Back in the lab, a gloomy Walter tells them about Etta's apartment, but that all he knows is that Peter is in New York. An agitated Olivia decides she might as well go fetch the electromagnet, since Walter and Astrid are going to be working on the Observer tech. "All I can do is just keep our promise to Etta and stick with the plan," she says, and she's out the door, leaving Walter and Astrid to make gloomy faces at each other.
Peter's in New York. Did some shopping, saw a couple of shows -- and now he's standing on the sidewalk, watching everything in the gridded blue Observision -- seeing Windmark and an Observer walking down the street and a waitress carrying a container of tea out to a sidewalk table, among other things.
When he snaps back to the present, he takes the cup of tea, loosens the lid and sticks it on the edge of a garbage can down the block in the direction the Observers are walking, then he ducks around a corner to watch what ensues (good thing the Observers have a blind spot for stubbly Canadian men peeking around corners).
Windmark and the Observer are just about at the garbage can when a Loyalist approaching from the left accidentally hits the tea with his shoulder bag, knocking it to the ground and spilling it all over Windmark's shoes. Looking like he's afraid for his life otherwise (and probably reasonably so), he starts groveling and wiping it off, but Windmark stops him after a second and tells him it's enough, and the Observers continue, only now they're held up at the intersection, having missed the Walk signal they would normally have hit. Peter checks his watch. Yes, we know he can do this!
Welcome to Fitchburg, land of abandoned Dumpsters and shipping containers! Olivia stops her car in a scrapyard that appears to be the size of Wyoming, smiling as she sees a little girl playing in around the scrap. The little girl scampers off while Olivia gets out of her car. Olivia makes her way to some sort of central building, where some lurchy fellow is unloading stuff out of the back of a pickup. "I'm Carlos. How can I help you?" he says. Excellent customer services at the scrapyard of the dystopian near-future! Olivia says she needs to barter for a magnet. Carlos gets even creepier as his eyes go all flinty and he says, "What'd you say?" Olivia says it again, and helpfully points to the big magnet hanging off a nearby crane. You know, that's the display model, so Olivia might get a little discount on that one!