this is "nightly business report" with tyler mathisen and susie gharib. brought to you in part by -- >> the street.com. we are an independent source for stock market analysis. cramer's action alerts is home to his multimillion dollar portfolio. you can learn more at the street.com/nbr. netflix beats the stock surges. but there's one number that may matter just as much as if not more than its quarterly results. he's back. carl icahn upped his investment in apple and has pointed words for the company's board as the heat gets turned up on with one of the most widely-owned tech

stocks. crude awakenings. oil is being shipped through the controversial keystone pipeline. it's not just refiners who can benefit but consumers as well. all that and more tonight on "nightly business report" for wednesday, january 22nd. good evening, everyone. netflix dazzled investors today with spectacular earnings after the market closed the company reported fourth quarter earnings 245 far exceeded forecasts, gaining many more subscribers than predicted. in the final three months of the year, netflix earned 79 cents a share. that was 13 cents more than estimates. revenue also topped expectations. and then on totop of that the cy gave a very strong outlook. during tradings days it roh moo-hyun -- rose as much as 1.5%. more on the results and what the company's predicting for the

current quarter. >> reporter: netflix didn't just beat expectations on the top and bottom lines. the key number in focus, streaming subscribers, came in higher than projected as well with the addition of 2.33 million u.s. streaming subscribers and more than 1.7 million overseas. in the current quarter the company says it expects to add another 4 million streaming subscribers worldwide. netflix also says it's evaluating tiered pricing and experimenting what higher-priced service but existing members would be grandfathered in without a price hike. net neutrality would result in higher costs for the company. in a letter to shareholders the ceo said he's not concerned and think it's unlikely that internet service providers will discriminate against subscribers. shares of coach fell 6%

today after an earnings miss during the all important holiday quarter. the problem a substantial decline in sales here in the united states. courtney reagan has more now on what coach plans to do to stay in fashion. >> reporter: another retail for add to the just wrapped up holiday season's bah humbug! list. high end accessory maker coach posted a disappointing holiday quarter missing forecast for profit and revenue. sales fell by 14% in north american stores open at least one year. perhaps the one bright spot for coach is china, where the same metric rose at a double-digit rate. newly installed ceo victor louise said coach saw substantially lower traffic in stores. adding to the broader retail conversation about too many stores and not number customers visiting them. >> people are staying at home, they're shopping on their mobile devices. the mobile internet is a

gigant gigantic secular development killing companies like coach for example. coach is make kind of old-fashioned belts you have to go to the store and buy. nobody's buying them anymore. therefore they got killed on earnings. >> reporter: the holland accessorymaker is undergoing somewhat of a reinvention at both the brand and executive level. the company is working to expand and improve its products, moving more into a lifestyle-brand strategy under new ceo victor louise after long-time ceo lou frankfurt stepped down in december. but analysts think reinvention will be difficult and will take time. time that coach may not have for spare as it seemingly continues to lose market share to rival michael kors. on wall street, stocks ended the session mixed and little change with earnings keeping the major averages in check. the dow ended lower again from pressure on ibm. big blue was the biggest decliner in the index, falling more than 3% after reporting

weak results late tuesday. with that the dow lost 41 points but the nasdaq added 17. that was enough for another fresh 13-year closing high. and the s & p up 1 point. the nasdaq got some help today from shares of apple which edged higher after the billionaire activist investor carl icahn tweeted about a big increase in his stake in the company. but not without sharply criticizing the company for not increasing the size of its share buy back plan. here's icahn needling apple's board to reward shareholders. >> the decision to use a cash order of $150 billion just sitting there doing nothing and not use it to do huge buy backs i think is sort of disgraceful. and i think it's doing a tremendous disservice to its shea share hoerlsd and really to the smaller shareholders. >> earlier icahn surprised wall street by announcing on twitter that he purchased another half

billion dollars in the iphone maker upping his stake to $3 billion. he said he likes using twitter because it makes it so easy to disseminate information but he doesn't like it enough to invest in it. back now to apple. our guest tonight says investors should date apple but not merit. he's chad morganlander and he's the manager at washington crossings advisers. nice to have you on the set. since you're talking about relationships, your fund has had an on again-off again relationship with apple stock. currently you don't have any apple in your portfolios. what gives? >> well, we're rather neutral in the long term on apple. perhaps over the next 6 to 12 months you can get a nice pop in the stock price and perhaps the price goes to $650. but nonetheless, we're more concerned about the outer years and the growth trajectory. let's keep in mind this company's had a wonderful move

from in 2008 revenues of $35 billion now to $180 billion. but the obsolescence of technology and competition should start to kick in. >> it sounds to me like you're hungry for a new product. you are worried that they are going to get surpassed as some would argue they have been by samsung. >> they've had the product, right? and they've enjoyed that over the last three to five years. but now you have the likes of amazon with their kindle, or google with their platform. that's going to eat away at their operating margins and gross margins in the outer years. they're not the only show. and that's the issue at this reflection point. it is cheap, nonetheless, the valuation does make sense. and that's why i'm saying that the price target you could go to 650. but nonetheless, you don't want to own this as think that you could own this for the next five to ten years like proctor a&

gamble or perhaps mcdonald's. >> today there were a number of people making predictions about where the stock could go. some saying it could go to 1,000, this year or next year, then you have all these comments from carl icahn. what do you make of all that in terms of giving some momentum to the stock and ensure investors pay attention to this. >> they certainly could over the short run in the coming months. perhaps you can get that 15% run. but the problem is, in order to create real shareholder wealth, you're going to need innovation and revenues to accelerate again. revenue growth has been dede sell rating into the potential low single digits in the coming years. you need to see that get back into the teens. as well that would work with the buy back. but if you just have a buyback with no innovation or revenue growth.

>> you say you're neutral on it. what would be the trigger that would get you off the fence and say now's the moment i'm going to get in here? is it a decline in price where it becomes more value oriented or what? >> we would look for another generation of instruments and cell phones or consumer products that will really start to gin up the revenue line. we're not seeing that as of yet. nonetheless, you do have clarity over the next 18 months. that's why the stock price target is 650 that i'm throwing out there. but to get this to a point where you get a $500 billion market cap of which it is, to a 750 or $1 trillion market cap, you're really going to need that next great instrument. >> we're going to have to wrap up. real quickly earnings come out on monday. that's always a big event for investors looking at apple. what do you expect? >> i expect them to do terrific. they'll probably be on the top line as well as bottom line and nice run in the short run.

>> chad morganlander, portfolio manager at washington crossings advisers. even after that tremendous run-up in the averages last year, a lot of investors poured money into stocks last week following strong economic reports. the investment company institute says u.s.-based stock funds attracted $8.3 billion into those stock funds last week. in ten weeks. surprisingly, money has also been flowing back into bonds. nearly $3 billion went into mutual fund that specialize in bond investing according to that ici report tyler just told you about. that's a change from last year when investors pulled billions out of bond funds. pink gold was a victim of that trend. 2013 was its worst year since 1994. and then yesterday, pinko's ceo said he's resigning as co-chief executive. what does his exit mean for

pimco investors? >> if you own this right now or you're interested in them, i don't think his departure should change your mind about any of them. even the one that he is currently co-managing. he didn't have any under his belt that were entirely his own. he had comanagers with him who will remain on those funds. so it's still a nonevent even if you own some of those funds like the pimco global allocation fund. >> still ahead, man versus machine. why robots may shape the future of manufacturing in america. crude is beginning to flow freely today as a major portion of the controversial keystone pipeline opened for business.

but will that mean cheaper energy costs for consumers? jack jackie deangeles reports. >> reporter: a tale of two pipe lines. the southern leg of keystone's pipeline bringing oil from cu cushing, oklahoma to -- three refineries are likely to receive some 700,000 barrels of light sweet crude per day. not just port arthur will benefit. the entire gulf coast region could tap into this new supply, giving it greater access to mid continent crude. >> as that oil arrives into the port arthur area, it will now be accessible to about 25% of the nation's refinery capacity because it will be connected by pipeline not only to port arthur but to lake charles and to the new orleans refining centers. >> reporter: the benefit of moving cushing crude by pipe? saves refiners big money. >> the oil sells for around 15 to $20 a barrel less than the

imported crude coming in by ship. the more you can reduce the cost of the crude oil, the better chance you have of seeing savings at the gas pump. >> reporter: the southern leg raises questions about the northern leg, still awaysing washington's approval. it would bring 830,000 barrels of heavier crude oil per day from alberta, canada to the gulf coast. >> we want to replace that diminishing supply of crude with ample supplies of crude from canada. same kind of oil, just from a different place. so that's why we support the northern leg of keystone to bring that oil all the way down to the gulf coast where the refining capacity exists to process it. but canadians are getting impatient with the u.s., saying recently that president obama has punted on the issue. secretary kerry saying last week that the u.s. won't be pushed into making a decision. at stake, however, tens of thousands of jobs to which the administration cannot turn a blind eye. >> the vast majority of people in this area support it. not only does it guarantee jobs,

but it also is vital to our national security. >> hopefully it should bring quite a few jobs. we need jobs around here. >> reporter: whether or not the northern leg of the keystone pipeline gets approval from washington, the industry says that oil will get where it needs to go whether it's by truck, by barge, by pipe or by rail. but remember, recent accidents have put rail transport under scrutiny because of safety issues. >> the united states remains the largest consumer of petroleum and petroleum-based yields. that's not going to change. >> reporter: as we wait to see what washington will do, the southern leg opening today is hail by the industry as a step in the right direction. for "nightly business report" i'm jackie deangeles from port arthur, texas. if you've been waiting for chrysler to go public, your wait just got a little bit longer. italy's fiat, which now has total ownership of chrysler, withdrew paperwork filed back in

september for an initial public stock offerings slated to happen sometime this year. no reason was given for pulling the ipo plans. well, fiat along with some other automakers have a lot more to worry about right now like the safety of their small cars in crash tests. the latest crash tests of mini cars by the insurance institute for highway safety showed that only one of the 11 cars tested received a passing grade in a front end collision. the chevy spark was the only car to earn a top safety pick. the honda fit scored the worst. we begin market focus tonight with a huge after the bell spike in shares of e-bay. the company announcing a $5 billion buy back plan after its earnings beat estimates by a penny. it was also revealed that carl icahn, yes, carl icahn again, owns slightly less than 1% of the company and is nominated two directors to its board. icahn also filed a nonbinding proposal urging e-bay to split pay pal and its marketplace

businesses. the stock initially surged after the close. shares ended the regular session slightly higher at 54.41. american eagle shares falling in the after-hours trade. the struggling teen retailer said its ceo of two years, robert hansen, would leave the company effective immediately. the company named a chairman as interim ceo and stood by earnings guidance it gave earlier this month. shares ended the regular session 2% lower at $14.31. united technologies saw profits plunge 29% in the fourth quarter. the maker of otis elevators and blackhawk helicopters saw profits decrease from last year. still united managed to top estimates. the company was actually helped by a delay in shipping a helicopter order because the helicopters are actually sold at a loss. also revenue came in a bit light. still shares were up slightly to 116.12. totally different story for norfolk southern, the railroad operator said earnings increased by 24% as strong chemicals,

construction materials and auto shipmentses offset a dip in coal volumes. the company announced it will raise its quarterly dividend by 2 cents a share. that sent the stock up to 92.64. shares of general dynamics also soaring today. the military contractor ceo warned of a slight drop in earnings and revenue in 2014. investors shrugged that off, focusing instead on his promise to aggressively return cash to shareholders who buy backs and dividends. the stock popped 4.5% to $99.65. the owner of chili's posted better than expected second quarter earnings on higher sales. new menu items helped chili's increase sales for the first time in a year. shares climbed up 6.5% to $49.72. sears is closing its flagship downtown chicago store in april. it's a move to cut costs and

focus on online retailing. according to a company spokesperson, the store has lost millions of dollars since opening in 2001. shares of the retailer fell slightly to $37.59. some health care changes to tell you about. at target, the retailer announced it will no longer offer health coverage for its nearly 36,000 part-time workers. target said that by offering the insurance it might disqualify them, at least some of them, from the eligibility for subsidies in plans offered through the affordable care act. separately the company announced plans to lay off 475 workers at its minneapolis headquarters and says it won't fill 700 open positions there. as american manufacturing rebounds and profits grow, another trend is taking hold in plants across the country. the rise of machines as robots work alongside humans. the latest wave of robots are smarter and less expensive, allowing small manufacturers to expand and even hire more

people. phil lebeau has more. >> reporter: meet baxter, a small, easily programmable robot now working side by side with the men and women at vanguard plastics in southington, connecticut. >> at the beginning i was kind of nervous. it's the first time i've been working with a robot like that. but i like it. i love working with baxter. he's amazing. >> reporter: vanguard paid $25,000 for baxter, a steal of a deal according to vanguard's ceo who says baxter makes his company more productive by freeing up workers to do other jobs. >> they do not mind the employees on the floor. because they know that that technology is going to help them keep whatever job that they have now. >> reporter: manufacturers have been adding robots and automation for decades. it's made plants around the world far more efficient. it has also sparked a debate about whether or not robots have made manufacturing companies so

efficient they don't need to hire as many workers. in fact, the drop in manufacturing jobs over the last 15 years has happened at the same time the number of industrial robots around the world has surged. >> employment is falling off a cliff. median income is lower now than it was in the 1990s. there are definitely some troubling trend. >> science fiction has long predicted robots would eventually have the artificial intelligence to interact with people and perhaps even think like a person. the makers of baxter say that's why their robot is a glimpse of the future, because he can easily be programmed by workers on the floor and moved into a variety of different jobs. >> baxter paired up with american workers means the overall output of the productivity of that factory goes up because the people are doing the interesting value-added work. >> reporter: the new age of the robot. smaller, smarter, and working closer than ever with blue-collar america. phil lebeau, "nightly business report," southington,

connecticut. and coming up as some of the nation's biggest banks abandon short-term, high-interest loans, an are consumers better off? the bankrupt city of detroit is getting more financial help to keep itself afloat. michigan governor rick snyder announced his support for $350 million in state funding to protect the pensions of detroit's city retirees and to help preserve the city-owned art collection at the detroit institute of art. just last week, a group of private foundations pledged more than $330 million to shore up detroit. some big banks are trying to make things safer for some of

their customers, ending the practice of borrowing money against upcoming paychecks. our reporter has more. >> reporter: need some cash before your next paycheck? now there's one less place to look. traditional bankses are ditching the business of advance deposits, pay day loans supposedly at lower interest rates, culprit regulatory pressure. the occ and fdic in 2013 issuing stern warnings to financial institutions over such predatory lending practices. both agencies argue advanced deposits with their steep interest rates and short pay back windows pose big risks to consumers. many of those consumers would agree. just ask the handful who are suing cincinnati-based fitz third bank over its program. the third service lets the customer take out an emergency loan, up to $2,000, charging $1 for every ten borrowed. the bank then pays itself back no later than a month afterward when the next paycheck hits.

it seems simple enough. banks warn it's expensive credit, up to 120% annualized. but advocacy groups say it's actually far higher since these loans are outstanding for just an average of ten days, the center for responsible lending says the real interest rate, 365%. at the end of this month, fitz third will end is access program. similarly wells fargo, leige legions financial and bank of america. they acknowledge the alternative is risky. >> the customers who value and use these products will have to go to unregulated or underregulated nonbanks and pay more, or suffer their harsh consequences of not being able to get a loan when they need it. >> reporter: that's a big concern given the typical pay day loan customer has less money in his or her account and relies regularly on the programs. eight times a year on average, according to the consumer financial protection bureau. >> what we consider these loans to be is an entrance into a

cycle of debt. again, long-term use, long-term reliance on triple digit interest rate credit. so using these loans back-to-back again and again and again. that cycle of debt leads to long-term financial insecurity. >> reporter: this man used wells fargo's program tweeting the loans quote helped me get through rough patches in 1998. misguided regulation that hurts consumers. a spokesperson for u.s. bank which is also ceasing its program said it is quote committed to finding new solutions that meet the needs of all of our customers and regulators. a common dilemma in a post-crisis kmeconomy. finally, two milestone birthdays to recognize tonight. cnbc the producer of "nightly business report" turns 25 this year. to help commemorate that event, cnbc will nominate a list of leaders, icons and rebels who have had the greatest influence on the economy and business over the past quarter century. to see an initial list of 200 candidates go to nbr.com.

the final list will be revealed in april. as tyler mentioned just a moment ago, the other milestone is about "nightly business report." today is our 35th anniversary. back on january 22nd, 1979, miami's public television station launched nbr. it was the first daily business news program on television. "nightly business report." >> dell frank and linda o'brien were the first to anchor. paul kangus did the stock market commentary and and allen greenspan, a private economist back then was the first regular commentator and continued in that role until he became chairman of the federal reserve. you know, over the years, tyler, there have been so many recognitions, so many awards. too many to mention here. but one of them was partnering nbr partnering with cnbc last year. and as a result, you and i will be celebrating our one-year anniversary. >> i'm ordering the flowers now. what is it march 4th i think.

>> it's been great fun. a lot of fun working with you. >> absolutely. >> that's "nightly business report" for tonight. i'm susie gharib. thanks for watching tonight and the past 35 years. >> and hopefully the next 35 years. i'm tyler mathisen. we'll see you right back here to begin the next 35 tomorrow. "nightly business report" has been brought to you in part by the street.com. founded by jim cramer, the street.com is an independent source for stock market analysis. cramer's action alerts plus service is home to his multimillion dollar portfolio. you can learn more at the street.com/nbr.

♪ hello and welcome to "this is us." i'm beca king reed. this week we're at the emma prush farm park in downtown san jose, a working farm from 1870 to 1969 and a great place to bring kids to get that farm experience. we'll play with some animals, not just these guys, real farm animals and we'll give you a look at life on the farm. we'll also meet two local human rights advocates who spent their lives battling injustice, playwright and film director luis valdez, the man behind "zoot suit" and "la bamba." who grew up near here, the child of migrant farm workers. you'll also meet activist and atrn