tv Markets Now FOX Business September 20, 2012 1:00pm-3:00pm EDT
>> inflation is the market's favorite boggeyman, but so far, i don't see it in the economy. >> we saw it in oil prices, and now even that is backing off, 91 and some change as sandra showed us. there's oil in texas, i know, me melissa there, and lori in new york looking at many things market-wise. >> thank you, checial, thank you, dennis. i'm lori, and in an executive interview, says a late ears round of stimulus will have impact, but several years before we see full improvement saying there's improvement in the housing market. more from peter barnes' interview in moments. a look whether or not all the
easy money causes inflation to rise down the road with the special guest, william o'donnell. as promised, melissa in the energy capital, houston, texas, a city open for business. >> that's right. i miss you, but i'll bring you cowboy boots. i'm in houston the next two days on the campus of the university, and we are trying to figure out why the economy here in houston grew by more than 8% in 2011. can you imagine that around the country? we'd be booming like china. we are going to talk about energy because that is, of course, one of the big drivers here in houston, went we'll talk about the fracking boom and whether coming regulations could stifle the growth. there's also energy prices which have, you know, been tanking in the last few days. we want predictions on whether that's going to continue and if now is the time to get in. that's coming up.
>> it's fascinating. looking forward to it, and i can't wait for the boots. that's awesome. thank you, ma'am. >> what color? >> chocolate brown. what color for yourself? >> pink, pink. >> oh, that's pain. >> no. >> all right, my dear, we'll check back with you in a few. a market update every 15 minutes, going to the floor, and nicole, the birthday girl. >> thank you very much. i own cowboy boots myself. the dow, best of the bunch, down one tenth of 1%. the nasdaq down a half percent down 15 points here. a dollar higher, phillie fed number, that was better helping things along, but the weekly jobless claims and revisions of the prior week weighed on things
that it is worrisome. bank of america cutting 16,000, yea, 16,000 by the end of the year beating up the cost cutting plan, and so let's look at the other financials as well. this is ubs cutting, morgan stanley, citi group, and sachs. turns out the names are up roughly 30% since late july saying the banks run up fast enough and it is a good time to jump out. neutral from the buy. thank you. >> thank you,ny call. trying to snap a losing streak, prices down 7% this week alone. phil flynn of price futures group in the pit at the cme. news of a factory slow down, saudi raib wra -- saudisaudi arabia, what do you e of it in >> trying to hang in
there, and one of the reasons they may not be is a concern about venezuela, tighter concern on products, keening us out there, and people are looking at that data in china wondering if it's a matter of time before the chinese jump on board with a stimulus. that could be another reason we're not adding dramatically losses. >> as in a qe4? >> surely. >> sounds ridiculous, by stimulus in china, japan increased this week, why not china too? >> come on. they have to join the party. they don't want to be left out. peter talked about the fed guy saying it's working so as qe3 and 2, 4 has to be betterment i think that's another reason why they are there today. the other market, natural gas, and i know melissa talks about fracking today, but we saw a higher than a little lower than
expected injection in the supplies, but we are getting back to normal on the natural gas market to help the economy as well. we'll see the supplies build in the coming weeks. >> all right, we're up to date. many thanks. boston federal reserve president saying there's already signs the latest action taken by the fed 1 working. now, peter barnes joins us from boston with much more. peter, a lot of headlines generated from that today. >> that's right. it's about jobs, jobs, jobs for the members of the fomc and particularly the president of the boston fed. he's not a voting member, but will be in january. nonetheless, he deafed the extraordinary action the fed approved last week, $40 billion worth of mortgage bond purchases. a month, and they hope this helps jump the economic activity and create more jobs. i asked, well, how many more
jobs, you know? the last two rounds of quantitative easing qoording to ben bernanke created an additional 2 million jobs. take a listen to what he said. >> i'm expecting to get a couple of tenths off the unemployment rate relative to way we otherwise would have got and each year we continue the program. that seems like a small amount, but actually in terms of the number of people, it's a fairly significant number of people, and over a broader period of time, it can have a reasonable impact on the economy. i would highlight that this, by itself, does not get us to full employment quickly. there's nothing we can do to get the full employment. >> obviously, there, eric trying to manage expectations. for a perspective, a half per sten taj point equals 700 thorks jobs. we'll -- 700,000 jobs. we'll see. he supports the asset purchases, and some estimates the fed could
do another $800 billion, take the balance sheet up to $4 trillion to help get job creation going. he's been an active supporter of that kind of aggressive bond purchases. >> a swelling fed balance sheets begs the question of inflation. critics cite that. we're setting up for a high inflation environment. did you ask about that? where are we on that scene? >> oh, absolutely. you know, one thing the fed chairman has said and other members have said is, listen, we have to look at the potential costs of this, and what potential costs might be higher inflation. he says he's not worried about that at this point and acknowledge he's willing to actually see inflation go above the feds' formal target of 2%, go higher than 2% because he says that's just the target. if it means that the economy
is -- recovery's gaining traction and more jobs get created. he says the fed has the tools to keep inflation under control. >> they used the tools; right, peter? the tools have been in place, but things could change. we'll continue the theme whether the inflation is a threat to the economy. i'll speak with the head treasury strategist, william o'donnell with inflation fallouts from qe3. are we living in a regulation nation? what's being done that's costing the energy industry jobs. metals as we talk about the fed, you always see reaction in gold, but not necessarily today. maybe it's priced in. gold's flat, 771, silver slightly higher, and copper's down. more after this. [ male announcer ] let's say you need to take care of legal matters.
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>> high frequency trading urn the spotlight with congress stepping up the scrutiny of computer drien trading following glitches in royal markets hurting investor confidence this year. what can be done to limit trading errors without crippling the industry? here is the founder of market partners and former vice charm of the nasdaq. great to have you. >> nice to be here. i run capital markets for grand thorton and thought leadership pieces. >> you are the perfect person then to ask about this troubling topic really rattling investor confidence and seems errors
increased. there's a graphic we made in the last couple years way we saw starting with the flash crash, of course, the vast global markets, failed some listing, facebook's flubbedded ipo, obviously, and most recently, the night capital, $440 million software glitch. have they increased? >> it's not clear they increased, but the magnitude of them has. any error on this level underminds confidence. how do you keep them from happening in the future so investors don't pull money from the stock market. >> trading systems are are complex these days. explain the trades out there, the sheer volume is staggering. >> that's correct. well, i mean, today, the senate banking committee hearings, brooks, the head of equity trading, mentions there's over a thousand different order types now in the targets and 13 stock
exchanges, 50 different dark pole, and looking at the level of perm -- permutations, the complexity multiplies. it's something regulators have to get their arms around. >> if they can. a thousand different types of trades? that's jaw dropping. >> there's a lot of proposals out there, and the first thing to address, and chairman is on the chase here is how to you cut down the number of glitches? anybody who connects into the market should have a fail safe algorithm in their trading to it takes it offline if it's outside a tolerance. >> can you explain that algorithm in more detail? >> it says if all the sudden the trading going through the pipe is moving markets beyond a certain tolerance, that it just takes is offline, manual mode, and requires a human being to regeek so that, for example, everything's moving at light
speed now. if you look the the glitch with night trading, okay, amplified quickly. you can't stop it. there has to be something built in to stop it because mistakes will happen. >> people also pitched a transaction tax, but the other side of that is ultimately curves the amount of trading volume and hurts the business. >> as of yesterday, we have a paper called "the trouble with small tick sizes," the smallest increment in which stocks can trade. basic thesis is that when you proliferate the number of price points, 100 points to the dollar, that complexity multiplies, and one of the ways to cut down complexity and increase incentives to support small companies where capital formation lives in the ipo market is by actually widening out the tick sizes. >> have toot with the small investing companies partaking in the trading companies as well or is it across the board? >> well, it clearly is essential
to do something in the small and microcap markets. we are doing a quarter number of ipos we did in the 1990s and fewer than the 1980s, and this is driving down job formation in the country and estimates it's cost the u.s. economy 10 million jobs. it's hard to actually have a precise number, but the fact of the matter is common says 23 you're not raising capital and getting capital into businesses, they can't employ people. that's a vicious circle. >> absolutely. we'll watch for the fail safe algorithms. thank you. >> thank you. >> it's a quarter after, time to recheck the markets. going back to the floor, and the railroads, nicole, the big losers today. what's going on? >> what's interesting is as we get in the numbers, cutting the third quarter outlook, and one of the reasons they did so, and if you heard want railroad companies last quarter, it's the same reason. coal stocks. they are not shipping coal.
when you talk commodities and economic growth and talk about coal, that's why you're not seeing the railroads gaining r and that's why you are not seeing coal stocks gaining. that's what's happening. northern and southern, cut the outlook, reporting on the 23 #rd of o.k., but citing lower coal shipments. that's why there's a drag on coal overall on the rail stocks. back to you. >> nicole, thanks as always. sticking with coal, the final before the recess is the scaling back of the energy regulations. for that, we go to rich edson. rich? >> it's called stop the war on coal agent or the coal miner deployment energy act. the white house says it destroys environmental safeguards. the house debates the bill this evening preventing the administration from issuing new regulations that harm coal mining jobs and prohibits the epa from using the clean air agent. just the volume and impact of
government regulations is choking the economy. >> we want to put people back to work. we have to cut the red tape that is strangling our job creators. >> they point to the epa alone. more than 10,000 rules on the books, more than 1800 on coal alone. about 370 # prepared in just the past three months. the white house response to this says it packages together a number of harmful measures to undermind landmark, environmental laws, and adversely affect public health, the economy, and the environment. if it passes the congress, the administration says it will veto it, but the senate will not even take it up if it passes the house, or will not likely did it. back to you. >> thank you, rich. wall street donors backing for prez? are they happy with the choice? where the money is going, but, first, how the dollar is faring
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>> 23 minutes past the hour. this is your fox news minute. at least 30 people killed, dozens wounded in northern syria. opposition activists say a regime air strike on a gas station set off an explosion in a town 25 miles from the turkish border. the justice department's inspector general testifying today about his own internal investigation on the failed antigun running operation known as fast and furious and error management failures, but cleared holder of wrong doing. three minute thrill ride not thrilling for some who got more than they bargained for at the
amusement park. check this out. they are all dangling at 300 feet. twenty people, four hours when the wind seeker ride stalled. it stopped after a security system was tripped. the ride remains closed until a cause is invest investigated. those are the fox news headlines. if you are afraid of heights, stay away from that one. >> i'm flabbergasted. i can't believe the people stuck like that. >> crazy. you're safe in the chair. stay where you. >> no doubt. >> see you soon. >> you too. details of mitt romney, and fox business senior correspondent is on the story. hello, charlie. what happened to your eye? did you get in a fight? there you go. you got a shiner. >> i actually fought off five wall street bankers. >> five?
>> at a bar who attacked me. just kidding. i wire i had a great story for this, but i essentially had a zit removed is what it comes down to it. >> your eyebrows look higher. was it cosmetic? >> yes. you know i'm sold out. >> you asked me about men's clone the other day. >> well, i like clone and clothes, but no bow tox. it's simple as that. >> glad you're fine. >> been a bad couple weeks in terms going on in the media. we know about that. we don't have to play the comment of getting crushed in the media. wall street up in arms. i talked to senior people in the romney campaign, and they say cay campaign aids are scramming to shore up support. romney's -- wall street gives
heavily to romney, more than president obama. calling the major donors from wall street asking if they are on board, and he's the good news from mitt romney. what they hear back from the support eres is, yes, they are on board, though they are very, very worried about the chances of beating president obama right now. they tell him that, and not only that, the wall street supporters trying to reach out to romney himself to tell him directly here's what you should do. they think he should be aggressive on the economy and middle east. this is coming from the wall street supporters. less than two months left in the campaign, will they defect to president obama? wall streeters are fickle. obama is the front runner by a small margin according to the polls. as of right now, no. i believe that's not going to happen. we'll see when the final numbers -- still, we crunch the numbers here at the fox business network, so doesn't look to be losing the support, but back to obama right now would be big for wall street. he's attacked them so much,
dodd-frank, i don't know what they gain out of it, you know? reverse dodd frank? mitt romney may do that. what's -- that's what they are doing. i asked wall street guys, you know, tell me, major players, what do you think -- they want republicans to not just take the presidency, keep the house, but take the senate as well. if you have the trifeck that, and that's their dream, but if they get it, they can reverse dodd-frank. what they talk about is a connecticut race. linda mcmahon. the wife of the wwe vince mcmahon is running a competitive race. connecticut is a democratic state. from what i understand, she's getting some -- self-financing 93% of it. she's rich, but she's getting wall street support. app interesting thing happens tonight with fox business network learned that jack welsh, former ceo of ge. he's a friend of mine, but did
not hear it from him, but he's having a fundraiser tonight in his pardon me for linda. he's been vocal in the past about supporting her, and tonight, he's having a fundraiser at the new york city apartment. i know some people going there are fairly fat cats. not heavy set, but wallet being fat. anyway, that's where we are now. romney campaign says wall street is not jumping ship. they reached out, they are worried about wall street jumping ship, but it's not happening as of now, and jack welsh fundraiser. >> are you going? >> no, i was not invited. i e-mailed him. maybe if he invites me, but i have dinner plans. >> put an ice pack on the eye. >> i'm leaving it alone. i don't care about it anymore. >> thanks, charlie. melissa francis talks to the energy consultant who says new fracking rules could cost the industry over a billion dollars having a huge impact on the lone
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favorite, slim james. the stock is up more than 7%. they raised full-year forecast and first-quarter earnings more than doubled. so far so good for conagra. on the other hand we're taking a look at jcpenney. yesterday jcpenney had a point in the day as the stock was up 10% as ceo ron johnson was talking about having a con accept of a -- concept of having boutique store like disney. in the same talk he noted they are tough times. and these tough times will continue. you saw the pop and drop late yesterday. when you get talk from a ceo after back to school is already done, not good news there. jcpenney is down. back to you. lori: important perspective. back it school. everyone is already there. thank you, nicole. the energy industry is the driving force of houston's economy. more than 3,000 companies call it home but how will new regulations affect the sector's future?
let's go to melissa francis on assignment in houston. melissa: thank you so much, lori. it is a beautiful day here in houston. i'm joined by art gelber, president of gelber and associates. lori talking about the fact that we have new regulation coming to the energy sector specifically fracking which has been such a boon to texas and the energy infrastructure in the whole country. do you think more regulation is coming and what is the impact? >> absolutely more regulation is coming both at state and federal level. the impact will be more specific guidelines and rules. oversight at the federal level that will sort of set a an umbrella. more specifically administered at the state levels. melissa: yeah. >> frack something taking place in places that aren't used to drilling like ohio. state laws and state regulations are still catching up. melissa: a lot of people said that. they say it is relatively unregulated because it is happening in places where they haven't worried about it in the past. people like john dunham
estimate we could see $1.5 billion added costs next year as a result of more regulation. that is a big number. do you think that is right? >> i think the number is high. i think the order of magnitude is probably high. i think more regulation will cost more money. it will have an impact. it will drive up the cost to find oil and natural gas but at the same time, melissa, if you don't have regulation, then unsafe practices could take hold and that could have a greater impact like we've seen in other places of the energy market. melissa: we've seen the price of natural gas plummet as a result of all this fracking. it is a lot of cheap energy for a lot of americans out there but at the same time, and we were talking about this in the break, there are a lot of wells have been drilled and are not being used right now as a result of these lower prices. do you think that's why we're seeing that and how big of a deal is this? >> i think that's one of the reasons why you're seeing it. production is still very high, both oil and natural gas. as a result of this tremendous new resource being created which shale
and fracking, prices are down and that's causing supply to be down as well. the drilling wells but not necessarily completing them. melissa: right. they're not completed. i'm hearing that from a lot of people anecdotally. there was this big push and a lot of these wells are sitting silent. is that true? >> there is a decrease in the capital spending and also some of these wells are in frontier areas where you don't have pipelines. so they're waiting for infrastructure to catch up with the exploratory drilling. there is a huge geographic area opened to natural gas. it is huge. melissa: we'll have rich kinder on "money" at 5:00 p.m. eastern. we'll ask him about that question but before i let you go because he is the pipeline king when you're talking about infrastructure i want to ask you about the plummet in oil prices we've seen here, 7% in the past three sessions. do you think there has been a fundamental breakdown in the price of oil here and we're going lower? or is this just a temporary reprieve? >> we think it is a temporary reprieve. oil prices are pushing higher. you get glitches in the
markets because of the ebb and flow of both buying and selling and electronic trading. and the range between $100 and $85 is well established. i think we'll stay in there throughout the wintertime. melissa: look at that chart we've got on the screen. it is a big move downwards. traders said they think the economy is not getting better. that there's, the saudis said they have as much oil as they can possibly put on the market. that everything going on in the middle east has already been priced in. i have heard such arguments why oil will stay where it is. at the same time the fed is printing money. there is all kind of other reasons for it to go up. what do you think takes the cake at the end of the day? what is your price target for the rest of the year? >> for the rest of the year we think oil will stay under $100 and to $85. you're seeing volatility in the range. the rest of it is electronic noise of buyers and sellers. melissa: all right. thank you for joining us here on the beautiful campus of rice university. of course we're open for
business in houston, texas, where the economy is absolutely booming. it is growing more than 8% in 2011. we wanted to figure out what is in the secret sauce and what is it that is making this economy grow so much faster than the rest of the country. tonight, coming up at 5:00 p.m. on "money with melissa francis" we have senator kay bailey hutchison is joining us. she will talk about the regulatory environment and political environment that fosters this kind of business growth. we'll have rich kinder, ceo of kinder morgan. i don't know when last time i've seen him on television. that is a pretty good get. we'll ask him about oil prices, lori. i will bring you the cowboy boots. you said not pink. how about lime green? lori: you're the fashionista in the crowd. melissa: i will keep thinking. lori: one question if you have a moment? melissa: of course. lori: glut of natural gas, cheaper energy, all this talk, these fears generating about inflation care of the
fed. what is the likelihood cheap energy could offset this on a broader scope? melissa: you know, that would be great but over time as soon as we see the economy pick up again, traders always get in and bid back up the price of oil and energy because you need it as the economy expand. lori: sure. melissa: i never feel like cheap energy is here to stay for any period of time. maybe in the natural gas market because we do have a big supply. lori: what is great about you? we can talk about fashion. we can talk about markets. we run the gamut. it's great. i will watch you tonight. have a great afternoon. melissa: thank you, lori. >> the fed continues a we talk about pumping cheap money into the system but there is a risk. cheap dollar, more inflation. let's look at interest rates today. a lot of news overseas. china factory orders fell so they're buying treasurys today. a 10-year auction was a bit mild in participation. people buying treasurys pushing yields down today.
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rose for a fifth straight week. fixed mortgage rates continued their downward trend last week. according to freddie mac the rate on a 0 year fixed mortgage dropped to 3.49%, matching the previous low. hbo chief executive bill nelson announced his retirement. he has been the head of the cable network since 2007 and will step down as ceo at the end of the year. that's the latest from the fox business network, giving you the power to prosper
inflation since the fed's qe3 announcement some days ago. and the way we see it is really, best exemplified by the tips market as well as treasury yield curve itself especially in the five-year and 30-year sector of the curve. we see generally steepening curves. we've seen tips break even rates. lori: these are all signals of rising inflation, a steepening curve. you're seeing higher rates come up at the longer end? >> yes. lori: just to clarify. >> for the viewers to know it is not rising inflation but rising inflation expectations that are driving curves steeper and tips break even up. lori: with inflation you hear that word as a consumer and you automatically recoil because you automatically think gas price, food prices. hell me bill, to clarify this. the economy needs a certain amount of inflation to continue to grow? >> yes. the fed is trying to achieve that.
they have i guess a soft target of 2%. we're below that target. that is it one of the reasons they have a dual mandate, why they acted as they did by announcing qe 3 and additional asset purchases. what is going on in the investor community and i think what shocked them was the revelation during, you know, the press conference, during bernanke's press conference after the last fomc meeting that the dual mandates, inflation and growth everybody thought were relative equals are no longer equal because the fed seems to be, or explicitly employment targeting. so people are assuming from that if they target employment it will be a, expense or cost of something and investors are assuming that's going to be future inflation. and that's the fear today. lori: so what should we be thinking in terms of inflation? we just had eric rosen again, the fed official on believes the fed accommodation is already having impact on
housing market. we know house prices are on track to show a gain very as you decline last year. wage inflation is basically flat, falling slightly. so are you concerned, or not concerned that the pace of inflation is on track to be overall beneficial? >> boston fed president rosen again didn't say there weren't any costs to their action. what he simply said was the benefits in his view were likely to outweigh the costs but the difficulty for treasury investors as we're very close to generation lows of yields or, risk compensation, if you will, and as a result, if the fed's willing to get a little bit more inflation than planned, relative to great gains in let's say the housing market, that's fine for the fed. but it is horrible for treasury investors with, you know, sub2% 10-year yields. lori: bill o'donnell thank you very much. >> thank you. lori: i will throw out there to remind our viewers, peter barnes spoke directly with
eric rosen again and we talked about the markets and fed. quarter to. as we do every 15 minutes, we talk to nicole petallides on the floor of the new york stock exchange. happy birthday. my two favorite stocks, starbucks. >> thank you, lori. we're java fans. we enjoy a good cup of coffee. what is interesting as you look at both starbucks and green mountain coffee roasters. something we told you about over a month ago here on the fox business network the new single serve machine from starbucks which will compete directly with green mountain's. that is the whole idea here. it is a brewing system. so it goes on sale today. as a result you see a winning day for starbucks an green mountain pulling back. by the way the year date numbers are very similar. green mountain is down 30%. starbucks is up 10% year-to-date.
lori: melissa buying me cowboy boots. i will tell her to buy you a single cup server. drought is easing. farmers taking advantage of high prices while they last. trip down on the farm is next on fox business. more of today's winners and losers on wall street. to meet the needs of my growing business. but how am i going to fund it? and i have to find a way to manage my cash flow better. [ female announcer ] our wells fargo bankers are here to listen, offer guidance and provide you with options tailored to your business. we've loaned more money to small businesses than any other bank for ten years running. so come talk to us to see how we can help. wells fargo. together we'll go far. wouldn't it be nice if there was an easier,
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lori: oil hovering near six week lows today. so how are energy stocks reacting and what should you be wary of in your portfolio? sandra smith is taking a closer look in today's trade. sandra? >> should you think about energy stocks, should you be dumping them and buying airlines because of lower jet fuel costs? we've seen movement in the
stocks. yesterday we saw more than a $3 drop in the price of crude which makes it important to look at one-week chart. when the selling started from start to finish for the past four days we've seen declines in the price of crude. you're talking about the longest losing streak in 3 1/2 months for the energy. dropped about the $7 or 7% over that period of time. but i'm going to branch this out real quick and i will look at one month. we're down 5% for the month. here is that big drop here. for the year down 7%. so the trend is definitely down. you have to start looking at those stocks in your portfolio that could be affected by that. and primarily i want to jump into the big energy names themselves. we've been talking about how some of the big names like exxon and chevron, they have been trading very cheap. their p-es have been very low. some of them even under 10, which makes you want to pull up chevron, guys. actually it is up on a day where we see oil prices still declining. i will put up a one-week chart. the trend has been to the
downside as the oil prices come down, but lori, this is where all the analysts are starting to step in, investors as well because the stock is getting a nice dollar boost. saying buy at levels because pe is eight on chevron. this is dow component. when you look at price at 117, lori, credit suisse says it will go to 135. oppenheimer just reright at -- reiterated their buy. now that we have a drop in energy names. by the way, lori it is upperforming the broader markets. lori: another good indicator. sandra, thanks. am a long summer drought. farmers are getting into gear. jeff flock covering the story in illinois down on the farm literally. jeff? >> lori, up close and personal on the harvest. this is a soybean field in mazon, illinois. on board the combine here and they are, as you point out, this crop is at the
perfect time to pick it. so that's why they want to get in the field. i have paul with me up in the combine and, i want to say you're in a hurry to get through these fields, aren't you? because this is peak time? >> we want to get the crop out before the weather closes in. >> we're surrounded by vehicles that will transport it to market. you're talking this so i bean crop directly to market. not putting it in your own bins. why? >> the market is paying for grain now than they are next summer. so no reason to store it. >> look at the charts. if we look, to, at the one-week chart, the last week you've seen a major falloff in soybean futures at the cme unlike all summer you saw continual run up. you had limit down. >> market knows the crop is better on soybeans than anticipated and end-users are getting their stuff booked. that is more you guys field than mine. the price has been good so i'm tell selling.
>> exactly. that's what they want to do. as you come out here, maybe look around, you see a lot of these fields, already, lori have already been combined. this is very unusual at this time of the year. typically now we would only be starting the harvest but last monday the usda already said 25% of the corn crop nationwide has already been brought in. and soybeans about 10%. you're not kicking into high gear on soybeans. >> yeah. well soybeans are very weather sensitive, when they're ready you want to get them. >> okay. paul and his wife donna is actually in the tractor that you see back there. she takes the off load when he is full in the combine. as i said, very eager to get it to market. i will leave you with a shot of the semi. that is out there. where they're loading the, the crop in, a little bit better of a harvest than they think. they want to get it to market before those prices start to fade. lori? lori: how much of an increase, jeff, quickly this year over last, would you
say? >> how much of an increase in terms of price? lori: yes. >> or size of the harvest? lori: profit? >> well, oh, profit. well, you got 16, $17 soybeans right now. that's a lot more than they thought. but he has got about 20% less of a crop than he thought he was going to get. so you have to do the math on that. it is not a terrible year for these guys. lori: but you can't punch up calculator while hanging onto the tractor? you're a multitasker, jeff. >> what is that, lori? lori: that's okay. i let you off the hook. >> that's okay i can hear now. he shut, he shut the motor down now. lori: teasing you about, being multitasker. your reports are always awesome. >> he is pretty good cooperating with tv people. lori: with us guys, right. he said you devices area. thanks, jeff. >> exactly. lori: looking ahead at the fiscal cliff, well it is around corner.
what is being done to save us from huge budget cuts and huge tax hikes? coming up tracy byrnes and ashley webster. coming up keep it here on fox business shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans?
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for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. tracy: fox business i'm tracy byrnes. ashley: i'm ashley webster. stocks off session lows on new concerns about the economy here at home and overseas in china and europe. oil prices continue to drop for a fourth day. tracy: with time quickly running out before the fiscal cliff there is talk of growing cooperation. yes, brief it or not on capitol hill to avoid the worst-case scenario. finance committee member senator mike crapo joins us in moments. ashley: compromise? who would have thunk it. apple shares hitting a milestone, 700 bucks a piece this week but one analyst says they could hit 1100 next year. he is our guest ahead. tracy: wow! time for stocks
as we do every 15 minutes. nicole petallides birthday girl on the floor of the new york stock exchange. hi, nicole. >> thank you so much for the birthday wishing. all is well this happy days. you're not too happy if you're long the market. dow, nasdaq and s&p slightly lower. the tech-heavy nasdaq has been the worst of the bunch. ipo world back in action after a one-month lull. we have 7 ipos. we have one we're watching very closely. this is a real estate type company that competes with zillow. by the way zillow is up over 100% this year. whether it is a bet on a recovering housing market, what they do they have web sites that will give you lots of data about the real estate market. right now you see it here, up 47% today on the ipo. now this priced at $17 which was above the original range of 14 to $16. so far, truly yaw, is
trulia. doing well on a day we're pulling back but a true winner. back to you. tracy:. nicole, thank you very much. those sites are a good way to make yourself puke when you put your address in and see how fall the price has fallen. ashley: one final act from the house of representatives before leaving for recess seems to be the scaling back of the obama administration's energy regulations. rich edson on this story in d.c. rich? >> hey, ashley. tonight the house considers a proposal to significantly curb environmental regulations. supporters say the bill will help unleash businesses from government overregulation. the white house says the proposal threatens america's air and waterways. the republicans point to the epa, more than 10,000 rules on the book, more than 1800 on coal alone. about 370 proposed in the past three months. the house proposal prevents the administration from issuing new regulations that are harmful to coal mining jobs. the bill also prohibits the epa's regulation of
greenhouse gases. house speaker john boehner says the bill addresses regulations that are holding back the american economy. >> we've got the cheapest form of energy. we're the saudi arabia of coal and the president wants to shut down coal production and the use of coal in the united states and, so that we can export it to our economic competitors around the world. the house is going to speak once again that this is a big step in the wrong direction. >> the white house says this bill packages together a number of harmful measures that would undermined landmark environmental laws and would adversely affect public health, the economy and the environment. if this bill passes the house the senate will very likely pass on even considering it. back to you. ashley: the saudi arabia of coal. that's what we are. rich, thank you very much. >> how about that? procedural vote is happening now in the senate and that's possible that senators could vote on a six-month spending bill and then of course
leave town until the november elections but it's not a done deal yet. joining us now with exclusive, for an exclusive interview republican senator mike crapo of idaho. senator, i have to tell you i think i speak on behalf of a lot of americans when i say we are so sick of hearing this kind of stuff because we knew this was happening months ago. we knew that the fiscal cliff was coming. we knew this election was coming and this notion that now we're trying to cooperate is almost laughable to many of us. >> well, you know i have to join with you in that feeling. as you know i'm a member of the "gang of six", now the gang of eight, who have been working on a bipartisan basis now for over two years to bring a plan forward and we continue to build that plan. i think it will be ready after the election but the fact that congress has become so dysfunctional, so gridlocked, that we can't even agree on the most basic of issues is a real discouragement. tracy: so where do we go from here?
sir, with all due respect there was a meeting with federal reserve chairman ben bernanke that you did not attend. there is joint hearings meeting on capital gains you're not at. how do we expect to get things if our congressional leaders don't show up to these events? >> well we have multiple meetings at the same time. for example the hearing that you just referenced i was actually the ranking member in a banking committee hearing on high frequency trading at the same time. and so although we may be in different parts of the capitol, it doesn't mean we're not engaged. tracy: you know what? maybe that is part of it, right? maybe focus on one thing as opposed to stretching you guys no thin where no one can make a decision. i'm thinking fiscal cliff, january 2nd, big deadline, should be the main focus right now. with this election, it doesn't look like anything will happen, does it? >> well, you're absolutely right, it should be the main focus. that's why i'm working with my colleagues on both side of the aisle with a comprehensive plan, only avoid the fiscal cliff but get us on a pathway to solve
the debt crisis that will slam this country so hard if we don't take action. i share your frustration. i wonder if there is any way we can get out of the gridlock here and move forward. i assure you are there are plenty of us working very hard to see if we can't build a bipartisan pathway forward. tracy: senator, can you play this out for us? we get to sequestration and cuts hit, many are saying we're looking at recession. so what happens between now and january 2nd then? >> well, first of all you are correct in my opinion. if congress does nothing, and lets us go over the fiscal cliff i think we'll be beyond recession and maybe facing a depression depending how serious the economic consequences are. that being said, as i've indicated between the election and the first day of the next congress, i think there's a true opportunity for us and many of us are prepared to put forward a plan of action to take advantage of that opportunity, to reform our tax code and to actually develop the kind of spending restraints within
enforceable budget mechanisms that that will assure markets and americans that we'll get serious about fixing our debt crisis. i know you hear a lot of talk about that. but reality is there are a lot of us working very hard to make sure those kind of options are on the table and that congress has the ability to take those steps between the election and the new year. tracy: you're talking about getting something done in the lame-duck session. senator, if that's true, you come back and we'll dub you the miracle worker. we'll do everything we can. tracy: senator mike crapo of idaho. thanks for taking the time, sir. >> thank you. ashley: all right, miracle worker indeed. look, bank of america announcing it is cutting 16,000 jobs by the end of the year. those cuts come as the nation's second largest bank aims to become smaller and more efficient. the bank was the country's biggest employer. after these cuts it will fall to fourth place with 260,000 workers. wells fargo, citigroup, and jpmorgan chase all have more employees. in 2011, bank of america
made its first promise to cut back on expenses, announcing plans to save $5 billion and cut 30,000 jobs by 2014. well this round of cuts will put b-of-a an entire year ahead of schedule. the bank hoping to become a major deal maker worldwide by making full use of the merrill lynch operation. shares meantime have been moving lower on the news. take a look. down about nine cents at 9:. -- 9.20. tracy: there are a lot of bank of america atms, still big. tracy: this law will cost americans more per year and affect more americans than first thought. liz macdonald has the stunning numbers. ashley: congress taking on capital-gains taxes on part of a bigger tax overhaul so what will it mean for your wallet? as we do every time this day let's look at oil trading down with weaker economic
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actual amount the cop will need. it is a big number. >> it is a big number but not what justice wanted $500 million for auo optronics. this is ties largest violation ever. this is something we'll watch here as justice goes through special investigations including libor scandal they were looking to up penalties. they were hoping to send a signal for the billion dollar fine. didn't get it. 500 million for au optronics. the company plans to appeal. tracy: of course it does. rich edson, thank you very much. ashley: new information about the health reform law showing the individual mandate tax will hit many more americans than originally thought, the very same americans that the white house says it will not hit with new taxes. hmmm. liz macdonald here with emac's bottom line. interesting. >> hmmm is right. cbo says six million of uninsured will have to pay the insurance mandate tax.
guys, that is two million more than initially expected, a 50% increase. the plus the tax will cost $5 billion more per year than initially thought. marchover the cbo says 0% the 6 million people sit in middle class -- 80%. now the reason for the jump, more unemployed plus states can opt out of laws medicaid expansion. the cbo says up to 19 million, as high as 24 million of the 30 million uninsured will be exempt from the new government mandate tax. basically the exemptions are for the poor, indian tribes but also individuals claiming the tax create hardship or violates religious beliefs. this is frabing headlines, cbo study which contradicts what they said. ashley: how did they get it so wrong? >> i think what they did they didn't adjust for the economic downturn. but what really is a stunner here, the middle class will have to pay the tax despite, white house yet to comment on the cbo study. look at this number, 2/3 of
the people, 2/3 of the tax though will come from people who make, get this, $98,400. that is squarely middle class families. that is the cbo estimate. 2/3 of the revenues from the tax will come from those familis. tracy: lizzie time and time again you sat at end of the this desk and come to us about more middle taxes the, middle class will pay when they want to tax the rich but hurting middle class. >> i don't want to say sound like dreary deb i about and i like to read the reports and say what the media is reporting. ashley: get the real story. >> dig into the footnotes. tracy: you're not dreary debbie. we love you. 15 minutes after the hour. we have to check on the markets. nicole petallides on the floor of the new york stock exchange. i think you're talking coffee. >> i am indeed because we're taking a look at starbucks and green mountain coffee roasters. look how the two stocks are faring today.
starbucks is doing well but green mountain pulling back. we told you on fox business network well over a month ago, that starbucks is coming out with single serve coffee. it is a line of single serve coffees along with a selection of their own brewers as well where you get your own individual express so shots. the chief executive howard schultz is talking about the fact that is the fastest growing segment, single-serve and they're getting in on it. back to you. tracy: as well they should. i might have to upgrade my machine. ashley: you want a single serve. tracy: i have the single serve. ashley: let's move on. will spain's successful bond auction impact pack whether it asks for a bailout. we'll have an analyst weigh in on that next. tracy: look how the dollar is faring as we move out to break. euro is down and u.k. pound and so is everything. peso as well. the yen is the lone winner
was behind on the attack on the u.s. consulate in benghazi and the killing of ambassador chris stevens and three other americans. intelligence sources telling fox news they are convinced now that the attack was directly tied to al qaeda with a former guantanamo detainee involved. if that's true, that would directly contradict what the administration officials were originally saying about the attack. that it was simply an offshoot of a spontaneous protest. the state department is warning americans do not travel to pakistan unless it is essential because of the protests there over an anti-islamic video the warning as hundreds of pakistanis clashed with riot police in the capital who used tear gas to keep stone-throwing demonstrators away from the u.s. embassy. space shuttle endeavour taking off from houston this morning. the last commander to on the
ship was retired astronaut mark kelly, the husband of congresswoman gabrielle giffords. back to you guys. tracy: jamie colby, thank you very much. ashley: some encouraging signs out of spain the country's borrowing costs based on the latest bond auction where it raised $6.2 billion after selling three and 10-year bonds. so how much time does this really give spanish prime minister? spotlight ideas managing partner steven pope joining me now from which is minister with big ben lit up behind him. steven, thanks for joining us. look, certainly spain has been dragging its feet. we had, well you could say a successful bond auction today. does that just delay everything? >> it certainly gives spain reason to pause and germany take a view that the markets are supporting how they're running the economy which i think is a fallacy because the demand today generally speaking for the 3-year was
a mixture of domestics and overseas but for the 10-year it was only domestic paper. one only has to look at path secondary market look for three-year and 10-year spanish debt and they zoomed back out again. the markets are telling him we're having enough. no more manas, that you have to make a decision and make it quickly. ashley: how long will this go on? the banking system is essentially kaput and the economy is in huge recession. so it is inevitable, surely would be better sooner than later? >> oh absolutely. it definitely has to happen sooner as against later. as you mentioned there the banking system is in dire need of overhaul. the bank here having secondary restructuring. the provincial government rescuing up for aid. and unless this ecb put as we call it is there, spain count fund itself sufficiently in the capital markets. i know the spanish prime minister and the italian pm will be gathering together to probably compare moats
and i'm sure mr. monte in rome will be pushing his spanish counterpart to go through the wall quickly because it might clear the way what conditionality spain had to accept. so they can possibly follow that same line. ashley: we also have mario draghi, the head of the ecb meeting with angela merkel in germany next week. i guess he is really on a tour to try to sell the bond buying program. he will talk to business leaders in germany as well as german lawmakers. i would imagine he will get some skepticism on that journey? >> he certainly will. i think that merkel is aware that germany has to play a fair hand, try to keep the eurozone intact but there is a limit to how much german tax i pares -- taxpayers can be expected to pay. we saw the constitutional court passed approval. 190 billion euros and that's the lot. if you look between the lines germany has paid a
great deal than more than that to support the euro. greece looking for third bailout. it is all still stacking up to be one more disaster after another. ashley: we have 15 seconds stephen. is the eurozone in a firmer or more secure place than was six months ago thanks to the central bank? >> i think the currency is responding quite nicely at the current time but it is not justified. one only has to look at the economic data three-year lows on pmies across the board. german exports the worst ever in three years. so the eurozone is not a strong place. ashley: very well-put. stephen pope in london. thanks for joining us. really appreciate it. >> thank you. ashley: doesn't hold back his thoughts. tracy: know a great. ashley: for good reason. tracy: i love when a man can make funny jokes without smiling. ashley: very british. deadpan. tracy: american incomes falling again according to new census data. gerri willis will break it down for us. ashley: jeff flock live from
our nation's heartland on a race underway this heart haves -- harvest season. jeff? >> up close an personal. tracy from the harvest we're as close as we get to it here. you see a combine going through a soybean field. husband working the combine. wife over here working the off load tractor. back with a race as you point out in the nation's farmland. they have to get the harvest in. as good as it can get. they want to get it to market before the prices go down. stay tuned
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>> welcome back. apple shares falling. the day before iphone 5 is released. coming up, we'll hear from an analyst who says apple could hit $1100 a share next year. there's a nuts. americans median income fell to just under $50,000 a year. where incomes are falling more than others. that's in moments. oil prices just turned higher. they have fallen the past three days putting pressure on energy stocks. more on that ahead. oil's been fickle. >> it has been fickle, but the markets turning higher after being done 75, down four appointments. checking the markets, nicole's on the floor with a guest, nicole? >> that's right, ashley and tracy, we were talking about the truckers, shippers, airlines, railroads, is it ang indicator
they are down? >> normally it is, but they warned on the earnings. here's what part-time miss. it's an economic story, but a lot. transportation they do is coal to the utilities. the utilities are not burning coal now, but natural gas because it's a price play. if you look at the map, it's through the coal country of west virginia, ohio, and kentucky. they warned a little bit. they are not transporting as much coal and don't make the money as a result. >> coal stocks down as well. what does that mean as far as the dow goes? when you saw the dow at 13600, you know, the transports are not supporting the move by the dow. do you feel confident with the dow? do you think the s&p, the dow continues to move higher or we sit here? >> i've not felt confident with the moves in any for some time because anybody can see we've not been trading on fundamentals, but just central bank planning. any rally without the support of
the transports, any kind of draw down without the transports selling off as well, are not believable. you go to have the underpinning, any movement in the dow to make it believable for the market. >> thank you so much. back to you. >> ashley: great stuff, thank you, guys. tracy: a blow to economic recovery, according to the 2011 cren sus, the income of the -- census the income of the typical family fell flat this every state last year. gerri willis has more. that was after we got household income last week. >> look, screw the economy; right? i'm worried about the wallet. ashley: exactly. >> it's down again year-to-year. this is more than frustrating at this point. nationwide, incomes down 1.5%, with the median at 50,000. look, gas prices are up, the trip to the grocery store is up. let's look across the country and see what's going on. down mostly in southwestern u.s.. california down 3.8%, nevada
down 6%, arizona down 2.9%. florida down 2.9%. this is a lot of money people. only vermont doing better, up 4%. graphics ahead of me. the range of incomes, the high, and let's just talk about that. ashley: yeah, guess where. tracy: come on. >> maryland, on top of the district of columbia. why? because that's where the government is located, $70,000. mississippi below $40,000 here. ashley: yeah. >> we have to fix this. three years into recovery. this should not be happening. it's not just corporate profits to grow year-to-year, but median incomes have to grow so people can retire. >> buying power is worse, it's going down. >> that's the most frustrating part. it's everyday things. trust me, dance classes, cleats, all the stuff that families buy, average income families buy is
all going up. salaries are not. >> they say prices are not rising, and they got it wrong, dead wrong about where the economy is going and how real people are impacted by it. ashley: yes. tracy: talking about it tonight in >> we will, 5 lot about it. we may talk about urinals about that. tracy: regulation in urinals, huh? >> >> that's right. ashley: you know what you can do with those? what you'd like to do with them. gerri: let's not say it then. tracy: thank you, gerri. tune in and complain about how your wages have not gone up. gerri wants to hear that. ashley: farmers are now getting into gear for the full harvest and grain prices still high, a record harvest may result in lower prices for consumers. jeff flock covering the story
from illinois down on the farm, literally. jeff? >> prices on the way down, ashley. we've been talking to one-half of the harvest team here today. i want to get this hour the other half of the team, but you can see that's the soy bean field there. i'm in the offload tractor with donna, talked to paul, her husband, operating the combine. and, donna, you are doing everything you can to get the crops to market before the prices go down. >> that's right. this is the season, earlier than r usual this year, but conditions are such we want to get the corn out of the field and the beans out of the field, and with rain on the way, tomorrow, we need to get this field finished today. >> bean prices, the charts up. if you look at the last week, there's been a real drop off in bean prices. they are harvesting this right here. that's converse to the summer where you had a huge run up for the entire summer. you're going to get a smaller crop, but more money for it.
soybeans might be okay in terms of profit? >> that's right. our yields here with the soybeans have been just a little bit below our average yield so far. we just started soybeans. >> with higher prices, that's a positive. on the other hand, there's corn. you have fields with 50 bushel of acres of corn. that's not much. >> that's right. that's the 50 bush les is tough. 90 bushel an acre fields, prices helping out a lot with that field. >> helps with prices, gets taken away by the amount of the yield. you look at the harvest live on the fox business network up close and personal. can't get closer, can you? ashley: terrific reporting in mizon, illinois. getting corn and beans out of the field to market before prices drop. tracy: lucky to have him. capital gains tax the focus of a
joint hearing on capital hill. what role are they going to play in the overhaul of the nation's tax code? we'll find out next. ashley: as we do on this day or time, take a look at the 10 and 30-year treasuries. yield unchanged on the 10-year, still at 1.78%. the 30-year, also, guess what? unchanged, just under 3%. we'll be right back. want to try to crack it? yeah, that's the way to do it! now we need a little bit more...
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>> oil having trouble finding direction, drivers still feeling pain at the pump. according to aaa's fuel gauge, the national average is $3.84. google set to pass facebook as the top earner from display ads this year. according to e-marketer, the online search giant engine collects more than 15% of the available ad dollars while facebook is expected to collect 14.4%. that's the latest from the fox business network giving you the power to prosper.
tracy: senate finance and ways and means committee had a joint hearing and what to expect. we are currently taxed at 15% set to be 20% next year if members of congress can't agree. will they? joining us is the former managing principle, and, clint, i love you are here, but i feel it's deja vu. every time we talk, we say they'll punch it to the future. >> absolutely, tracy. it's a long standing issue in the tax policy issue, and it's complicated by the prospect of tax reform. we'll extend the bush tax cuts 15% or expire, let it be 20%, 5 new insurance tax on top of it, but if we do tax reform, i think what the committee heard this morning was the capital gains rate have to go up more.
tracy: you mentioned the health care tax, 3.8% on investment incomes for families making over $250,000. is that because it's the wealthy do pay to capital gains this is a real point of contention? >> well, it is. i'm not sure that i would stay that the wealthy pay so much in capital gains, but there's doctors, lawyers, movie stars, tv anchors who pay tax at 35%. you have those who are investors at 15%. that's really the tension. tracy: do you expect anything to happen before the election? >> absolutely not. tracy: we heard senator crapo thinks something happens in the lame duck session, do you? >> the best we can expect is they kick the issue down the road a year saying let's extend the bush tax cuts for six months a year, give congress a time to work on them and where they want to come out on that.
i think members are worried about the fiscal cliff as we all are. we'll try to get by that, push it down the road, and deal with taxes in a substantive way next year. that's my guess. we could have problems year end. tracy: you refer to the extenders, the a had 4-rbgs t, child tax credit, dependent care credit, they punted last time and extended, and here we are again, talking about extending. are we going to see true tax reform in the country? we need it. >> we're going to have to do something to stabilize the system. not just the bush tax cuts, but amt patch, r and d credit, that's $1 billion a year, equal to two years of sequester. that's the money we're talking about. we have to figure out what tax coat rement and make it permanent so we can solve the other, more important problems, which is the deficit. tracy: clint, you've combed through the code over the years. do you think it can be fixed or
does it need to be just thrown out the window, and we need to start over? >> i actually would say it the other way. it has to be fixed. we can't throw it out the window. how do you say to people, look, you bought a house expect of expecting a mortgage redestruction. your church is important, you want to give to it, but we're not supporting that anymore. we have to find a way to incrept tally change the current system, make it fair, a lower rate, broader base. we can't throw the economy into turmoil right now. tracy: i know. they will punt a year, everything is status quo, and you'll come back and we'll talk again. >> always a delight, thanks. tracy: thanks. that's what we do. ashley: big problem, isn't it? oil dropped to the lowest level in six weeks. how are energy stocks reacting? sandra smith looks at today's trades. >> i want to give you a quick update.
we are seeing oil prices down, the fourth straight day of losses, longest losing streak in three and a half months. it's continues now, below $92 a barrel, but what's is it doing with the energy stocks? it's pretty mixed action now. big oil companies, diversified stocks, stocks like exxon, and chevron got a boost. it participated in the sell off of oil prices, but it's coming back. buyers considering the stocks chief. chevron got upgrades recently. exxon, i want to highlight this, it's a year-to-date chart sitting near its 52-week high, $92 a share. the high is $92.50. it's testing the lfl. thisthis was a $77 stock in jun. it's been on a tear. 21 analysts that cover it now
say this is a buy at these levels because the under performance of the stock, i'll show you that, guys, right here. year-to-date, s&p500 up 16%, and exxon mobile up 8%. a lot of them like it just for that reason, but finishing on this, guys, if i leave it at one week, you'll see what an influence energy has want market. exxon mobile underperforming, dragging down the broader stock. watch the energy stocks. ashley: you do. thank you very much. tracy: thank you. let's keep talking stocks. nicole's on the floor of the new york stock exchange. what do you got, girl? >> looking at oracle, due to report their numbers, and there's expectations that are good here for oracle. starting off with, fist of all, raising price to $36, out performed rating. they are a global company, an uncertain i.t. market that they
are dealing with in the software world, but the expectations are actually expecting mod rail gains for their earnings, and their 52-week high is $33.81. not far off there. they had a nice run since the last earnings report in june. the california based company is one to watch over the next 24 hours. right now, down 1%. back to you. tracy: thank you. see you in 15. ashley: iphone5 on sale tomorrow. can you wait? one analyst says why apple could sell more than $12 million in the fourth quarter alone. tracy: first, today's winnerses and losers on the nasdaq. the dow's basically flat.
tracy: figging jihad offensive? mta sees ads on new york subway and busses creating a stir. no surprise, and dennis is covering the story. >> rhetorical question of the story. what happened to freedom of speech in the country? these days, it's sacrificed on the alter of political correctness and silenced by the fear of bullies. a pro-israel group wanted to run a controversial poster on trains and busses in new york and elsewhere calling jihadists savages saying support israel,
defeat jihad, but new york rejected the ad as racist, but then the supreme court ruled it against the freedom of speech. now it's on 300 busses next week, but the media is horrified. even the anti-defamation league says it's highly offensive and imflammatory, nevermind they literally an anti-israel run last month with no outcry. we have a picture of that. more outrage against the pro-israel ad followed in san fransisco who ran it half seeing the court ruling in new york, and washington, d.c., transit officials turned down the pro-israel ad citing fallout in the wake of violent anti-american protests in the middle east. striking people cowardly and giving into the fear. the key issue is jihad, a label for terrorists or a label for muslim? it can mean a muslim holy war or a struggle inside infidels, but it's word like terrorist groups
that the u.s. state department has 51 foreign terrorist organizations, and four of them have jihad in their names. tracy? tracy: oh, boy. dennis, i'm not touching that. thank you very much. ashley: thank you. the iphone5 will be available tomorrow. i'm sure you know that, but record preorder sales already pushing apple shares past the $700 mark. my next guest thinks the stock could top $1100 in the next year. why not? brian white, senior analyst at topeka capital markets joining me now. brinings the apple 4s sold 4 million on the first weekend. what do you expect for the iphone5? >> we're talking about 5 million to 5.5 million in the first three day period starting tomorrow, and that's a conservative number. that comes down to do they have the supply to meet the demand out there? ashley: as for the stock price, dipping below $700 now, but you
think $1100 is reasonable. how long does it take to get there? >> within the next year. you know, this is a stock that trades at 11 times earnings cash. we have a multiple of 19 times, plus $10 -- $120. ashley: what about asia, what about china is is that the next big tulmult to crack? >> great point. china is a huge opportunity for apple. this will be the biggest mobile internet in the world, over a billion mobile subscribers, just under 200 million 3 began subscribers. apple invested a lot of resources, 15% to 20% of the revenue. it launches tomorrow in hong kong, phase one of iphone5. last year was phase three. they pulled it. hong kong gets the buzz in china and because the iphone is thinner, lighter, and looks different, it's a big home run for apple.
ashley: and siri speaks mandarin and cantonese now. that's marketing for asia. >> exactly. ashley: stack up against the galaxy 3? i know if you are apple fans, you don't care about the droids, but people say, look, we had the features op droids before. is it a serious threat to apple? the droid system? >> good question. the iphone5 is a luxury item. it really making the sam sung galaxy x3 feel like a cheap toy. it really does. it's 15% to 20% thinner, 15%-20% lighter, and it has a beautiful casing which is different from samsung. ashley: very good. two-thirds of the profits come from iphones. how do youive presume on this? -- how do you improve on this? where do you go next? >> the share is 6% so there's a
huge opportunity. consumers move from mobile phones to smart phones. pc is 5%, big opportunity there. there's new markets opening up. ipad is is just a couple years old 37 apple tv is a new market that could be for them, $200 billion. ashley: it just keeping rolling. thank you, brian. appreciate it. >> thanks. tracy: i know you're sleeping out tonight. she's taking you through the last hour of trading. jeff green joins her in a fox business exclusive and why he likes the banking sector right now. "count down to the closing bell" is next. ♪