google's earnings, ibm's earnings, both in many cases better than expected, especially ibm. >> the stocks both higher by more than 4%. google higher than 5% in afterhours tradings. so, if that continues tomorrow, remember, ibm is a dow component. that's going to bode well for technology, maybe the overall market. >> that does it for us. thank you for joining us. >> "fast money" has full coverage of speaker boehner's press conference, starting right now. >>> live from the nasdaq market site in new york city, i'm melissa lee. afterhours action from csx to google and ibm. we're covering it all. apple angst. will the tech giant dliceliver e tomorrow? and how a south african company is pushing the u.s. closer to energy indedense. first, we have to get straight to our top story and that is markets. the s&p reaching five-year highs, the dow having its best january in 16 years. buyer or seller? pete, pit boss, what do you say? >> i remain a buyer of the market, but i've been shifting around my portfolio and that's because this has been an unbelievable move to the upside. we're in earnings season.

we're waiting on google, ibm, amd as well, also texas instruments. plus, one side effect to the health care law could be job losses. coming up, the ceo of the dwyer group runs a franchise of about 1500 small businesses telling us why a lot of those businesses are stopping expansion plans because of obamacare. dinah dwyer here exclusively on fox business. lauren: and td ameritrade reporting a drop in profits year-over-year, but client trades are up, averaging 370,000 a day this month, and the stock is rising after beating the street. coming up, the ceo and president, fred tomczyk, tell us us if the retailer investor is coming back and how his company plans to capture their business. david: first, we want to tell you what drove the markets today with today's data download. stocks reversing earlier losses to extend gains for a fourth straight session with all three major indices posting gains, materials and utilities were the top-performing sectors while consumer staples lagged. and precious metals moving higher following the bank of japan's decision to

google and ibm out any moment now. get the numbers and a panel of analysts ready to tell us what they think. paul and gary will be watching the numbers when they come out. cnbc contributor michael yosikami and joe greco of meridian equity partners joining us in just a moment. michael, let me start with you. you bullish? >> yes, i am bullish. i see no reason why the markets should not continue to go higher. interesting to see the numbers kemg out of google and ibm. an indication of the strength of the global economy. yes, obviously, the fed is juicing this real, but cash on balance sheets is at record highs. unemployment seems to be stabilizing, and have you nowhere else to go, if you go to cash, what are you making, nothing? >> nothing. >> go to bonds, nothing. >> might as well put it in the mattress. >> exactly. >> watching google there. waiting for those numbers. not out yet. estimates coming down. rich peterson what, role does technology play in this market right now? how important are they? >> it's always the audio

first up, ibm. j.p. morgan chase, if you missed it, downgrading ibm. lowering their price target to 197 from 215. they say, things are getting better in technology but are worried users will be less interested in ibm given the potential as jbm sees it. they say, when things get better, maybe that bad for ibm. because investors will seek out faster growing companies. let's talk more about this and bring in morningstar's grady burke. grady, i'm not going to ask you to slam or praise a competitor, if you will. but what do you make of the call? >> we look at it as competitive manage at morningstar. so it is difficult to express mark market sentiment. having said that, they are at the front end of main frame refresh cycle and that tends to drive a lot of software revenue, higher margin hardware and financing revenue. and so, you know, i think that there could be a shot at ibm's shares actually doing well and potentially performing better on the market this year. >> okay, we will leave it there. i see a fair value. that is slightly above where it is now. tha

one of the things that ibm does -- a couple of things. one is having an eye on where things are going. one of the reasons that we focused here on data, relational database disk drive, was, looking at the time, the inability to access data quickly on a computer was actually an inhibitor to getting business done. one of the ways that you get innovation out there is you understand how it is going to be used, really, before you start. the major reason for working on the disk drive, aside from the obvious technology base that this place has and continues to have, was just an understanding that high-speed access to data would create an opportunity

i say take a look at ibm. ibm has the continuing recovering revenue stream. it's a defensive technology play at a moment where that's what you need. >> murph, give me a quick read. >> real quick, when you look at apple and google, apple has pull back 25, 30%. so google a 10% off the recent highs and i think there's more downside on google. but i think the bar is set so low for apple it can clear and start to rally into the mid 500. >>'s move -- let's move and get to a developing story. shares of apple trading near the lows of the day. got us wondering if the comments from the cfos comments. >> i tweeted out this morning, so cfo sha mow was asked about subsidies in the earnings call. as we get more and more fl platforms into the mix, now we have rim out there again there's the incremental competition. there will be subsidy reduction as there was in the basic phone history in the ecosystem. he's saying there will be more mix. the subsidies are down. you can say he's basically telling you here, as the smartphone becomes a bigger part of the market and more compe

an example of this is ibm. ibm granted through its foundation in the first instance, gave at $10 million grant to create the supplier connection. they created an internet based place where companies smaller than $50 million of revenue could apply to supply different things, from pencils and paper to widgets in courtrooms, whatever it is. ibm brought in about 20 companies that put their needs on to this website so that small and medium enterprises can expand their businesses. small and medium enterprises account for the largest percentage of job growth in our society, but it is our obligation to encourage them and help them thrive. we'll ask eric how he felt when facebook was a small company. >> the third area that you focus on its corporate governance and what part of the issue that has been much talk about is an excessive focus on short- termism, that you think a long- term focus might arise and be more inclusive, help bring more benefits to society. >> in the way that we are saying corporations should invest

we will hear from ibm as well as global. ibm has been a big story. it is already down on the year. ibm open to rebound from a very tough third quarter. the thing to watch in ibm's earnings will be their revenue numbers. they came up short with 25 billion. sales are going to be key for ibm. the reason i have a year to date chart, since january 11th this stock has been on a serious decline and actually closed trading on friday. very much attached. our fourth quarter earnings will fall for the technology giants. a lot of these tech stocks led the way for the rally in the back half of 2012. fourth quarter will be a major tax and it has been on the decline. you also hear from microsoft. a little bit of a preview in the next hour. of course, more on apple in just a second. the decline to $500 per share. the take chance, we will have a look at what you should do. what you should do. a few minutes from now. a few minutes at the top of the 2:00 hour. i'll have more on that. lori: looking forward to that. melissa: and she mentioned apple, setting as a beautifully. known for blowing earnings

bernie meyerson of ibm innovations. good to have you on the show. take care. > > thank you. still ahead on first business, how one trader hopes to make money on canadian currency. chart talk is next. we are taking a look at a currency play today in chart talk. alan knuckman of optionshop joins us now. good morning alan. > > good morning. > your play is in the canadian dollar, also known as the loonie. but you say that there is an oil connection. could you explain that please? > > they're the number one exporter of oil to the united states, so their economy is very much based on energy. so their currency has kind of been suffering lately as the energy sector has been down. but we are seeing a resurgence here, and we just made two-month highs in crude-oil here recently above $91.50, so i think that could add some support, and you've got a very solid base at $99, which is the halfway of the highs and lows for 2012 in the canadian currency. > here is the chart and a look at the canadian dollar. what do you see in the charts that you like? > > i am looking at a june option, a lim

you take a look at ibm. ibm went through the sort of same year multiyear trough and everybody said growth is over and all of a sudden we have services picking up and another part of the business generating revenues. ibm is one of the best stocks we've had, right? >> is it invest in mature large cap tech at your own risk? including apple? >> well, i think at the risk of your own patience. because if you invest in large cap tech one are diminishing the risk. a lot of them have huge cash positions and franchises. so the risk of ownership, the risk of making money, you bet are be very patient here. those folks patient with ibm have certainly gotten paid. we think we will get paid in microsoft. i'm not rushing out to buy it, okay? >> you think it'll be a good holding. >> i did. and i'm praying about that too. i develop faith on these things. >> we will have you back later on "power lunch." get some broad market thought about whether this is a good time to get in or not. sue, down to you. >> thanks, guyes. preside

ibm's good numbers and good earnings report and come out and move ibm to the upside by about 5%. that obviously weighs on the dow jones industrial average, either good news or bad news. we know it is a weighted index overall. and so ibm is worth about 78 positive dow points today. let's take a look also at google. google also soaring today. another winner on their quarterly results. so google is up 6 point 3%. that is a gain of 45 bucks. that is huge move, especially on stock almost $750. you talk about the big moves here. we should add at least 12 brokers raised their price targets on google's stock, jpmorgan, morgan stanley, barclays, et cetera, piper jaffray and so those are some of the names obviously tacking on and thinking more postively for google. back to you. melissa: all right, nicole, thank so much. when it cops to movies these days it is go big or go home. as just films that won't be just popular in america but blockbusters worldwide. in 2012, eight the top 10 highest grossing films worldwide were screened on imax. do we have a connection here? liz claman is in davos,

with ibm, no one thought they would beat with revenue, and they did. the big wild card for ibm was their service sector, and that must have beat street expectations. we rallied 2.5 after the close. with google, a different story. it is true that ad revenue has gone down; however, there are more clicks on tablet devices, smart phones... so at the end of the day, they are making a lot more money with less per click for google, so therefore the stock rallied pretty hard after the close. > will oil be a headline story of the day today? yesterday it climbed above $96. > > it is a big story, but really the story behind the story is that oil is stuck in cushing, oklahoma, right now. so, it is trying to work its way down to the gulf refineries. refinery margins are starting to increase again. they are going to want to import the oil from cushing, oklahoma, so producing again is definitely going to balance out the supply and demand scenario. expect oil prices to go down in the next two to three months. > economists are questioning whether fed chair ben bernanke

topping the list, google and ibm. these are the numbers that could drive the entire market tomorrow. we're going to have what you need to know the moment they come out tonight. >> also, look forward to texas instruments numbers out tonight as well and a new tax on every share of stock you trade. she loves this story. looking more likely in europe. could it be a coming to wall street as well? the cd of td ameritrade will be joining us for that, among other things. earnings and lots more to talk with fred about. >> retail and whether investors are coming back. big nightmare for boeing, the dreamliner with problems and its stock still down. right now the news is not getting any better for the aircraft-maker. >> we've noticed a trend lately. you see some selling in the morning and then buying in the afternoon, and we have often thought of the afternoon trade as the smart money. >> and you see it right there on the intraday chart. i am so old, phil, i remember we introduced the infraday chart, a phenomenon that we could se

ibm. dow component ibm up 5%. adding 82 points to the dow jones industrials. software sales on the rise. ibm is a clear winner. back to you. connell: the big story has been secretary of state hillary clinton today. testifying before congress answered questions about the terror attack on the u.s. consulate in benghazi libya. >> the response saved american lives in real-time and it did. the very next morning i told the american people that heavily armed militants assaulted our compound and i vowed to bring them to justice. i stood with president obama in the rose garden as he spoke of and act of terror. connell: that was the explanation. we are bringing in mike baker now. the accountability review board came out. we knew that there were serious administrative and logistical screw ups leading up to the incident. we knew that. they did not address some of the issues which i am sure she will not address. who was in the white house situation room that night of the incident? did anyone request authorization to at least try a rescue attempt? was it denied? how could t

. >> ibm is a big company. i am sure there are a lot of people in the valley that still see it as an east coast-based company. the reality is you have been here for a long time. can you talk about the ontario culture here and what is being done that with the great ideas -- a entrepreneurial culture here and what is being done with the great ideas? >> we started here in 1962. this building is about 25 years old. we were down the hill at the san jose raiders center. -- research center. one of the things that ibm does -- a couple of things. one is having an eye on where things are going. one of the reasons that we focused here on data, relational database disk drive, was, looking at the time, the inability to access data quickly on a computer was actually an inhibitor to getting business done. one of the ways that you get innovation out there is you understand how it is going to be used, really, before you start. the major reason for working on the disk drive, aside from the obvious technology base that this place

rowe price from baltimore. >>> ibm having its best day in several years. if you listen to the najarian brothers, back in november you could have cashed in on that move. here is what they said. >> i still like the name on a valuation basis. they had a weaker quarter but i think they can perform. >> doc, are you going to go against your bro? >> no, i'm not. the oracle of omaha buying it around that exact level, 188, 190, i think it's a good buy there. >> all right. well, ibm is up 9% since that call. having its best day as we mentioned since march of 2009. the question is what do you do now? >> well, they were buying a lot of upside calls but it was all weekly. so it's a binary bet. it was really on the earnings. you know what they say buy rumors, sell news. i took off my long positions in this stock. it's not that i don't believe in ib m. i think they're really doing almost everything right and i think the stock could trade to move highs but i move on after the baby is born. >> it's what you were talking about before. we talked about with various stocks, mc

then there was ibm after the close. were we so darn fixated with that top line? but ibm knows you can get terrific grades by saying no to bad sales and yes to good sales. ibm makes as much money as it did, not thanks to alchemy, but also because it makes a huge amount of profit on each sale, particularly software. what a remarkable quarter. pure deans list and a nice surprise, perhaps the company just didn't feel well on the last quarterly exam, should've gotten a note to the testing agency from its mommy that ibm was under the weather. how about google? sends shareholders down a chute with a shocking amateur and stunning midday release of what's supposed to be an end of day release on a disappointing quarter. and boy, it was like a defenseless hit to the blindside. i'm not kidding. just a defenseless hit, just a nasty one. and there were all sorts of flags being thrown, suspense, maybe talk about a suspension by the stock commissioner. this quarter was a redemption song and a complete reinstatement of greatness with terrific growth and now products that are stea

ibm was good and the stock was fine. not great. if you do something good, this market rewards it quickly. >> as a network, do you think we could get away with, we did rise above. what about a campaign on growth? anything that is a negative for job growth, or for economic growth that we call people out on that? anything's a positive we reward people for that and get a new slogan like grow forward, or grow up, or -- would that be too partisan to look for growth? the other side might have a redistribute button instead of a growth button. >> i think if we could have a grow here button that would be great. >> grow here? >> in other words, bring the business back here. grow here. and i want to see what you're saying. grow there, it doesn't help. >> it's a global -- you know, we expect people to bring their businesses over here, too, though. now you're sounding protective. >> i just think if you have -- if you need natural gas as your feed stock, we're the cheapest place on earth. why aren't you building plants here. we need refineries --

then there is ibm, best performer on the dow adding roughly 73 points. shares are up almost 5%, more than $9. quarterly earnings beating estimates. big blue also uping its 2013 forecast, stronger demand for services. google, another standout. lifting the nasdaq, internet search giant is up 6% as you can see on your screen, basically going back to the last earnings report in the month of october. google beating street estimates in q. 4, sales of 10% sequentially. costs falling less than some folks third, revenue gaining traction. we were talking about that yesterday on the show. also check out apple ahead of q 1 earnings today "after the bell". stock is a trending higher with a substantial move toward the earnings report up 773. we have the numbers as soon as they cross. apple profits made drop for the first time in ten years. not so worried about the march quarter, worried about the march quarter as well. technology is strong, the market higher, let's get to the floor show, traders said the cme group and at the nymex. a couple of big things i want to bri

. >> ibm and google surging premarket. google gets its price target raised by six firms this morning on better than expected earnings. >> coach getting pummeled this morning, blaming its big earnings miss on weakness in north america during the holidays. it says it is transforming itself into a lifestyle brand. >> apple's results tonight after the bell. could this be the quarter that marks the bottom on the stock. will tim cook talk about the next omg product in the pipeline. >>> we'll start with mcdonald's. it earned 1.38 nds the fourth quarter, it exceeded estimates. ceo don thompson said for the near term, mcdonald's expects top and bottom line growth to remain under pressure with january global comp sales expected to be negative. jim, it's come a long way since the mid-80s here. still pressure on margins. the dollar menu is tough to sustain. >> you've got to put yourself in the heads of the buyers. i think the buyers say, look, in the end, it was better than expected. the stock was a terrible performer last year. they

and ibm, this is going to be a big one to watch for i.t. spending. that, too, after the bell tonight. so, cheryl, the earnings parade continues, and it's really proven to be a big moving factor for the markets this week. cheryl: right. we've had a heck of a month so far. you were going through a lot of the big dow names, again just hitting session highs. but a lot of this is based, as you're saying, on earnings. there's your dow 30, everyone. >> very positive as a result of those we werings. cheryl: sandra,ing thank you very much. we're in the heart of earnings season right now. it's really seasons, but this is the one season with big names like google, ibm reporting after the bell today, but what should you look or for in terms of results before you invest in these names? joining me in a fox business exclusive from boston is peter andersen, congress asset senior portfolio management. i want to go back to december when you were on the show, and you were concerned about the dividend taxes spiking, that that was going to effect earnings. you were, fran

i think ibm, because this last quarter, when ibm fell right after those earnings and it tested down to the levels where it is now. it did hold at 180 but then it did break down because of the fiscal cliff and all the rest. it did break down through 190. came back up. it's 193ish or so. i think good earnings report next week carries them through 200 on the ibm. >> finally a technology earnings call right. >> hold on. >> apple next week. mcdonald's next week. i'm looking over at the wall. 3m next week. honeywell next week. pg&e. you have microsoft, starbucks, monster names. >> i feel like i'm in a restaurant and you just read the specials. could you go through those again? here is the deal. let me tell you about earnings season. so far it's been good. not a lot of companies reporting. about 10% but generally the bar set very, very low. and they've surpassed and surpassed on guidance. that is a positive thing. let me tell you forget the earnings for a second. here is the trade. here is what you got to do. get rid of your defensive holdings. time to play offense and put on risk. to me i li

, yes, software at ibm. all right, nicole, it opened where? >> ibm is looking good this morning, coming out almost at 4%. $203.64. and a couple of things, cloud computing, business analytic software. stuart: ibm is a dow stock and the dow is up. 50 points at opening bell. move on to google, more people clicking on the ads apparently good news for google. how far up is it, tell me? >> up 5% for google. let's take a look at google. certainly looking good. they had a rebound of the on-line advertising prices. they said total advertising revenue improved 19% in the fourth quarter and that was good news. right now, sitting at 737.66 looking good and the company strength right there for google. >> congratulations, nicole, brought us two blockbuster from the get-go, we like that, excellent stuff. now let's check on apple. where did that open? we've been talking for weeks about apple losing its cool. the report later on this afternoon. slower profit growth is expected and don't know what's going to happen is expecte

we have features that are higher this morning likely due to good earnings reports from google and ibm. the dow, nasdaq and s&p 500 all closed at new five-year highs. seems to be a daily occurrence. the kou has been up eight of the past nine sessions. we get data on home prices and big earnings from mcdonald's and united technologies. this afternoon we hear from apple. the dow rising 62 points to 13,712. the nasdaq up eight to 3143. the senate commerce committee is expected to hold a hearing and to u.s. aviation safety in the wake of incidents involving boeing 787 dreamryaner jets. lawmakers want to examine why the f.a.a. allowed boeing to install highly flammable lithium batteries on the 787. u.s. french and japanese authorities are investigating why the batteries failed on recent flights. one forced an emergency landing in japan. that led to a worldwide grounding of the dreamliner. back to you. >> thank you very much. we'll check in later on. >> let's check in on the forecast. christina loren, what are we facing today? >> a little bit of rain. we had a break. no one will complain too

ibm will be the one to watch. ibm has a big impact. there is about a 11% weighting. we will be looking for ipo earnings. you are probably not too pleased with this selloff. a lot of people looking for a turnaround plan for ibm. ibm could really set the bar for what we expect right now. expecting $5.25 a share. 10% off of its earlier highs. this will be a stop to watch after the bell tonight. also, google. all eyes will be watching google. look at where it is sitting. look at this selloff. it is a year-to-date chart for 2013. this stock has seen a 10% selloff. right now analysts expect $10.52 a share from google. there is confusion expected tonight. the profits from that will not be in the earnings. can you really compare what analysts are looking for? a little preview there for you. to date tech giants that have experienced a selloff. everyone looking for them to set the standard. melissa: it sounds like -- it will be quite an afternoon. sandra, thanks so much. keep it right here on fox business at 4:00 p.m. eastern. lori: we want to bring you the very latest on boei

so ibm kept full employment and -- just too large. so ibm said we have machines that will tackle this problem. >> with their punch cards? >> yes, it's all done with punch cards. >> that's amazing. >> they're doing data entry in this picture. >> tom watson of ibm, a pretty unfully ential guy. >> he was, and keeping full employment during the degrees was considered crazy by other business men, but turned out to be a stroke of genius. >> a lot of people were thought crazy in this museum, and came up with breakthrough ideas. >> exactly. >> let's go take a look at more of them. in this room is the work of a lot of visionaries. tell us where we are. >> we're in the supercomputing gallery, which is we display the fastest and most expensive computers of any time. >> this is one of the most aesthetic of its time. >> the kray1 came out in 1976. it was at least 10 times faster than any other computer available at the time. >> and it was a real thorn in watson's side, wasn't it. >> it was. thomas watson once wrote that he failed to understand how

and where you think ibm will go in 2013. >> well, frankly, i think that ibm's a victim of spending worldwide. ibm is owned by my charitable trust. and we hope it goes to 180 so we can buy more. i think it's a good stock. i needing to to see chris in michigan. chris? >> caller: jimbo, boo-yah, buddy. >> back at you. >> caller: listen, berkshire hathaway class-b stocks. i have a lot of it and want to buy more. what do you think? >> i totally agree. it's a play on two big themes -- insurance and housing. >> buy, buy, buy. >> warren buffett is the man. i'm a buyer. that guy who said the nasty things about him this weekend, he should take those back. that was wrong. let's go to stan in florida. stan? >> caller: hey, big boo-yah to you, jim from sunny naples, florida. and also a huge roll time. >> boy, i was going with the fighting irish look. i'm neutral billion this. go ahead. >> oh! >> caller: can't be neutral with the tie. emerson electric. >> man, i think you could be for the tie, for the irish, but you should be for emerson which is a china play, and it's coming back, and i believe the ceo i

ibm is drastically changing its 401k plan for employees. beginning this year, instead of matching employees 401k's on payday, ibm will pay one lump sum at the end of the year. the new plan is stirring up controversy. critics say employees who quit or get laid off from the company before the end of year will not receive the 401k lump sum. they also miss out on interest from the entire year. others say the plan is good for employees as it keeps fees low and still matches their salary by 6 to 10%. with interest rates at historic lows and housing prices showing signs of climbing, more americans are considering dipping their toes back into the housing market. but the process of getting a loan to buy that dream home can be daunting. paul eggers has some simple tips to keep in mind if buying a home is your new year's resolution. maurizio fiori is hoping to buy a home in 2013. he's looking to move his growing family out of their chicago apartment and into their very own home. 'i've been scouring the internet, and talking to agents and mls and all t

ibm's chief innovation officer is here to reveal the next big things in tech. stay tuned. >>> welcome back to "fast money." a bit of a sell off in the home builders today, after the december fed meeting minutes were released. the minutes showing that policy makers supported the fed's plan to buy bonds but they differed on duration. concern about qe and interest rates. kb home was down the most of the day. lennar was bucking the trend a bill, closing above the flat line. mech list is a? >> jackie, thank you. wasn't just the home builders that sold off, but the broader market, as well. so, does the move signal the start of a bigger correction? let's check the starts with mary anne bartels at bank of america merrill lynch. happy new year to you. >> thank you for having me in today. >> tell you what you see. >> right now, the s&p is approaching the 1500 area. we are starting to get into the 2008 and 2009 range. we were bullish looking for a year-end rally, which worked out really well. we still think january can rally a little bit now. we're concerned about the mon

reports say corporations like ibm, intel and general motors are eager to hire graduates from china. competing against big box stores can be a david-versus- goliath experience for small retailers. 30 years ago, hardware chains and independents split sales 50/50. now, chains dominate. as paul eggers reports, it's making survival tough for the little guys. "gracias. que paso malala" jesus davila's hardware store, "la brocha gorda," has been a neighborhood fixture for some time, operating in a mostly mexican community on chicago's south side. "the shop has been open for 30 years already. it's been open since 1985. yolo que paso como estas" customers are still coming in, but davila plans to shut the doors in just a couple weeks. after making countless keys and helping out on hundreds of jobs, he's had enough. "let me tell you, i can do it, but i'm tired already." longtime hardware store owner joe fronaczak can relate. "we did work 72 hours a week. we're here until 9 during the week, all day on saturday and 'til 1 on sunday. management meant you were here all the time." his shop, also on

you have already heard from michael, who is wonderful at ibm. clearly, they are a leader in this area. with michael's travels around the world, he will share more of his experience, and that will also be an interesting perspective. i really want to welcome the san francisco mayor ed lee. it is difficult for me to call him mayor lee because i have always known him as ed. you are going to get to know him really well. the 43rd mayor of san francisco was born in seattle, went to college in maine, this tiny college out there. he decided to come back and get his law degree from uc-berkeley, and then was appointed by art agnos in government in 1979. he became the director of the human rights commission under willie brown. he became the director of public works. 2005 city administrator, and then the fateful day in january 2011 when the board of supervisors could not decide on anybody and decided that family was not going to be a threat to their future political aspirations. [laughter] he got more than six votes, six more than anyone else. and he became

keep an eye on ibm. the stock has been flat over the past quarter. >> the earnings ball is going to roll into jeff kilburg's court. jeff, welcome. first up, johnson & johnson. higher sales lifting that company to a better than expected fourth quarter profit, but they missed on full-year earnings expect tagszatioexpect. there they are, at 72.75, down about 48 cents. what do you think here? >> well, this is exciting. j & j has not been exciting. it's been sideways for the last decade. we're seeing them sit on some nice cash. seeing them deal with the way they had recalls in the various manufacturing plant upgrades. right now we're positioning to be long in the stock. there's a selloff of some vertical to j & j. i think johnson and johnson continues to go higher. >> travelers beating the street. earning 72 cents a share. the estimate was for 14 cents a share. you would call that a beat, wouldn't you, despite some losses from superstorm sandy. shares fresh 52-week high. up more than $2 at 78.49. do we like t

ibm does so well at managing expectations. they're an extreme case of managing both expectations, and their earnings. facebook totally whipped it on their ipo by not correcting managing expectations. it seems like apple is sort of in that facebook wheelhouse trying to get more like ibm. right now, they're in the midst of a cycle where they redesigning a bunch of products. margins are down. but in terms of the number of iphones that they're shipping, very high. i mean, that's something that investors certainly need to think about. >> all right, john, thank you very much. daniel, thank you. we appreciate it. >> my pleasure. >> the world economic forum is just heating up. let's get back to andrew. he has more from davos right now. hey, andrew. >> hey, becky. we've actually changed positions. we're a little more behind the scenes here on the promenade right next to the congress center. this is where all the action is kopp happening. and a bit of news this morning, literally just an hour ago mario monti speaking about austerity and

ibm made the first product with cheese slices. we cannot do that anymore. [laughter] this place also reinvents itself in a continual basis. in that sense, we feel very much at home here. the ability to reinvent, the ability to have a real sense of where things are going is also something we see in the bay area. strategic view. one of the things that i learned we do not talk about as much in the bay area is this amazing mentoring culture. we see folks like lisa who are young, dynamic maniacs -- i think -- but there is this a very active, quiet, kind of a grey-haired mentoring culture that helped people do what they do. i do not see that anywhere else. people give up their time, give of themselves. it is just a spectacular way to foster innovation. >> i want to talk about innovation in the bay area for a moment. this is for all of you, but i will start with you, mayor lee. how would you describe the state of innovation in the bay area right now? are you concerned -- instagram comes to mind -- about a bubble? >> we have been trying to analyze that question wit

ibm and its monopoly. we had ibm and its pc architecture. microsoft went through the trial back in 2000. now we have at least four. and they are each run by hopefully sharp people who understand what they are doing. they are competing, but also cooperating. the reason this is relevant to you all is it is driving prices down at our rate that is phenomenal. when you look at an iphone 5 or android competitors and realize the amount of competition you have, and it is $200, it is extraordinary. and that competition, which is approval by the way, is ultimately beneficial. looked at amazon. amazon is a controversial. 50% of the on-line world and a larger part of the general e- commerce. extraordinarily well-run, extraordinarily the in its understanding what is convenient. take a look at facebook. if you add billions of users every three minutes, you can make money from the. it is not difficult. you just have to figure out a wet. each of them operate -- you just have to figure out a way. each of them operate differently. take a look at apple and goo

over three months, shares of ibm have slid more than 7%. you agree with this call or snn. >> i do agree with this call. i speculate that what they are really getting at is that people are gravitating towards oracle and sap for their erp. which is enterprise resource planning. a fancy name for all inclusive offer they have. then they will also buy their software product. so i agree with that. at the end of the day, this is old world pc versus new world discussion. as ibm and microsoft are caught in the middle of that where people don't know what to make of it. however if ibm trades below 188, i do think it sells there. >> the company believes that cisco emerged strong from its restructuring effort and says, quote, cisco is our best large cap idea for 2013 over the past two months, cisco shares are up more than, you see it, 17% at 20.83. you like cisco? >> i would have loved it. since then it is up 25%. as it turns out, the software difine networking aren't ready to take away cisco right now. would i buy it here? absolutely not. if it settles

. >> a few stocks, apple, google, ibm. >> boeing account for a good portion of the dow gains today. >> boeing does. >> and ibm. >> very few stocks that are doing it right now, and i think we've found a new leadership group that's taken us higher so that's the tech sector. >> you're hanging in there. apple, would you buy it here? >> i won't comment on the individual stock. >> but you like technology? >> do i like technology. there's -- i do expect the pullback in the short term. investors have been paying for the improvement in the news. at some point they are going to want to see positive news, and i'm not sure it's coming just yet. >> okay. very good. good to see you both. see you later. 15 seconds left heading towards the close, off the highs of the day but a new five-year high for the dow and we wait for apple an netflix numbers. we get those numbers right here on the second hour of the "closing bell." >> welcome to the "closing bell." i'm michelle caruso-cabrera in for maria bartiromo who is on assignment from davos, switzerland. bill griffith will rejoin me in just a moment. the

ibm was a recorder google was as you and i were talking on their wall street loves to them. their pick up as far as mobile not there at this point in time. >> google is contending with apple. once you get so big you cannot expect this kind of growth in tech companies. >> i like to refer to it as growth companies, growth and income, we have seen hyper growth down to grow. will they maintain their growth with a report tonight. >> ibm on the other hand the company pays nice dividends they grow slowly. they make a lot of money and are in the right area. for the first time in a decade because see a drop in revenue. >> yes. keep in mind apple like to on your promise and over deliver. we should see a surprise. the rise and has come out and said smart phones are at record numbers. they did have a nice quarter. apple today the big day for tim cook will be increased the dividend or do a share buyback. we will get a lot of answers today. >> are looking for dividend stocks. global is sitting on a lot of cash google will they start offering a dividend to shareholders. >>-- google is sitt

i sure liked the look of ibm and google earnings and i love the way the stock traded after the close, but until i hear the conference calls myself i am not going to pronounce them as terrific as the after-hours trading would indicate. you might want me to but i'm going to say no. after this morning how could you blame me for not wanting to pull them apart myself? do the analysis myself, even as i like both stocks my charitable trust has a sizable position in ibm. it is not idle chatter when i tell you that these couple weeks averting season are the worst times of year to try to make money. it's because of the tsunami of information coupled with the need by traders to trade every single day point even if they are meaningless or even robbed. remember the cases of verizon, j and j and dupont. listen before you take any action, that is if there is any action to be taken at all. david maryland. >> hello, jim cramer. big, fat a baltimore ravens superbowl of brianna. >> i've got to hand it to you, i like harbaugh. i think harbaugh is great. >> as we all know by now, at&t and verizon both ann

good earnings from ibm come mcdonald's, with the dow and s&p climbing to new five-year highs. ibm accounting for 66 of the dow's 67 points a game today. the s&p up, the nasdaq ten and a half. ten and a half billion shares traded. after the closing bell, apple disappointed. hitting earnings targets, but believe it or not missing revenue expectations with a record fourth quarter revenue. the stock trading well below $500 per share in after hours. netflix giving its shareholders reason to cheer. expected to report a loss of $0.13 per share. instead, it reported a profit of $0.13 per share, and the stock up more than 30% right now and after hours trading. the national transportation safety board says testing shows damage to the lithium ion batteries on boeing 787. the ntsb says further tests unnecessary and under way. will detail findings at a news conference to be held tomorrow. gold down $6 a half today, closing at 1686. oil also trading down, losing a dollar 45 remaining just above $95 per barrel. interest rates remain under 2% for the ten year. congress avoiding another fight

. >>> ibm also beat wall street expectations its shares rose 8% in after hours trading. many investors see ibm as an indicator of technology spending and demand. >>> the ground work for the supreme court battle over same- sex marriage is getting under way. supporters of california's ban filed the first briefs with the high court today. the papers argue same-sex marriage goes against tradition. lawyers for same-sex couples are expected to file their arguments next month. >>> firefighters say they are making progress in their effort to stop a fire. authorities say the fire erupted about 11:00 this morning and was burning in a steep area that was difficult to get to. the fire has burned 300 acres and tonight it's 50% contained. crews are hoping to have full containment by tomorrow morning. >>> the america's cup will make it mark on san francisco's waterfront. but it's not all about sailing. jana katsuyama got a look at a concert venue and tells us one big name that expected to perform. >> reporter: crews are busy in a venue that is expected to be a viewing area. a 9,000 sea

. >>> ibm also beat wall street expectations its shares rose 8% in after hours trading. many investors see ibm as an indicator of technology spending and demand. >>> the ground work for the supreme court battle over same- sex marriage is getting under way. supporters of california's ban filed the first briefs with the high court today. the papers argue same-sex marriage goes against tradition. lawyers for same-sex couples are expected to file their arguments next month. >>> firefighters say they are making progress in their effort to stop a fire. authorities say the fire erupted about 11:00 this morning and was burning in a steep area that was difficult to get to. the fire has burned 300 acres and tonight it's 50% contained. crews are hoping to have full containment by tomorrow morning. >>> the america's cup will make it mark on san francisco's waterfront. but it's not all about sailing. jana katsuyama got a look at a concert venue and tells us one big name that expected to perform. >> reporter: crews are busy in a venue that is expected to be a viewing area. a 9,000 sea

i've got to tell you, the safe havens, whether they be general mills, okay, or whether they be ibm, ibm inexpensive stock, but as melissa mentioned, a lot of these stocks have been inexpensive for a long time and it doesn't matter. >> facebook jumping ahead of a big announcement tomorrow. there are those who say it is time to sell the stock. meantime, gm experiencing a resurgence of its own. the stock up sharply in the last month. phil lebeau with the gm president from the auto show. let's get the opening bell in just a minute. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can

according to ibm, they sell a lot of things in that neck of the woods. we will keep you posted. get ready to get... speed up. southwest is offering a $40 fee to board early. if you blow the -- have flown the airline before, you know you don't have to worry about assigned seating, so insuring you bang first would be bang for a loyalty program, not anymore. to sandra smith, why flyers might be more than a little furious. >> >> reporter: certainly, you become an elite flyer by flying often and spending a lot of money to become a priority member. now you see that at the gate, before boarding this guy can pay $40 and get ahead of me? there will be angry flyers. but at the end of the day, you can't blame the airlines. they have skyrocketing regulations, they have taxes up the wazoo, it's hard to be profitable as an airline. >> neil: they they had they would never do it. >> reporter: if you are flying south wist, you are a budget flyer, it's a cattle call -- >> neil: for now. >> reporter: for now. but the airlines is saying, $36 billion in anszulary fees by global airlines last year, w