jon fortt is on the conference call which just got under way. let's get the details from him. jon? >> yeah, melissa. they are talking right now about their process leadership, how they're able to make ships more efficiently than others. but taking a look at the numbers they reported, actually a little bit light on revenue. eps was better than expected. but they also got a tax benefit, the tax rate was 23% versus the expected 27%. and then their guidance, they guided to a midpoint, intel, of $12.7 billion when the street was looking for $12.9 billion. the pc client group, one of the groups i pointed to as being important in advance of the earnings, that was down 6% year of year revenue wise to $8.5 billion. it was $8.6 billion a quarter ago. but you know, there's some other things that are questions. mainly, of course, what intel's plan is for mobility. they talked about design wins but we really haven't seen them take on folks like qualcomm in a meaningful way yet. they need to do that, part of doing that will be getting lte built into their chip solution, so, that's going to be on

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jon fortt is watching those numbers when they come in. gene monies ter is bullish on the some and james ramos and dan morgan of synovus trust which owns shares of the company. james, let me start with you. not just the revenue that we care about, sales of iphones, ipads, ipad minis. what revenue are you watchinging for in. >> iphone, 50 million is the bogey. sets the tone for the march quarter. the bogey for the march quarter is 41 billion and revenue. that's where the buy side is at. >> you want to see iphone sales. 50 million phones sold? >> 50 million. if it starts with a 4, that's a problem. better than a 5, that's good. >> okay. james, you've been our resident skeptic on apple lately. what are your expectations here? >> you know, i think gene is right. that has to be the bellwether as far as the iphone, but i think we need to take a look at i ipad as well and how many of those ipad minis did they actually push out during the fourth quarter? >> why are you focused on that one when it seems like the iphone is the one with the higher pr

under mesh. >> jon fortt, thank you so much. from cbs, the technology reporter. >> glad to do it. my hometown. >>> thank you. >>> the u.s. government is taking on cat lovers. scientists say that cats are killing billions of birds and other animals each year. so house cats are mostly getting a pass, but it's the strays and the feral cats blamed for most of the death tolls. the study shows mousse of the birds are native species such as robins and finches. >>> the beauty queen who stole the show may get a chance for an encore during the super bowl. catherine webb is the reigning miss alabama. she became a celebrity, you'll remember when brent muss burger couldn't top raving about her looks during the title game broadcast. webb is being employed by "inside edition" as a super bowl correspondent. >> imagine what it's like being the woman sitting in front of her that was on the camera as well. >>> severe weather marched through the south, and tonight we're getting a new look at all of the damage left behind. this is the same storm system hitting our region this evening. >> just machines

jon fortt, anything else to add on microsoft? >> yeah. i would clarify that the server and tools came in at 5.2 billion. i think i say 5.1. cash ball at 63. -- >> i would point out. the combination of server an tools was a bit weaker after the sideways on tuesday. i would also point out that microsoft is change this season. historical for it to sail off. i don't know if there's any consolation. >> as you've been speaking, watching the fall on microsoft. build the case. why would you want to buy the stock. >> again, big product cycle that just started and frankly the hardware wasn't there for the software. it starts this year with the new intel jobs chips. is tablet that you can do work on. you want one with keyboard that does microsoft office, spread these the and they are coming out new low price and $10 pottery life and they are generating general cash. >> the story with microsoft is, that look, there's not a lot of downside. nobody is really expecting blowout quarters for them at this point, so this number might just have been enough t

jon fortt, wrap us up here. tell me where you see dell going. where does the growth come from if not by private equity? >> well, it comes from the enterprise side. it comes from acquisitions. i'll point out hp has actually been in tougher shape than dell lately. this isn't just a story. other companies out of the ecosystem have these tough decisions to make about how they're going to be structured going forward. >> yeah. we should point out dell has a big corporate business. so it's not just, you know, pcs. michael dell will say he's got a bigger business than just pcs. gentlemen, thank you. we'll keep watching this story. certainly was a talker on the street today. let's get to mary thompson now for breaking market news. >> we're looking at lulu lemon down after the last quarter. the revenue looks to be light. analysts were look for 489. same store sales in the high single digits. we're expecting same store sales to be 10%-plus. one last thing on revenue, the growth there would mark the first time since below the 30% rate for some time. so that

jon fortt joins us now with the latest. jon? >> yeah, melissa. ebay's ceo taking a bit of a victory lap now. let's look at the numbers they did in the quarter. revenue with $3.99 billion. a little bit above expectations. eps, 70 cents above the 69. the guidance came in light, but it looks like wall street is willing to shrug that off, because overall, the numbers are so strong. i'm point out marketplace was up 16% revenue. paypal up 24%. gsi up 10%. and right now, they're taking up mobile and the potential that has for the rest of this year. to do quite a bit, $20 billion in total mobile payment volume in 2013, melissa. >> all right, jon, thank you so much. the call is going on right now, so, any developments, jon will bring them to us. in the meantime, the knock on ebay from the analyst community is that it's a great company, except its valuation looks pretty full. you like amazon and that valuation looks beyond full. >> overflowing. exactly. if you look at it, you could have missed it based on valuation for 100 points or missed it indefinitely

>> no, no i'm not. >> jon fortt, any thoughts on that in terms of long-term growth? what are the metrics you're looking at to illustrate that? >> well, marissa mayer said last quarter that search has greater potential for growth than display in the near term because monetizization had been so poor. we hadn't seen the needle moving much on this. this 14% upward move in search particularly when they needed it in a quarter like this when display was weak, that's intriguing. i think it's going to be interesting to see given that yahoo's not giving guidance right now. directionally where marissa and the team see that going. do they feel like that's something they can continue to grow. why do they believe that? do you think they can monetize these moves into mobile and tablet that they've been making? i think the story is important here because they're not giving guidance here. >> that's a big issue here. paul, could it be we're really not seeing the clarity we need to see or is this a yahoo problem? >> i think it's a yahoo problem. unfortunately for this company, its grea

jon fortt for us live in silicon valley. we're trading today's market action with pete and john na jair j jairian. ennis. >> apple needs to blow it out of the water. >> i disagree. i think the sentiment has gotten so negative that the company doesn't need to do too much for the stock to rally. in fact, i expect that even a gher simply because the worst k fears were overblown. looking forward, i actually think the bigger issue for me in terms of the report is going to be what does second quarter guidance look like. i think the holiday sales are going to be very strong. sorry, first quarter fiscally year, 2013, second quarter, those might be a little weaker. . >> do you agree with what ennis just said? >> in part. >> he said a slight miss and the stock could still go up. >> i agree because i think expectations are so low. if there's a big miss, it's a different issue. a big beat, it's a different issue. after that dies down, what we'll come back to is the product schedule. what are the new products? >> they're not going to tal

jon fortt from san hope say. and i think what was shocking to investors was that knnokia gave guidance in october, expect a loss of 10% and now they are saying break even or possibly profitable. he did, stephen elop, he talked about the first quarter and the headwinds they might face because of competition, because it's a seasonally weak quarter. so, maybe this is not all clear here for knnokia. >> what jon mentioned, too, about, low hanging fruit for these guys and it's a strong quarter. microsoft was pushing them out there with the whole, their operating system, very important for them. almost sense they could have had some stuff, you know, some stuff boxed there, if i may, but at the end of the day, if you look at the dividend, this is really why i think people might actually want to jump into this stock. it's right now at a 5.5% dividend. if you look at where they are paying out in 2011, this is an 11% dividend yield. if they are continuing to make money, they can pay that. >> a lot of people look at that sto

. >> do we have jon fortt standing by yet? >> all right. still crunching the numbers for us. >> motorola home did i rigs is the set top box division that they just sold. >> paul meeks, let me bring you in, if you've got any feeling about google and what to expect. as we said, the market likes what it hears so far. google up 3.33% in the after-hours market. it's a good question. the way i look at the revenues they just reported, maybe it's a very, very slight miss, but i don't think it's relevant. i would like to see more, however, about the eps. >> all right. we hope to get those soon here for you. david garrity, what are you looking for from google right now? >> i think, you know, the details that you have as far as revenue numbers are concerned are probably in line, as paul indicated so from that standpoint reassuring. the thing i want through the details is if we can look at what desk search did in the fourth quarter. that's been their high-margin search channels that has been under attack. need so see some intercations of what the core

our tech reporter jon fortt, you've been checking it out, right, jon? what do you give in terms of your assessment? >> it's nice software, mandy. let me set some context. last quarter verizon activated more than 3 million old iphone 4 and 4s. google had nice phone that still aren't selling well and those run android. it's going to be a sotough sell. i got hands on time with the blackberry 10 software. they've got clever ideas on improving the touch keyboard. it's done well separating the work stuff from the personal stuff. that said, i'm not switching to blackberry 10 personally because i'm a power user with valuable apps: they're going to have to get laggards or people that carry one phone. it's easy to port android apps to blackberry

jon fortt will talk to the ceo thorsten heins first on cnbc during power lunch. and thanks to those on twitterland, we just top 1 million follower online, on phone first in business worldwide. no matter how you get your news from us. we'll see you tomorrow. let's get to wapner and the fast money halftime. >>> welcome to the halftime. the dow is sort of in healeding patent as the march to 14,000 continues. 13,951 is where we currently sit. here's where we're currently following on halftime. what's under the hoodie. facebook reportings after tonight and with the stock on the street, what will the company deliver? a perfect ten? what does the real money think of blackberry's big bet? don yak min with more on the stock on where r.i.m. goes from here. but first the top story, the dow's posted its best month in 16 years. it sits only about 1.5% from its best level ever. will it get there or should you be prepared iffer a pullback. we're trading everywhere today. how about it, pete? are we going to get there or should we be prepping for a pullback? >> i'm prepping for a

jon fortt better watch out, that's all i'm saying. >> he's covering the economy. we can swap for a while. >> that's not a badi. what do you think, kelly? >> receive, i have the blackberry 11 for the keyboard, right? >> no. you'll elect the virtual keyboard. >> we'll have plenty more from davos together. 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. xxx>>> good morning. a much different story for netflix. that stock is soaring after a profit surprise as well as the addition of 2 million subscribers. >>> and the dow marches on. the index closing in on all-time highs. today it's january 24th been 2013, and "squawk box" begins right now. >>> good morning, everybody. i'm becky quick along with joe kernen. andrew ross sorkin will be joining us from davos. >> good morning. >>

give me the guidance, jon fortt. >> maria, guiding to between 15 and 16.6 billion in revenue. that compares to the street wanting about $16.86 billion in revenue and also guiding to an operating income rate of negative 285 million to plus 65 million. the street wanted i think around 250 million in operating income to come up with 34 cents per share eps so that would be disappointing on the top and bottom lines of guidance. >> all right. disappointing guidance as well, aaron kesler. not exactly what the market wanted. what's your take on this quarter and the estimates going forward? >> yes. we would agree with gene. revenue growth was a little below expectations. we were around 22.7 billion, high end of the guidance range, an clearly this is a revenue growth story since amazon is trading around 80 times earnings and investors are looking for margin expansion. doesn't seem like we've got as much margin expansion. what's your take? what went wrong here, the holiday season? >> some mixed theater in q4 so some of the data points, sales started out very strong, 20% plus growth and s

. >> we want to go to jon fortt. he's been monitoring both calls, a very busy and talented man in the afterhours session. jon, what's the latest? >> i got two ears. let me talk about ibm first. really impressive in a couple of areas. one in the bricks. they were up 14% revenue-wise. asia particularly strong overall, up 5%. constant currency there. u.s., pretty much flat. but the real areas where they seem to outperform, software, which helps margins. they are very strong in middle we ware there. also, hardware. not really the standout. not the division that you necessarily think of when you think of ibm. it did better than expected. when that happens, that helps ibm. on the google call, interesting that we saw paid clicks not grow as much as expected. cost per click do better than expected. google said, we did that on purpose. we did some tweaks in the way we are presenting ads, that brought down paid clicks. and boosted cost per clicks. we say that's better for users. investors happy about that. they were concerned

. >> got to go to jon fortt, would you buy this stock at $30? >> yes. no published recommendation. >> that's fine. >> below 20x, 20.13 ebitda you can still. >> qualcomm out with earnings as well and jon fortt here with that angle. >> i know what it is, it's the operating margin. >> jon? >> big beat buyout by qualcomm. the street expected 5.9 billion in revenue, $1.13 eps and qualcomm turned in 6.02 billion and $1.26 in eps. also, guide abswell above the street for the coming quarter. just got off the phone with paul jake objection notes from what he said. the chip set business and 3g, and 4g more than doubled quarter and out of emerging markets also doubling for them. he says he feels like they are in a good position on chip sets. the fab issues that they have had getting supply from tsmc have cleared up now and they are getting good supplies from other suppliers who they had dialed tsmc was having some issue. he said just in terms of the overall smartphone ecosystem very healthy. operators are looking for new options out there. they are operators eager

jon fortt is on the conference call for us. what's the latest? >> lots of good news for them, melissa. they are saying that they see over the next 12 months turnover in the hand sents ae hand senet markets, they will be adding more higher end chip sets. they expect that to fuel growth. that's why they raised fiscal year guidance. china and latin america have been helping in the current quarter. they were trading at one point close to all-time hikes that they saw, i think back in february. i talked to paul jacobs before the call, as well. he talked about hopes that he has to see growth beyond just hand sets, as well. he pointed to dell announcing they are going to have 4g chip set in a tablet/pc hybrid they were talking about. they are not quite seeing the pop they want to see. a lot of times competitors coming behind apple, things like the ipad mini that have lte are expanding. they are not seeing that pop yet, but they are hopeful they will. overall, they're also seeing that the capacity has opened back up. that's something we were worried about

jon fortt with the story. over to you, jon. >> that's right, maria. tim cook is in china, and reuters and others are reporting that he's met with the head of china mobile. now, of course, that would be a big get for apple, something that investors have been waiting for for quite a while. you take a look at apple's six-year chart. china mobile could be the thing to provide the next catalyst for the stock, something that people have been looking for over the last few months. take a look at growth moments for the iphone. it launched, of course, back in june 2007. in july 2008 the iphone 3g came out that really excited a lot of people's imaginations because it actually ran faster on data networks, and then two years ago, almost exactly two years ago, the verizon iphone came out which provided a huge boost. it was like two holiday quarters in a row when apple was able to come out with an iphone on verizon. people expecting that that kind of boost might be what apple would get if china mobile picks up the iphone. china mobile has been holding out. reports a

jon fortt will join us here at the launch in just a moment. but when you're buying a device now, you're not buying a device. you're buying an ecosystem as i'm sure you talked about for a while, you're buying access to the device, the marriage between software. it doesn't feel like it's got the mass to compete in that way. i'd be curious to know what jon things. >> i think that's the tough thing that they've got going here. you take a look at google's motorola unit. nice phones, nice designs. they're not selling. these are android phones. it's not that big of a leap for people to switch from one android phone to another. samsung is dominating in that category. so r.i.m.'s got a real hill to climb here. if you want to see the adjustmentable market you can't look at the adjustable base because a lot of people buying the blackberries right now. i have to get used to calling it that. you have to look two years ago. who was buying blackberries in north america. those people coming off contract. how many of those people are going go with blackberry 1

jon fortt is with us. at one point we had tortsen hines on coming to us from waterloo in canada, talking about blackberry 10 and i was saying, waterloo, blackberry 10. these guys that follow if you say something about blackberry, they went crazy like there's some crackberry or something or other, that's a bad sign. i will let you know, everybody is saying it now, is it a kodak moment? make it or break it? what's your view? >> neither yet. this is a piece they need to put into place. they need strong hardware. they have a fan base that will jump on you if you say bad things about the blackberry. that's a good sign. let's talk about what they need to get done today and what we expect. two phones, one we suspects might be called the z-10, touchscreen phone. rimm hasn't been a strong player there before and might unveil an x10, keyboard version, that you've come to expect to see from rimm. also the software, platform underlying it. blackberry hub and blackberry flow. you can get multiple tasks done very quickl

jon fortt is over there right now. jon, what's selling? what's hot and what's not? >> well, mandy, the pc industry showing it's still alive and kicking with the new designs that pop off. they flip around. and they slide. this toshiba, in the toshiba booth kind of cool. here from intel is one way to think about it. >> if the tablet and notebook had a baby this is kind of what you would expect to see. >> pc sales down 8% in q3, all these companies are trying to figure out new designs with touch kind of tablet like to invigorate pc sales. let's talk about price. the sweet spot for laptops these days is around $500, $600, but the challenge is to get the touch laptops with windows 8 down into this price band. we saw a $600 touch laptop in the holiday season black friday, but we don't know how long that price is going to [ laughter ] some of the ones that i touch behind me are starting at around $800 and above. intel has been trying to get the prices down, but listen to what walmart had to say about what the pc industry needs to do to really hit the price point. >> i thin

. >> julia boorstin and jon fortt with numbers to watch. jon, you first. >> the number for apple is iphone unit sales and the street would be happening with anything above 48 million units. ite phone is highest marketed product in apple's stable so when it outperforms or underperforms it stwings margins and eps pretty high. other numbers to watch, ipad sales and asia-pacific revenue, a decent proxy for emerging market growth before we get the china numbers on the call. julia, what are you looking at with netflix? >> jon, the netflix, the number we're watching is streaming subscriber numbers. wall street is expecting 27 million streaming subscribers and 5.5 million subscribers in the fourth quarter. wall street is projecting growth will be 7% and earnings per share will swing to a loss on higher international costs. i'll be back after the bell to break down netflix's numbers and tomorrow morning we'll have our exclusive interview with ceo reed hastings. bill, back to you. >> that will be on "squawk box" and look forward to that tomorrow morn

jon fortt. the shares having a blowout, the wrong kind. shares are down by $0.78, that's about 5 2/3% after the company posted third quarter increase in profit but warned of shrinking sales over in europe. phil lebeau live in chicago. >> news might be good in terms of the earning but not forecast. earned $0.31, beat the street y $0.06. ford expected a greater than expected loss in europe. now projecting to lose $2 billion over in europe. here is the outlook from cfo bob shanks. >> the environment there continues to be very, very tough. we do think, perhaps, it's a trough in '12 and '13 but we'll have to wait and see. >> that's the bad news. the good news for ford continues to be in north america. look at the profits, $1.872 billion in the fourth quarter. that's almost a billion dollars more than the fourth quarter last year. profit margins above 10%. that's impressive especially in an auto industry where 7 and 8% in north america used to be considered good. what's driving north america, stronger pricing, stronger sales. the profit margins,

jon fortt at the event and joins us with more on the big bet. jon? >> reporter: maria, there's often a sell on the news effect with these events and also the reviewers, pretty universally positive on this device, but of all the reviewers i spoke to, i said would you dump your current phone for it? he said, i don't know. there's a question is this good enough? the u.s. launch comes in early march. that's a positive. it's not a thing where they are announcing it and maybe we'll get it in six months so that's good and alicia keys is joining rim as areat director. i spoke to torsten heinz in the last hour about what that means. he said she will be working on a project basis and will marshall troops behind her and bringing her message to the world. maybe that will help turn things around. more devices are coming this year. they will try to bring the bb-10 operating system to lower price points. maybe that expand the market a bit. smartphones are really growing and trying to grow in markets like north america which are largely saturated so those lower pric

i am jon fortt with the latest from the yahoo! earnings call. yahoo! ceo marissa meyer pointing out a few highlights. usage of flickr up 25% since they redid the ios app, getting good uptake. the cfo saying some changes in search including a quick predict technology from microsoft helped drive revenues there that are highest since q-3 of 2010. marissa says she's going to talk more about yahoo!'s growth plans a little later in the call. guys? back to you. >> jon, thank you so much. men time, citi and douceutsche k downgrading goldman sachs. time for a street fight. karen is our bull, b.k., the bear. karen, start with you. >> well, the reason i like goldman sachs, a couple. the quantitative ones are the obvious price to tangible book value, which i think is unique ly low. if i look at the last ten years of that metric, 45% lower of the past ten years. trying to even out for the ups and downs. those are value-driven. those are two big things. but the rest of it is qualitative. we could see improvement in a lot of lines of their business. m and a could imp

fortt in for the west coast ostensibly for something else we'll get to in a couple minutes here. sherry, first, four names. not apple, microsoft but big in their spaces. is this a macrotech theme we need to be worried about? >> i don't think so. i think what you've seen is tech has rallied over the past week on positive announcements from some of the bigger names. now we're seeing a bit more disappointment on realism, which is the falk things are not great yet but probably will improve in the second half. things not great. hopefully they will get better. >> do you think this is a story by story problem or is this a common thread and theme through these particular tech names and others? >> i think some of the themes we have heard is that technology spending is still weak. businesses are not spending on servers and storage so investments in i.t. have generally been soft. pc side with seagate, pc spending week in the december quarter. to some extent earnings is backward looking. guidance was a bit disappointing. again, with i.t. investment improving in the second half of the year, b

jon fortt joins us now to shed some light on the issue, and i guess there were some conflicting stories out there, jon, within the last 24 hours or so. >> yes, indeed, scott, and we'll talk about that. by the way, apple owes china business already huge at $5.7 billion last quarter. that's 16% of apple's total revenue. we know that apple sold more than 2 million iphone 5s in china over its launch weekend in mid-december. last quarter asia-pacific, which doesn't include japan, waspel's third largest reason and i wouldn't be surprised to see it overtake europe for the number two spot. europe did just over 11 billion. if europe drops by a bit and asia surges 45%, which isn't out of the question, asia-pacific all of a sudden is number two. let's talk about those rumors are a low-cost iphone for emerging markets. shanghai evening news claimed the apple marketing chief steve shiller says the future for apple isn't cheap phones. apple hasn't responded to my request to clarify what shiller said and frankly i don't trust language that's been translated and retranslated. the future of apple isn't

our resident technogeek jon fortt walks us through the dicy tablet history. >> not just hp but let's take a look at the overall history. it started here at ces three years ago. steve ballmer on stage waved around a hp slate which was a prototype talking about the future of computing. let's look at hp's tablet history. started before that. ten years ago in 2003 back in the windows xp days, hp had the compaq tc1000, a little bit of a niche following and never caught on. the slate 500 came after that in 2010, as i just mentioned. 2011 saw the touch pad which came over from palm. mispriced, a lot of people argue, at $500, the same price as the ipad. didn't take o.hp shut down the web-os division and then you have the envy x2 hybrid at 849 and the elite pad 900 which hp has been taking pre-orders on that which expect to launch sometime this year, but really the touch pad itself, the old palm product, epitomizes the trouble that hp is in and kind of has to navigate product-wise. they havin willing to take chances in the past, but now as the company seeks to reorganize itself, do a turnarou

we're moments away from ebay's earnings jon fortt will be breaking down the numbers once they come out. we want you to talk about the company and what to expect with david garrity of gba research. good to see you both. david, let talk about ebay and what you're expecting. estimates call for 69 cents a share and 3.8 billion. what's the biggest takeaway here? >> the biggest thing is to look and see how much they capitalize on mobile. both mobile for commerce and mobile as well for the use of their papal service. if you look at some of the trends that were out there. it seemed overall that december had maybe a little bit slower pace of activity than november, but the indications were that the mobile channel actually put a very strong finish around the holiday season for ebay, so hopefully we see that coming in the numbers. we look for something better than consensus, both on revenues as well as earnings. >> what do you think, john? papal one of the most important parts of the business? >> papal certainly is, but given that this is the holiday quarter, i think there's potential upside in t

jon fortt has been poring over the numbers. what can you tell us? >> gross mar jib came in a point higher than intel projected, at 58% as opposed to 57%. predicting the same for q1. q1, the revenues they are projecting, are a little bit under the consensus. 12.7 billion plus or minus half a billion. they are projecting low single-digit revenue increase for fiscal 2013. gross margin at 60%. $30 billion in capital expenditures, a couple more things really quick. inventories were down more than half a billion dollars. half a billion dollars that intell projected, that's a good thing. head count up by 300 people, quarter over quarter and interestingly the pc client group revenue, that was down 6% year over year, maria. >> john. thank you soich. more on intel's numbers we bring in chief executive officer stacy smith joining us for a first on cnbc interview. so good to see you. thanks so much for joining us. >> thanks for having me. >> how would you characterize the quarter? >> you know, the quarter came in as we expected. and, you know, when you kind of

cnbc's jon fortt has the latest. >> the conference call has just started. they are going over some of the basics of the quarter. lots of questions about xa exactly investors are looking for. analysts were saying it was a top line story. top line actually came in a little bit weak. margins are better than expected. better than expected meaning they made some money. so, really need to hear the color on this call about kindle fire, about some of the specific segments, it seems like americas and several regions did well, though the pace of growth is a bit slower than it's been in the past. >> in terms of the guidance, a lot of analysts, piper in particular came out with a note, especially for the march quarter, amazon tends to sandbag. but the guidance they gave was between 1.5% and 10% what the street was expecting for the march quarter. that was a surprise. >> yeah, so, even based on their sandbagging, it did seem to be a bill low. given that, though, they also did turn a surprise profit well above the midpoint of the range that they gave for q-4. so, maybe t

let's get to jon fortt with the one number investors need to zero in on. that's that number in. >> i hate to say revenue is the number to watch because it feels like cheating, but with amazon it's really true, trading at ten times revenue. it will either make a tiny profit this quarter or no profit at all. the bullish story behind the stock is that it will dominate retail and make inroads into mobile hardware so the most important thing is probably that amazon's earnings report will follow the story line. the two biggest wild cards are kindle fire units and cost of goods sold which is largely shipping costs. if cogs came in higher and kindle sales came in higher, that could hurt earnings. of course, we'll have to see how much investors care about amazon profit revenues. it's mostly about the revenue. back to you. >> thank you so much. 50 minutes to go before we close it up here on wall street. the dow jones industrial average inching ever so closer to that 14,000 mark. we're about 45 points away right now. >> amazing. and then there's apple, company announ

. >> jon fortt will have those numbers after the bell. look forward to that. breaking news on the israeli election with tyler. ? >> thank you very much. the early exit polls in israel indicate that benjamin netanyahu has won a third term as prime minister of that country. those terms have not been continuous or contiguous, i should say. he's projected to win though a center left party, a relatively new one, has made surprising gains according to news reports and that could make the coalition-building over there a little more tricky. right now the prediction is that benjamin netanyahu's likud party has won about 31 seat in the -- in the parliament and will take the lead in forming the government. netanyahu had called these elections in a way as a reflection of his policies on the west bank and settlements, the quelling of the uprising in gaza and, of course, israeli relations or lack of relations, i should say, with iran. many people and political observers there believe that this will then continue his relatively more hardline right-leaning policies on all of

jon fortt is live in san jose with more on tech in the west coast. hey, jon. >> hey, carl. tech changed in five years. no two stocks tell the story better than apple and hp. five-plus years ago, october 9, 2009 hp was higher than the dot com deductible. it lost more than two-thirds of the t value since then. blame it on the shaky pc market and shift to software and high end services. apple up more than 16 # 5% even given the troubles of late. apple was driving the boat hp missed -- mobility. the iphone had been out just three months. that was a good time to buy the stock. that tells you why it's up just 10%. the p.c. market struggled taking down names like hp, dell and logitech. the two absolute worst performers in the i.t. sector were nokia and research in motion who were the leaders in smartphones. interesting that we are talking about this right at this moment by the way when people are having doubts about apple which would have been the best performer as of a month ago but is now number three. optimistic about the worst performers. we'll see what happens in the next few

jon fortt out of san jose. >>> netflix posting a blowout fourth quarter. shares up, as you can see almost 40%, hasn't done that in a decade. ceo reed hastings spoke us to in his first tv interview in a year and a half. those comments next. >>> bank of america's ceo brian moynihan live from the world economic forum in calf voechls b of a shares doubling since the start of last year. so, what's next for the big bank? as we head into the break, just take a look at major apple suppliers and where they are trading in the wake of apple's earnings last night. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open a

. >> jon fortt, thank you. it really isn't market conditions, it's not the business cycle, it's just the business model. nobody wants a company with declining cash flows or questions about its future. but we are in a period where, despite the fact of the deal, financing could be in place. >> and it's cheap, right? and that's the big driver. >> and the question is are we at the beginning of another presume era move here. and i know brian reynolds and martin and some of the other guests would argue, yes, maybe it wasn't be quite as the last time. >> we'll take a short break. still to come, we'll look ahead at the trading session as fed chairman bernanke warn toes raise the debt ceiling koo would cause a clam tuesday default. ♪ ♪ ♪ [ male announcer ] don't just reject convention. drown it out. introducing the all-new 2013 lexus ls f sport. an entirely new pursuit. every year we pick a new city to explore. but thanks to hotwire, this year we got to take an extra trip. because they get us ridiculously low pric

. >> jon fortt there. we'll have more on china to come. our next guest weighs in. don't go anywhere. >>> welcome back to "worldwide exchange." china's economy rebounds in the fourth quarter topping expectationes and snapping seven straight quarters of slowing growth. the british government says there's no indication the hostage crisis is over in algeria. this as reports emerge that dozens may have been killed in the rescue operations. >>> intel shares under pressure as investors are unnerved that the chipmaker's big spending plans this year. is and glencore and xstrata push back the deadline to complete their merger by six weeks as a regulatory meeting begins in south africa. >>> bringing back our discussion yesterday when it comes to uk retail sales, today we're learning that retail sales fell in december, this in contrast with expectations of a .2% gain. they fell by 0.1%. some of the report suggests that the tone is weaker than that headline initially shows. it was the year on year gain and the three-month decline on both the worst since december 2010. so a not

of course, tomorrow, carl and jon fortt will be there live. the big unveil will happen at 10:00 a.m. the big question for investors today is, is this event going to be the sell the news event. are we seeing that in today's session. >> the dow is up 32, so we've resumed the new year rally. question whether top economists heading through the summer and beyond. what about bonds, of course, how will the ten-year yield around 2%. cnbc's senior economics reporter steve liesman combs through the data for his own survey and joins us with the latest. the exclusive fed survey. steve, over to you. >> simon, thanks. if you're a bull on stocks, this will be a depressing report for you. hour 52 economists and strategists not all that optimistic for the s&p over the remainder of this year. here's where we were close of business yesterday, right around 1500. now, they have raised the outlook for the s&p successively over the course of the year through our surveys. they were down here around 14, 15. now they're at 1505. you can see from now through the summer,

jon fortt has more on apple's new guidance. good morning, john. >> very buzzed-about earnings call. perhaps the most buzzed-about moment, apple's ceo announced the company will change the way it gives guidance. for those of us who cover the company awhile, the guidance has been sort of a joke. kind of the earnings equivalent of a friend who says i'll be at the restaurant at 7:00 so you know that really means 7:30. apple will now say we'll be at the restaurant between 7:00 and 7:30. for awhile apple's lack of accuracy was sort of a thrill for investors. apple with lowball guidance, analysts would put their estimates a little above that guidance and apple's results would below past both. in recent quarters the wheels have come off that cycle. lately apple's been giving a number and coming pretty close to it. last quarter tim cook guided to $52 billion in revenue and apple delivered 54.5. under the new system apple might have guided to between 52 and 54 billion and delivered a very modest beat. it's interesting, i've been going over some custom charts i made over the past few hours bec