. >> hi, everyone, welcome to on the money. i'm becky quick. the economy feels the deep freeze. the markets are hot. why the bull run may not be done yet. time to buy, sell or hold when it comes to housing. the state of real estate and the bottom line. bizness of basketba the bizness of basketball and hate him or love him. and whether the league can plan the success of a slam dundunk. >> now, becky quick. >> a look at what is making news. we head into a new week "on the

money." the latest report card. the grade is far from an a. it shows slowing growth. gross domestic product for last quarter 2013, showed growth of 2.4%. down from initial read of 3.2% a bout what economists expected. numbers weaker for exports and housing. gdp, broadest measure of the size and strength of m economy. the market continues to chug along. thursday, the s & p, closed above 1850. dow and nasdaq up as well. below all time highs. stocks were mixed friday. new federal reserve chair, janet yellin said the economy softened in recent waekz haeeks. yellin said it is likely the fed will slow down the bond buying program. and, earnings this week. macy's home depot, target, best buy. sears lost less than expected. and luxury automaker, tesla is

revving up. four sunbelt states in contention for a plant to build batteries for its cars. 6,500 jobs at stake. nevada, arizona, texas. yellin speaks. economy cools. markets don't. how does it affect investments. joining us, nick collis and scott clemmons. thank you both for being here. >> thank you. good morning. >> we heard gdp numbers for the quarter were worse than we were expecting. does this matter? is a backwards looking number? >> backwards looking number. it does base line expectations for how q 1 is progressing. for controversy about weather and impact on the economy. useful to see the economy is quite slow. >> you think the e skon conomy worse than the weather is

letting on. >> slow growth economy. when that happens. we get a lot of pulls and tugz -- pulls and tugs on the economy. choppy. in for a year like this. kind of slow, choppy, growth. >> not a great, not, thing for the markets or for anybody frying to work in the environments. scott, you agree with the assessment? >> i do. more of the same. surprised at preliminary release of fourth quarter gdp. this doesn't strike me that the revision is negative. more of a -- back down to an economy that is growing along at a modest pace. it has been doing some time. >> how do you think janet yellin did before the senate? >> sunny dhe did her job. following in footsteps of chairman bernanke. carrying on with new tradition. the way she talked. the way i expect the fed will continue to talk about changes and quantitative easing, tapering, likely changes in interest rate policy.

will soften the beaches so to speak for when interest rates rise down the road. >> nick, what do you think about the fed's tapering program? slow douvewn of the bond buying program. at the right speed? will it continue? >> it will continue. the right measure. the federal reserve understand q 3 had a role in 2012 and 2013. the role is gone. have to get back to normal. move back towards normal. great first step. >> we spoke with saint louis fed president this week. the thing he said that was interesting to me. he originally thought that 2014, in december, thought 2014 would be the year they raised rates. he said this week that he will probably have to reassess that. he is looking at early 2015. does that sound right? >> it does. supposed to be a breakout year. it is clear we are still moving along in the first maybe second gear. we are nowhere near third, fourth, fifth. slow growth. 2, 2 1/2% tops for the back half of the year. >> what are you telling

investors snow. >> same thing. the fed is very much focused on the two mandates. one is price stability. inflation issue. that's well in control of the fed's opinion. they don't worry about inflation. that means they can keep all their fire power focused on the other part of the role, the lay bore market. despite of the unemployment rate closing in on the threshold of 6.5%. set earlier. when you look under the hood of the labor market. there are weaknesses still there. labor force, participation rates, long term unemployment. the fed doesn't want to run the risk of that turning down again. >> we did see the s & p 500. push above the highs it closed atened end of last year. struggling to get there. finally, above 1850. does this tell you the bull market has room to run or on its last legs here. >> a bit on the tired side. beginning of last year, we had a 14 times earnings market. it was not a lay-up. nothing ever is. fairly straight forward. gift us to the 1800 level.

this year coming into it, 16 times multiple. still relatively affordable. nowhere near as cheap. more volatility. still move higher and with a lot more churn. >> nick, one thing i have seen with retailers coming out with earnings. this idea that we have slowed down in january, february. but we are hoping that, with the return of warm weather, the consumer will come back too. is that just a pipe dream at this point? you think it will speed up a bit. >> speed up a little bit. things have been choppy and tough. face it the economy is in the slow growth mode. any notion of demand. where people are saving up. getting ready new go out. the first warm day of spring. spend money. is a bit of illusion. >> scott in terms of people who need income from the markets. who are investing for income. what do you tell them? >> income is tough, hard to find. we are cautioning our investors. not to reach too far for a yield by lowering their standard on credit. or by going too far out in the yield curve. longer duration, fixed income.

ri risks associated with efforts are not compensated by incremental pickup in yield. a lot of clients are sitting on high quality, short term, fixed income. essentially cash equivalent. but the option value of that liquidity has an appeal if nick is right. i think he is. that we are in for a market with volatility. gives people the opportunity to take advantage of the volatility rather than suffer from it. >> scott. nick. thank you for coming in today. >> thank you, becky. >> up next. touring the health of the housing recovery. in neighborhood across the u.s. what higher prices in some cities mean for momentum, mortgage rates and your money. later, the nba's biggest advocate. turned night a crossover success. talk to david stern about his legacy and the nba's drive for growth. right now, as we head to a break. take a look at how the stock market ended the week. ♪ it takes two to make a thing go right ♪

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>> and consumers spend $2 trillion a year on housing, recovery has been key to broader stability. after years of increasing home values, some numbers out this week could signal the best of the good news is behind us. david blitzer managing director of the s & p, dow jones indices, and a guest that is a contributor to a housing site. >> and it came out this week, housing had a strong 2013, up better than 11%. but the numbers seem to indicate there is some sort of slowdown in momentum. what is really happening? >> if you look month to month, the first half of last year, went straight out. and the second half of last year. flattened. drifted down a little bit. and as we look at all of the other data that has come out. housing starts have been soft. existing home sales are soft. new home sales for a surprise. but across the board, there is a

lot of softness, a lot of indicators. prices are up. 10, 12, 13% the last year. that in itself is likely to, hamper the market. mortgage rates are up. better than a full percentage point since last may. everything points to continued growth. but at a much slower pace. >> how much the most recent numbers you think are the effect of the weather. just housing starts. hard to have housing starts when there is snow all over the country. >> all of the data, seasonally adjusted. got a beg juig jump in january. one built an out house in maine. seasonally adjusted. the weather is an impact. not all weather. we have been seeing this pattern, since probably -- august to september. so-- the weather was wonderful back then. we had forgotten. >> what, what, does this mean for the consumer in terms of all of this. mortgage rates kicking up. affordability coming down. >> still a good time to buy.

mortgage rates are low. and expecting they'll hit 5% by the end of this year. affordability is high in most major markets. not all markets. most markets. also more inventory coming on the market. more new construction. fewer underwater homeowners. buyers well have a lot more selection. inventory a problem. not all that much to look at. and they're also going to be up against fewer investors in the market. they retrenched. buyers are going to have a little more wiggle room in terms of price. may not have to be as aggressive. great time to buy. i guess we have to go through this on a market by market basis. the idea of looking at this as national phenomenon. probably not -- >> where are the good markets and bad markets. both of you? >> it is in terms of where the rebound has been. san francisco, leads the way. prices have surged inskredabcre. where the price rises may be having an impact. that's clearly one. the big surprise is phoenix, las

veg vegas. two of worst hit sunbelt disasters. and -- i guess the sun is shining more than anything else. and, so on. at the other extreme, probably supply is an issue. is the -- more traditional industrial areas. cleveland, chicago, and northeast. >> too much supply? >> no, where it's -- it's not that much land. it's harder to build. and so on. so you really can't have the kind of burst. >> and looked at some of the hottest markets, hottest, as characterized by lower than average unemployment. pop laegs growulation growth, 2. past two years. and home value appreciation, expected over 2% over 12 months. on that, list are places, austin, san francisco, seattle, boston, portland, jacksonville. miami. >> north dakota. >> seriously. >> lowest up employment rate.

in the country or the world. >> call it buyers or sellers market at this point? >> sellers are up against challenges. last year they called the shots. there wasn't a lot of competition. so i feel look sellers are going to be up against competition. home values go up. want few get in the game. they're not going to be able to call the shot like in 2013. buyers are in the drivers seat for now. for now. >> very strange thing about homes, housing, and the market in particular. that is all most everybody seems to feel good when the price goes up. it makes no sense. because there are two side in every market. but, not only in the last, seven, eight years, boom and bust. but, consistently home prices are rising. people feel good. maybe it's because -- most homeowners aren't about to sell. they just feel richer when the price goes up. >> had a good year last year. recuperated 1.9 trillion dollars. no one is expecting that appreciation this year. much lower rate.

>> i would agree. the tenor of the way people feel. what attracts people into the market because most of them will buy a house, another house, bigger house, not a small one. we all talk how somebody has to sort of scale down. nobody ever seems to do that. so, the rising prices from last year, iadded optimism in terms of the housing market. that will keep it rolling. whether buyers or sellers do better. not sure there is an absolute rule. >> want to thank you for coming in today. >> thank you. >> up next. on the money. reaching $5.5 billion in revenue. has the the nba real itized its hoop dreams. and th

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>> the nba is a multibillion dollar business with a worldwide fan base. many say thanks to commissioner david stern who just stepped down earlier this month. so how was he able to rebrand the nba into an international success. is more growth in store for the league. joining us right now, former nba commissioner, david strn ern to reflect on his hopes for the future. thank you for joining us. >> thank you for inviting me. >> you have had a phenomenal run with the nba. more likely the nba has had a phenomenal run with you. you turned this into a 55, 5.5 billion dollar revenue brand. and in 30 years' time.

amazing growth. how did you do it? can they continue growth like this? >> the answer is can they continue, yes? under commissioner adam silva, the growth will be astounding in my view. the way we did it, was learning from every other, every other corporation that was doing business with, it was a best practices -- assault by us. when coca cola made the point. i think very effectively that most of their profits were going to come from outside the united states. when, television began growing outside the united states, when american brands began to be accepted on a global basis, we used to sit around and say, wait a minute that could be us. >> is that what you were doing watching what was happening in business saying we could do the same thing? >> yes, we were unimaginative. we copied what everyone was doing. some times saying, no, no, we will not do that. not a good idea. >> what's something that was not a good idea? >> we never wanted to have

manufacturing facilities twhet owned. we figured licensing was a better idea. we wanted them branded products. we thought we could do quality control in that way. so we, we did have enormous growth from say, let's say, $40 million of retail sales to $2.5 billion of branded products that we worried about. no countries being recipients of television. now we have 214 countries. >> i wonder where the growth comes from now. you seem to be everywhere. the nba is ubiquitous around the globe. >> the growth comes from the delta here. between -- where we are in the market. and what the potential of the markets are. and even though we are, we had a success, 85 or 90% of it is

domestic. market by market. china is a huge market. you can sell a lot more nba merchandise, the chinese market is growing -- with respect to advertising revenues. if you look at it country by country. there is enormous growth left and all of the sectors in which we operate. >> let's talk about the television rights here in the united states. the next time the contract comes up. do you think they should stick with their plan to have the abc/espn, tnt or nefl breakdown you give some to each of the broadcasters. >> interestingly enough. given the modesty of the nba versus the strength of the nfl we now have three -- three, you know, three, three big broadcasters. abc, espn, tnt. what we have with the nfl does not have is enormous rights

deals at the local left. we have 30 teams. and the models are different. the one thing i am confident about. the commissioner, silver -- is going to have a good time. negotiating renewal of expiring contracts. the nba is the last big one that is left up for grabs. that will be a good thing. for the value of our fran choose its. and for the salaries of our players. >> true. let's talk about some of the players. the brooklyn nets signed him. the first openly gay player in the nba. what do you think about the move. does it surprise you? something you expect to see more of? making too much big deal about this? >> last point. made too much of a big deal. if i can drop, drop, a name, i would had dinner at the white house two weeks ago. i saw jason. he was sitting down. at a cocktail hour. i said jayston you better get

up. if you think you are eligible for a ten day contract. you've better stay in shape. so i, i -- e-mailed him two nights ago. guess you were in shape. i think it is terrific. we should talk about the fact that the nets really need a seven footer who can bang and give away six fouls and do what he has to do in the middle. i am sure there will come a time where it will be, a nonissue. >> i know you haven't had a lot of time to reflect. looking back, what are things about your legacy. most proud about. you wish you had done. didn't get to. off awe i've don't like the word legacy. as i have been reflecting a little bit. people forget when magic announced he was hiv positive, we, we were a country with, that was ignorant about aids. and a boy in indiana, ryan white, kept out of school because the he was, hiv

positive. because of of a transfusion. and magic and with a little help from us, changed the debate on hiv and aid around the world because of a beloved face. i reflect back on that as, sort of, something which told us -- sports really does have something to teach. >> commissioner stern, can't thank you enough for your time. appreciate you being here. >> thank you for having me. >> up next, a look at the news this week that will have an impact on the money. and the investment paid off better than the market in 2013. of course you had to lose something before you've could make money in this case. when we come back, the tooth fairy puts her money where yorm mouth its. >> hi, are we still on for tomorrow? >> tomorrow? [ male announcer ] pillsbury grands biscuits.

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>> for more on our show and guests go to our website. you can follow us on twitter at "on the money." the stories coming up that may move the markets this week. monday, motor vehicle sales for february are due. also monday, the ism manufacturing index tracks the strength of the sector will be out. tuesday millions of an cans will be celebrating mardi gras, fat tuesday. tuesday, president obama announces proposed federal budget for 2015. wednesday federal reserve will release the beige book, compiles anecdotal information about u.s.ic noming conditions. friday big number of the week. the jobs report. finally numbers to really sink your teeth into.

the tooth fairy hit a high, $3.50 per pearly white. that is more than a 44% rise over the previous years, $2.42. in fact, the tooth fairy outperformed the s & p 500, had a great year last year. of 29%. that's right. $3.50 a tooth. light years past those that remember a quarter a mole lar, that's our show. the oracle of omaha next week himself, warren buffett. ♪ ♪ turn around ♪ every now and then i get a little bit hungry ♪ ♪ and there's nothing really good around ♪ ♪ turn around ♪ every now and then i get a little bit tired ♪ ♪ of living off the taste of the air ♪ ♪ turn around, barry ♪ finally, i have a manly chocolatey snack ♪ ♪ and fiber so my wife won't give me any more flack ♪

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