merck a little bit weaker but overall over the last 2 days merck has looked good.iewers who trade options, the 52 ½ call in january only a few days left. we've had some buyers there. what that tells the folks who aren't as familiar with options is that there are some people here who would like to see us above the 53 level or so in order to at least break even on the trade. >>i also want to ask you about ford because we're talking so much about the auto show this week. will it be a market mover? >>ford has been a bit of a creeper yesterday. looking at the options market, some people are playing this up for even february 17 level. this is a stock that off the auto show that exciting news with the f150 truck that came out on monday afternoon. with that there are some people who are looking to continue with some momentum higher. >>and finally tesla also had some negative news and then turned around. that seemed like a great trade if you were on the right side. >>tesla is one of those that if you didn't like the price, wait a few minutes and you'd get your price on the

no participant is said to be in talks with merck to trade its axioms unit for merck over-the- counterducts business. the two drugmakers may each trade $5 billion in assets. for would fit strategies both companies to focus on core strength. japan's health ministry is seeking criminal investigation. the complaint accuses novartis of exaggerating the effectiveness of its hypertension drug. is one of novartis's bestsellers. danone canceled a supply contract with new zealand. they are seeking competition from last year's product recalls over a contamination scare. protein used in baby formula may have been tainted with botulism, causing bacteria. for more, let's head over to paris. danone very much in focus. >> exactly. it is a very big deal because baby products represent about one percent of their revenues. it all started about six months theseen they warned about av products potentially causing botulism bacteria that could potentially cause death. obviously danone immediately called all -- recalled all the timein asia but at the problem didn't seem to be such a big deal. companyzealand-

merck said the fda indicated the company's blood clot-preventing drug should be approved. also the company filed the first part of an application to market a drug which treats advanced melanoma. on top of that, merck is pursuing strategic options for its animal health and consumer businesses. investors like the news, shares climbed 6.5%. but investors were disappointed with celgene's 2014 earnings forecast slightly below street estimates. but the biotech company waived its long-term outlook for the years 2015 and 2017 because of positive momentum for its blood cancer drug. shares fell nearly 3% to $164.90. >>> last week we told you about intercept pharmaceuticals, the company that saw its stock nearly krunear nearly quadruple after positive drug trial results. a citi analysts thinks clovis could be the next to break out because of a promising lung cancer medication. but intercept fell back to oert today after the ceo said he needed the larger drugmaker's help to bring its shares to the market. clovis was higher. shares of intercept plunged 18% to $364 and change. >>> wendy

well, one of them's merck. and it seems that maybe merck read jim cramer's "get rich carefully." that's what they're doing, possibly exploring the sale of the animal health unit, which as i said in the new book, would create an immediate and substantial bump in the stock. and that's what happened today, with merck rallying to close at $53.12. that's the stock's biggest single day move in five years. plus, merck plans an early submission of its breakthrough cancer drug, again emphasizing how undervalued the stock really is. but now, let's take a step back. all of that good news, it didn't amount to a hill of beans -- >> sell, sell, sell -- >> thanks to one particular sector's now seemingly endless problems. retail. today's hideous moves in retail triggered by comments made at a consumer conference pretty much took our breath away. first, lululemon. holy cow, a company that you know i've been lukewarm on ever since legendary ceo christine day decided to depart, informing us that it had a meaningful decline in sales in january. so many people had high expectations for the stock that

i remember when merck was st. merck.ybe merck's getting momentum back a little bit of love where there had been a lot of hate. >> regenero, you manage to get that in there. >> 5 to 300. >> $7 billion market value. more ahead of course on "squawk on the street" including, yes, opening bell. 3:30 from now. bulldog: bulldog: oh boy! mattress discounters presidents day sale! what's this? a queen-size sealy gel memory foam mattress for just $497? mattress discounters has the largest selection of memory foam mattresses under one roof! comforpedic, icomfort, optimum... and wow! four years interest-free financing on the entire tempur-pedic cloud collection. [yawns] don't miss the presidents day sale. ♪ mattress discounters [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announc

i like merck. i think they're on a fourth inning of a recovery at that company. >> josh brown has something for you as well. >> i'm curious. what do you think pfizer is going? this seems to be a perennial also ran, saw huge rallies in bristol-myers and in merck which you just mentioned. in pfizer, returning cash to shareholders. maybe separating units out. the stock doesn't seem to keep pace with peers. what do you think is going on there and what could change that? >> so i think -- pfizer moved quickly. so it went -- when pfizer brought in a new ceo who has been a fantastic ceo. they brought him in late 2010. he moved quickly and restructured that company and returned extra cash to shareholders and cut costs at the company, thus increasing earnings. this stock out performed the market in 2010 and 2011 and 2012. they were ahead of the curve. a lot of value creating things like merck and eli lilly are embracing today, pfizer embraced several years ago. they were a trendsetter. to give credit where c

on the upside of stocks is merck pharmaceuticals. the country's second largest pharma company is enjoying a bump after filing an application seeking approval for a new advanced melanoma drug. the application came earlier than investors expected. merck's stock touched its 52- week high of $53.44 and closed the day up nearly six and a half percent.late last year the company said it would cut nearly 9-thousand employees. jumpin' juniper. shares of the networking equipment maker hopped more than 7% to $25 dollars monday on word activist hedge fund "elliott management corp" has a plan to raise the company's stock value. the hedge fund is said to have acquired 6.2% of juniper's stock.the fund thinks shares could be worth up to $40 dollars, if juniper increases buybacks, pays a dividend, cuts expenses and streamlines operations. expansion is on the menu for dunkin donuts.the coffee-and- doughnuts chain plans to open more than four hundred new shops in the u-s.380 of the locations will be in new markets in the west including california, colo

merck's the only one. reilly, looking at oil today, we never quite made it above 101, 102, now we're well above that for the moment per barrel. >> yeah. we're going to continue this selloff, i think. seven of the eight trading days here in 2014 we've been lower, and i think if you see the stock market continue to sell off like most people think it's going to do, you're going to see oil back down to that 87 number i mentioned last week. liz good to see all of you. 91.50 at this moment. we'll bring back tom so he can take a victory lap. [laughter] thanks, gentlemen. when it comes to autos, ford is playing big. f series trucks, you know the story, they've been the nation's best selling vehicles for more than 30 years, but ford not resting on its chassis or on its laurels. trying to act like i was -- thank you, benny. benny gave me a laugh. the brand new f-150 truck being unveiled at this year's north american auto show in detroit. what is so new about it? well, its body is now made nearly spirally of aluminum

counter merck audit efforts -- narcotic efforts and have there been a plans for those scenarios? >> a fair question. a question where i wish i had the answer for you in terms of cs.t is going to happen on ab ouruld suggest to you that for the gentlemen and lady seated to my left, our -- madamility chairman, i was born in the order in which they were seated. i do not wish to leave any confusion that i thought mr. suggesteda lady and i lady and gentleman to my left. >> we know he can blush. >> my apologies for any conclude -- my apologies. it is our responsibility to develop a strategy and approach that can work in some way regardless of what happens to a bsa. sayo you know service if we we cannot do anything or plan anything or propose anything or have a program onto have an answer to that question. my believe is what we need to do and in fact what we are doing is developing programs that will address all of the core elements that are necessary that we have learned over the past 30 years are necessary for successful program. something that deals with control and what is being prod

said it was safe and merck had some scientific experts study how the cows act when they're wrong so max and they said the wellbeing of the cows is totally not affected when they take the max so i guess they didn't study the recent seventeen cows whose who visit fell off because of a bill maxx they were taking i'm not getting the poor live cows hooves fell off causing the immense pain obviously and also rendering them too messed up to even eat or to live anymore they had to be immediately put down and not eaten because that's just gross when mark was questioned about it they stressed that the max is perfectly safe they said they brought in third party experts who said the hoof last was not due to the bill max they have however temporarily suspended sales of the drug in the us and canada even though it's perfectly safe. meanwhile cattle has been euthanized after using bill max over and over again and the number of cattle euthanized in the industry rose over a hundred and. evony five percent since the drug introduction so dumb come on gore operation stop putting horrible crap into our food

and then i'm going to move on to merck.m morgan stanley, they go from bull to bear. to a bull from the bear. and they put an overweight rating, they like what they're doing with a r the cancer drug. stock hit a new high and is the only dow component positive for 2014. back to you. cheryl: all right, nicole, we'll see you in just a little bit. dow up by six points. volatile day today. well, sickness on the high seas, a royal caribbean cruise was cut short after more than 600 passengers fell ill. there was a similar outwreak on a norwegian cruise lines ship earlier this month. i had a chance to speak to the ceo kevin sheehan to discuss what these kind of events mean for the industry and how his company is trying to reassure customers. take a listen. >> at norwegian, we have so many different things that we do. our guests, when they come back on the ships, they wash their hands because a lot of times these are ships that may be visiting other countries anddu the beginning of the virus. so having them cleaning their hands and u

a number of companies involved including merck. of course, the biggest player, bristol-myers squibb. it shed its joint diabetes venture last month to focus on it. one of the few drugs already on the market. a promising lung cancer drug in late-stage testing. investors keeping an eye on that. tomorrow the company reports earnings before the bell. analysts saying immuno oncology will not be a big piece of those numbers, but it will be a buzz word when looking for forward guidance in 2014. back to you guys. >> all right, morgan. thanks. stay with us if you would. what do these new drugs mean for bristol-myers squibb and other biotech companies? shamus, look, amid all of this in the excitement, how much of this is priced into shares of a bristol-myers squibb already? >> well, frankly, we saw bristol-myers squibb go up about 65% last year. the performance was pretty staggering. they added enormous amount of market cap. but, you know, being the first in the space, bristol-myers squibb does have a really significant potential advantage, p

. >> merck is recalling a combination drug because of packaging defects.he recall covers every batch distributed since the drug was launched in may. merck says some foil pouchs may allow air and our moisture that could cause a chance it could decrease effectiveness the recall is not because of any reports of patients being harmed. >> u.s. postal service helped kick off lunar year in san francisco today, unveiling a stamp. mayor ed lee joined by the illustrator at the chinese cultural center. there are three drums with red drum sticks for good luck. and an image signifying year of the horse. the lunar year is celebrated around the world begins january 31st, sending february 18th, next year. >> coming up at 4:00 jim harbaugh's wife wants the $8 walmart khakis to go. what the coach has to say about his wife's critique, next. >> i'm still taking your questions so you can contact me on facebook.com/michael finney abc7 and on twitter at m finney. i'll answer your questions here live later. >> taking a look at a sunny afternoon, two days in a row of warmth. is th

talk abouthave to novartis later, it is also doing a share swap with merck. we will cover that. talked sales record for the fourth straight year in 2013. >> ryan chilcote spoke to the ceo and joins us now with more. pedal to the metal. >> this is one of the reasons why they had that record year, this is rolls-royce's first t ever.r, coupe, you just press the button, pretty straightforward. the whole idea of this car -- make sure we don't roll into anybody. open up a new market, pretty successfully. going after younger people, not unlike myself. except i do not have 230,000 at,ds that this car starts $330,000 in the states. the idea of this car is -- this is for people that want to drive their own car. they do not want to be chauffeured, like in the phantom at over $500,000. they introduced it at march in geneva, they started working on it in october. the first deliveries were right at the beginning of last year, it is already sold out through may. if you are looking to get one on secondary markets, it is going to be a little while before you can do that. we are stuck at a red li

we do not know what else is lying under the merck. -- murk.could be something entirely different. the e-mail seem to suggest -- >> bob gates writes a tell all book. and critical of joe biden barack obama's afghanistan policy. i think bob gates is a man of integrity. i think he said things that he believed. aswasn't nearly as critical it is portrayed in the media. he tells the truth. he says these are areas where they fell, but he highlighted areas in which barbara bush and barack obama did the right -- george bush and barack obama did the right thing. thes honestly a book about kind of unvarnished truth. >> margaret? >> bob gates is a sterling guy. he had his frustrations. some presidents who did not give the troops and the pentagon enough credit, or gates enough credit. i would take what he said about obama. -- he is courageous for going after osama bin laden and took action against advice of political advisers. iti look forward to reading and hearing from you. thank you. see you again next week. >> "political capital" is a production of bloo

others with similar late-stage drugs, roche, merck, as 'stro zenica getting involved and some of thechs, several propositions, products in earlier stages. a small biotech, parse nehring with glaxosmithkline on melanoma treatments. others, selldex, and others, recently announcing it will increainr rnd spending. >> nicely done, morgan. all those pronunciations. >>> microsoft leads the list of names reportings after the bell and a lot of the focus remains on the new ceo and the search for that person, maybe it shouldn't? josh lipton is live in san jose with that. >> reporter: sue, yeah. soon at steve bomber announced he would step down at microsoft ceo investors focused on who would replace him. the issue for microsoft, said walter, isn't about a person but rather what to do with windows. which accounts for 30% of the company's profits. the operating system has been the foundation of microsoft's product line for 30 years. pritchard says it's waning in relevance, fewer using pcs. mobile device, smartphones, tablet, are growing rapidly. microsoft is moving hard into the mobile market buyi

i can understand how a growth strapped company mick merck or ely lilly might make a tender offer for intercept. just like pharma cpt. back when they had no earnings or sales to speak of. these growth challenge dinosaurs could do worse than paying $11 billion for the $8 billion company if the drug turns out as miraculous as it sounds. gilead's stock went up. these stocks, i'm telling you, lille and merck, if their ceos picked up a phone and bought intercept this weekend, their stocks would go up, too. not down, but up. lots of people think the official kickoff for earnings season is not alcoa. it's reported yesterday. but actually with the banks. i think it really does start when jpmorgan and wells fargo start talking next tuesday. these two banks pretty much define the financial universe with jpm being the quintessential investment house. wells fargo is a mortgage machine. and in truth, they all do a little bit of everything. but they do one thing really well. they make a ton of money! which is why i like them so much. that will be obscured in the case of jpmorgan and charitable trus

niraparib came from merck. and we have another program that we brought in from amgen. works for selective patients. and in ovarian cancer, high-grade cirrus cancer patients are highly susceptible to inhibitors. we targeted that population in a phase three trial. that's the final stage of testing before submitting a drug for approval to the fda. and we know that parp inhibitors are active in patients with the braca gene mutation. that shows up in women. and that's in a phase three program. >> we're going to leave it there. thanks so much for your time, lonnie. we appreciate it. lonnie moulder, the ceo of tesaro. that's ticker tsro, not to be confused with the refiner. >> it has a big move up. and has gotten sold off. the balance sheet looks great. last quarter, about $160 million in cash equivalents. the sell-off is too much big short interest. understanding it's a flier, you play it for the long side here. >> up 5% in the after-hour sessions. >>> apple, one of the few stocks to squeeze out a gain today. your best tweets. after the break. a good deal or not. looking at

countries -- companies such as merck or pfizer doing a really good job of understanding the exposurelly match that to the bottom line. the new companies like ast is a neck and -- david: let me stop you there. strong dollar, week euro, those companies to -- will do well? >> what happens is, those companies will not be impacted. the investors can really look at the fundamentals of that company because the man is the rest so well. they're not looking for a dollar to go up against the yen. the reason is, no company knows where the next surprise comes. india's surprised as. the companies that are well-placed, like pfizer and merck, they will whether the storm, whether up or down, strengthening our weakening. whereas astra's zeneca may not be as well prepared. when a of a sudden have a significant move in currencies such as the euro there will have surprises and surprises that investors never liked. at that point it is interesting but you mentioned, banks are starting to get so much the question about help me understand my entire portfolio currency that deutsche a bank is no giving the tec

the stock is up 20% year-over-year which is pretty much on par with pfizer and merck.ifferently? >> at novartis we have a deep commitment to science and innovation and it is paying off. we had in the past year fda designations. they are reserved for transformative new drugs. one is for a form of lung cancer. as you know there are not a lot of good lung cancer therapies. so that is one we're bringing to market very quickly. another is for a muscle degenerative disease. we develop ad antibody that helps promote muscle mass among the elderly which could potentially extend life. liz: i came from local news and i'm always looking for the worst things that happens. pandemics and epidemics do you worry about those? >> we do. as you know we have a vaccine business and we're watching very closely h 7n 9 emerging in china. there has not been human-to-human transmission but at the same time you don't know how a virus is going to mutate. the good news with our cell technology, we are able to very quickly develop a vaccine for any virus that emerges and move into production. we've

merck, no idea why they're up. looking to protect your portfolio from all the emerging markets mayhem, why not go all american. dom chu, who just let us know his gas bill doubled last month, has five names you might like. >> it's interesting because we spoke to s&p capitalized cues equity strategist alec young, asked where would you hide in an environment where you do see this emerging market turmoil. he says look toward the defensive sectors like utilities and of course, telecom stocks. he also says look for some of the smaller cap domestically focused names. we decided to take a look at the s&p 500 so the larger cap more well known ones. this is what we came up with. these companies have zero sales outside of the u.s. and have posted healthy gains over the past year. wellpointe on the health care side up 28% over the course of the past year. then another sector we want to look at, time warner cable. this is a specific stock story about a possible takeover. those shares up 33% over the last year. on the financial

we will talk about dow component merck. this is on a blood clot preventing drug that should get approval from the fda. up $2.75 per share. that is great news for merck and the shareholders. dennis: shares of twitter getting a boost after goldman sachs raised the price target. boosting its price from 46-$65 per share site a significant acceleration in product initiation opening up more slots for sale. twitter getting high marks for raining a government request for user information. find twitter to be the safest internet company for shielding user info from government snoops. lori: jim beam getting bea bougt out. it will create the world's third-largest premium spirits maker. beam shares soaring on news of the deal trading at $83.50 offer price. companies picked to steal the close by the second quarter. dennis: some of the biggest moves are in commodities. natural gas prices surging just today hitting the highest levels in nearly a month. one analyst noted because the record drop in supplies this week. looking at oil, crude p

merck shares hitting a 52 week high.n stanley upgraded the drug maker's stock to overweight from underweight. morgan says merck's prospects for a new cancer drug have improved and could bring more than $6 billion in annual sales in by the year 2020. shares of kb home hit hard. last trade down 4.75%. barclays downgrading from underweight to equal weight. >>> royal caribbean cruise turns into a royal pain after an outbreak of a very contagious stomach bug. cause not immediately clear. the illness which affected nearly 600 people appears to be consistent with the so-called norovirus which causes flu-like symptoms and spreads very quickly when people are in a confined area. royal caribbean says the ship is going to return to port and will undergo a complete sanitation. passengers will be compensated for a vacation gone wrong. >>> in the last three months, royal caribbean is up 25%. norwegian up 26%. carnival basically flat. to sheila dharmarajan for a market flash. >> we are sticking with this emerging markets theme. check o

and the cfo of the german company merck has left the company to rejoin its rival.utgoing chief is being replaced in mid-may. time for the bond markets, the yield is high during the session. the treasury is 2.74% after we hit a yield of 2.706. the lowest since november the 26th. and on the currency markets, the dollar has been weaker across the board. over the last 48 hours, the euro/similar below 1.37. we hit 1.40 on friday. dollar/general down to 101.37. that was the low, just back up to 102.58. aussie dollar is down and cable we are at 1.65, the two-and-a-half year high. that's where we stand right now in european trading. quite a bit of red in asia on the first day of trade this week. li sixuan is here out of singapore. li? >> reporter: emerging assets came under pressure and selling assets intense fit. they ended lower by 2.6% and the sas is down by 1.8%. the nikkei dipped to a two-month low ending lower by 2.5%. and the hang seng ended lower by 2%. profit taking hit recent outperformers and growth stocks also continued to lose ground after a profit warning was

a number of companies have been focusing in on these promising new therapies, including roche, merck -- bristol-myers squibb which reports its fourth quarter earnings on friday. >> roll the clock forward into the latter part of the decade, i think it's plausible it could be over half of their p and l. i think it's going to be a very material part of what they become. we think bristol can double their earnings from these levels by the end of the decade. >> reporter: immunooncology has been a long time in the making. with companies first trying to harness the immune system as far back as 15 years ago. the earliest examples were not commercial successes. so new research and promising trials mean cancer patients could soon have more options than ever before. for "nightly business report," i'm morgan brennan. >> that's some upbeat news. >> exactly. >> promising. >> that's "nightly business report" for tonight. i'm susie gharib. thanks for watching. >> i'm tyler mathisen. thanks from me as well. have a great evening, everybody. we'll see you right back here tomorrow night. >>> "nightly bus

many families of fallen ale to merck had been quiet for around for centuries until becoming active again in twenty ten. getting a job cammie toffees got the skills experience and the ambition but does your city state applicants in france say they're being discriminated against or with your looks. here's a tease me tt's color and font by points singers and artists my kids along with drawn to beautiful people. to console the oil paintings. the season and is that whilst the sun and the antique sunset set but the gleaming smiles and singlets lines that he's been pleasant shopping patterns. i was so saffron strands the sound deeply undesirable consequences. sophie spent eight years at university she has two components tactically and thoughtful but khan find a job. she says because of her son has his own home state. the only people think the kids and counting some extra greatly. i don't have the brains or intelligence to take up a post if you like to release capital of getting a job i didn't even hide it and total appearances like having next to the clomid which is completely wrong depressing

they are getting merck under bobo what is happening. competition, the spreads that they have been enjoying -- we will have to separate the men from the boys. >> he proposes changes for a sustainable and economic road and china but to create opportunities as well. rex thank you. see you later. let's can the preacher what is coming up on countdown. they prepare to release the trading statement. annual list of the best performing hedge funds. >> could it be the end of the festivities? 35 straight quarters of improving sales. 30 five quarters. that is nearly nine years. it could all end today. sales did decline at st. mary's ainsbury christmas -- s did decline over the christmas period. people are going more upmarket. into what has been eating into the competition. i'll handed over to jonathan. lex that is right. -- >> that is right. they have but together -- put together the biggest hedge funds. one a littleyou bit in the game. 84% last year. i will tell you about the man who manage the fund and a little bit of insight into his strategy co

merck's share price is trading down by 9%.n both cutting their recommendations. clearly some investors believe he has a material impact on these businesses. we are 30 minutes into the trading day. let's see how things are shaping up more broadly. there is that story in the drug he and let's have a look at the broad market. the ftse 100 down by 1.2%. markets were fairly relaxed in the early start of trading. in the face of that selling pressure coming over from the asian markets, last week equity volatility measured by the vix increased to the most in two years. it seems as if we are in for some nervousness still as these equity markets in europe are moving lower. let's move onto what is happening in the currency markets. emerging market currency weakness is one factor that gave equity markets something to think about last week. we have got the dollar against the yen, the won. the dollar stronger across the board. not just the japanese currency but also those emerging market currencies in south korea, turkey and argentina. anot

it's only $30 billion less than merck. >> merck doesn't have -- >> $25 billion less than merck. >> merckentum. i mentioned gilead in "get rich carefully" my book, it's one of the great stocks to watch. i do not think there's cause and effect. it would be like megalomania. and the stocks go up and go up and i search for news and there is none. because they're charmed. >> speaking of charmed, textron is up 35% since mid-october. they beat by a penny. revenue nice change in pace was actually above consensus. although a cautious view for the year there's a sense that this beechcraft deal will add to earnings at least in 2015. >> aerospace is so, so red hot. people were critical of herb greenberg you mentioned ibm 20 for 20 so to speak, but if you look at boeing, boeing's got a 20-year plan. and it's right. i mean, aerospace has a 20-year plan because you can't get planes. and that's -- they're not going to be outmoded. textron, aerospace, ge did not get the love from aerospace because the margins weren't that good. >> right. as citi said yesterday that promise on that margin improvement took

the first is merck. they are trading at a new 52-week high.ey upgraded them to underweight. they have prospect for a new cancer drug. google shares are falling the most since 2012. the search , and is buying deepmind artificial intelligence company in the u.k. in the last two years, they spend $17 billion on acquisitions, including the nest lab deal earlier this month. congress passed a law punishing ceos who reincorporate their companies -- it turns out the law is putting more money into ceos pockets. we did some digging. zach joins me now with how the law backfired and what can be done to fix the problem. a keeper your time. 10 years -- that is a long time for this. give us the history. >> congress got concerned about companies acquiring a mailbox in bermuda in order to avoid paying u.s. taxes. they passed a law that says there were provisions to keep companies from being able to do this or getting any benefits from it. >> how did it backfire? >> one of the provisions of the ceo would pay a personal penalty in terms of their stock and option

merck hitting a 15 week high today. raising from overweight to equal weight, the company's prospects for new cancer drug have improved, that could bring in more than $6 billion in annualized sales with the stock moving on that. watching some of the tech stocks. nicole: let's see how some of the popular stocks are doing. apple at 1.1% up. coming off of their numbers after the bell today. they expect apple to report shipments over 50 million iphones, 24 million ipad, and we will let you know they come up with and how well they actually did during the holiday season as well. and you have the rocks, out with numbers that show profits slip in. that has been a loser, one of the top three loggers all day. down 4.6%. and cisco systems. jpmorgan cutting cisco systems, as a result was that downgrade to an underweight rating from neutral. that doesn't show much confidence there. now ii is down three quarters of 1%, that is a drop of $0.17 for cisco. tracy: forget flying first class. for the ultimate super bowl experience, people a

now joie chen is going toel us what is coming up on merck. >> good evening, john.erica tonight" tonight will take a look at any education crisis, and we'll begin with five digits. the zip code. but parents are now being accused of crossing the line and lying about where they live just so they can enroll their kids in a better school. this is called boundary hopping. "america tonight" special correspondent soledad o'brien explores why many are stealing education. >> i wouldn't have done it. i never thought i would go to jail about lying about my zip co code. a they did it for their jobs, safety reasons, maybe education, so many different reasons why a parent would want to take their child out of that district into another district. >> soledad o'brien with a two-part report on stealing education. also tonight, martin luther king the third stops by as we remember his father on a holiday commemorating what would have been his 85th birthday. >> joie thank you very much. >>> it's a rare moment in super bowl history, the best defense versus the best offense. but the story

. >>> san francisco sheriff ross merck rheumy.overage under the affordable care act until they leave jail. >>> time is 5:45. new york congressman michael grim defending his behavior during a tv interview last night right after president obama's state of the union address. >> and just finally before we let you go. we've had a chance to talk about -- >> i'm not talking anything off topic. >> all right sop congressman michael does not want to talk about some of the allegations campaigning -- allegations concerning his campaign finances. >> now after that he told the reporter if he tried to sneak in a question like that again he would throw him off the balcony. congressman grim later said he is not the first member of congress to ever tell off a reporter and he won't be the last. there are growing concerns about security as we get closer to the opening ceremonies of the 2014 olympics. russian terrorists group have publicly threatened to target the winter games in sochi which start in ten games from now. american athletes will be told

. >>> topping today's headlines, merck recalling litruzec.they already have. >>> health officials warning that young adults choosing to skip the flu shots may be at more risk for h1n1 strain now circulating. the cdc says the flu is widespread now in 35 states with rates especially high in the south and southwest. >>> the nfl says the proposed $765 million deal it made with thousands of former players to settle concussion claims is both fair and adequate. that deal was dealt a serious setback yesterday, though, when a federal judge questioned if it includes enough money. abc's ryan smith has the details. >> reporter: in football, the hits are punishing. like this. >> he took a heavy hit. >> reporter: and this. >> bell's helmet came off the goal line. >> reporter: several teams announcing players suffered con kugs during the playoffs. blows that sports science found can be as strong as a sledgehammer to the head. leading to devastating consequences, including for the sport's stars, like tony dorset and jim mcmahon. the judge rejecting the $765

and then we have merck. it's time to break up. the animal health division should be spun off first. have a hard time in seeing how they can trade above $55 given the subpar performance. number 20 is microsoft. here's another company that's being squeezed by the new social mobile and cloud imperatives, but if the new ceo breaks microsoft up, into are you listening, new ceo, the internet, utility and the gaming, i think the market will rejoice. this is the only stock where the sum of the parts is worth more than the whole. they can go up on the vision and the execution of a new ceo by announcing the breakup. here's the bottom line as we work through the 30 stocks, you can see even the worst of the bunch should rally. stay tuned, and i'll give you my forecast for the final ten names after the "lightning round." let's go to dewitt in delaware. >> caller: happy new year, jim. what's your advice on a new company called mcgraw-hill financial? >> i like it very much. it's a terrific buy. i should be featuring it more. a lot of people keep thinking that the past is dogging it. that is untrue

merck and disney. people are expecting a major restructuring to be announced, including me as i talk about it in my book. disney has a history of going down on the same day the report comes out and so to invest alongside bob ire, one great head coach of their enterprises. and periggo, we saw it after the great recession, it is a huge flagality play. one of my favorite long-term themes. and it tends to go down when it reports. i'm trying to represent stocks you don't have to chase. buy when they are hammered. and linked-in and open table, the former disappointment of the previous quarter because the consumer is not guiding out. but the good people at chipotle up $58 would beg to differ. but then again you don't need a reservation at chipotle. i believe they will have a good report. and because both here and as a potential customer in my new restaurant that opens in brooklyn gardens. remember the bottom line. everything positive gets tempered by friday's employment number. a number that not only does it

maybe it considers some of the charmed big pharmas like merck or bristol-myers. you got to ask yourself what does the potential collapse of a regional chinese bank have to do with the with price to earnings ratio of bristol-myers? normally i would say pick up some domestic retailers. they had some earnings difficulties of late. i don't know if they have been sufficiently baked into the market. not if you look at target or coach. same with restaurants. the staying power of mcdonald's stock if there is a more disappointing quarter is more amazing. wendy's delivered better numbers. they have no exposure to china. chewy's is up nicely again, given an excellent report yesterday morning. starbucks looks real good. i think it will be europe that's the star of the quarter. you can also pick up your favorite bond market equivalent here. clorox and kimberly clark come to mind in a classic fight to quality. so do the master limited partnerships. the real estate investment trusts that aren't connected to retail. how about the nursing home company led by one of my bankable ce

merck biggest gainer, up 4%.lood clots should be pursued. and macy's among the stocks hitting new highs, up 31% in three months. >> toyota trying to break out of the functional conservative car mole by invaulti vaulvau unveil car. phil lebeau with a cnbc first on cnbc interview. good morning. >> thank you very much. joined by jim lenz, head of toyota north america and ft-1. we'll show you pictures. wow! >> an exciting car. we went to our designers who are passionate about sports cars and said, clean sheet of paper, give us what you think the ultimate sports car is. and ft-1 is what they came up wirth. >> the core of what toyota talked about, we've got to get more passionate? >> it's all about his definition of heartpounding, passionate excitement and that's what it represents. >> behind us, you have the fcv, fuel cell vehicle. >> yes. >> when do we start to see fuel cells take-off in but for the masses it's available. >> i think late 2014 from some manufacturers. we begin our sales in 2015. so we think it's the r

i can understand how a growth company like merck or ely lilly might make a tender offer. back when they had no earnings or sales to speak of. these growth challenge dinosaurs could do worse than paying $11 billion for the $8 billion company if the drug turns out as miraculous as it sounds. gilead's stock went up. these stocks, i'm telling you, if their ceos picked up a phone and bought intercept this weekend, their stocks would go up, too. not down, but up. lots of people think the official kickoff for earnings season is not alcoa. it's reported yesterday. but actually with the banks. i think it really does start when jpmorgan and wells fargo start talking next tuesday. these two banks pretty much define the financial universe with jpm being the quintessential investment house. and in truth, they all do a little bit of everything. but they do one thing really well. they make a ton of money! which is why i like them so much. that will be obscured in the case of jpmorgan and charitable trust name by the myriad of lawsuits it's invested in. memo to jamie dimon ceo, settle mo

company also announcing a $10 billion buyback, and we want to mention merck, hitting a record high. pleasant green after morgan stanley upgraded the stock to an overweight, citing the company's prospects for a new cancer drug having improved and could bring more that is $6 billion in annual sales. we have lots more earnings, the fed and of course the state of the union if address. >> how was the trading today? in uncertain days if volume is low, it doesn't tell you that much. what did you hear? >> i heard it was a pretty okay day. everyone was taking a step back, assessing where we were from last week. wasn't a bad day, wasn't a great day, didn't see huge volume. so perhaps a good sign that investors are involved in this market, they do want to see what's happening and they are being active, sheila, thank you very much. >>> let's turn to asia where the markets are just opening for trading. cnbc's own matthew taylor joins us live from sydney. good evening, matthew. >> good evening to you, larry. you know what? we're actually seeing a bit of a turnaround for these asian markets in the

afghanistan will cost merck $3 trillion after 2015 when you take into account all the veterans' welfareonal expenses. for me, there is just no benefit whatsoever in conducting this activity to prolong any sort of presence within afghanistan. because, to me, the answer has never been a military solution. it's always been a political solution. the second reason that i'm slightly concerned about this is that president karzai has chose to make these accusations at a very political time. it's politically sensitive because we are in the hand over from the west giving the afghan government complete autonomy. this with is political conundrum that needs political answer. we also need to look at islamabad and pakistan as well. pakistan and their influence and the way that washington negotiates with islamabad is equally as important as loyalty and trust and dialogue with kabul. >> here is the big problem though. trying to curry favor with the taliban. he obviously wants to trash us and do everything he possibly can to align us with the taliban. we are going to lose the four bases we had hoped to h

he says that from 2007 to '09, these maneuvers helped lower pfizer's average tax rate to 17%, merck to2.5%, and ge just 3.6%. >> you know, what's really remarkable as i review the data is the consistency with which you see this phenomenon. the taxes are going down. the profits are shifting offshore at an accelerated rate over the last few years. >> so now these companies have profits accumulating overseas in places like zug. oh, look at your clock tower. if they bring the money home, it's taxed at the full 35%. if they leave it overseas, the irs can't touch it. in other words, the tax law all but forces companies to keep their money out of the country indefinitely. >> we leave the money over there. i create jobs overseas. i acquire companies overseas. i build plants overseas. and i badly want to bring that money back. >> how much does your company have overseas that could be brought back here? >> almost $40 billion. $40 billion. >> cisco has $40 billion trapped over there somewhere? >> yes. >> the total amount of money u.s. companies have trapped overseas is $1.2 trillion. chambers is

right now those higher prices are coming from microsoft, procter & gamble, merck and verizon.hose are the winning stocks of the day. wolf? >> almost 200 points, 185 points down. thanks very much. >>> obamacare enrollment is on the rise. the obama administration released new numbers today showing that overall health care enrollments have hit the 3 million mark. that means 900,000 people have signed up for private insurance during the first three weeks of this year. the deadline to get insurance, by the way, without paying a fine, is march 31st. >>> the former virginia governor, bob mcdonnell, and his wife plead not guilty to corruption charges that could send them to prison, potentially for 30 years. they're accused of accepting $140,000 in illegal gifts, including luxury items like designer clothes and a rolex watch. a source is telling our joe johns, the former governor had a chance last year to keep his wife maureen from being indicted, but decided instead to, quote, throw her under the bus. joe is here with us with more on this story. what else are you learning? >> wolf, a