brian kelly, jim iuorio, and jim pethokoukis. you know, brian kelly, it is interesting.mbers coming out. the last time we were at the 14,000 mark in the fourth quarter of 2007, price-earnings multiple 22 times. 22 times. right now i think a little bit under 14. is that fair? maybe 13.8. i don't know what the exact number is. the average long term is 15 times. now, that tells me the valuations are pretty reasonable based on profits. >> yeah. and that is the bold case for the rest of this market is valuations certainly aren't stretched. i think if you want to be bearish you could probably look inside a lot of these numbers and find something that might not work. you have to assume that forward -- those forward earnings are correct, which if you look at some of maybe the ibm numbers and the vmware, those guys are saying, listen, corporations are starting to slow down in the fourth quarter. so if you start to look at that and you say all right, maybe earnings aren't going to be that great next year, then the market does start to look a little expensive. >> jim pethokoukis, t

brian kelly, you said there is a news vacuum.anything coming out of this, even if it is obama's tone, which could signal more butting of hefads in congress? >> i'm not going to make any changes, unless there's a shocker out there. but you have to come back and ask if there's a shocker out there, he can actually get anything done, is it a reality or just rhetoric. for me, i'm not expecting much. >> we heard at the beginning of the super bowl, unfortunately, that we had an un, you know, impromptu meeting with the president where we start talking about higher taxes and what not. he's had a chance to throat a few trial balloons already. >> of course, cnbc will air tonight's state of the union address, coverage begins 9:00 p.m. eastern time on cnbc. >>> coming up next, ebay shares nearing an all-time high. but do they have what it takes to keep the momentum going? nobody better to ask than the ceo, john donahoe. more "fast" straight ahead. why turbo? trust us. it's just better to be in front. the sonata turbo. from hyundai. and you wo

we have brian kelly from shelter harbor capital, lee munson from portfolio llc, the author of "riggedreens haus kind enough to stay with us. what the japanese are doing, they are trying to end deflation. in doing so, they are trying to normalize the yen. that's pro growth, pro liquidity. i think it is improving the entire world's stock market and economic outlook oh. take that. >> wow! that's an awful lot to put on the bank of japan and prime minister abe. >> i never even met him. i don't know abe. i don't know a thing about him. >> it's also pro higher interest rates which is the biggest threat to the whole global stock market rally anyways. if japan rates go up, not a giant move in the world of bonds. it's game over for them. they can't afford to pay their bills. that's the danger you have here. when you have a pull-back in the market you have to watch for stocks and bonds going together. >> dan, do you agree with the high interest rate scenario in japan put forward by the great brian kelly? do you agree? >> yes. certainly if interest rates were higher it would be a problem for the

thank you so much, brian kelly. >> forget roses.ot a better valentine that truly wreaks romance. >> and building confusion, we're decoding housing's mixed messages. >> coming up on the closing bell, an exclusive interview with that guy, john chambers. that's a market mover, folks. you will want it tune in. that at 4:00 p.m. eastern. we're back after this. ind the ss to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. there. i said it. they don't have pictures of my kids. they don't have my yoga mat. and still, i feel at home. could it be the flat screen tv? the not so mini fridge? ♪ the different free dinner almost every weeknight? or maybe, it's all of the above. and all the rest. am i home? nope. but it almost feels that way

i i realize that. >> i think the stock market really helped president obama. >>> anyway, brian kelly,e terrific. karen finney, great stuff. john, all joins us for the entire hour. i really am grateful. that's it for this evening as show. thanks for watching. diamonds are a girl's best friend, even if they're heisted. i'm kudlow. we'll see you tomorrow night. i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics.

kelly, good evening. >> reporter: good evening, brian. tough questions were expected, but the real surprise today came in how chuck hagel handled the all-day scrutiny. at times appearing unprepared or off his game. and that's after hagel had dozens of personal meetings with senators, trying to win their support to become the next secretary of defense. >> right up the stairs, sir. >> reporter: chuck hagel would break new ground as the first enlisted man, first vietnam veteran, to run the pentagon. and first cabinet nominee to get the super pac treatment. tv ads against his confirmation. >> chuck hagel is not a responsible option. >> reporter: but it was hagel's former colleagues and even friends who waged a coordinated attack today on hagel's judgment. john mccain seized on hagel's vocal opposition to the surge of troops in iraq in 2007. >> the question, senator hagel, the question is, were you right or wrong. that's a pretty straightforward question. >> well, i'm not going to give you a yes or no answer. >> reporter: hagel knew he who dam

. >> victory for brian kelly. >> that's it? you don't get -- >> no, i decided. >> get sallie back here. >> she's going to love you after that hoya comment. nice. >> she'll never come back again. all right. let's go to brian sullen and you're taking a look at how options traders are playing gis. >> i think b.k. is short-lived on the victory speech here. if you look at the option activity today, we saw a buyer, 500 calls, the april 43 calls, paying 54 cents, so, the option trader seeing general mills trade to the upside, you know, 5%, 10% here, fom lowing their earnings report coming up in march. sort of an earnings play. bull activity here. and have to side with the new warren buffett here, he's outperformed the s&p for the last 25 years. he likes cereal names. specifically post. but general mills very similar. i'm on guy's side here. i'm a dividend lover here. general mills is one of those stocks. >> tie. >> thanks, brian. >> well, you know, the markets are the ultimate arbiter. >> oh, okay. >> we're going to fast fire you guys

we're trading today's action with brian kelly, josh brown, steve weiss and jon najarian. how about that, steve? >> it's normal. markets don't go up in a straight line. we're on the cusp of having the first negative week that we've had since january 1, since the beginning of the year. to me, that's very, very healthy. i still see not green shoots but flowers blooming. we have lots more upside. i talked to steve liesman referencing his, i guess, gauge for how the market is doing, whether it's overvalued. he was talking about negative real rates return. so the fear trade is still front and center. people are still afraid to put money in the market. i bet it loosens up. >> josh brown, is it time to buy stocks? is the economy a little bit better than we all thought? >> i would caution anyone who makes buy-and-sell decisions based on things like gdp. correlation is basically zero. i think instead of trying to time the market based on this or that employment report, focus on what your plan is, what kind of rates of return you need in order to retire, work backwards, when you do

. >> marc, it's brian kelly. so, let's shine up that crystal ball. say we have an '87-style crash. >> i didn't say i have it now. i want to repeat this very clearly. >> yeah, okay. >> i said that if the market continues without a correction to go up until july/august, and in '87, the market went up between january and july/august, by 41%, then i think a crash scenario become s likely. >> okay, so, say we have some kind of correction. i don't want to get into si man ticks. we have a major correction, 10%, 15%, is it a buy then? '87 was a great buy. >> i think if we have a correction of 10%, i wouldn't necessarily buy into the market. i would watch the rebound. because i think there is a very great chance that the rebound will fail to make a new high. >> all right, marc, thank you so much for phoning in. we appreciate it. >> it's my pleasure. thank you very much. >> marc faber. >>> coming up next, in the market for a new home? why you may want to close that deal asap. real estate mogul barbara corcoran gives us her latest read on the housing market. sh

so thanks again to brian and kelly for sending in this great picture of their son. i need more photos so e-mail yours to pics. you can post it on my abc2 facebook page. over to you. ♪ banner yet wave >> it's a safe bet that no one was paying attention to the national anthem no matter how good it sounds at this hockey game. a special guest tried to escape. she proved to be sliptumble and back up. queen victoria bounces around the rink. eventually getting into the condor's penalty box. sounds like that's where she belongs. she eventually goes to the player's tunnel. this was the first and probably the last condor to visit the team. >> no doubt about that. the singer finishes every note. walks away. >> exactly. >>> this morning a family will have to find a new place to live. >> their home goes up in flames as a news crew is rolling on it. incredible video to show you this morning as they try to put out the fire. >>> before we head to break, we'll take live pictures this morning from rome. we have some breaking news coming out of there that we've been sharing with you a

frequent flier mile expert brian kelly says consumers should expect to pay more, at least on some routes. >> because there's consolidation, i do think that, as planes get packed again, we'll see fares shoot up again, especially if oil starts to rise, as well. >> reporter: other airline experts say ticket prices are unlikely to take off as a result of the merger. they point out there have been a lot of big airline deals in the last decade, and yet airfares on average have barely budged. and for those road warriors looking to fly free by redeeming their miles, american's advantage program is likely to remain in place. that's good news for frequent fliers. >> so, american actually lets you make changes to your dates for free. they're one of the most lenient when it comes to miles. so, while u.s. airways might lose some, they might actually get some enhancements, as well. >> reporter: but before loyalty programs can be combined, regulators will have to approve the merger. at least one antitrust expert thinks it's a done deal. >> yes, i think the merger is going to be approved because it's ta

brian kelly checking held the irish into depaul tonight a big rally for the demons in the second halfime but once again jerry comes through to rescue notre dame in extra time, he goes the old fashioned way here and notre dame hangs on in overtime to beat the paul by the final score tonight of 82-78 now for baseball normally when you are talking contracts into spring training finally showing up to training camp but with the white sox that's not exactly the case. robin ventura is starting the second year of a three-year deal to manage the white sox as a rookie skipper so when they recently offered him the extension he turned them down. it's flattering and it was nice and everything but talking to rick, we have two more years to do this we have good communication, everything is fine this is my contract. speaking of contracts the cubs and their probable aides are looking to reach some common ground the shark regis free agency in 2013, he was really good the last half of 2012 and he wouldn't mind hanging around chicago for a while. just a building on the momentum of last season. we're goin

illinois signed 25 players notre dame signed 4-5 star recruits from what brian kelly calls his best classeball facility it will also serve publicly schools they retired his uic no. 28. congratulations. carv [ female announcer ] switch to swiffer sweeper, and you'll dump your old broom. but don't worry he'll find someone else. ♪ who's that lady? ♪ ♪ who's that lady? ♪ ♪ sexy lady ♪ ♪ who's that lady? ♪ [ female announcer ] swiffer sweeper's electrostatic dry cloths attract and lock dirt, dust, and hair on contact to clean 50% more than a broom. it's a difference you can feel. swiffer gives cleaning a whole new meaning. and now swiffer wet and dry refills are available with the fresh scent of gain. [ indistinct conversations ] [ male announcer ] when you wear dentures you may not know it but your mouth is under attack. food particles infiltrate and bacteria proliferate. ♪ ♪ protect your mouth, with fixodent. the adhesive helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. ♪ ♪ fixodent, and forget it.

. >> brian kelly? >> europe is not fixed.an you short it. >> that does it for us, catch fast at five tonight. tomorrow, broadcasting from goldman sachs and internet conference. thank you for talking real estate and markets with us today. follow me on twitter. poufr "power lunch" begins right now. >> the second half of your trading day begins now. >> iphone, ipod and ipad. but how about an iwatch. apple doing what it did to the cell phone. will it indeed be another game-changer? >>> us airways, expected to an announce their highly anticipated mer anticipated merger this week. >>> a down day for stocks but of course we've add big run. is it a pause, pull back or do we rally on? we will ask credit suisse's leader in private banking. >>> indicies are up. 18 stocks are down, led by home depot. but only by a fraction. down 1%. a move in that stock of just 1%, so in essence, sue, we are kind of hanging on in thereafter that big push through january. back to you. >> thank you, very much, simon. 5 lflt b a lot of big news in apple tod

. >> meanwhile, "lockup" director of photography, brian kelly, is covering jones as he processed outthe prison. >> there you go. take your i.d. with you. have a good one. >> appreciate it. >> good luck. stay out of here. >> it was very typical of what we do on a release. the paperwork, the processing, making sure they get their money, changing out the clothes. and very interesting stuff. but one of the more enjoyable elements of lockup for me is when i see the second camera footage. to me it's always great to see that other side that i wasn't able to see when we were actually filming. >> what's the first thing you're going to do when you see junior? >> as releases inevitably move slowly, the segment producer tracy powell found herself outside the prison with a new responsibility. >> i was entertaining the children by sort of running around the car with lexi and having her chase me around. >> but powell soon got some unexpected help. >> two dogs appeared out of nowhere. they came up to the vehicle where we were standing by. they let us pet them and got really comfortable around us and

brian kelly, you are first. >> yeah, i still like the agricultural space. it here. >> linkedin. i think there will be some dips along wait and she goes higher. >> steve weiss? >> qualcomm. this is one of the first quarters that after the stock popped, a great quarter. contingent to move higher. stealth but will hit new highs in the short rum. >> dr. j? >> avago, lit up on our heat seeker today and we bought it. >> how about the nasdaq. nasdaq is poised to close at a 12-year high. if you want it keep an eye on that. weiss, that has to be a bullish sign for the overall story, right? if technology hasn't participated that start to. >> exactly. so many people in bearish technology. it is great you point that out. nasdaq is associated with tech. i would continue to buy the quality tech names. >> that does it for us. have a great weekend. power start now. >> halftime is over. >> "power lunch" and second half of the trading day starts right now. >> it does start right now. and the rally lives at least for now, major indexes wiping out losses for the week. s&p 500

. >>> the good, the bad and the ugly starring our own brian kelly.ooking forwards japan for a trade. here's what he said. >> i would actually go over to japan. and look at japan. because they certainly are going to have to print an awful lot of yen. great for the stock market, dxj, a name i've talked about. short yen, long japanese stocks. great trade. >> nice call here, bk. shares of the dxj popped 21% since then. what do you do now? >> i think you take profit. i think it was the end of january said to take profit. so i would probably -- left a little on the table here. i think this trade works for a long period of time. but right now it's pretty extended. >> now into the bad. just last week, bk donned his bear suit, the one that zips up the back for a bank trade. take a listen. >> you know, what's not working, i don't think here, bigger banks. barclays in particular, i would be short. ltro loads being paid back and banks selling off the bond. >> getting a big pop this week on news of a restructuring plan. how do you manage this? >> yeah, hot in the

. >> hey, barry, brian kelly. i'm curious. we had a 30-year bull market in bonds. now everybody is talking about bond markets selling off. we know that when rates go higher, when either the federal reserve raises rates or go higher, it's tough for the economy. why would bonds selling off be good for the stock market? >> well, a little bit of reinflation is confidence. and it good. the market wants the yields to rise as a sign that deflation has been avoided. if you did a chart of the ten-year yield for the last 25 years, we could rise almost to 3% before you'd even consider breaking the down trend. this market's been in a bull market for bond yields for about three decades, so, 3% is just top of trend. >> barry, let's assume you are right on 1600. which sector will get us there? i mean, if i had to put a dollar to work right now, where would i put it? >> energy was our, one of our favorites. we've liked financials as the rally broadens out to smaller and mid-cap financials. banks, brokers and so on. the big banks and big brokers already had a nice move. we also had

we have brian kelly joining us now.t, i mean, a lot of us are frequent fires on american airlines or u.s. airways. >> do not panic. there will be big changes. everything is fine. we have seen in past mergers -- sandra: united. >> there will be some road bumps. airlines have terrible it. sandra: it could be messy. >> you should review all your miles. there is still great mile to be had. american is with one world. they have 12 different global partners. u.s. airways is a current star alliance member. i just used 110,000 air miles to go to south africa. when they finally merged the two frequent flyer programs, my guess is they will keep those higher levels. sandra: if you are a frequent flyer, you may be saying, hey, at least i am already on board on what is the largest airline in the world. >> one of the things to look into is the elite status. american gold wires do not get upgrades, but u.s. airways do. they do not want to make people angry. sandra: the upgrade on u.s. airways sales in upgrades on american. dennis: all

kelly? >> for the latest, you can follow brian on twitter at brian at abc2 and you can get the latest first by following abc2 news at abc2 news. >>> the university of maryland student who was shot in college park has been identified as 22-year-old neal oa. oa's step father said he was shot by his roommate dayvon green. he set a small fire in his off campus room. they woke the roommate. green pulled a gun from his waistband and started shooting at oa and green's other roommate, stephen stephen rane, who was killed. officers found the gun next to green's body along with baseball bat, machete and semiautomatic weapon. >> we have more on maryland's gun laws and proposed changes on the way guns are sold when it comes to people with a history of mental health. >> reporter: the gun laws are for those not competent to stand trial.law. yesterday's shooting the gunman, 23-year-old dayvon green was diagnosed with what they called a mental illness and had medication. those who receive mental health privately do not show up on the radar. he worked on the government's task force which came up with recomm

brian kuebler is live downtown with what piece of evidence they were looking for. >> reporter: kelly, deliberations will go into its third day as the judge sent the jury home since we saw you at 5:00. before they broke jurors asked to see video of michael johnson buying that blue tote in question and the other was the sex video. the sex video depicts phylicia barnes, her sister deena barnes, michael johnson and his brother. what it means, that the jury asked to see it again is anybody's guess. it was, however, the first time anyone heard from the jury. meanwhile, members of both families remain in the hallways waiting for word. phylicia's father remains confident that the jury will find johnson guilty for his part. it was michael's 29th birthday today. deliberations will continue tomorrow morning at 9:30. reporting in downtown baltimore, brian kuebler, abc2 news. >> if you want the latest breaking news, sub scribe to our rake break alerts and also twitter at abc2 news. >>> weather wise, we're looking at a few snow showers. some of this melting and coming down in the form of a rain sho

brian sabian, checking out gonzaga. coal dickerson, a three ball. they tied up the zags late, but kellyt too tough. 26 points for kelly olynyk. no. 5 team in the nation wins by 10. 71-61. >>> st. marys, looking to bounce back after losing to gonzaga a couple nights ago. jordan picked up the slack. gaels actually outscore them in the second half. steven got the friendly roll there. st. marys wins it 61-50. stanford hosting ucla at the farm. ucla, all over them. shabazz muhammad finishes the break. he had 25. stanford loses 88-80. they're 6-and-7 in the pac 12. >>> got a little tennis for you. sap action from hp pavilion. tommy haas, far daughter. he would finish off his man, john isner. won the first set 6-3. and then got the unforced error to win this one. he'll advance to the finals against milos raonic. back in a moment. through presidents' day, get 36 months interest-free financing and save up to $500 on beautyrest and posturepedic. get a sealy queen set for just $399. even get 3 years interest-free financing on tempur-pedic. plus, free delivery, set-up, and removal of your old set.

kelly o'donnell, nbc news, the capitol. >>> that's our broadcast on a wednesday night. thank you for being here with us. i'm brianliams. and we hope to see you right back here tomorrow evening. good night. >>> right now at 6:00 flags fly at half-staff at police departments around the bay area as these departments mourn the loss of two santa cruz officers killed in the line of duty. and tonight we're learning new information about the man behind the deadly shoot-out. good evening, everyone. i'm janelle wang in for jessica aguirre. >> and i'm raj mathai. there are many new developments in that deadly shooting in santa cruz. the accused killer was a military man who recently lived here in the bay area and the officers who died leave behind family and the community both in santa cruz and beyond is uniting at this hour. we've a series of reports from the coast this evening. kris sanchez has more on the officers killed in the line of duty. but we begin with nbc bay area's marianne favro with details of the ongoing investigation. marianne? >> reporter: raj, this is are where the suspect, jeremy goulet, was shot and kill

brian sabean is watching usf against gonzaga. his son goes to usf and they tied the gonzaga bulls twice in the second half. but no answers for this fellow here. kelly olnek. 26 points for him. gonzaga wins it 71-61. >>> and now to the pac 12. matinee game. stanford and ucla. and stanford trying to stay in it. that's chasen randall with a three ball but the bruin broke it open in the second half. mohammed excuse me. nitis low post -- nice low post move and ucla takes it 88-80 and now 6-7 in the pac 12 is stanford cardinal. >>> and this one folks, is for lionel messi fans, best soccer player in the world. barcelona wins 2-1 over granada. number 300 and that was number 301. look at that. yeah he can bend it a little bit better than beckham can't he? >> wow just looking at him like huh just what happened? >> no reaction time. >>> well, a flight one couple will never forget after accidentally leaving their ipad on the plane. how they were able to track it down and the person they caught shocked them both. that story and more tonight at 11:00. that's going to do it for this edition of cbs 5 news at 6:30 -- eyewitness news at 6:30. we'll see you later at

kelly, how did that happen? a swing and a miss by congressman engel. >> and he has been waiting for hours today, brian. we are told he gets more reaction from constituents about that moment than a lot of other things he does on behalf of his district here. you pointed out, there are coveted roles here to play. people know this is a highly watched moment. we saw a couple of the new faces, joaquin castro, whose brother, the mayor of san antonio, julian cast rock a big star at the dnc convention. he was there. you get a sense this was a moment where people can make a connection, that they hope will elevate their sort of level of exposure. there is sheila jackson lake. the president is well versed on who sits on the aisle and i guess he was making his own choices about where to extend his hand this time around. >> i guess so. we keep showing the picture from the first lady's box. we want to let you know, the woman on the screen left as you look at the picture is hadiya pendleton's mom, the 15-year-old killed by gun violence in chicago. the first lady just attended her funeral, and her name is cleo patrick

kelly, you're the managing detector for product of the year. thank you for sharing these with us. >> thank you very much. >> alisyn: let's go over to brian.it was like a scene out of armageddon. watch this. (scream) ten times and it ex plodded in the sky, injuring hundreds of people. janis dean is here with how in the world did this happen. then, did you jump out of an airplane? it's not as scary as you might think if you get to jump with the air force. ainsley earhart did it. oh, my gosh, what that girl will do for her craft. we're going to join her straight ahead. ragu for years. [ thinking ] i wonderhat other questionable choices i've made? [ club scene music ] [ sigh of relief ] [ male announcer ] choose taste. choose prego. i work for 47 different companies. well, technically i work for one. that company, the united states postal service®, works for thousands of home businesses. because at usps.com®, you can pay, print and have your packages picked up for free. i can even drop off free boxes. i wear a lot of hats. well, technically i wear one. the u.s. postal service®, no business too small. woman: what do you mean, homeowners insura