the stock market liked what yellen said today.s that the house will vote on raising the debt ceiling won't hurt. still with us to discuss the still fragile economy are our guests. neil, janet yellen was pressed today on the possible effects of the affordable care act, on her understanding of why the labor market participation rates are so low. where she saw inflation coming in the next year. there was a lot to handle, and she didn't want to predict the future, but there are some things she has to be watching closely, because she and her fellow governors have some decisions to make. what is in the pipeline? >> it's not the obamacare enrollment numbers. i think first and far most is the underemployment rate, the number of people who would like to work full-time is still far too high, participation levels are at 1978 levels right now, and even though that unemployment rate isment doing down, it may be coming down for reasons that are not good like people are giving up, or retiring prematurely. so all of these factors have to be taken

some of it could be yellen, but not all of it will be yellen. >> we'll take a short break and then comeack and take a look at the coming year or two. we'll put you on the federal reserve bank. what decisions will have to be made, and soon. this is inside story. scrimmagvinlan vigilantes rose up. >>> vij lan teas vij vigilantes, said it was,. >> i know you're afraid, but everything will turn out good. no more murders, no more extortions, no threats, no more beatings, and without giving the fruit of our labor to these bandits. >> soldiers into the state to try and take back control from both the cartel and the vigilantes, some vigilantes were military. in the end throw the government made a truce with the self-defense groups. now it's even directing hundreds of them into a police force, the >> welcome back to inside story. i'm ray suarez. on this edition of the program we're talking about the federal reserve under the leadership of janet yellen. the stock market liked what yellen said on capitol hill. investors pushed chairs higher on wall street and news that house votes raising the debt

is this all yellen? professor siegel just in the last block saying it's also what's happening in d.c. >> well, i think, yes, i think at least today's action. i think investors are clearly pleased that they heard exactly probably what they wanted to hear. i mean, when she was proposed to be the replacement for bernanke, one of the big pluses about her is that it would be business as usual. and, of course, until she spoke today, there was always that little bit of uncertainty. i didn't hear anything that i found remotely disturbing. now, we can disagree about fed policy in general, but basically, it's going to be business as usual, and the markets wanted to hear that, and we're up 200 points. and not only are the equities up, but it seems like they're coming for almost everything, gold included. liz: right. can i just mention the nasdaq, i don't know if we can pull up the leaders, the percentage leaders. in any way, shape or form the nasdaq is going nuts here. i see cisco down, that's one of the red names.

that was janet yellen today.he storm clouds moved. >> i think what the market liked to hear and what you all have been talking about is the continuity in the message from janet yellen. not too much of a departure from her predecessor ben bernanke, so there is sort of quelling a bit of that uncertainty as dr. j was just suggesting there and that's what the market liked and it was interesting, the more she elaborated, the more comfortable she was explaining her position and what the fom c is thinkic i the higher the stocks moved. as far as if it's too far, too fast, time will tell. >> what about over at the nasdaq. we started the year with the indexes behaving very differently but lately the action has gotten -- everyone seems to be on the same page. >> now the nasdaq is back in the green for the year. the nasdaq up about 0.3% year-to-date. earnings continue to be the big catalyst for technology. you're talking about f-5 networks, facebook, all these companies are up double digits thanks to better than expected ear

stocks are rising amid janet yellen's testimony.above its record close for the fourth straight day today. architect telling us where stocks are headed from here. jarrod us now is purel leavy. tell us what you're singing options market that say that market participants is incompetent because the s&p is back near record highs. geeks tend to look at volatility smile or ski. what that means -- i'm looking to see how quick the price rose. at this rally has been happening and as we have been spending with this wedge, if you look at the volatility, they're getting more expensive. more expensive than its out of the money call. what that says to me is, market participants really are that confident in the rally. that confident in the rally. they think there'll be more of a sellout than a breakout rally from here. that's from the options perspective. options definitely are not calling the big bullish rally here in the next couple of weeks. >> so the skew is deepening despite the rally. another stock in the news. jcpenney shares down more than

fed chair yellen says she's going to stay the course. but what about all these headlines that investors are seeing about the ukraine? should they be worried about that? >> you always, susie, always have to worry about something. you have to worry about some of the things that janet yellen mentioned, what is the extent of the slowdown on the economy do just due to the weather or something more fundamental. she's going to be working on trying to answer that question. that's one worry. but the geopolitical situation should clearly be worried about it. obviously fit deteriorates, if what happens in the ukraine deteriorates and it end up in a confrontation between russia and the western world, including the united states, that's not good news, particularly when you think of russia is responsible for about 12.5% of total global production of oil. so there has significant economic implications. so you watch that very carefully, cross your fingers, hope that it doesn't deteriorate further. >> you're not alone in believing that the stock market h

this is what yellen is against. >> 7,000 in london and the rest around the world. >> if yellen deals with the granularity of how companies are doing, she might be heartened by the fact that the government that obama delayed affordable care act to 2016 because at least the smaller business people just got an incentive to grow without running afoul, but the larger companies are still making the money by firing. and that hasn't changed. >> yeah. let's get to some of the news of this morning because we've got a lot to cover. we brought you first, i believe, what has been expected which is that charter and liberty have put up a slate of nominees for time warner cable's board, of course, they will be voted on at the company's annual meeting. it is yet another way to increase pressure on time warner cable to try to get it and its shareholders to get it to come to the negotiating table if you will. of course, if you recall, charter's current bid for the company worth, let's call it, roughly and i haven't checked the number in the last day, about 132 bucks a share. here are some of the names

i'd like to welcome chair yellen. dr. yellen is serving her first term as chair of the board of governors of the fastball system. she was sworn into office earlier this month. before that dr. yellen served as vice chair and member of the board of governors of the federal reserve system. she was also previously chair of the council of economic advisors. chair yellen, please begin your testimony. >> chairman johnson, senator crapo and other members of the committee, i'm pleased to present the federal reserve semi annual monetary policy report to the congress. in my remarks today, i will discuss the current economic situation and outlook before turning to monetary policy. i will conclude with an update on our continuing work on regulatory reform. first, let me acknowledge the important contributions of chairman bernanke. his leadership helped make our economy and financial system stronger and ensured that the federal reserve is transparent and accountable. i pledge to continue that work. the economic recovery gained greater

what janet yellen's testimony revealed to wall street. plus.... let's do lunch. simple tax tips inlcuding how to get reimbersed for meals on the go. and.... scoring big ...how olympic athletes get "camera ready." first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's wednesday, february 12th. i'm angela miles. in today's first look: the big relief rally the dow added on nearly 200 points tuesday, the nasdaq 43 and the s&p 20. gold ran up 16 dollars and oil fell 16 cents. behind the scenes traders welcomed word out of washington the new fed chair janet yellen will stick with the central banks current policies and lawmakers in the house agreed to issue money to cover u.s. debt. green mountain faces a lawsuit. illinois based tree house foods is suing the coffee company for allegedly attempting to illegaly maintain a monopoly on pods for its upcoming keurig coffee brewers. and, graco recalls 3.8 million car seats due to a possible buckle defect. it coveres 11 different models manufactured

adam: you are listening to janet yellen.ontinuity in the fomc's approach to monetary policy. yes. we will keep doing what we have been doing with hugh e. is that what she is signaling? we are pulling back, but the free money will still go? >> wore the same of what we had with general bernanke. she has shattered the 6.5% unemployment level as a real market threshold to change policy. that will be the big headline coming up today. we have done some research with word count and fed governors. we have seen a lot of that focus on labor, unemployment. it is not surprising that she will have an even bigger focus on that 6.5 number. adam: is the market or investors overreacting with what we are seeing? the dow up 133 points right now. >> they really did not know what they would say. quite frankly, what she has been trying to do is provide continuity. her testimony was very similar to fed chairman bernanke's final press conference in the respect that he was optimistic about the economy. he was also optimistic that inflation would eve

janet yellen and ben bernanke. we think this is where she should take a page from alan green span. saying a lot but not really telling us anything. i think for this go around it would be good for janet yellen to let the market have its certainty that quantitative easing/tapering is on autopilot of $10 billion at every fed meeting. that's baked into the cards, and the market has that certainty. don't create any new uncertainty for the markets. >> i don't think that would wash now, do you? >> if that's what you're saying, i wonder is it safe at this point to say the correction is over? that's the verdict that already, as bill was saying, kind of in the span of a week people seem to be delivering. >> i don't know. if we get another correction now, is that a double dip correction or the start of a new one? we've had a nice rally back. thursday and friday, the best back-to-back days for the market in over a year. but, you know, we're going to have more volatility ahead of us. do we go down again before we go a little hi

yellen seemed to give the market exactly what it wanted it today. it kind of reaffirms what you were saying to us the last time you were on, you expected the fed to once they started to pull back on the stimulus plan to continue to do so. are you still as bullish on stocks as you were before? >> well, i think we're bullish on stocks compared to the alternatives. it's clearly not been an easy start to the year for stocks, as we've seen the last four days. there's still a strong bid. when you look at the relative value of stocks, improvement in the economy and the fact that bond by most metrics are still expensive, i don't expect the same types of gains we had in 2000123. yes, i still think for this year stocks look like the better alternative. >> so russ, can we see correction shrorrection it's over? >> the volatility is not over. while we expect gains this year it won't be as peaceful as 2013. part of the reason for that is not necessarily the market has become or likely to become so volatile, but last year was unusually quiet. volatility was suppre

coming up, more on janet yellen's testimony. u.s.l be joined by chief economist at jpmorgan when we return. ♪ lex federal reserve chair janet yellen repeated the central banks likely to keep trimming asset personages -- asset purchases. for a look at that, i'm joined here by the chief u.s. economist at j.p. morgan chase. welcome back to "bottom line." >> good to be back. >> chairman yellen said she and her colleagues will continue to monitor data to determine if recent weakness in the u.s. economy is temporary. bondlso added the purchases in her words are not on a preset course. >> i took away there is still a high hurdle to stop or pause in the tapering process. it is not on a preset course. take a different look in the labor market to stop --. if that data were to really come in below expectation, we cannot rule out a deposit the next meeting. however thomas the labor market looks a little better in the labor report that it did the last two, i think the tapering will continue. >> she did deviate somewhat from her prepared rema

yellen's comments boosting confidence.ohn dawson dawson is in hong kong with the details. >> continuity was the main buzzword today. also reassurance and relief. four and a half hours and convincing them that there will be no change from the burning key moves. that's a relief. the u.s. and latin american markets, nothing dramatic. best two day game ends five months. the nikkei said today and again. the rest are pretty flat. half a percent gain so nothing dramatic. thus performers of the day down to the chinese trade. reassurance and then wonderf ul word, continuity. it's a great word. >> imports and exports beating estimates. what are economists saying? >> unexpected again. about as atalked concern. nevertheless, unexpectedly rising. therefore lots of trade, if you like. the widest since 2009 and very encouraging indeed. chinese stocks, hong kong, thailand, australia all rising more on the china trade story perhaps more than the fed story. >> john dawson in hong kong. >> let's bring this closer to england. the inflation re

in addition to janet yellen. the republican leaders are going to allow a vote on the debt limit tonight with no conditions. it's a clean bill. this is something the president and the democrats have been pushing for and now it looks like they are going to get it. the bill would extend the authority of the treasury to borrow for at least another year and assuming it all goes through, it would prevent a lot of washington spending drama that we have seen in the last year not to happen this year. of course, an election year. that seems to be helping the market as well. let's get a market flash on today's big movers with dominic chu. >> a different story than yesterday, where it was very wait and see. today, stocks up to session highs on the heels of fed chairman janet yellen's testimony before congress. traders apparently like what they are hearing. the dow is up big like you said, 175 points. trading above its 100 day moving average. that's the more medium term trend line, that's possibly viewed as a more bullish ind

yellen, the median u.s. wage has failed to keep pace with the booming stock market on record corporate profits. possible that the stagnant wage for american workers and not overly accommodative monetary policy is causing a ?lower recovery much of the for workforce, wages have been stagnant in recent years. going back many years as far as the mid-to late 80's. speculationen some that that trend for so many ak labor markete income growth did contribute to in the economy. the idea there would be that wealthier families, higher income families spend less of than additional income lower income families. that shift in the distribution of income may have created a drag on growth. i don't know that we have any hard evidence on that. it is a hypothesis that has received attention. the housing sector has continued to see improvement, with robust construction activity and higher home prices. how will continued reduction in qe affect the housing market? easing, ourive purchases of securities did serve to push down mortg

chair yellen, con t grat lagss today. i enjoyed your testimony. there's been a considerable amount of discussion regarding the problem that resulted of banks centric standard applying to insurance companies. i was pleased at your confirmation hearing you indicated your employment that insurance has unique features that make it different from banks and that it tailored regulatory approach for insurances would be inappropriate. and i think it would be devastating to apply the same standards to an insurance company we did to a bank. so what are you going to do to make sure that insurance companies are not held to bank centric rules. >> we explicitly decided when we put into effect our capital rules to defer their application to savings and loan holding companies with substantial insurance activities and to the other non-banks to fees that were designated. we wanted to have the chance to study what an appropriate regime would be, recognizing that there are important differences between the insurance business and banking. we understand the risk profile

janet yellen will take the stage today. will keep the markets on edge all day. >>> another delay for the health care mandate. you can see this as the first six lead stories on drudge or number 15 on the huffington post, below the three biggest lies of keystone. this time, medium sized businesses are getting more time to get their plans in place. >>> and dumb starbucks gets a visit from the health inspector. it's tuesday, february 11th. oh, boy, only three days left. 2014. and "squawk box" begins right now. >> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the bulls are battling back. stocks now higher for three straight sessions, although the gains yesterday were very muted. the s&p and the nasdaq logging their biggest three-day gains since mid october. of course, there is still room to go from the recent highs. the dow is now down 4.7%. the s&p is off by 2.8% and the nasdaq is down by 2.3%. this morning, if you check out those equity futures, you

we look at chairman yellen's testimony tomorrow. they arethese hitters, making 2% and 20% on their fees, all they did was holland 101. to be everything back to vanguard. japanesere in the market unchanged for commodities, 66%. is better-- 22% than zero. >> you have been bullish every time, you have got to be long. >> shameless plug. >> it is not. >> we are building viewership. why have you been so bullish? >> what we have talked about, what david tepper has talked about, and the people at wellington, they have found things to buy. articles will say the same thing. look at what things cost, back you look atwhen values. when you had 10 times earnings for the u.s. indices, that does not make sense. end of ourthe front-page story. michael holland, here is the thing. it is as dumb as buy shares. george soros is no different, he is really handed over control. it is no different than you picking up the phone and go and haresd you to buy me 1240 s of holland international. simple investments, alternative this, high fee this. the stock marke

i am not sure what kind of janet yellen we get. she's the kind of person that can tell markets. >> you bring up a very interesting point. i just wonder, this is the first female head of the central reserve. dan clifton, how much of that comes in? when the fed tries to respond or not respond to a taper tantrum, the fact that she is a woman trying to deal with this, regardless man or woman, you walk in their and it is your -- tghehere and it is your first wk on the job. does she have to be extra strong because she's the first woman? >> she does not have to worry about her tight. >> every fed chair has been tested upon coming into office. this is happening a little bit sooner than previous chairs. she's very smart. she's going to be very prepared. i think she's going to do very well. if she does, she starts building that capital earlier where the markets begin to trust her. >> to the market trust her or do they want more of the same qe? we are tapering. >> overtime, you have to get used to help -- to who this fed chair is. she is very

what did janet yellen indirectly and quietly say to you? >> a couple of things. first, you have to realize her first time out of the gate she feels like she's in the hot seat but she was consistent. if you watched for the most part she nodded up and down which tells me she agrees with what she's saying. there's a couple times she sees head bobbles and that's when you question what is she talking about, why is she bobbling her head. the other thing i noticed is at times, you will see that she crosses her arms. those are the significant moments where you see she might be feeling a little insecure, maybe she's feeling a little bit under pressure. if you notice, some of these times, you will also see her eyebrows change. in one of the clips that we watched, her arms cross, the eyebrows go up and that's a sign of insecurity. >> can i ask a question? there was some comment among observers that she was much more secure when talking about monetary policy than financial regulatory policy. i don't know if you were able to see whether body language, if she was talking about

and it was america's economy that was very much on the mind of janet yellen today. in her first appearance before congress, yellen was plain-spoken and easier to follow than past fed chairs. for you homeowners worried about rising interest rating, she said the fed would do it part to keep the interest rates low right now. and for investors she said don't get too worried about the recent volatility in the stock market. that or the debt ceiling thing helped drive a rally on wall street today. >> of our economy, financial markets and global financial markets. >> janet be yellen went on to say not having raised the debt limit would have been catastrophic. i don't know if congress was listening to janet yellen this morning. >> no. >> that's it. it's probably some entirely different reason why they did it this time around. february 27th was when we were going to actually stop being able to pay the bills. this outrageous for congress to be dealing with it so early. >> i don't think they were listening to janet yellen. they were listening to the polls. forcing a shutdown, n

stocks slowly climbed higher as janet yellen in the senate. they're monitoring closely in case there's a fundamental problem. those were soothing words in the congress. she's got the wise grandma college professor way. the question was differential. jcpenney was up big time, loss not as bad as expected. the company said store sales would increase 3 to 4%. chicko closed the bottom. >>> back to ukraine. russia is getting more addre aggressi aggressive. good evening jim. >> the main flash point strategic because of the black sea base there. after scuffles with proe and antirussian protestors outside the parliament, this building was seized this morning by armed men with rpg's, ak 47's and sniper rifles. they raised the russian flag over the building where it's flyifly ing tonight. police surrounded the building. on his first day as official interim president, he warned russia any troop movements outside the black sea fleet base would be seen by eye crane as act of aggression. long lines of personnel carriers and troops on the road to the crimea t

janet yellen is at the lead of those.he'll be testifying before congress today for the first time since becoming the fed chair. she'll be giving her semiannual testimony on monetary policy before the house finance committee. she'll be doing the same before a senate panel on thursday. there will be a few economic reports on the agenda as well. at 7:30, we get the latest reading on small business sentiment from the national federation of independent business. at 10:00 eastern time, the government issues december reports on wholesale, inventories and job opportunities. that's the jolts report. the debt limit also back in focus on capitol hill, republican house leaders planning a vote tomorrow to raise the nation's debt limit. but they want to attach a repeal of a planned cut in military pension benefits. that cut was part of the recent budget deal, that the idea of repealing it has drown support from democrats and republicans. >> we have a couple things to talk about. barclays expecting to cut up to 12,000 jobs this year to

>>we definitely saw those yields move on yellen yesterday. what do you anticipate for today? >>i think that we are going to see continued yield movement. what is really strange about those yellen comments came outyou had yield to the downside when in the equity market we closed at all time highs yesterday. that's sort of a conundrum. you don't expect yields to fall with all time highs. but i really think that one going lower and one going higher will not survive through the trading day today. look for yields to either go down and the market to follow or vice versa. >>we have a gdp number coming out today. how is the market setting up for that reaction? >>the market is setting up to the high side. the s&p futures after the close of the equity market there was a lot of market on close to the upsideit closed on its highs 15 minutes after in the futures market. that tells me that a lot of traders are going long. and if anything to the shortside, traders are really going thin because everything seems to be on the buy side. gdp if it's revised up will get the s&p to go much farther

i want to welcome chair yellen.r this job and congratulations on a historic confirmati confirmation. >> thank you. >> we were able to visit about a number of issues. we're going to visit about them again, end users. one of those issues that we discussed clarifying the end user exemption from the margin that was included in dodd frank given the minimal risk they pose to the system. as you know, we have visited chairman bernanke, your pre predecessor, and governor turillo, given the lack of systemic risk posed by end users but concern about the ability's fed to achieve that intent. issued back in 2011 there's been a number of additional developments including most notably the financialization -- >> just a quick interruption. a little bit of a disagreement apparently between a couple members of the fed where senator brown quoted dan t saying we're nowhere near ending too big to fail and janet yellen saying i disagree with that. i looked it up. i didn't see him say nothing where near. he said we made progress in any too

federal reserve chair janet yellen weighed in on this topic yesterday. said the fed has no power over the electronic currency. >> the fed doesn't have authority with respect to bitcoin, but it certainly would be appropriate, i think, for congress to ask questions about what the right legal structure would be. >> on the side, china is positioning itself in the internet age with president xi jinping to sign up for online security. the body will mainly coordinate internet security between government and industry. >> making china the slide in the chinese -- picked up speed today since the u.s. dollar was removed back in 2005. there are a lot of people here saying this is about injecting two-way risk into the market ahead of a widening of the band. but what about them looking across at japan, seeing the japanese yen weaken and their terms of trade declining? what about that? >> right. there is one school of thought that some people are saying that it could be possible that china is looking at some of the weaker currencies across the region and saying how comp

thank you, janet yellen. you can see it with the vix driving. what a remarkable recovery after days orence of gloom 10 so ago. the yen doesn't move. bill,crude, your heating of course, gold drives higher. a lot of research notes yesterday beginning to talk about a gold bear market may be turning around. i'm sure we will look at that here in the coming days. alix steel no doubt will give us perspective there. we scour the paper, webpages. >> let's start with the fact there is no government default looming anymore. a be the government is actually functional now. >> scarlet, no. voted toican-led house raise the debt ceiling without any conditions until march 2015. the senate is expected to approve it. john boehner relied almost entirely on democratic votes. you wonder what the payback will be on that one. >> i thought it was curious he said, i needed 218 votes and didn't have them and "if you don't have 218 votes, you got nothing." >> it is a victory for the president. it is a loss for more conservative republicans who once again see their speaker

welcome, chairman yellen. as you report to this committee for the first time in your new position, and chairman yellen, i want you to know that like you, i believe that the actions of the federal reserve should always consider the impact and well-being of main street, as well as wall street. that means actively pursuing the twin goals of full employment and controlling inflation, and it also means advancing the vital work of closing the income inequality gap, which is hurting so many working families, and threatening america's economic future. like you, a believe in fundamental financial reform and real transparency to protect american consumers. that includes maintaining a consumer financial protection bureau with real teeth and the authority to act swiftly against financial abuses. i strongly oppose the majority's efforts to cripple the consumer financial protection bureau, and it's shocking and it saddens me that the majority is more concerned about bringing comfort and relief, not to struggling consumers,

that's what we got with janet yellen.e wanted someone to do something tremendously different, we should have gone with someone tremendously different. she has a career in the fed and work with ben bernanke. this is a continuity issue. >> just like bernanke, she wants to encourage congress to do their part. listen to what she says -- >> of course, monetary policy is not a panacea. i think it's absolutely appropriate for congress to consider other measures you might take in order to foster the same goals. >> there you go. just like her predecessor -- i wish she would step out and say something unexpected. >> but the market is doing well. shouldn't she want to stay the course? >> she's got other things to keep in mind. >> she did encourage congress to do something. i think we would all agree the chances of that are slim. >> we will cover more when we come back. had six hours of testimony from janet yellen. coming up, what is washington doing to help regulate bitcoin banking? who better to ask that her next just, the original

>> ben yellen? >> let's keep to first names. but you're right, continuity is the name of the game, isn't it? >> or maybe not as far as mark carney is concerned. >> wow, very good question. what is he going to do today? >> he'll obviously say, look, the unemployment rate is no longer what we thought it was. he might focus on inflation. the simple message, interest rates are going to stay. don't worry -- >> exactly. >> no one cares about all the thresholds and complicated stuff. >> does he make it more complicated by introducing new thresholds and new things to focus on or does he do what the market is getting right now, anyway? draghi is also speaking. >> who is he speaking to? >> he's speaking at 3:00 p.m. today. and he's talking about policy post crisis or where we are as far as the crisis is concerned. what crisis? we've moved beyond in europe. now, on today's show, procter & gamble hits investors with a profit warning. we'll be taking a look at how the corporates are being hit in the developing economy. >>> flying high, kettl

as to the rest of the news on monday the janet yellen era at the federal reserve officially began yellen has a difficult task ahead of her late last year her predecessor at the nation's central bank ben bernanke he announced that the fed would soon begin drawing down its multi-billion dollar bond buying program more commonly known as quantitative easing a drawdown started during the final months of ten year that yellen will be responsible for most of her job will involve more than just fiscal policy however the same time as she manages the fed's drawdown yellen will also have to convince the world's leaders that the global economy can survive without easy american money sounds dramatic but janet yellen yellen really does hold the future of global capitalism in her hands at least to summers so to some extent after all is only five years ago the global economy entered its worst downturn since the great depression things have no doubt improved since the day lehman brothers went under but the markets are still fragile and are arguably one currency devaluation or one debt crisis away from ano

until then ride the wave with janet yellen.he is going to print money and can by -- >> let andrew back in. go ahead, andrew. >> you're so valid on the point. are you short twitter stock? i'm long twitter through calls. >> i don't invest. i don't invest. i don't own twitter stock. i'm glad that you're long it. talking your book. you should have disclosed that. [both talking at once] >> first twitter. bowling doesn't disclose. this guy. how come he didn't disclose. melissa: putting your money where your mouth is. putting your money where your mouth is. that makes sense to me. >> trade 75 before 35. dinner and drink in new york. melissa: let's do it. can i come? am i in? >> vote for dinner. melissa: i'm in. i'm in. i'm in on bringing him. guys, thanks, charlie, andrew, thanks so much. >>> up next, what worries the duchess of doom? sara quinlan is known for her bearish views on the world economy but does she still see dark clouds ahead? don't miss what she has to say about the extreme weather we've been seeing. >>> we're back in dr

and so is janet yellen.he will say, i'm sticking with ben bernanke's plan to print less, but, there is no timetable. stocks are going up. "varney & company" is about to begin. ng ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. spt-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistincthouting, bell dinging ] . ♪ all on thinkorsm from td ameritrade. ♪ there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex oneate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. what is this place? where are we? this is where we bring together the fastest internet and the best in entertainment. we call it the x1 entertainment operating system. it looks like the future! we must have encountered a temporal vortex. further analyti

janet yellen says it will be a notable change in the economy. is it that he sees will be a notable change in the economy? how low does inflation have to go until fed action? yellen mentioned the word inflation 23 times. mckee, the economics editor. do not miss the exclusive interview with the president of the st. louis fed. that is coming up. >> thank you. at theing a closer look markets. we are joined by barry knapp. expecting to see the s&p and year at 1900, four percent higher than it stands today. when you look at the markets, dow down three percent for the year and say this is a buying opportunity? >> not quite. is a lot ofnk there risk. what we thought would occur in the first part of the year and what we have seen so far this year is when you reach the inflection points where the fed is no longer easing, you do not have to consider it tightening butno longer easing, typically you have gotten about an eight percent pullback in the market. ultimately it will resume the of trend. we think we are a long ways away from a recession. would be mu

yellen needed to show them. she is part of the team.een crafting message for years to come. liz: giving our viewers, what is on horizon, what would flex muscle in different way than ben bernanke? >> communication will be key here. real challenge is what if we get 6.5% on the unemployment which is entirely possible. this is threshold and talking about it qualitatively. what they like is not nuances. as she moves away from targets, as she appears to be doing. not really numbers matter what conditions are. markets don't like nuances. that will be the challenge. can she pull off nuances without lowering unemployment figures that they will not pull the punch bowl anytime soon. reinflate the economy from the low inflation point if it means for jobs. i think that is really important. >> i need to let your viewers know something important about you, you advise federal reserve and regional fed banks. what are you advising right now. >> my peer fear is they have been wrong about the forecast and overly optimistic. i think we get 3% economy. any m

i'd like to welcome chair yellen. dr. yellen is serving her first term as chair of the board of governors of the fastball system. she was sworn into office earlier this month. before that dr. yellen served as vice chair and member of the board of governors of the federal reserve system. she was also previously chair of the council of economic advisors. chair yellen, please begin your testimony. >> chairman johnson, senator crapo and other members of the committee, i'm pleased to present the federal reserve semi annual monetary policy report to the congress. in my remarks today, i will discuss the current economic situation and outlook before turning to monetary policy. i will conclude with an update on our continuing work on regulatory reform. first, let me acknowledge the important contributions of chairman bernanke. his leadership helped make our economy and financial system stronger and ensured that the federal reserve is transparent and accountable. i pledge to continue that work. the economic recovery gained greater

liz: janet yellen hit that page. david: they like what they heard. liz: they sure did. the new fed chair janet yellen making her first appearance before congress since taking the job at the beginning of this month and delivering the message, and the word, continuity in the fed policy. she said the recovery in the labor market is far from complete. david: barclays is planning to cut up to 12,000 more jobs this year. including 5000 in the international operations. the bank will also increase bonuses for investment bankers. liz: nicole talking about cvs. let's take a deeper look. they got a pop after upbeat quarterly earnings report. cvs last week, remember, said it would stop selling tobacco products, reporting a 12% gain in fourth quarter profits. david: "the wall street journal" says microsoft is turning to an unlikely partner, google, to help boost the struggling nokia smartphone business. they said google's android software could be used in nokia phones in developing countries. liz: boeing is higher after the aerospace giant is studying the possibility of a medium-ran

scott, for five minutes. >> chair yellen, welcome. i'm over here. let me just ask you, because i need to ask you if you will be bold. we need bold leadership here. you got to do a mission, fighting price instability, inflation. but employment, that part of the mission has always been like a stepchild for the fed. it's been like a second-class citizen. and we have a national crisis on unemployment. this is riveting. the 6.6 figure is misleading. i mean, college graduates right now getting out of college is 22%. young veterans, it's 24%. not to count young males at 30%. one-third of all the working-age women have already slid into poverty. we need you to be bold. we need you to take us not around the docks with the little boats. we need you to take us out with the big ships on this issue. i need to ask you, will you do that? will you lift this up and make the employment part of your mandate on an equal plateau with fighting inflation? >> congressman, i strongly support both parts of the federal reserve's dual mandate. price stability and maximum emplo

what traders expect to hear from janet yellen on capitol hill. in today's cover story...from germany to australia...how automakers are preparing offshore demand. plus...baby you can drive my car. how driverless wheels could put the breaks on the high cost of insurance. and...why this year's olympic games could be pure gold for advertisers. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's tuesday february 11th. i'm angela miles. in today's first look: waiting on the fed chair. stocks waffled around yesterday as traders attempt to predict if the new leader to the federal reserve janet yellen will make market moving comments in her testimoney today. stocks and oil made modest gains. while gold had a bit of bounce up $11 dollars per ounce. rackspace ratchets down. shares of the tech company plunged more than 12% on profits problems and word the ceo will retire. a report says barnes and noble plans to layoff employees in its struggling nook division. nook revenue fell

janet yellen has passed her initiation. what i really want to know is what was for dinner last night of the white house. >> there was ribeye for the main course. of potatoesety around the country. >> i like it. a dozen variety of potatoes, seven wines, must be a very important dinner. ah, but of course, a state dinner. president obama welcoming a solo french president franÇois hollande. state dinners do not happen very often. the number has fallen off, look at that, maybe it has to do with the price tag. click cbs found out these dinners can cost about $500,000. i got the information through the freedom of information act. >> that is enough to buy a house in virginia. this must infuriate the deficit hawks. >> paul ryan was there after he had voted against raising the debt ceiling. he stayed until the very end. >> paul ryan closing down the white house. you go. who could blame him? this is a state lewis. gillian wee dreyfus and her cooper, mary j. blige, stephen co. bear, jj abrams, and mary j got to sing. i must be dreaming

now we'll talk about the markets in the wake of janet yellen. the panel is steve weiss, you know that already, anthony is here as well, stefanie link here, too, josh and baron's top 100 adviser scott steagal of morgan stanley wealth management is here. talking about the markets here. josh brown, what was your big take away today from janet yellen. >> the market has nod reaction. the take away is that people believe the taper will continue a pace. there's no reason to do the kremlinology thing where we try tointerpret every fed speech. >> scott steeg is here from morgan stanley wealth management, managing director there. you've been on the baron's 100 for three years in a row. what would your reaction be from what you heard today from a guy who plays a lot in fixed income. 50/50 fixed to equity but it's a big portion of what you do. >> from our standpoint it seems like things are as usual here. they're going to continue like they are. but i think over all our client base has a view that just got to be careful here. we've had this great run, espec

this seems a little depressed it is but do you think we're going to see any material changes with yellen at the helm of the fed now i don't think so i mean that's one of the things i worry about is that i wish the fed was rethinking some of its policies i know they're rethinking kiwi and they and they seems like across the board fed officials are saying we're going to taper we're going to keep tapering you know no one's backing off that right now so i think that maybe that's a good thing but i think the general philosophy behind fed decision making and fed policy making won't change at all under janet yellen and that's one of the things i'm concerned about i think given what we've seen over the last ten or fifteen years the idea that the fed should keep pushing us apart is you know keep promoting you know easy money in the same incentives that led to the two thousand and eight crisis to me it seems like it's time for a change but i don't think that's what we're going to see now you've said that you'd like to see the fed return to a more traditional role of a central bank given your assum

i think i heard chairman yellen say something similar. so would have been appropriate then and isn't appropriate now? please elaborate. >> the first part of your question, i think that if we had stuck, if the fed stuck to a rule like that, as it was following party closely for a long period, that we would have had a much better performance. and so my view is we should have stuck with this long ago. i indicate that in my opening remarks and in my written testimony. with respect to go negative, that refers to situation where a policy rule like that would suggest a negative interest rate. it's certain he doesn't suggest that now. it would be closer to 1.25%. so we can't really rationalize all the extraordinary other activity of the fed based on that. with it ever have gone negative during this period? perhaps, depending on how you measure it a little bit in 2000. i think by a small amount. but certainly not by enough to justify this extraordinary action. beyond 2009, 2012, 2013, and 2014. moreover, it's not like all this research i refer to

her first official week as fed chair woman this very week starting on monday but i want to ask you yellen has said that she doesn't see risk in the stock market right now do you think she's misguided in her current belief. you know i think it's typical of officials they never see the problems we for. you know the people that i listen to i think are people with a better track record people who saw the crisis coming last time around they have been worried especially in recent months about overvaluation in the stock market you know i don't necessarily think we have a massive bubble of the kind we had in two thousand but i think stocks are definitely priced at a point where you know certainly when janet came into office they're priced to in some ways to perfection it's going to be very hard for i think for prices to keep heading north now in your film yellen she kind of came across as part of this crew within the fed that's critical of the recent policy employed by the central bank even though she supports the banks current easy money policy now this seems a little depressing to us but do you