't anything she said. it was something she did. the fed is very often accused not being transparent and not being accountable. so this is her first moment out on the public stage and she said to the chairman of that committee, i'm going to stay here as long as you want me. i will answer every question that every representative has. she sat through it for six hours. that was really, i mean, carl, i like to hear if you ever remember hearing fed testimony going six hours? i haven't. >> no, certainly -- >> i am here to take all your questions. i think that scores political points for the fed on this issue of transparency and accountability. >> carl, one thing i would like, she did not answer, she made a point of not answering, she couldn't answer really, looking for specific triggers for what might stop the tapering. how bad, what specifically do you think would have to happen to the economy like a zero job growth month or what for them to stop the tapering process?

>> i think it is going to have to be something extraordinary either on the downside or the upside. i think continuity of regular reductions in their asset purchases has investors locked into a set of expectation that is allow the markets to progress fairly well. i think the fed, she made a hint in prepared remarks looking at efficacy and risks of monetary policy. it is my view that the fed felt for a while quantitative easing has lost some of its effectiveness n the long term she has to be thinking forward years to a process bringing the fed's balance sheet back down to a normal level. trying to take a step off of that track now would be a very difficult thing to do. so i think the bar is high. david: jon, you once asked a very interesting question about unemployment and labor force participation. that is one reason we have bad figures on job creation but the unemployment rate ticks down because a lot of people drop out of the labor force. did you get any indication, she talked a little bit about that

today, labor force participation, that she will take that into account when adding up the unemployment figures? >> yeah, you know. she twisted around a little bit on that. on one hand themost important thing she said on this front in her testimony was that the fed is now de-emphasizing the unemployment rate. they had been emphasizing it. now as it falls they're saying, yellen said specifically today, she have look at other issues. she is looking at things like people working part time who want full-time jobs. and they're not going to make their decision on raising interest rates so much based on how low the unem-- unemployment rate goes. on labor force participation rate, she went in two directions. on one hand, a lot of what is going on is i can call and the fed thinks it can happen. on the other hand she said decline in labor force participation rate is structural and something fed can't really address. i think a lost debate will be going on at the fed over the

next few months of trying to figure out how to assess this job market and how much slack there is left in it. david: carl, forgive me cutting you off. i have to get one question more to carl because we're running out of time. carl, jon and i talked about this a lot. to what extent does the fed take its cues from the stock market? it seems last spring when they were talking about the drop in stock market going down and had this pr effort and seems they're willing to do that less now. a maybe that is good thing. sometimes what the stock market does goes against the employment mandate. yesterday, barns and nobody, job cuts, big announcement, firing a lot of people. stock went up 9% that happin th. >> correct. i think in general since last may's mention of tapering caused a lot of volatility in the market and fed and markets are much better rythym and they would like to say that with. to john's point they have to figure out how communication in the markets to the threshold of

unemployment. to get to 6 1/2%, augment it with other measures or go back in the day when they used qualitative language such as we'll keep short-term rates very low for a considerable period of time. getting that formula right is something that janet has devote ad lot of time to and i think it is going to be one of her first order of business as chairman. david: okay. they certainly like what they did today. jon hilsenrath, good to see you my friend. thanks very much. john tannenbaum, thanks for being with us. >> will do. liz: would you like to get into billionaire warren buffett's buy-and-hold strategy? look no further, right, than the stocks he has held on to for at least 15 years. we are going to give you the list. details ahead. despite what some said, about $50,000 in profits a day, the mobile gaming app flap 3 birdies appeared with -- flappy birdies appeared without a trace.

did super mario kill the bird or was it something else. we talk with the woman who had exclusive interview with the flappy bird's creator and turned tail and ran. ♪ [ male announcer ] e new new york is open.

open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. (announcer) scottrade knows our and iest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets m account follow me online so i can react in real-time. plus, my local scottrade office is there to help.

because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

david: flap by bird, that game on the internet, the founder pulled the come on world's most popular game app even though it bass earning him $50,000 a day in advertising revenue. why would he kill the moneymaker? liz: we couldn't ask him but we have somebody, one person who did. the forbes writer who sat down exclusively with the game's creator. this is fascinating. no one in america can believe that success killed this thing. in america we absolutely love this what was the sense you got

as far as the real reason he backed away? >> well, i think the real reason that exactly what he said. he says that he thinks the game is too addictive to users and it is a negative impact on people. that is why he pull it. liz: he said it was too addictive to users and he started to believe it was having a negative impact, correct? >> yes. david: well, let me just ask you, there was an interesting meeting, by the way you describe your interview with him was interesting because he seemed to be very nervous. he was chain smoking cigarettes. he was doodling. he was sweating profusely. he had a meeting, either before or right after that interview with a deputy prime minister of vietnam. could there have been any concern on his part about governmental interference with what he was doing? >> no. it is not that at all.

before the interview with us he have a meeting with a deputy prime minister of vietnam and he got an encouragement from the government. david: so the government, let me just clarify. the government wanted hill to continue? or they wanted to encourage him not to continue? >> i don't think the government have any specific idea whether he should continue with the game or not. i think it is entirely his decision. he always done it. it just happened today that the government of, deputy prime minister wanted to meet him and, and he encouragement on -- [inaudible] liz: i'm wondering, whether he was worried about lawsuits? there is some word that perhaps nintendo, the owner of the super mario game felt the tubes, we go back to the video, the green tubes which the "flappy bird" apparently have to fly resemble too much the super mario game.

there is a huge machine, a legal machine behind nintendo i'm sure. maybe that frightened him. he said don't even show my face. strict conditions as far as the interview is concerned. >> no, it is not that at all. we asked him to see about that and he says he is not worried at you will about being sued. the reason that he choose not to, to reveal his photo he says he wants to stay like exactly who he is, a game developer. and don't want the public -- publicity. liz: that is fascinating isn't it? david: they already have aunch -@ofmitaore. ey he flay pla,lappy whal appy pguin i d't tinkhosille sed by ninndo. >>hat interting h sai th rsone sto itow,lso wh is havg negiv impt on peoe.

hereoe aed him alsoave a chd to, y kw, to sp e ga becse,hiamav take oreoplsocusg t ch ois ge. dad: wking away fro-- , i w jt gogoayki ns quit something thank you so much. liz: she is the one person who, i guess we just can't believe, but maybe there is nothing behind it except he was worried that it became addictive as a game. david: there were also some questions whether he was getting threats from people who had become addicted to it maybe that is something. who knows. walking away from 50 grand today is nothing. liz: here is something who would never walk away from that, warren buffett. do you want to invest just like warren? up next we break down six names the "oracle of omaha" has a lot of faith in. so much so, he has held on to these stocks for more than 15 years. eelso, yas

time-being. so what will that mean for mortgage rates? is now the time to buy? or to refinance? or will rates continue lower? barry habib, the who knows all about rates, coming right up. ♪ you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and whaif that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪

there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. ybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex.

smoke? nah, i'm good. [ male announcer ] celebrate every win with nicoderm cq, the unique patch with time release smartcontrol technology that helps prevent the urge to smoke all day long. help prevent your cravings with nicoderm cq.

liz: we all know warren buffett is long-term investor but who knew for some names that means more than a decade. 4/7 wall street put together a list of stocks that the "oracle of omaha" has held for at least 15 years. let's give you the name, at leave some of them. american express is a holding that dates back to the '60s. currently berkshire holds 151.6 million shares, worth 12.7 billion. berkshire is the single largest shareholder american express. you bring up coca-cola. that is a name buffett began buying in '98. his stake is worth roughly 15 billion. sure he is coke's largest share holdwer a stake of 9%. m&t bank is not a household name but buffett that is been a long-term holder dating back since 1999. he is fifth largest zare holder 4.1% stake. his shares are worth nearly

$600 million. proctor & gamble has been part of berkshire's portfolio since way back in 1989. buffett is the fourth largest shareholder with a sustaining worth just over $4 billion. david: that is good information. if you buy the stocks you keep the dividend. liz: works for buffett. david: mortgage rates fell to a three-month low despite the federal reserve's taper which a lot of people feared would push rates higher. didn't happen. liz: will the 30 year fixed-rate continue to toward 4% or move in tandem with tapering? joining us with a fox business exclusive, barry habib, he is the expert. everybody thought as tapering began that would be certainly bearish for anybody who wanted to refi. that rates would start to tighten. they have not. >> we talked about this not too long ago. we looked what happened after qe1, after qe2. stocks struggled. that money found its way into the bond market. we thought the perhaps the same thing could happen. saw the stock market struggle

but meanwhile bond price have rallied. 10-year yield hit 2.57 not long ago. we have a target of 2.55. we're close. david: talk about housing, and appreciation ever housing. it slowed up a little bit, but a slow steady appreciation of housing prices is better than jumps we saw in 2013. really much healthier. really 15%, 12% a year. it is very difficult to sustain. affordability becomes difficult, especially when you see interest rates begin to rise. david: that is concern after bubble. >> that's correct. you start to see bubbles. when you look at markets like california had 20% appreciation consecutively, it becomes difficult to see that continuing without some stress on the market and perhaps a bubble. i think 5, 6% level which is what we're forecast something far more sustainable. it's a lot healthier. i think it make as buying decision right now a very, very good one. liz: wait a minute. you're forecasting for when? when will we see the level? >> i think in 2014 a 5 to 6%

level, of course that will differentiate by marketplace. i think that is a pretty safe estimate for the year ahead. liz: now would be time to refinance or buy? >> that's correct. especially buy now. sales is very psychological. sellers have not much action. weather has not been great. super bowl effect. as games get more important, people don't want to be out looking for home. they want to be home, playoffs, super bowl. sellers are not seen a lot activity. now is a good time to make offers. david: talk about mortgage securities. we were talking at beginning of the show what the fed is planning to do. they are tapering as we speak. especially continue tapering they will be out of buying mortgage-backed securities by end of the year of the does that hurt the market? i would imagine with a greater supply, without fed buying all these things they would have to raise interest rates in order to sell them, right? >> it is an interesting situation, when you think about it as a whole, yes being of course it does but, because the amount of mortgage transactions coming to the market has slowed,

we've seen mortgage volumes drop significantly, there's less coming to the markets. so are is less supply. even though the demand has shrunk, it is able to still be highly stimulative even at these levels. david: just make sure i understand this. the fed is not going to be buying billions they have been buying every month. >> correct. david: wouldn't that necessarily mean there will be a greater supply and the price will be worth less? >> except that other factors come in. if the stock market struggles, that money tends to find its way into the bond market. if you see levels of mortgage origination slowing significantly like they have, there are still a market, fund are still buying bonds. people are still buying bonds. liz: barry, how hard is it to get refi or mortgage now? have credit requirements loosened a little bit? you and i we talked about back when i was having trouble getting a refi on a mortgage. i'm no criminal. i have very good -- >> you have grade credit history. but the thing of it is it has become very regulated and there'ssa high level of

compliance. and it is it is not impossible but it is much more cumbersome than what we've been accustomed to. it was at a point, where, heck, you hug up a mirror and approved, right? liz: right. >> we're not seeing that anymore. but it is kind of back where we were perhaps in the early '90s. david: are there any bubbles now? we talked about bubbles but, nobody saw the subprime mess coming. suddenly it was right there. some people did. most didn't. most bought up to the end. do you worry there are any bubbles out there right now? >> people think the stock market is overvalued that could have effect on home prices and buyers mentality certainly. the level we're looking at s&p, double top, 1848. if it goes above that, man it, could continue. if it backs off there, look for interest rates time prove but mentality of buyers to be a little bit more skiddish as they see their statements start to dwindle. david: barry habib.

liz: great to have you. david: proof that good guys end up on top, not necessarily losers. >> you guys are great. david: terrific stuff. thank you. liz: silver has staged its longest short-term rally since august but with the markets making a come back today, could this be the end of investors jumping into what they perceive as a safe haven investment? coming up a silver bull and a silver bear. we're heading into our street fight. david: i love street fights. plus there really seems to be six more weeks of winter as the southeast braces for another snow and ice storm. and atlanta, you know what happened the last time. will it happen again or worse? we'll tell what you areas are going to be hit the hardest coming up next. ♪ [ male announcer ] e new new york is open.

open to innovation. open to ambition. open to boldids. that's y n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. we're open to it. if ...hey breathing's hard... know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment

that helps open my obstructed airways for a full 24 hours. spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even e drops. stop taking spiriva and se immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spirivhelps me breathe better. does breathing with copd weigh you down? don't wait to ask your d.

david: yes, another winter storm, packed with ice and snow started hitting the southeast already. fox news senior meteorologist janice dean has been tracking this storm for us. janice, where is it now? >> hi, david. yeah, first round moving across the south. southern plains getting reports of freezing rain and sleet in parts of texas and arkansas, louisiana, mississippi, alabama but the heart of this ice storm is really going to be across georgia and carolinas. first round moving through right now. this is nothing compared to what they will experience this time tomorrow. really from 8:00 a.m. to 8:00 p.m., atlanta, georgia, you will be freezing rain and ice for many, many hours.

there is 2:00 p.m. wednesday. temperature around 29. that will hover from 8:00 a.m. to 8:00 p.m. freezing rain, ice, in your forecast. could be crippling with and devastating with power outages for days, weeks in this area. unfortunately people need to prepare now for the worst. looking a the future radar, atlanta, mississippi, parts of alabama. really core of the ice will be across the southeast in towards the carolinas. we'll see significant snow as well, really from d.c. up towards philadelphia. interior sections of northeast as nor'easter will develop wednesday through friday and bring significant snow totals to the northeast. we're done with winter already. here is where we are dealing with incredible amount of ice here. half an inch to even an inch of ice which could be crippling and deficitting for this region. then we'll be dealing with quite a few snow totals here. we're looking four to eight inches for d.c. six to 12 for philadelphia.

four to eight for new york and three to six for boston. depending where the exact low is going to form and how close to the coast will mean the cutoff line between rain and sleet and freezing rain or all snow. certainly stay tuned. we'll keep you updated. david, back to you. david: better be prepared. janice dean, thanks. liz: if you can't get salt, kitty litter helps. if you get stuck in the car, i lived in cleveland. david: has a lot of kitties. liz: trust me it works, guaranty you. let's get to silver. i was talking to a couple hedge fund people said we're going long silver. that was couple weeks ago. silver has been on quite a tear following economic concerns and lower stock market. can we expect the silver rally to continue? what better way to find out with a street fight. we have in the bullish corner, rbc capital markets global futures vice president george giro. in our bear corner, scott shellady, bear derivatives senior vp.

let me start with george. this seems obvious at least to some people that silver does not only provide opportunity for investment but industrial play as well. liz: scott, we're working on your mic for a second, scott. let me talk to george. why are you bullish on silver? is there a longer term3 opportunity here? >> i think there is a great opportunity. i think silver could be a turtle in the race now and silver has been lagging but as you said the institutions have started to come back. the open interest in silver has been just steadily climbing. in the last six months at least we've gone from say, 128,000 to 147,000 in open interest. that's a pretty hefty climb. liz: just define to our viewers why open interest is something you look at? >> open interest is very important because when the price goes up, open interest goes up, it means there's new business and new buyers. liz: okay. >> if open interest is up, and,

market goes down, that means there are new hedgers. however when the markets reflect a lower open interest, it means liquidation. so if the market went up and open interest went down like it did in gold last end of the year that meant that any rallies were just short-covering and not new business. people also leaving the market from the short side. liz: let me throw it to scott shellady in chicago. scott, if open is jumping why isn't that a signal to you that there is a real opportunity for a big rally with silver? >> well i think there's a bigger picture here. we saw silver off 36% this year. to sit in the chair not to get long it after recent bumps we've seen in august you might think that is a little bit after mugs game. the reason silver goes up,

number one, store of wealth with inflationary period. you seen cpi, ppi. one thing qe has proven it is not inflationary. we're not seeing inflation that all experts have forecast. number two, it could be something we store wealth in times of like armageddon, store of wealth in really bad times f we really have armageddon i put money in led for bullets, not silver or gold. i don't think the end of the world is near and that's why i'm not getting long silver and i don't think we'll see inflation anytime soon. big picture tells me this. we're headed for deflationary times. $20 silver and 1250 gold. i think those are very expensive for precious metals. i don't want to be long when we go into period of cheaper prices year in, year out. liz: george, what he said. >> absolutely i could see his point of view however look at industrial demand for silver. silver is used for glass, lead,

proponents. proponents of medical world need silver. we need silver for the automobile industry. need silver for lcds industry. silver has two horse, one is industrial deman and investment demand. liz: scott is industrial demand part of the equation to satisfy you? >> that's what we're waiting to see. >> i say au contrare. >> yellen is doing everything she can. markets showed divergence first time. gold stayed up in the triple digit up in the stock market. liz: that's true. >> nobody was real live selling gold but at the same time looking for -- liz: scott -- >> let's not get too excited here. what janet yellen really told us she is not looking at six 1/2% unemployment rate. she is looking at inflation and there isn't any. she won't have to worry about raising rates anytime soon because we'll not have inflation anytime soon, number one. number two, all the industrial things you just mentioned george, will also hint on

something else, maybe oil. last i checked oil is kind of expensive right now. i think oil-for-food program puts damper on a, industrial sector, b, the economy. be careful about deflation dead ahead. >> oil is also inflationary. liz: we'll do this again as price -- >> yeah we left out a lot of important things. liz: george giro -- >> what is today if there is no inflation if. liz: scott shellady. get my mic open. i want to take this guy on. thank you so much. >> thank you. david: i wouldn't put money against either one of them. both those guys know what they're talking about. as the southeast gets ready for potentially catastrophic storm, that is the word they're using, georgia determined to do anything they can to avoid another fiasco like last week after thousands of drivers were left stranded. we're live from a snow truck depot in atlanta to see how they're preparing for all of this. (vo) you are a business pro.

seeker of the sublime. you can separate runway diculousness...

from fashionhat flies off the shelves. and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national isanked highest in car rental customer satisfaction by j.d. power. (natalie) ooooh, i like your style. (vo) so do we, business pro. so doe. go national. go like pro.

gerri: georgia and the carolines are expecting to get blanketed by snow and freezing rain. the georgia governor is not there yet. but already declaring a state of emergency at more than 40 counties. they didn't do well the last time, as you remember. "fox news" joining us now. in atlantic georgia, are they

prepared this time? >> reporter: it appears they are, david and liz. behind me you can see the stage area football georgia d.o.t. trucks loading up on supplies and heading out to pretreat roads before the rain turns to ice overnight. salt has been in high demand with the winter weather across the country. there's a national shortage. but officials say they have gotten a recent shipment and have enough salt for the storm. they are optimistic the early preparations will avoid what happened during the last to hit georgia two weeks ago when people got stuck in traffic trying to return from work and school at the same time. this time arounddschools canceled classes. they are urging people who don't have to be on the roadways to stay at home. but warning folks to prepare for potential power outages as ice storms on utility lines or nearby tree barrage branches. florida power and light are sending 300 workers to georgia to help local utility crews fix

any problems they -- may arise. >> thank you very much. keep us posted. >> thank you. it's time to go off the desk. an error at the illinois gas station causing pumps to self-fuel for a penny a gallon. it only lasted for a couple of hours. word spread all over the social media. cars blocking traffic, like up on the street reach the cheap gas. local police eventually had to use a emergency shutoff valve to stop the sales. >> no siphoning. we asked you if you think investors will hear from janet yell less -- yellen. >> number one thing that we're going to be watching tomorrow is the markets themselves. will the hit four days now? >> or five in a row? you have to watch out. the nasdaq jump dramcally. look th petage eding 192.

yeararr ayinetting itclose tlev he'sconernedf it esn' reac nuber we cou see a crash in the market. let's -- go to "the willis report."

gerri: health low, everybody. right now on "the willis report." ♪ a guide to love and money. on the show today the prenup. and our special guest is former love connection host chuck wool i are. also what is going on with the price of tide laundry detergent. why you're about to pay for more less. after the snow pock lips paralyzes the part of the south. it's about to get hit again. we're watching out for you tonight on "the willis report." ♪ well, before heading down the aisle, a growing number of