tv Countdown to the Closing Bell FOX Business September 17, 2012 3:00pm-4:00pm EDT
claman on this monday. "countdown to the closing bell" starts right now. it is what is happening to your money right now. all three major indices are in the red after the empire state manufacturing index showed a subtraction for the fourth month in a row. the big story, oil, take a look at the oil moving lower, the price the commodity fell more than $4.20 minutes early this afternoon hitting $94.65 per barrel intraday before recovering slightly. we're also closely watching one stock, a big one, shares of apple getting very close to $700 per share a after news that received 2 million pre-orders for the iphone 5. deeper into those numbers with dennis kneale coming up and we will bring it to you, breaking live on this show. on the flipside, take a look at shares of research in motion, the stock falling after yahoo dropped the phone offering
employees and iphone or an android phone. a lot of companies making that move recently. let's get an update on what is happening with the market, the cme with charlie. i want to follow-up with you on what is happening with breaking news going with oil, giving statements that say nobody wants to make a comment, nothing irregular, what do you know? charlie: i know i heard from some trading desks, some trading are calling it a fast finger. look at the chart, some pretty big tech levels. the moving average, but then i started looking a little further, there is big open interest, 9900 open. which generally the market will tend to gravitate to the highest stock price nearest the market. i think it is a combination of all the above.
you saw some further technical selling coming in and some option related selling with people having to cover that were short. cheryl: let's see what happens. after hours trading will keep us abreast of what happens. low volume because of the jewish holiday. the new york stock exchange, occupy everything at this point, what are you watching right now on the floor? >> we were watching oil. it had the effect on the oil stocks and all that around. we also heard a fat finger trade. some of my friends, there seems to be whispers about president obama using strategic oil preserve as a reelection tool if you will to offset the impact of oil from the free money flow from the fed, all that really did was driving down the dollar making oil more expensive.
the administration has to come up with a way to offset the voters affected by the gas tank. definitely a topic of discussion. you mentioned apple. it has its weightings. hopefully suggesting apple may have a positive impact on the gdp into next quarter because of the iphone, swivel be interesting to see if that holds true. cheryl: obviously we're watching all the headlines coming in and crossing in. thought there was some sort of new rumors. all options on the table maintaining. toss this points to a trading glitch or a human air in regards to trainin trading the contract. >> you heard some stuff, the
chatter going through the thingk that was the first link people thought had happened. and then went to see how many contracts went on. people started coming up and say this was probably a fat finger error. cheryl: let's go down to the nymex. what do you make of all of this? >> unfortunately i'm just as clueless as you are. i had a guy next to me on the phone with one of the customers who work for a major oil company nobody knew, we heard the same rumors you did. we also heard it might possibly be market requirements being raised, we really don't know for sure. cheryl: you have a lower volume day because of the holidays, maybe a single volatility even
in the after-hours trading. >> saw a move not quite this intense on thursday at the announcement, $2 move up, dollar announcement, $2 move up, dollar and back up about 60 seconds. cheryl: obviously you have a little bit of volatility, the volume will be a little off, but at the same time approaching the fourth quarter, earnings about to start up again, believe it or not. >> the expectation is for the market short-term with the pullback in september. the central banks throughout the world, now this kind of a win-win situation. the economic data that we have been seeing improving, seeing it move in this run will depend on
the earnings you referred to to be able to continue this into the end of the year, that will be the real question. cheryl: thanks to all of you. more questions than answers on what is going on with oil. we will stay on it, thank you very much. in africa, earlier driving the price of oil close to $100 per barrel. analysts are speculating if the obama administration may release oil. the white house saying they are not making a move right now. standing by with an update on the violence. >> doubtful the prices are going down because the violence are going down, a real uptick in a couple of places pretty scary to see these kind of calls to protest.
they made a rare appearance and left the bunker to head out in the middle of beirut calling for continued protests against the united states. they're going to protect the prophet mohammed. a call from how t hezbollah. a lot of military. it may remember they're the ones involved in the 2006 war with israel, lots of rockets and a lot of abilities overseas to launch attacks against american interests and or western interests. we saw violence in afghanistan. they had to beat eaten back from the compound, and in pakistan wherwere they used water cannond tear gas to beat back
protesters. they would temporarily close for the day because of the fear of how much anti-american violence would spin out of control in pakistan. there was more violence volatile cocktails, those kind of things. this was all sparked by that movie put on youtube, more of a clip, amateur thing being disrespectful to the prophet mohammed. i interviewed today one of the organizers of the original protest with a movie that began. i asked have you seen this movie? he said no, i haven't, but i heard about it. what is probably important to note, the protest are not because people are watching this movie, but are hearing about it and the fans extremism are being blown not only by the clerics but by the individual groups and
leaders in beirut come you can see simply inciting these crowds can lead to real violence. back to you. cheryl: thank you very much. the domestic side of this story and a washington angle. peter. >> that is right, cheryl. they say about these rumors, the approval of that by the president as we have made clear, all options remain on the table but we have nothing to announce at this time. same statement as before. oil and gasoline prices remain elevated despite the pullback late in the day. including the disagreement between the u.s. and israel over responding to the nuclear program. fueling that they could tap the reserves before election day. one adjective says oil supplies are adequate and the spr reduce
imac release would ri reduced pricprices only for a week. >> try to knock prices down but at the same time any releases from the strategic petroleum reserve really only have a short-term impact. it doesn't affect prices very long. >> white house official welcome calls from saudi arabia oil minister over the weekend of their concerns of higher oil prices, central impact on the global economy and officials saying that the white house welcomes the ministers comments to help moderate fuel prices. cheryl: peter barnes standing by in washington for us. thank you very much. the closing bell will ring in 50 minutes from now. peter is up next to talk about one of the worst performing dow stocks, still one of his favorite investments.
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cheryl: our power mover of the hour, netflix. down today after they began covering the firm with an underperformance rating. down 3.3 right now. creating the company will be affected by spiraling costs. it has fallen significantly after dealing with several hurdles including a subscription price hike. trying to deal with the high cost of acquiring movies and television series. down 61% over the last. and look at the year-to-date chart, down about 12%. nicole petallides at leas the new york stock exchange.
first off, the big drop in oil, spr relief, white house says it is not so. what do we know at this point? >> we believe it was indeed the rumor that set it off. talking to three different traders who say it was that. as you can imagine, when you have a move like this, you have a lot of action. we're still about $2.70 down, but we took a huge move in oil. a look at what they're doing on the floor. 20,000 contracts, oil contracts sold in three minutes. another trader told me, what do you get, sorry, what do you get when you cross a rosh hashanah holiday and a rumor and the expiration coming up?
you could get a combination bringing this down. can i get in your ear really quick? you're being told it was that rumor that came out? >> a conversation with a gentleman in the crude pit, that's actually shot them up a little bit and there was not enough liquidity to deal with because of the holiday. and it took hi the market under. evidently they ran some stops because of liquidity excess of the holiday. >> so it was just the rumor that set it off and the other factors set in. >> that is correct, the rumor was never confirmed or denied, but enough to trigger the stocks on the downside. >> that is the best explanation we have seen thus far trading on the s&p futures and options off to my right, and there you go.
that is the best i can do. this overshadows, by the way, huge moves in grains today. maybe better than we thought. cheryl: amazing what a little rain could do. nicole petallides, i want to go to you now, talking about the rumor obviously telling me a few moments ago, nicole, staring at the old contract on the floor. what are you watching? nicole: when you see a big move like that, that is dramatic. why was that happening? that is the appropriate reason as to why that would happen with selling going into the closing bell for oil. look at the intraday chart and how the equities are faring. some are doing better, and then they sold off, the equities
moving right along with the commodity itself when exxon and chevron hits, 52-week highs. devalued dollar, commodities go higher, that is just the relationship. there's no doubt president obama sits in the white house and says listen, don't want gasoline to be going through the roof right before election day. he has got to be thinking that. the strategic reserve could be an option i and a way to keep te cost down. cannot really spend that much money on gasoline. cheryl: the white house came out very quickly and told us absolutely nothing has changed on the spr. we will continue to follow this breaking news throughout the hour. last time he was here, telling you to jump into the market in three months later while he has pullback chart comeback slightly he is still pulling in big games. how to get in ahead of the next rally. global equities at federated
investors. you were here in june, very bullish. you pullback quite a bit. tell me about that. >> you have a bunch that have been forced into this market. the action today talking about it is actually potentially a precursor to a little bit of a broadepullback. they have been forced in by the action but not really the leaders in the long-term stories. cheryl: the central bank action, we have see in the dollar contid to press against the euro, that is a bold sign for commodities. a huge pullback in basically a rumor, that is the unfortunate part of how the market operates. speak of the reason the rumors will drive them in if they are not big believers, that is what we have right now, we are vulnerable to a little bit of a pullback.
we would be buying this pullback. cheryl: you actually said $14.50 on the s&p by the end of the year. they've actually hit that marker. what about now, a bit of a pullback, or continue to pull higher above that number? >> we will kind of tread water here. the election ahead of us, sausage making in europe, two directional risk near term. cheryl: i want to ask you about a couple of things. kind of telling your clients if there was some kind of massive republican swing in washington it would be pro-market. are you talking congress or the white house? >> because of the fiscal cliff you almost need to have one party in charge to get somebody firmly on the string will and keep it from going off the cliff.
we think the most lush outcome is all democrats were all republican government. it does not seem like all democratic government. the republican sweep would probably be bullish. cheryl: i told our viewers going out to break there was a stock you are sticking with, that is caterpillar. the stock is much higher than january. are you going to stick with it? >> china hasn't joined the party yet. caterpillar will really start to move. cheryl: more with you a little bit later on the show. we will have more pics from you coming up later on in the show. all in all right now is somebody on the floor handed me a thing of jell-o. i don't know what to do with it, but the closing bell will ring 38 minutes from now. what type of investment would you say is like throwing jell-o against a wall?
cheryl: a shakeup at the sec. charlie gasparino has exclusive details from inside the sec. charlie: there has been a lot of speculation when the sec would imminently step back before the presidential election. clearly after the presidential election more speculation. in that speculation heating up last week from the sec for a couple of days.
last week she was hospitalized according to sources telling fox business network her spokesman confirmed she was hospitalized for a mental procedure, all they would confirm it as, a medical procedure. we understand it was a surgery but we don't know what the surgery was about. she will be out thursday back at the sec back on regular duty. i understand she is working from as it goes. it is kind of interesting, this is an internal meeting and this is some sort of a hearing brought out renewed speculation. they tell us she has no plans to step down. that makes me think she has no plans. the chairwoman of the sec is appointed position by the president who has a shot. she has had some rough goings.
the vote in the regulation, one of her duties is to get consensus among the commissioners, get them to vote on certain things that are up for vote. she did not get consensus, she failed in that respect too many people think in that failure not getting consensus on that vote or having everybody together, even a democrat voted against a proposal she wanted, that was sort of the straw that broke the camel's back in terms of the sec watchers. but they tell us there's no reason to push her out, she is not leaving anytime soon. cheryl: if she cannot go down now no matter who wins in november. charlie: i think if i were a betting man, i think the likelihood of her surviving after this year is pretty low odds based on that.
this has been a draining year. i don't know what her medical condition is. we hope she will be back and fully engaged. he put that on top of the fact she had a rough year, still a lot of pressure from the top. from the president, from the democrat. this is a very tough job. she took over right after the failure to catch her and made off. that was a tough time to be working at the sec. she did some good things, i think. still the fact of the matter remains that haven't really, a lot of people say why haven't those charged in this, even a civil charges, not a single person at a bank.
i described in "the new york post" conversation is in the wall street fatcat got nailed in this thing. they would say we got all these other guys, you don't really hear that. not quite a wall street fatcat with angelo mozilla. cheryl: i hope she is okay. stress can do a lot of bad things to our bodies. charlie: my other thing is they should tell us what is going on. i understand there are degrees of privacy, but we are talking about it and it is a public figure and people start thinking the worst. she is okay, working from home, she'll be back on the job. cheryl: great stuff. up next, time to stop throwing
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commodity futures looking at the tray behind the brief plunge in oil prices that we saw earlier this afternoon during the 2:00 p.m. eastern hour. crude prices fell $4, 20 minutes. we have correspondents all over this. right now, what are you looking at? nicole: we have been looking at occupy wall street and the different exchanges. something very busy for us, celebrating their one-year period as people talk about unemployment, talk about outside the new york stock exchange, there were days in new york police department was lined up. just really picking up the folks in the new york stock exchange. a lot of us tried to dress down a little bit.
blend right in. the truth of the matter is they kept this place very safe while over 100 arrests, did not really hear of anybody getting hurt. just want to give you look at the big board right now. dow jones astros averaged hit a new low. the dow down. after a great week of over 2.1%. giving some of that back today. cheryl: nicole, thank you very much, we will see you in a little bit. pre-order sales of the new iphone making headlines. dennis kneale with a look at all those huge figures being thrown out and maybe they are not so real, how do we say it? >> i have a management history for you. how is apple is the most valuable company in the world could get it so wrong? the hottest selling phone in the
world yet they run out of them so early. apple telling us this morning the first wave sold out 2 million new apple iphone 5 and 24 hours, better than double the first order for the predecessor. at&t set a new record for that carrier in early orders, but how is it the world's smartest company can get it so wrong? why not have 4 million units ready? might they be creating a product shortage intentionally for panic? apple put out a statement not all that contrite about the fed is saying iphone 5 reorders shattered the previous record, but one source inside apple tells us the shortage is for real, ramping up manufacturing is a black art and apple will never leave sales untapped and on the table.
this is the broadest iphone rollout yet. most major carriers have the five from the get-go. the first one only went to at&t exclusively, verizon did not get it until a year or two later. not everybody has that. there will be long lines everywhere come friday. cheryl: could explain what is going on. my next guest compares the etf markets to throwing jell-o at a wall as you all know at home by now. he has investing advice to make your profile is jiggly. putting in a fox business portfolio. i don't know if you have a tv screen in front of you, we had a lot of fun with the jell-o joke earlier, but you say you are serious. >> the etf market has expanded
particularly in the last 10 years. companies started launching multiple etf, dozens at a time in the late 1990s. it worked well because there were no etf on the market at the time covering the asset classes. only 1400 different exchange trading products out there. a lot of redundancy, so the jell-o wall is saturated and all the products being thrown at it sliding off. a lot of closures by the dozen. cheryl: was going to say, 1600, of the 68 of those. some of the names, they're shutting down the etf. they have it basically all of those are examples of those that
have been in trouble, are in trouble, so how do we differentiate between etf on the blacklist and one that is a viable investment opportunity? >> there is actually a nice website you can go to. a way in which you can look at the etf that may not actually survived and if the etf deathwatcdeathwatch. here is the problem, etf out for more than six months and has not gathered more than a million in assets, the trading volume is low, the probability it will close the next one to two to three years is very high. if you're going to buy an etf, see if it is on the deathwatch. if it is, unless you're going to hold it for a very long time, i
would not buy an etf unless it had 100 million asset, a good company around for a long time. that is the criteria you should use if you might buy and hold investor like i am. cheryl: global opportunities, hard for the viewers, a lot of them out there. what makes a really good etf? >> my view of the great etf is widely diversified come extremely low-cost, trades with great volume and covers a broad aspect class. i am not a trader. i am all for the broad-based etf. they have tried to cover multiple asset classes for multiple index providers and i
don't think there is a strategy that vanguard has. the original etf are doing great but some of the other ones you will probably see fold in the next year or two. cheryl: i think a lot of people on that one. pretty popular name. portfolio solutions founder. there is the title of the book, thank you very much. >> thank you, cheryl. cheryl: 15 minutes to go. when we come back, a group of stocks he is calling the prettiest girl at the dance. ♪
cheryl: back to give you stocks at the top for your portfolio from the u.s. to mexico and even norway. here at home, one of the ideas you have is based on what we had last week with the fed. feel like it was a buzz light year joke. >> no qe four. cheryl: europeans are doing it. you like wells fargo. >> a big housing portfolio. they're starting to recover, not really recovering from their highs yet. you could start seeing some performance of stocks like wells fargo, some dividend increase.
on a long-term basis towards the lehman brothers levels. the bigger company today than it was then. it bought what cobia for nothing in the crisis. cheryl: if i were to get defensivecome a, you tell me tha sector you prefer over others right now. speak a lot, the income producing sector. in that space has been the liger to achieve the stock, utilities and telecom carrying the ball for the market. as the money moves into the stocks. better dividend prospects and utilities.
cheryl: i promised from international names. >> we like norway, cheap escrow. we like germany. the big companies will participate. cheryl: and also mexico. interesting you have a stock there as well because overall seeing a lot of the etf trying to get into that space. it is kind of leverage play in the u.s. much better than a lot of the europeans. a bank stock in mexico participates in that growth. cheryl: thank you very much, good to have you on the show. now let's go back to jeff flock once again at the cme to find out what is driving action in
the pits. >> two things today, first to oil. saying the entire crude complex saw coordinated selloff for long duration of 30 minutes from 1:51 p.m. until 2:21 p.m. traders tell me it was a much shorter duration of the most intense piece of that selloff. it was the price swing. as well as $94.65 after having hit a high of $99.52. almost a $5 swing. a $10 limit, so did not get anywhere near the limit but still a significant selloff. i would normally say with the light volume we had today and the multiplicity of factors including the rumor that it was that multiplicity as you reported earlier is looking into
this. now quickly to the greens, but was not for oil, we would have the lead story in the grains today. leading the way, $0.70 limit move in soybeans today. corn was also off $0.33 today, even wheat was off. the limit is $0.60. we started to get some reports from the harvest is maybe not as bad as some people thought. does not look as bad as they thought, so that is the thinking on that. a lot of people pulling out perhaps of the market, they are back in oil, make some money in oil now. cheryl: very impressive to me. thank you very much. not easy to do. we now have seven minutes to go.
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looking at some other health care, record highs like gilead sciences. we have biogen, even coindividualian. that is it for me. that with my flubs and everything with david asman and sandra smith for "after the bell.". david: look who i have here, sandy smith what is happening on wall street in. i want to to to new york stock exchange. about one 30 we saw the nosedive in oil, going, 2, 3, 4%. it recovered a little bit but not much. what is going on? >> there was so much speculation why oil sold off. there was talk whether the government was looking to get strategic reserves out in order to get the gasoline prices down before election
day or maybe just a finger. we're still waiting for a lot of clarity on that one. sandy: nicole, fedex will be one to watch tomorrow morning. the stock ending the in the red today but they have earnings coming out tomorrow >> they said profits would not be as much as hoped because of weaker sales. it will be one to watch. it is down 1%. david: by the way i have to throw in this before leaving oil. the cme group now commented on crude. they're saying that there were no technical issues and our cme groups markets performed as designed. whatever that means. sandy will get more deeply into oil. financial really taking it on the chin, nicole. >> financials have done so well last week. we're seeing more of a range. much maybe some concerns about the housing numbers coming up. but they sold off a