mary thompson is monitoring a conference call. mary? >> a couple of comments here that are of interest. let's recap. the company earned $1.09 a share, excluding $895 million in charges it's taking in the third quarter. revenues in line of estimates. on the call, the company ceo says, just giving some color on the holiday spend. it said prior to this holiday season, it had the highest single dale of transactions back in december of 2011. well, this holiday season, it exceeded those levels, not once, but 12 times during the holiday season. as far as single day authorization, suggesting strong spend by its clients, in fact, overall, client spending was up 8% in the fourth quarter. he did say that the environment remains challenging, but the company's overall core results remain strong. he went on to talk about this restructuring that's taking place, again, including those 5,400 jobs that melissa mentioned that are being eliminated. he said they are shifting a lot of their services for their clients online and that allows them to cut jobs.

let's go to mary thompson on the floor of the new york stock exchange for a quick update on the market? >> hi, tyler. vibration is still down here from the battle of the titans you guys are looking at. the positive tone is maintained despite continued weakness in apple which dropped to 52-week low. the nasdaq is move together upside. the blue chip index up 55 points and proctor and gamble with the numbers followed by j.p. morgan and better than expected earnings. revenues were a little light. home builders higher, can despite december new home sales coming in below expectations. keep in mind, november were revised higher and for the year, overall sales were very strong. again we want it repeat, we have seen this over the last week. it continues. record levels for dow transportation average, they continue today as well as record levels for the russell 2000. dow is up, looks like it will make it, what, 11 out of 12. tyler, back to you. >> seema mody following big movers there, including apple of course. seema? >> definitely, apple, tyler. investors feeling the pain here. . keep in mind t

her name is mary thompson. mary's coming to us from miami.ing, mary. >> reporter: good evening to you, larry. wish you were here. it's been a great weekend. >> actually, i wish i were here too. i want to ask you, is god on notre dame's side tonight? how do you handicap this? >> well, the other night on notre dame's side -- so that for sure. >> how is the alabama side? in fact, step back a minute. what's the whole atmosphere there? is it tense? is it playful? is it just excitement and enthusiasm? how do you read it? >> just to give you an idea, there were two pep rallies on the beach in miami on saturday night. just to give you an idea of how enthusiastic the notre dame fans are, at least. 1,000 alabama fans showed up for their pep rally. 15,000 notre dame fans showed up for theirs. i can't really speak to alabama, but the feeling here is one of excitement and confidence. >> all right. enjoy. enjoy. good luck for you. brian shactman, one other thing. notre dame is not in a league, right? so a game like this is a massive financial importance. >

. >> mary thompson with a market flash. >> taking a look at shares of united technologies, come off the the day. this as news pratt and whitney engine making unit has received a contract from a brazilian air manufacturer to provide engine for new regional jet basically replacing former provider of that engine. ge, former parent. sue, back to you. technologies off the low. >> thank you, mary. back with andrew, senior portfolio manager and managing director of morgan stanley wealth management. you have some stocks on your radar screen right now because so many stocks were really thrown out in december. you find that they are a good value. what are they? >> when you think about it, what a great strategy. buy companies doing well fundamentally, have reasonable evaluations. for one reason or another, giving you an opportunity to step in at a good price. that's what happened to a lot of companies doing very well. so i like stocks like amgen, watson pharmaceutical, texas capital bank shares, three different, one mega, one large, one midcap all doing very well. they underperformed the market la

let's get over to mary thompson.right. tomorrow actually coach will report the results tomorrow. right now, the shares are down 2.1%. clsa cutting the rating to outperform from buy. also lowering the price target as well to $71 from $79. there are concerns that coach is going to report slowing sales in the top market tomorrow. that being north america. earnings right now expected to be $1.28 a share. up 9% from last year. this according to analysts surveyed by thomson. >> look at facebook spiking higher. inching ever closer to the $38 level at which it went public. a lot of discussion about how much resistance is here in the 30s. should you buy now? we'll break down all the headlines when we come right back. this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. [ male ann

thanks so much mary thompson. capital markets op-ed this morning gary k.arket expert who says your best bet for the next two years may not be in stocks. hey, gary. >> good morning. i am joined here on the floor of the exchange by shelly bergman managing director of morgan stanley which shelly runs about 3.5 billion for clients and was featured recently in a feature piece where he talked about how he's been bullish and yes shelly as viewers know, we've cited some of your work for the last several years you've been telling people to be in stocks when things look like they were at the absolute worst in 2009. you made people a lot of money but we're running a ticker right now looking at basically the distance between the s&p and where we were at the '07 high. is now still the time for people to be putting money into equities? >> definitely. look, i don't know where the market is going in the next month, two months, three months but you look out to 2014, i think it'll be substantially higher. i don't want to put a particular target number on it but we talked ab

mary thompson here with the fallout. what's going on, mary? >> well, this is going to impact morgan stanley's top earners. all employees both cash and stock will be deferred. if their total compensation is more than $350,000 and the portion of that boy news pay exceeds 50,000 dollar. the exception the managers who work for the brokerage been. business. it has nothing do with the sentiments presented by the hedge fund. while it expressed confidence in management it said it was concerned about pay levels. another 25% in 2014 and the last part in december of 2015. but the equity portion, the remaining 50% in 2015. overall wall street bonuses seen up modestly this year, though increasingly mormon is going to be going to the far performers with the troops getting smaller payouts. >> that's right. it depends if you're a top earning. the troop levels, rank and file is going see their pay cut somewhere. >> all right, mary. thank you very much. good to see you. >>> all right. some conflicting reports on retail this hour. can commerce says retails did c

mary thompson here with the latest on that. >> good morning.beat estimates and met margin goals for 2012, repeated they'll expand by another 70 basis points next year and reported record backlog for industrial orders. last quarter the conglomerate reporting operating earnings of 44 cents a share. for the second straight quart earl units reported improved profitability led by healthy gains in aviation and oil and gas units. profits of its financial unit rising 9%. the ceo saying ge delivered in a mixed global environment and forecasts in china and other resource rich countries will help the company while noting the uncertain fiscal environment in developed economies. carl? >> all right. mary, a lot for you to do today. talk to you later. semis having a good run over the last couple months but will that contin continue? the president and ceo of xilinx will join us to talk about the state of the industry, earnings and a lot more. first rick santelli working on something for later in the hour. >> absolutely. coming up in about ten to 12 minutes we'

let's get to mary thompson now for breaking market news. >> we're looking at lulu lemon down after theter. the revenue looks to be light. analysts were look for 489. same store sales in the high single digits. we're expecting same store sales to be 10%-plus. one last thing on revenue, the growth there would mark the first time since below the 30% rate for some time. so that's putting pressure on its stock. you can see there in the after-hours session down about 7%. back to you, maria. >> we'll leave it there. thank you so much. >>> up next, a huge shoutout from one boss to another. >> one, two, three! >> that was bruce dedicating his song death to my hometown about the economic process. preet bharara speaks with me next. he's got the reaction to the shoutout. and a lot more. don't miss that exclusive coming your way next. >>> also ahead, the hungarian born billionaire who spent millions of his dollars a ahead of the election, he's with me. keep it here. back in a moment. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just

we're going to check in with cnbc's mary thompson.s live with more on that and the rest. headlines. >>> hey there, barbara, stocks are mixed on that news, as you mentioned the economy retracted in the first quarter. the first read on the fourth quarter gdp showed the economy shrunk by a quarter of a percent. declining exports and lower rate of inventories. coming after a healthy 1.3% annual rate indicated in the prior quarter sent wall street back on its heels. dow closely approaching that 14,000 mark. s&p down a point. nasdaq up five points. investors with a fair good outlook. amazon reporting strong profit margins for the last quarter. and dow component boeing better than expected profits. the company doesn't expect the resultsing to significantly impacted by the recent grounding of it's 787 dreamliner. >>> blackberry addicts get a new fix today. research in motion changing its name to blackberry 10. it's seen as critical to reviving the floundering firm. it's new technologies, better applications and a better typing experience. all

mary thompson has more. mary?> goldman has been trying to shed its image, deserved or otherwise, as a corporate vampire and engaging in a pr campaign aimed at showing americans how it's a positive contributing force to the economy, but the investment bank's latest move raising some questions about its sincerity about being a good corporate citizen. despite ceo lloyd blankfein's endorsement of the fiscal cliff deal which raises taxes on the wealthiest americans he acted alone in accelerating pay from past years into 2012 instead of paying it out in 2013 as originally planned. now, some rivals considered doing something similar but declined to do so in part fearing a firestorm of public criticism. goldman's decisions meaning top earners including its 400 patters in will avoid paying the new higher taxes on past pay. now, this coming when bankers' compensation and banks' reputations are still hot button issues. one pay consultant told cnbc i guess they didn't care when asked if this would hurt goldman's image but rep

let's collect in with cnbc's mary thompson and joins us live with more on that and the rest of the day'sg. >> good morning to you. stocks right now lower in the wake of mixed economic data it received this morning. disappointing quarterly are reports from cooperations. the dow is down by b 28 points. the s&p right now down about three and nasdaq down lee as well. on the economic front one week after falling to a five-year low, first time unemployment claims rose by 38,000 last week. disappointing news coming ahead of tomorrow's all-for january jobs report. expected to show the unemployment rate unchanged at 7.8%. offsetting the disappointing news on jobs, positive news on income. personal income rose by 2.8% in december. biggest gain in eight years. the increase, though, may not be sustainable as much of it can be attributed to year-end bonuses and special or accelerated dividends aimed at avoiding higher taxes kicking in during the new year. corporate news, package delivery giant ups reporting disappointing quarterly results and forecasting weak numbers for 2013. despite a cautiously op

mary thompson is live in the newsroom. mary in. >> with 6,000 fewer employees, the brokerage unit on track and credit downgrade behind the bank. ceo james gorman sounding optimistic about the firm's prospects on squawk this morning. >> we think of all the digging and shoveling and cleaning up that we've done the last few years, that's done. now we get back to the fun stuff which is running the business. and that's what we are excited about. >> turn on equity and measure profitability. gorman saying on the conference call, it can reach 9% without big improvement in the macro economy. thanks so additional 1.6 billion in expense cuts planned by year end 2014 and improving profits at its broke yaj business. bet are than expected 17% in the fourth quarter prompted gorman to say he might raise prices by mid year. he is seeing an increased appetite with retail clients and pick up in activity in asia and europe and stronger equity underwriting. all reasons to be cautiously optimistic. continuing operations were better than expected

mary thompson has been calling big names all day long. mary, what you are finding? >> hey tyler.ashington has been a focus of rating agencies for over a year now, two years really and the small deal to raise taxes on upper income households will do nothing to soften that. strategists say two rating agencies could cut their rates. and if congress fails to reach an agreement on dealing with the country's long-term debt. keep in mind, u.s. cut its debt rating from double a to triple a a year ago august. another downgrade is likely. it will maintain the outlook if it doesn't stabilize the u.s. debt trajectory within three to five years. moody rates u.s. debt triple a but warns of downgrade this year if problem of long-term debt is not addressed as does fitch which earlier saw falling over fiscal cliff as biggest threat to u.s. and global economy. now its focus, should the u.s. fail to slow the growth of debt, it could likely result in the u.s. losing the triple a status from fitch. u.s. debt to gdp is on track rise in excess of 90%. what strategies say they want it see is stabilize a

mary thompson, what are people talking about from apple? >> apart from apple, of course something you meng hmentioned, mandy, breaking the 1500 level. since then we have seen a bit of consolidation on the s&p. the dow well off its highs of the day. at one point up triple digits. now a gain of 24 points. there you can see the s&p is now down on the session. nasdaq has been weaker throughout the day. again that concern about apple's report putting pressure on the tech sector today. what we are seeing though is continued strength in consumer sector. consumer discretionary stocks, pretty much at an all-time high in today's session. they are among the leader we are seeing. healthcare and industrials also. telecom briefly lower. it has turned higher. but the other big story is weakness in tech stocks. transportation average continues its record run up 65 point today. couple of airlines out with earnings that were better than expect or i should say a also smaller than expected in the case of united continental. also southwest coming in with earnin

. >> mary thompson down in lower manhattan for us. herbalife shares down 17% since bill lachtman called it a pyramid scheme. we have word of another big investor taking the other side of that trade. a juicy turn. this is robert chapman. a lot of people may have forgotten him. he's been quieter than he used to be. robert chapman was a well-known activist and investor, ahead of so many out there now. he's credited for the term management in 13 ds. he was an activist in 2000 in herbalife. he has come out today and said he has taken, in his portfolio, which is not a huge portfolio, but he gave me the number. it's not public. but he puts 35% of his portfolio in herbalife. >> so he has what would be termed as a massive position on the long side as ackman says he has a position on the short side. >> his biggest position ever. >> overweight. >> he feels so strongly about this. let me go over a few quick things. he said in his piece, this long letter which i link to in my piece, he said the ftc was already there. to which i say that's what tyc

mary thompson with the story. >> hey there. t.a.r.p.s taxpayer money by doling out hefty executive pay packages. the firm's still on the hook. as of last year for government assistance received during the financial crisis. the special master of executive compensation for approving pay plans president agi, gm, and ally. 54% of the firm's 69 top executives earned more than $3 million. only one earned less than $1 million. too much cash. 70% receiving salaries of half a million dollars while fewer took long-term stock grants that were dependent on the company's hitting specific benchmarks. also granted to executives ally's. that plans were improperly vetted and analyzed at the office of the special master. treasury in turn pointing out at these firms is down 50% since the office was set up. and the $350 billion owed during the initial offices per view. >>> stocks on a tear this month and this year. my next guest thinks it continues at least for now. >> liz ann saunders points to the strength of housing and manufacturing as for proof of the

. >> mary thompson, thank you p. we are watching the white house closely at this hour.sident meeting with afghan president hamid karzai. they are holding a joint news conference right now. president obama may also be asked about gun control and debt ceiling as well. if he is, we will take you back live to the white house. sue? >> indeed we will, ty. in today's yahoo finance question of the day, we asked, more than 19 billion flowing into u.s. equity funds this week. highest uptick since 2000. are you getting back into the game in 32% say yes, i'm getting back into stocks. 25% say i'm cautious but thinking of getting back in. 43% say no, i'm staying on the side lines. >> let's see what is coming up on "street signs." 2:00 p.m. eastern time with mandy. >> absolutely, sue. we are kind of at an inflexion point. multiyear lows for vix. where do we go from here? we will lay it out with a bull and bear case. also our americans cool again. a hiring spree and we also asked to you tweet in your favorite car or truck under $100,000. we will reveal some of the result and show ours

mary thompson joins me now with more on this issue. ter: the board to join the lawsuit probably saved it from a public relations nightmare. keep in mind the insurers in the midst of an ad campaign thanking america for its support during the financial crisis. aig repaid last of what it owed on the bailout that was engineered by the treasury and the new york fed at the height of the financial crisis in 2008. now, the board's decision follows a board meeting this morning where the new york fed treasury and others presented their points. robert steve miller said the board fulfilled its fiduciary duty and the board reject it had entirely meaning it won't pursue the claims on its own or allowing greenberg international to pursue the claims in aidentifying's name. the ceo from 1967 until 2005, greenberg's long criticized the government's handling of aig during the financial crisis. his term filed the suit on behalf of other aig shareholders, the suit claiming, among other things, the firm's investors weren't properly compensated for the 80% st

mary thompson joins us now to highlight what could move your money. mary, what should we watch for. >> reporter: maria, it's going to be a big week. 40 members of the s&p 500 will be reporting. specialty coatings firm ppg kicks things off on monday. we'll see if strength in the auto industry translates into profits for this firm and lennar reports and wednesday it's all about the benjamins and banks that handle them, goldman and jpmorgan among the bakes reporting. net interest margins for the commercials, ebay and schwab also on the docket. focus on financial continues on thursday with bank of america, citi and black rock reporting. citi's ceo first call. we'll be listening. dow components and intel report, too, along with the f-reeport damage mcmoran and schlumberger and we expect the hedge fund manager recently with the position on morgan stanley, and he could be looking to shank things up. we'll be watching that story, maria. back to you. >> thanks very much. a lot of action next week breaking down their expectations for the big names reporting next

over to mary thompson we go for the numbers. >> reporter: hey, maria, the company pre-announcing 56 cents a share want to exclude a number offitens that the company is taking t.1.09 a share. three cents ahead of estimates. revenues in line at $8.1 billion. the other important piece of news here aexpress is undergoing a restrurk touring, taking a restructuring charge which is one of the three taking in the quarter. part of that will cover the cost of severance payments related to 5400 jobs being eliminated in the quarter. those job reductions taking place across seniority levels, businesses as well as staff groups with the largest reduction. according to american express coming in the travel business which operates in an industry. it says it is being fundamental reinvented. so, again, just to give you an idea, american express pre-announcing earnings, excluding items three cents ahead of revenues. revenues in line with estimates at $8.1 billion. the company also announcing a restructuring that involves 5,400 job cuts. the company does plan to do a full earnings release next week as expecte

to mary thompson now with breaking news. >> announcing charges against three alleged international cyber criminals. the three have been charged again in infiltrating computers around the world, about a million computers around the world, including 40 thousand here in the u.s. with a virus known as the gozi virus. the plot the cyber criminals wanted to actually access information including bank account information in an effort to steal money from those accounts. also, the virus infected the computers at nasa. again, the three alleged criminals have been taken into custody. one is a romanian citizen. one is a russian citizen. and one is lafian citizen. all spreading a computer virus. >> all right. the rally does continue right now with the dow jones industrial average up about 68 points. the dow and s&p hit fresh five-year highs. kenny is here with me to interpret what i trying to say down on the floor of the new york stock exchange. when we walked in, they called this the teflon market. they have basically put washington aside. they figured, washington is not going to default at this poin

mary thompson rounding out the milestones this market is hitting and could hit depending on where we ary. >> as you and scott pointed out at the top of the show, 13,886 is had a we're looking at for the dow. as it stands right now, right at that number. if not, we'll see the best performance since 1994. still not too shabby. take a look at the s&p 500, up over 5% for the month. it is on track for its best performance since 1997, and the nasdaq is up over 4% for january in what is its historically strongest month but not a standout january for the nasdaq. so why do we care what happens in january. here's why. consider this. howard silverblatt of standard & poor's said since 1929 the market year-end results mirrored january 22% of the time. another bullish sign to consider. the s&p's 5% plus gain. it's done that in january 11 times since 1950, and in ten of those full years the index has finished with annual double digit gains ranging from just over 16% to 45%, the exception being 1987, of course, when we had the crash. that year the s&p finished with a gain of just over 2%. still posit

. >> thank you very much, mary thompson. >> you're welcome.'s check the bond market and see where yields are sitting. as money went into equity. we saw a sell off in the bond market. that is changing a little bit. still in the red in terms of bond market performance. however, we have come off of our worst levels of the day as stock market has started to pair its advanced and to yield on 30-year bond is now at 3.4 -- 3.04%. ten-year backed up in terms of yield to 1.84 percent. we were at 1.84 this time yesterday. that's a lock at bond market this hour on "power lunch." >> with the s&p breaking the 1500 mark for the first time since '07, joining me on the floor is kenny, director of floor operations for o'neill securities. ty is back at headquarters. with o our contributor, michael far farr. watch this market carefully, it is not going to be positive if we lose all of our gains on the day. >> in fact it may not but that shouldn't surprise anybody. we have been talking about the rally we nd three weeks with no pull back at all. it is looking for

mary thompson, what are they saying down there? >> they are talk about icahn versus ackman.imism with the u.s. and global economies are improving as we head toward week and the dow, s&p and nasdaq now all on track to post weekly gains. the nasdaq actually reversed in an earlier decline for the week even as apple continues to fall today yet another 52-week low for the tech giant. this despite -- or i should say, what is fuelling the nasdaq right now, offsetting weakness in apple is strength we are seeing in semi conductors in the wake of good earnings news and the like of kla-tecor. let's take a quick look at apple. sorry, i went out of order there. a terrible past five month force apple. but of course we want to look at what i consider to be the stock of the day. that's herbalife. take a look at its shares. up about 3% or so. did spike during fast money. volume pulled up after that. but it is moving towards session highs. as is the dow. mandy and brian, back to you. >> mary, thank you very much. certainly is the stock of the day. in case you haven't noticed, folks, markets a

. >>> let's bring in mary thompson. talking about the fact that we have a deal. do we have a downgrade? >> we went know until later this year. there is a focus as to whether or not congress will address the long-term deficit. and do they put a plan in place that slows the trajectory of debt to gdp ratio. that what moody's want. moody's coming out and reiterating it today. it avoids revisicession so that good. there is a plan to limit growth in our debt here in the u.s. we have it wait just as we watch the debt ceiling debate coming up, budget debate, there is where you will see whether or not the rating agencies are downgraded. both moody's and fitch have said, if we don't downgrade the deal we will have debt. >> what kind of market reaction could we see in august of 2011 when we got the s&p downgrade. >> you would think this would be a negative for the bond market and higher jeelds. that is not what happened. it was a safe haven and you have the fed in there buying. th . >> and moody's just came out moment ago under a statement saying they do anticipate further

. ♪ >>> i'm mary thompson with your cnbc market wrap. another winning session for stocks. dow rises 72 points within striking distance of the 14,000 level. the s&p finishes up 7. now above 1500 and the nasdaq ends flat. investors are shifting their focus to the federal reserve. its decision on interest rates comes tomorrow and amazon shares are higher after hours despite sliding initially. the company's earnings were weaker than expected but revenue was up strongly. that's it from cnbc, first in business worldwide. now back to "hardball." ♪ >>> welcome back to "hardball." after new york senator chuck schumer gave his blessing to the nomination of chuck hagel for defense secretary, his path to confirmation was essentially cleared. but the hawks who oppose hagel have only dug in deeper and the latest evidence comes from a newly created anti-hagel group called use your mandate. they have no website and an address that exists only as a p.o. boshtion and anonymous backers who claim to be obama allies. here is their anti-hagel ad. it's been on tv. let's watch it. >> chuck hagel,

let's go back to hq for a market flash and mary thompson. >> we're watching dell in the afterhours session. the stock of the day today, finishing up almost 13%. it was up almost 17% during the day, the largest move we've seen since october 2000. the reason for the rally, reports that the company is in talks to go private. if it did, it would be one of the largest ever at the end of the day, it's market cap, 21 billion shares. there are concerns, though, while its stock rose, bonds fell and sean egan of egan/jones said the buyout would be problematic citing lower revenue. back to you, melissa. >> thank you, mary. the interesting twist to the dell story is the head at m and a of dell left for blackstone, earlier this month, so, that amends fuel to this fire. >> it amends a little fuel. and if you just look at other markets, mary mentioned the debt market. you look at the credit default swaps, they jumped up on friday which would suggest the company might be taking on more debt. that generally happens before an lbo. it is kind of interesting you see that happening. and lbo makes perfect sense

let's go to mary thompson, breaking news on chesapeake. >> that's right.he company's founder, president and ceo, aubrey mcclendon will be retiring from the firm on april 1st. the company saying its extensive view of alleged conflicts of interest and other matters involving mr. mcclendon has found to date no improper conduct. a final report will be issued in the middle of february. in a statement, the company's chairman of the board, archie d dunham said that chesapeake is in an important transition in its history and aubrey and the broad of directors have agreed that the time is come for the company to select a new leader. the ten-year has been marked by tremendous successes and some concerns about the dealings with the company, on personal loans, exset that. melissa, back to you. >> any guesses as to why the stock is higher? >> well, if the no improper conduct comes through as, okay, he's clean, it at least implies that there was concerns while hall was at the helm about what was going on. he hasn't been named in anything, but this has been a corporate co

mary thompson puts this rally into historical perspective. >> that's right, mandy. we're seeing levels we haven't seen in quite sometime. let's start first of all for the dow with the dow jones industrial average. the dow and s&p and nasdaq all ontrack for a winning week once again but the dow also ontrack for its 11th gain in the last 12 sessions and its best january since 1994. so let's take a look at the dow leaders so far this month. familiar names leading the pack here. hewlett-packard which was actually the worst performing dow stock last year. home depot, united technologies, disney, and travelers which just reported some blockbuster earnings. so who are the dow leaders back in january of 1994? this list excludes any of the dow components no longer publicly traded companies. caterpillar was up 17% followed by dupont. united technologies also in the list. let's look at the s&p 500. it's ontrack for its eighth straight gain. a winning streak that we haven't seen since november of 2004. what we couldn't get the s&p 500 numbers that were leading the s&p that year

i'm mary thompson. taking a look at the shares of hess up 9.25%. hedge fund elliot management taking a stake in the company also noting that it is going to be nominating five candidates to its board of directors. basically wants to unload value in hess saying it should among other things spin-off its holdings and exit other businesses. all of this coming just a day after hess said it was going to be selling its storage terminals and basically focus on becoming a more pure play enp business. back to you. >> thanks so much. ford one of the worst performing stocks in the s&p today dragged down by a weak european sales forecast. despite today's losses the stock has had a nice run over the past six months and ford's cfo robert shanks is with our very own phil lebeau, another interview you will see first on cnbc. gentlemen? >> thank you very much, scott. bob joining us from the ford headquarters in dearborn. let's get to what is hurting the stock today. your forecast for europe next year, you're expecting a wider loss, $2 billion for the year. it brings

mary thompson has the details. >> hey there, bill, a credit rating agency, still maining aaa rating on u.s. debt saying the fiscal cliff deal is a positive because it does avert a recession, and it does anticipate further u.s. fiscal action following this deal. however, moody's notes that a lack of deficit reduction measures could affect the u.s. rating negatively meaning if there aren't efforts addressed by congress to address the long-term deficit it could affect the aaa rating. outlook by them is negative in large part because of concerns about the long-term deficit problems. guys, back to you. >> thank you, mary. so they are saying, we've got one piece of the puzzle done, the taxation part. now they have to worry about the spending part, and if they don't do enough we could be seeing a downgrade. >> the question is does it matter? at what point does it matter? >> good point and they often tell us what we know. in this case it's clear we have this issue we have to confront. >> we're heading towards the close on what's been a very strong first trading day of the year. right now with

mary thompson is at the big board. what's moving? >> the markets keep moving higher.treak if it closes with a gain today since 2004. that would be eight straight. one area that isn't participating is the home builders. we had new home sales for december. they were weaker than expected. i stand corrected. they have moved higher recently. the november numbers were revised and the full year sales were the best. they continue to climb. sectors being led by consumers. there was a five-year high yesterday. those continue to gain consumer staples. among the consumer starts contributing to the gain today, starbucks of course reported good earnings. tiffany had an upgrade at hsbc and auto zone. we are seeing weakness with hasbro saying it will be cutting 10% of its workforce. other winners include a number of companies reporting better than expected earnings. qlogic, tencor and halliburton. and bright horizontal was priced at 22. climbed to 27. so a very good debut for the child care company. carl, back to you. >> thank you so much. two mattress companies with reports with dif

. >> let's check in with mary thompson in for bob this morning.ing on this morning. good morning to you. >> good morning, melissa. as expected, see a split market. the s & p 500 has just turned positive. keep in mind that the s & p is up for the last six trading sessions. if we end higher today it would be a seven-day winning streak. the dow just off the highs of the day, up 32 points. basically, what we are seeing today is concerns about apple offsetting very decent economic data we received, jobless claims falling to you a five-year low and good manufacturing news out of china and germany as well, the manufacturing numbers from france were a little bit weak. this puts the s & p five-year high the dew is within striking distance of the all-time high, 3% below those levels. also at an all-time high the transportation index. it continues its record run right now, up 47 points. again, at an all-time high. a couple things behind this. take a look, union pacific came out and reported stronger than expected earnings, the fourth railroad to come in with

back to you. >> thank you, mary thompson. >>> the head of the u.s.ction agency, lisa jackson, announcing she'll be leaving the obama administration. rick santelli in chicago with the impact there on the epa. rick? >> thank you very much, melissa lee. i'd like to welcome chris horner to the program. welcome, chris. before we get going, i just have one simple question to ask you -- who exactly is richard windsor and why is cei involved with the justice department to really find out? >> richard windsor is the falls identity assumed by the now-departing administrator of obama's epa, lisa jackson, a dummy employee created for the purpose of installing a lotus notes e-mail account on three of the administrator's computers and she used that identity to correspond, it seems -- according to epa's implication, they are saying it was only for internal correspondence. we'll be checking on that. but anyway, i discovered this when i ran across a memo while writing the book "the liberaltr asking questions. right before richard windsor announced his resignation the

. >> got to break some news here with mary thompson. i think she's back at headquarters, news on aig. >> as we all know, the company's board is meeting today. and evidently after this meeting, according to a source, representatives from the treasury of the new york fed, as well as star international will be presenting to the board in what's considered a kind of mock trial. complete with rebuttals from all sides. it focuses on star international's lawsuit against the government. star international, which, of course, is a holder of aig stock, and run by the former ceo, is suing the government for $25 billion, alleging that it didn't pay investors fairly during the $182 billion bailout of aig. now, aig yesterday releasing a press release saying the board does have a fiduciary responsibility to look at this lawsuit. there doesn't seem to be a lot of appetite among the board members to pursue this lawsuit. but today they're hearing from all sides and hopefully we'll have an update later in the day. >> mary, thank you for that. mary thompson

. >> thanks very much, mary thompson.made that space quite attractive. those straying away from the volatility in the market has found a haven in the stocks. should you be setting your money in that group. bob manages over $40 billion in assets. nice to have you here. >> thank you. >> i would imagine one threat to that portfolio is if we are in a significantly rising rate environment. if that is the case, how do you change or position what has been a strongly performing sector in the last year? >> we focus on dividend growth rather than a level of yields. that's where people have gravitated to. focusing on dividend growers, we're still finding value. our portfolio is trading to a discount, which is a benchmark. we feel there's upside potential should the economic recovery continue to gain ground. >> taxes on dividend, not that great, but does it perhaps forestall what had been hopes for willingness of u.s. corporations, say let's keep the dividend going up up up? >> i think it was a great outcome, we only went to 20%. but

. >>> cnbc mary thompson of the new york stock exchange, look likes a rough day ahead for aping, right? >> it certainly could be. apple shipped a record 7.8 million iphones in the last quarter given wall street was expecting it to sell 50 million, its shares drop 10% after-hours after reporting quarterly results which failed to impress, profits flat and sales came below estimates for the third straight quarter and weaker than expected sales for the current quarter and putting a six day win streak for the s&p 500 at risk. >> thanks. >>> lawmakers in rhode island vote whether or not to allow same sex marriage, the only state in new england that still prohibits same sex marriage. while it is expected to pass tonight's vote, it could face an uphill battle in the state senate. >>> manny -- manti te'o speaking out about a hoax he had a girlfriend in an internet hoax. he said he felt he had to lie about the situation even after he discovered he had been misled. >> you stuck to the script and you knew something was amiss, manti. >> correct. >> why? >> well, anybody put yourself in my situation

back to you. >> mary thompson of the new york stock exchange. thank you. what is more incredible than a spectator at a basketball game sinking a half-court shot? check out what happened when atlanta hawk fan kevin went for the thousand dollar prize at half time. as you see, the ball got wedged there right between the backboard and the rim. kevin, though, did win the thousand dollars because the shot was so unbelievable, and technically the ball did make it into the basket when a hawk staffer then yanked on the net. >> go back to the beginning of that. technically, savannah just pointed out he shouldn't have gotten the money because he stepped over the line at half-court. watch closely. there, right there. i would have given it to him, savannah. >> i think we all know that i would have given it to him. just for showing up, i would have given him the thousand bucks. let's get to dylan dryer who is in for al. what a mess on the east coast this morning. >> such a mess. commuters dealing with rain, ice, sleet. we have snow across new england. it is going to be

cnbc's mary thompson is at the new york stock exchange. mary, good morning. >> good morning. the dow's five-day win streak coming to end on wednesday. that is on news of boeing's problems with the 787 jetliner this week and next, earnings from investors, as they gauge how the economy is doing. and speak egg of the economy, the federal reserve's regional survey found modest growth at year end 2012. this despite concerns about the fiscal cliff and the looming battle over the debt ceiling. back to you. >> mary thompson at the new york stock exchange. thank you. >>> one of television's favorite fathers has died. conrad bain played phillip drummond on "different strokes," the adopted father of two african-american brothers, played by todd bridges and gary coleman a veteran stage actor, bain rose to fame in middle age with the long-.-running family sitcom. conrad bain was 89 years old. a big hit here on nbc. 7:19 now. back to matt, savannah and al. >> must see tv. >> definitely. >> thanks, matt. >> thanks very much. mr. roker is here. >> a big storm is down south. let's go live now

. >>> and wall street, mary thompson at the new york stock exchange. good morning. >> good morning, natalie. the dow's five-day win streak coming to a close. the reason? boeing's shares fall as problems happen with the 787 dreamliner. the federal reserve's regional survey found modest growth at year end 012, despite concerns about the fiscal cliff and the looming battle over the debt ceiling. >> mary thompson, thank you. >>> one of television's favorite fathers has died. conrad bains played the father on "different strokes." a veteran stage actor, he rose to fame in middle age with the long-running family sitcom. he was 89 years old. a big hit here on nbc. 7:19 right now. back over to matt, savannah and al. >> must-see tv. >> exactly. >>> mr. roker is here. >> a big storm going on down south. live to pearl, mississippi. you can see the snow already on the ground and more on the way. as we take a look and show you what's happening. here is the latest. we have winter storm warnings. winter weather advisories, stretching all the way from jackson, mississi

let's bring in cnbc's mary thompson. nice to see you. we're hoping we didn't miss it. if we look at the closing numbers, the dow, nasdaq, s&p, on a roll. the indices posting gains four weeks in a row. the dow and s&p reaching five-year highs on friday. is now the time to get in there and invest? >> you know, there are a lot of reasons to say yes. first of all, let's look at the u.s. economy. we've seen improving numbers in the housing markets. better numbers on unemployment. then globally, we've seen improvements, as well. notably, better manufacturing numbers out of china and germany, two big economies. and so that's one reason. another reason is corporate balance sheets are very clean, they paid off a lot of debt. lastly, there's money on the sidelines to come in. that could fuel a rally. of course, there are cons because it's not always good news. the first one is, and i think you have to be concerned with this, the outlook for the u.s. fiscal picture. that could be a problem, especially going into march or february when we have the debate in washington. that could

mary thompson's at headquarters with news on morgan stanley. >> that's right.. dan loeb saying he did initiate a position in morgan stanley in the fourth quarter. shares up over 4% on the news. the reason loeb likes it, he likes the positive impacts, he expects a restructuring on the stock. he says given it's trading at a 20% discount to tangible book, it is basically a free call option on a potential restructuring. however, he did note he is concerned about some of the directors at who are began stanley. he would like the investment bank to start the restructuring at the top, meaning the board of directors. that means possibly we could see him take action or take a position to get some of those directors out of their seats. we'll have on wait ato wait and. >> leob got involved in yahoo! and now hearing more from him. we pointed out many time's ubs's decision to move more focused in to wealth management. and the positive reaction it got from shareholders. one wonders whether that is similar pressure down the road for morgan stanley. still ahead, a smart watch g

mary thompson has a flash. >> the company confirming that goldman has decided not to delay the bonus bonuses to be taxed at a lower rate. goldman sachs' stock is slightly higher, about three-quarters of a percent. those payments originally due here in the u.s. in 2013 but the company, again, accelerated those payments into 2012 to take advantage of lower tax rates. again, the uk says -- someone close to the company saying that after some consideration, it will not be delaying bonus payments there to take advantage of lower rates. back to you. >> yeah, not the only bank where compensation is in the news. thank you, mary. >>> a few minutes left in europe's trading days. simon hobbs in less than 60 seconds. and i jumped right on it. tdd# 1-800-345-2550 tdd# 1-800-345-2550 since i've switched to charles schwab... tdd# 1-800-345-2550 ...i've been finding opportunities like this tdd# 1-800-345-2550 a lot more easily. tdd# 1-800-345-2550 like today, tdd# 1-800-345-2550 i was using their streetsmart edge trading platform tdd# 1-800-345-2550 and i saw a double bottom form. tdd# 1-800-345-2550

mary thompson takes us through those numbers. >> they were big numbers.vestment and lending portfolio, also strength in debt underwriting and a decline in the amount of money that the company set aside for pay. now, earnings of $5.60 a share were well above analyst estimates. beating forecasts by $1.3 billion. the investment bank's return on equity, measure of profitability jumping to an annualized 16.5%, highest level in almost three years. sustainability is questionable saying it got a boost from the sale of goldman's hedge fund administration business. that lowered comp expense. driving last quarter's returns, 64% increase in banking revenue, underwriting revenue doubled. the 42% increase in revenue was fuelled by a 50% gain, thanks to currencies. revenue from equity trading was up 36%, helped by the sale of the hedge fund business. goldman's investing in lending arm was a standout. due to gains in the investment in china's icdc, $485 million in net interest income and also helping out $789 million in gains from other investments. cost-cutting program

last june, cnbc's mary thompson asked ceo jamie dimon how his complacency as ceo should be penalizedcompletely set by the board of directors. 100% set. i assume they'll incorporate this in how they evaluate me. but i'm going to leave that to them. i think it would be inappropriate for me to tell you what the board will do. >> looking squarely at dimon's pay. it's fallen over the past five years. but he still remains the highest paid wall street executive, earning $23 million in 2011, with $1.5 million base salary, $4.5 million cash bonus and the rest in jpmorgan stock. at this time, guys, it's unclear how much the board, which meets today, will dock from his pay. even in the face of the loss -- the bank has managed to post record profits. this quarter should be no different. the stock up 12% since it first disclosed that blunder in early may 2012. guys, back to you. >> kayla, thank you very much for that. this weekend, many americans had the opportunity to absorb the fact that they are getting let in their paycheck, and it's going to social security. eamon, good morning to you. >> th