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tv   Markets Now  FOX Business  October 5, 2012 11:00am-1:00pm EDT

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most. [talking over each other] dagen: bring it! we are not in the same room together. charles: i learned a hard way trying to do it in front of you. dagen: dagen mcdowell. connell: connell mcshane. surprise drop in the unemployment rate. under 8%. there it is. all the talk. dagen: general electric former chief jack welch on the record saying he thinks there are funny numbers at work here and it is tied to the president's for connell: californians hoping you filled your gas tank yesterday because prices spiking overnight on the west coast. we will tell you about that. dagen: stocks every 15 minutes. nicole petallides at the stock exchange with some green. nicole: this is a day on wall
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street. we got the monthly jobs report which came as a complete surprise to everybody on wall street as we look at the dow jones industrials which are up 65 points but the dow has moved to levels we have not seen since december of 2007. highest level for the dow since 2007 and among the dow components so many of them are hitting 52 week highs. home depot and verizon and general of dr. kent walmart and pfizer and ibm, merck and 3 m. many viewers may own mutual funds. as traders digest this monthly jobs reports some are trying to make heads or tails of it. a shock on wall street but right now this market continues to move to the upside. connell: we should hear from the president on his reaction to the report but the politics of all this. check this out from jack welch,
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former general electric ceo. a lot of people talking about this. crazy stuff what he said on twitter. unbelievable job numbers. chicago guys will do anything. change the numbers says jack welch. dagen: let's bring in monaco crowley, fox news contributor. what do you think? >> so many people are going what is with these numbers? [talking over each other] connell: when you start going down that road there is no data or facts. [talking over each other] dagen: it is like polls -- [talking over each other] dagen: the same thing. >> you see what you want to see in a poll and pick out internals. there are a lot of contradictions in this jobs report and seemingly implausible household number that 837,000
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jobs in the household survey basically make no sense. there are a couple things that are very jarring but in the political aspect is true the white house will grab the 7.8 number and make a big deal out of that but remember politics is a perception game and the perception across america is this economy and jobs market are not improving. people are living this economy every day. the total unemployment number which includes 12.1 unemployed which is the formal number plus underemployed and those who have given up looking for work, that number increased month over last from 25.8 to 26.2 million people. that is the reality and the political environment in which both men are now running. connell: it is a crazy number but not necessarily a great number. it is 582,000 of 873. you don't have to say the
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numbers fudge to. it is not that great a number even on the surface. dagen: if you look at these numbers historically they are all over the place. >> the real number is not the official 8% though politically that will give the president some traction. now we are back to the inherited rate which is 7.8. it is perception but remember the real numbers to take a look at is the new jobs created that number 114,000. that is a pathetic number. if i met romney i go to the american people and say president reagan inherited a huge recession. he had a very dire economic crisis. he did the opposite of what president obama did in terms of cutting taxes and reducing government and deregulating and what his recovery look like, month after month of 500, 600,
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900,000, over a million jobs in 1983. dagen: back to the original point, mitt romney has to avoid trying to discredit this number. >> he will not do that. [talking over each other] >> ronny isn't going to discredit or do what jack welch did but what he is going to say is the obama recovery such as it is and various other economic indicators you talked about which indicate it is slowing down and stagnant and might be slipping into recession. that is the perception that the average american and average voters operating with. dagen: perfect to see you. nice discussion about the number of people working that called the unemployment rate to drop below the 8% mark. eight hundred seventy three thousand was the number in the household survey. our next guest has been talking about this that the economy is
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not as weak as you might think. scott minored is joining me now from santa monica. you called it but do you think this is in some way a 1 off? >> you said it amended ago. these numbers have a lot of volatility in them. they can come in any time all over the place but the bottom line is the underlying trend which has been in place three years is we are adding 160,000 private sector jobs every month which is more than the number of private-sector jobs we are adding in the prior expansion before the crisis. the problem is the hole is so deep and the rate at which we are getting out is disappointing. given everything that is happening is all bad. dagen: do you think the good news is out there already
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factored into the stock market and the treasury market and so the next move will be a reaction to potential negative like coming tax hikes and spending cuts at the end of the year? >> we are getting more vulnerable to these other headlines. still have a problem in europe. can the fiscal cliff in the united states and the market is stopped worrying about it. the timing of these kinds of corrections is always difficult and given the momentum, we are vulnerable, i do think we will see equity prices rise through the end of the year which i have said on your show before the no. one best indicator for christmas sales is stock prices and it looks like the fourth quarter will be pretty good.
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dagen: front page of the wall street journal going off on a tangent talks about tens of billions, almost $200 billion out of stock funds and the stock market does it have less -- people are not invested the way they were a few years ago. >> the wealth affect is different compared to housing but when you look at housing and the impact that is having on the wealth affect we are currently running year to date at 13% annual increase, that is going to translate into a lot of confidence in consumers and one thing about the wall street journal story people are missing is they are talking about open-ended mutual funds. when you factor the growth of ets into the equation is not so clear we are seeing people --
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dagen: of all the areas of market you look at, all of fixed-income and equities and commodities what is the most dangerously overvalued? i would think it would be fixed income. >> treasury securities. u.s. agency mortgage-backed securities make no sense at all. you know i have been short treasurys and seems to be going my way. that is going to be a winning bet overtime. the place people ask where should you go to get the best return with the lowest risk at this point and the place i key pointing to is gold. the ratio of coverage of gold relative to the total money being created by the federal reserve is the lowest it has ever been in the history of the fed and that relations normalizes over time telling us
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gold has a lot of upside. dagen: i like how use the credit at the end so we can argue about it. what were you going to say? connell: go by some jewelry. dagen: i am not into rings and all sorts of things. thank you so much. great to see you. scott minored of guggenheim partners. connell: more pictures from fairfax, virginia where the president is getting set to speak. his comments and reactions to the surprising jobs report coming up. dagen: we are not done talking about it. wayne rogers has strong thoughts on what he thinks and we will talking a few minutes. we will talk about oil and the reaction and commodities. there you have it. ♪
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chances are, you're not made of money, so don't overpay for motorcycle insurance. geico, see how much you could save. connell: in fairfax, va. president obama is about to be introduced by the crowd. we will get his first reaction to the surprising jobs figures and a drop in the unemployment rate at 7.8%. the president will take the stage in moments and we will take part of that live just to
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see how he puts or how he reacts to this jobs report going forward in the campaign. mitt romney has a campaign event in a few minutes. dagen: reaction in the stock market has been measured. we have surprising drop in the unemployment rate but job creation came in almost on the nose in terms of expectation with 114,000 jobs. and zynga doing the face plant. nicole: that is a lead story on wall street. we are seeing it selling off dramatically. don't forget zynga got a lot of revenue losing paying customers and had to cut their outlook again. they're down 18% and facebook at 2133. certainly nowhere near the $38 ipo price in may.
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social media companies and games under pressure. i want to look at the broader market average worth noting that the dow adjusting 61 points it is an up arrow again bringing the dow to a new high we have not seen since december of 2007. that being said we are seeing a financials doing well and j. p. morgan among leaders on the dow jones industrials and caterpillar and cisco. and many names many of our viewers own that are hitting 52 week highs and that feels good along the market with names like ibm, general electric, merck and verizon and exxon just to name a few. we will follow hewlett-packard after their outlook has been noted as a challenging one by meg whitman and analysts are jumping on board cutting it even further. connell: to another big story
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coming out of california. the cost of a gallon of gasoline skyrocketing in california. continue refinery disruption and low inventory, wholesale prices through the roof. the price of regular gas known $4.48 off of $0.17 from yesterday. there it is on your screen. national average -- by that much just in one day $4.48 a gallon. almost getting buried by politics and unemployment and everything else. that state has been hit hard. dagen: we are still watching for the president and waiting for him to come out. a live look at somewhat lengthy introduction of president obama at that rally in fairfax, va. but he will step up to the podium at any moment and will surely make a comment about the jobs report.
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what remains to be seen is how does he frame it? good news? is it 1 off? is a monthly anomaly? will not going to that. and job creation. 114 jobs. we will hear what the president has to say coming. stuart: keep it here on fox business.
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>> two vision for america. connell: president obama just beginning his campaign rally. let's see what he says about the jobs report. >> we are moving forward. after losing about 800,000 jobs, and when i took office our businesses have added
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5.2 million new jobs over the past 2-1/2 years. speights search -- this morning we found out the unemployment rate has fallen to the lowest level since i took office. [applause] >> more americans entered the workforce and more people getting jobs. every month reminds us we still have many friends and neighbors looking for work. too many middle-class families still struggling to pay the bills and were struggling long before the crisis hit. but today's news certainly is not an excuse to try to talk down the economy to score a few political points. it is a reminder that this country has come too far to turn
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back now. [cheers and applause] >> because of your strength and resilience, the strength and resilience of the american people we made too much progress to return to the policies that led to the crisis in the first place. i can't allow that to happen. i won't allow that to happen and that is why i am running for a second term as president of the united states. [cheers and applause] >> i have seen too much pain, too much struggle to lead this country get hit with another round of top down economics. one of the main reasons we had this crisis was big banks on wall street were allowed to make big bets with other people's money and now governor romney wants to rollback the rules we put in place to stop that behavior. that is not going to happen. that is not going to happen.
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one of the main reasons record surpluses under bill clinton were turned into record deficits under george bush is we put two wars and two tax cut on a credit card and governor romney want another $5 trillion in tax cuts? not i have anything to say about it. that won't happen. we are not going to let this country fall backward. not with so much at stake. we have got to move forward. we need to invest in small business and manufacturers who create jobs in the united states. we need to recruit 100,000 math and science teachers and two million workers at community college and bring down the cost of college tuition. connell: president obama live in the campaign rally in fairfax, virginia with his first reaction to the drop in unemployment rate
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talking about the five million jobs he says have been created under his watch and now going into campaign arguments we are likely to hear. dagen: that is your headline if running for reelection. unemployment rate at the lowest level since he took office. back to where it was in january of 2009. on the other side from mitt romney later this morning. out campaigning and rich edson is reporting from virginia. how do these campaigns treat this? connell: we lost rich because he is at the obama rally. we will get to him after a quick break. dagen: can't hear us. dagen: virginia has big voices. connell: i have heard that before. mitt romney will be in dagen mcdowell's home state. we're back with more coverage. the dow up 50 points and wayne rogers still to come on markets
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connell: more to come on the jobs report. wayne rogers will talk about the drop in the unemployment rate below 8%. apple remembering steve jobs one year after his death and open for business in this city of cleveland. liz claman is there with the
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story of one company developing big returns for its shareholders. dagen: stocks now as we do every 15 minutes. nicole petallides has news on starbucks today. nicole: i am at the starbucks here on the floor of the stock exchange in order to tell you this news. you may not believe it but turns out starbucks is opening yet more stores and we feel there may be one on every block in manhattan they will lead 1,000 more stores in the united states in the next five years. locations will employ 20 workers each so that is one piece of good news and another is they are continuing to upgrade in technology in that the payments you can do instant payments with those square and you will do the tipping service as well. you have seen a lot of people using iphones so it is another advancement in your way to pay
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for your cakes and cookies and maybe i need another one or maybe not. dagen: the unemployment rate falling to 7.8% where it was in january of 2009 but california seeing major job losses. california cutting even thousand jobs last month. that was the highest amount in the country. connell: our next guest has one example how the policies are hurting business. assistant editor of, thank you very much for coming in to talk about it. very expensive to do business. >> that is what politicians don't want anyone to know. dagen: what about northern california? let's talk about the jobs that are leaving the state and the companies that are moving jobs out of the state but look at
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silicon valley, still the place to start and grow technology companies. >> you are seeing a lot of jobs that are more tangible jobs, manufacturing, comcast announced 1,000 call center jobs being moved out of the state and announcing it is closing in the sacramento area, 700 jobs. these are not high tech jobs but blue-collar work being moved out. connell: there are multiple examples of this happening. how big of a deal with it for california to see big companies saying we are out of here? >> politicians are trying to minimize this especially because they're trying to get a huge tax hike on upper income earners passed this november. this is a big deal but they hope
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green energy will fill the gap, dream energy will be the jobs engine and silicon valley will help out. dagen: job losses in this state or movement of jobs out of the state could turn the tide in terms of what politicians one? at what point does it reach a level that they can continue to ignore it? >> i don't think politicians in california care about these jobs. i think they care about high tech jobs and green jobs and their view that only the jobs in california that we don't really want mcdonald's or care about those. they won't states it publicly but that is the mentality and mindset and how they are operating. dagen: thank you. [talking over each other] dagen: southern california is beautiful. connell: you heard from president obama talking about
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the jobs report this morning at a campaign rally in virginia. we expect to hear from it romney any minute. he is also in virginia. wayne rogers joins us from pensacola, florida to talk about this. what was your first reaction to the jobs report? >> not a lot is being done. we already know that number or anything around 8% 41% will be adjusted again but anything around 8% tells you a lot of people left the work force permanently that are not going to be there. maybe the new level should be something instead of 4% should be 6% or 7%. i don't know. let me ask about a political argument. connell: we established the fact that we don't think it is a good
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idea for mitt romney to say this number is not valid or funds somehow that there is an argument to be made that it is not that great so how should mitt romney formulate his arguments of 7.8%? >> he should talk about the fact that this is not good and after four years you would think this guy came into office saying the audacity of hope. there's no hope for somebody who is out of work and has been of out of work for four years. a lot of people have left the job market permanently and people not educated now to take those particular jobs so those jobs are gone forever. i have personal experience that i talked about before of trying to find a patternmaker. the garment center no longer exists in new york. you don't find pattern makers any more. the job went overseas and so did the work. amazing.
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connell: the of this thing in these statistics, 870,000 jobs in the household survey is a huge number but historically ridiculously volatile, two thirds of them were part-time jobs. 582,000 americans taking part-time positions. a lot of those people would rather be working full time but many would rather be working full time. if you are mitt romney talking about a few minutes of terrific week in the debate and they say he won the debate. does this change his strategy or his conversation? i am back, the debate, took it to the president and now we have a jobs report where the president can saying the getting better? >> you can say things are getting better but it is a relative thing. after four years on would hope they are getting better. you can sit around and talk about, quote, the audacity of
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hope. this is the mendacity of hope if you look at it. he is not telling us -- the problems still exist and there's only one way to attack that. you have to attack in a free-market system. connell: we will see what mitt romney says when he takes the stage. always good to see you. thanks for coming on. dagen: looking for a stock delivering big results for shareholders? connell: 1 name in cleveland doing at all year. liz claman continues coverage where we are open for business. liz: here i am, at thanks very much. welcome to cleveland. fox business. we got a big truck here. power to prosper. we are saying what cities are open for business. a beautiful skyline in cleveland. we are talking to the top business leaders as we did all day yesterday.
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a company that was so successful, warren buffett bought it out right and the cleveland clinic ceo, the cleveland clinic was mentioned by both candidates during the debate and so much more. apps williams. we will take you behind the scenes. wait till you see all the innovation happening here in cleveland, open for business. see you in a minute.
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diane: stocks are still up after a surprise drop in the unemployment rate. that rate is 7.8% after a four year low and that has the dow hitting the highest level since december of 2007. the jobs report revealed 114,000 new september jobs being the estimate for 113,000 but that was partly due to an unexpected gain in government jobs. private sector hiring came in lower than expected as the 50 third anniversary of james bond. since his 1962 debut there have been 22 oo 7 films with another due out at the end of the month. it is the longest-running of all time and grossed $5 million at the box office making it the second most successful behind harry potter. that is the latest from the fox business network giving you the power to prosper. -expensive optn using a traditional lawyer? well, legalzoom came up with a better way.
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dagen: a stock that has hit an all-time high 62 times this year. sherwin-williams. barkleys raised its price target to $171 a share and raised earnings guidance for 2013 and did you know this company is based in cleveland, ohio? connell: liz claman standing by with more. liz: without the trucks. the truck is on its way through cleveland showing fox means business and sherwin-williams coming that in a couple years on their 150th year in business. apps williams the number one company in america and number 3 in the world. they innovate all the time at
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the green technology center. they never let media and because the big secrets are happening on developing the best and greatest but we got inside in a fox business exclusive as this stock hit the 62 all-time high of the year. take a look at what they are doing in cleveland. welcome to the green technology center at sherwin-williams. this is where they come of with their innovative ideas. why is there a bowl of soybeans at the technology center? one of the directors and top scientists, thank you for being on fox business. what is going on with the soybeans? >> these are an actual product and we are very proud that these are sitting here because they're in one of our latest innovations and what we use these for is
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something that accesses the markets. we use these to put water into our products but still get performance of solvents type products. the unique thing about this is we have been able to use recycled polyethylene which is the basic water bottle. >> this is ground up plastic that you put in and somehow makes it up and this was a presidential green chemistry challenge award. is this on the >> absolutely. [talking over each other] >> how is it a business product? do people want environmentally sensitive? >> they definitely want these products and it is doing very well. no one is coming to the polymer lab where it comes together. this is where we are making -- it really sets properties for
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our paint but doesn't look like the soybean or plastic bottle but we have components to give us good properties. liz: when the lead pigments to that part of the process? >> once this is done we take this and at our pigments and come out with that. >> what is happening here? >> where the pigments get added. it is the polymer, the blue upstairs and soybeans and a plastic bottle and added pigments and we are at the final stage of our paint and it is ready to be put on the wall. >> it is calls with mocha something? [talking over each other] >> how much does sherwin-williams spend? >> 1% of the budget is
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$130 million per year. >> does it enable you to have the freedom to run wild and the innovative? >> it does. we have a balance because we have long term projects to keep the pipeline full. and still a bit of r&d goes into that but they are 1-1/2 years out. >> wait till you see what they come up with. >> we have a lot of innovative products here and one we are proud of is a coating that lasts 15 years. can't penetrate the surface. it can go on walls and bridges. if someone for sprayed graffiti on that you have to power watch it right off. >> works on concrete?
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>> it would be popular in new york city. >> now we look at the finished product. >> what is the point if you don't say that? >> the exact cream of the soy. >> we were having fun with it but this is a huge business. the hollywood sign in california was painted over with hundreds of gallons of sherwin-williams paint and how about that anti graffiti pain? this spray paint cannot bond with the act will chemistry of the anti graffiti coatings. what city wouldn't by sherwin-williams anti graffiti coating? innovation in cleveland. dagen: thanks so much. connell: let's go to nicole for stocks every 15 minutes. she is at the stock exchange.
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talking avon this time. >> remember we were on the fox business network and spoken depth about a perfume company making a bid for avon which never happened. avon shareholders remember that $10.7 billion bid that went away and didn't happen and they're having a management change people are happy about because you see stock at 6%. chairman andrea a jungle stepped down at the end of the year and a private equity executive will step into the role. a partner hasn't made a name for himself and is a turnaround expert and did so three years ago when he shared merck and co.. interesting to keep an eye on avon. if they make any other strategic moves now that they have a new leader. connell: it is the 1-year
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anniversary of the death of steve jobs. he died last year after a long battle with cancer. apple remembered jobs with a video looking back on his career illustrating how his ideas change the world. ceo tim cook speaking on the anniversary of jobs's-saying this was a sad and difficult time for all of us. i hope today everyone will reflect on his extraordinary life and many ways he made the world a better place. dagen: extraordinary doesn't even some it up. sandra smith is live with trade reaction to the jobs report. connell: let's look at market reaction with some of the winners. and winners at the nasdaq. [ male announcer ] what if you had thermal night-vision goggles,
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dagen: st. louis rams scoring a touchdown on their first possession in their game against the arizona cardinals. the defense back quarterback kevin cobb nine times, the cardinals were one of three and beaten teams prior to last night's game. houston, texas and the atlantic falcon--falcons. connell: commodities today in the red after the jobs report. dagen: live from the floor of
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the cme. sandra: a lot of commodities in the red but stock markets in the green. we are wandering before talking to traders about whether they're buying into the unemployment dropped to those levels. what is your reaction to this report? >> it is bogus and what i am looking at is a thousand workers in the world out of one factory and hundred are unemployed. unemployment is 10%. the hundred workers went home the unemployment rate is 7%. participation rates people focus on is bogus. sandra: your looking at a drop of 7.8%? >> i would think i don't believe we are at 7.8% and obama came in and it is 7.9%. a little too coincidental. >> oil prices plunging. if this report was that good would be bullish and oil prices
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coming down and gold -- >> it failed to hold the moving average. a lot of shorts covered head of the number yesterday and we are looking to breasts back through the bear trend. it looks very ugly. >> it is more about q e 3 or the next unemployment report? >> if obama remains in office, more money will be printed. >> the overall stock market and the s&p 504 year end you are very bullish and you say the trend is your friend. >> the trend is your friend. looking at the snb ranging reversal through previous highs. sandra: there's a volume pickup and commodities are down. stock markets are up and a lot of traders trade the trend so these -- they are buying it
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today. connell: conspiracy theory is not supported by any evidence at all. dagen: just a survey. connell: it has been volatile. silly season heading to the election but it is all over the map. complete statistical fluke but it is what it is. let's move on. dagen: we are not going to move on. in the next hour the math behind the drop in the unemployment rate. connell: of all people requesting this number this crazy tweet earlier but a lot of people talking. cheryl casone and dennis kneale coming up next and -- and everything else. [talking over each other] connell: one of the most successful business people of all time. let's go to break and come back with more markets now.
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dennis: hello, i am dennis kneale. cheryl: i am cheryl casone. stunning news, the big drop in the unemployment rate under 8%. we have reaction from wall street, the campaign trail and of course main street. dennis: ge jack welch on twitter send the jobs numbers don't add up and he ties it to the rough performance in the debate. cheryl: you won't leave how much california drivers are paying to fill up their tanks. that and more coming up in the west coast minute. top of the hour, stocks every 15 minutes, we have nicole petallides on the floor of the new york stock exchange. stocks are heading higher, wall street reacted to the jobs numbers, what is it saying? nicole: it is pretty unbelievable. anybody who heard these jobs numbers were taken aback, a huge surprise to the upside. it really set the tone for
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today, move things to the upside and the dow with the small move of 56 points actually hit highs we have not seen since december 2007, and so many names on the dow have hit 52-week highs, so let's look at the numbers. verizon, general electric, wal-mart, ibm, just a few of those that i have checked. the point is as our viewers own mutual funds and such along the market, this is a day they can say the dow hitting a new high, lot of stocks hitting new highs, going into the weekend feeling pretty good. back to you. dennis: thank you, nicole. we saw a big drop in the unemployment rate but we only added 114,000 jobs. by next guest says that is way below what we need to see for economic growth. thank you for being with us.
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contradictory numbers. the household survey had 870,000 people saying we started working. if the survey of businesses had only 103,000 private sector jobs. which number do you believe? >> i think 103 or the 114,000 altogether is a much bigger survey. economists look at that much more so than the household survey, so i would definitely go with that number. if you look at the unemployment rate which has everybody a buzz this morning, that has been somewhat volatile number. it dropped a lot over the past two months, a statistical outlier, but it has always been volatile and not terribly reliable number so i lean toward the establishment survey.
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dennis: that was below expectations. when you add in government jobs, you point out the previous two months on probation because of government jobs. i don't like it when government jobs are responsible for most of the job growth. >> that is a good point, and i think that government spending being 25% of gdp is certainly historically much larger than it has ever been and amounted to in much larger than it should be. you hate to think of people losing their jobs, but government employment has been too big for a while. the trend of government jobs going down is beneficial overall. dennis: what is the chance that in the household survey basically supposedly 873 new jobs that those people are working at home and doing jobs allowing them to get through this bad economy better? >> i suppose it is possible,
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that is a really huge number compared to the much more reliable establishment survey. you can speculate of what they might be doing at home. i would not put a whole lot of stock in it to be honest with you. dennis: if you had to guess, will the unemployment rate go down further still? >> my suspicion is it will be under 8%, yes. dennis: really? further? we have to go to mitt romney. cheryl: we have drawn at a campaign event in virginia expected to comment on the big jobs report coming up. >> by the way, we'd have the governor here today but he is in florida campaigning for me. a great governor. and you may know a couple of
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nights ago we had a debate, you might have gotten a chance to see that. and it was a good experience i think for me, for the president, for people who watched, a debate of substance. we talked about the issues that america faces. i get the chance to ask the president some questions people across the country have wanted to ask the president such as why it was when america was needing job so badly he was pushing for obamacare instead of working to get jobs to the american people. got the chance to ask him why there are 23 million americans out of work, struggling to find good full-time jobs. i got the chance to ask him why the middle class is so buried in this country, incomes have gone down, prices of gasoline have doubled, prices of food and clothing and everything else has gone up, people in the middle class have been buried as the vice president said, get a chance to talk about that.
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the chance to ask why he is cutting $716 billion of medicare. that is not the right thing to do. and also got to point out he's in favor of a tax plan that will kill 700,000 jobs. and so he had the chance to answer those questions were not answered them as the case may be, but i think even more important was the chance to talk about where we are going in the future. what he would do and what i would do and what he described was in my view a reiteration of the status quo. he will keep doing the things he has done in the past, have a stimulus if he can, hire more government workers, pick winners and losers like solyndra. he does not like picking winners and losers, he just likes picking losers. and of course he's in favor of higher taxes. device resident alerted out the
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truth, said they want to raise taxes a trillion dollars. i don't want to raise taxes on any american because i want to create good jobs in america. now i would take america a very different direction. first of all make sure our policies encourage job growth and i have five things i will do. you have heard me describe them time and again. five things i will do that will get jobs growing in this economy again right here in this part of virginia as well. number one is to take full advantage of all the energy resources, our oil, coal, gas, nuclear renewables. and i know you care a lot more than the imac about cold and the others. we president was running for office is that if you build a new coal-fired plant, you will go bankrupt. the head of the epa has also said the regulations on burning coal are now so stringent it is basically impossible to build a
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new coal fire plant. i don't believe putting our coal under the ground for ever. we should put american workers back to work and use the resource that is abundant and cheap and can be burned in a clean way. [applauding] and by the way, i also believe in oil and gas, believe we should develop our resources. within eight years, america, north america should be energy independent and that requires all those sources of energy. and that will keep the price at the pump moderated but will keep the price of electricity moderated, to mean a lot of good jobs for americans. it has been calculated if we are serious about energy, really take advantage of the energy resources we have, that you will create some three and a half to 4 million jobs. i know right now you are thinking about one job, your job. i'm thinking about your job as well person by person, every
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american deserves a good job, people are hard-working in this community, i want to make sure jobs stay here, grow here and provide a bright future for you and your family. [applauding] now i also believe in addition to energy that we have an opportunity to create more jobs by selling our goods and services abroad. i would open up more trade with other nations, i will crack down on china. number three, i want to make sure our people have the skills they need to exceed, some have a lot of government training programs. that is all fine and well except there are 47 of federal government training programs reporting to eight government agencies, so the overhead cost of all of this word in and bureaucracy is killing.
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send it back to virginia, fair share and let virginia do what is right for the state of virginia with their money. cheryl: we have been listening to mitt romney got into politics. the jobs report coming out this morning. already issued a statement earlier about the jobs number. we will talk more about that coming up in a few moments with one of our experts. over to you. dennis: president obama's reaction, rich edson has the latest on that debate from the campaign trail also in virginia. rich. >> president obama leaving a short while ago, he is on his way to cleveland to continue his campaign stops but we got here today basically off the top was somewhat a victory lap from
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president obama on the jobs numbers claiming the positives minutes into his speech. >> this morning we found out the unemployment rate had fallen to the lowest level since i took office. more americans entered the workforce, more people are getting jobs. >> he says this economy have come too far to work backwards and governor mitt romney is pushing top-down raining from the sky economics and magically will all live happily ever after. we got a job response, he said this is not liberal recovery looks like, creating fewer jobs in september than august, fewer august than july, if i'm elected, we will have a real recovery.
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cheryl: all this into the market right now because stocks have been trading higher after the september jobs report this morning, my next guest says this is a knee-jerk reaction. first, just to the market, you are not trusting the numbers from the city market is overreacting. >> if it is good, even better. the federal reserve already played their hand. any weak data on the gdp report, look at the headline number 114,000, wall street going to advance higher. what did we see for the month of october even the number of provisions? that is what the traders will look at. cheryl: that will be a job creator.
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>> mitt romney can talk about manufacturing jobs. i have been evaporating. if you'd dig into the details of that job report, you really see the manufacturing jobs have been eliminated. government jobs in advance with the revision for august, 10,000 for september, you can credit that more to education, back into school, teachers getting back to work but moving forward she focused on domestic? this is a global world, a business as we have in america start suspecting with net exports, imports, clearly going forward. cheryl: this has been a running commentary among some on the streets and some from the street like jack welch. americans came out with a statement, they are manipulated bthat the market is trading on politics. the chicago guys, way to play politics with the numbers, what is going on here? >> how did wall street get the
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numbers so wrong? the employment rate, looking between eight, 8.3%. how did the smartest guys in the room at wall street get this number so terribly wrong? this guy can say whatever he wants, but some say what he wants, bottom line is going forward wall street is now looking at this number because ben bernanke said 7% unemployment will be the bonus number and that will be the number. cheryl: the president of the united states, you have to wonder if the fed had any indication this type of number was coming from the jobs report. >> if you look at the revision of anything you wanted a weak number today to actually help support the fact that pulled the trigger and further accommodation.
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if ben bernanke and that was the case, why would he do anything? actually going to hold another conspiracy theory. cheryl: the market, this is what happens around new york. thank you very much, good to have you on the show as always. tell you what, jack welch coming out swinging. very interesting. dennis: that is what it is like when a ceo has no editor to stop him from saying what he would like. which is why we love twitter. cheryl: when things cannot get worse for american airlines, think again. we will tell you were the troubled carriers grounding even more planes. dennis: and a big boost from cleveland. open for business and liz claman is there alive. look at oil, yesterday up, today down. want to try to crack it? yeah, that's the way to do it!
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now we need a little bit more... a little bit more vanilla? this is great! [ male announcer ] at humana, we believe there's never been a better time to share your passions... because the results... are you having fun doing this? yeah. that's a very nice cake! [ male announcer ] well, you can't beat them. [ giggles ] ohh! you got something huh? whoa... [ male announcer ] humana understands the value of spending time together that's a lot of work getting that one in! let's go see the birdies. [ male announcer ] one on one, sharing what you know. let's do it grandpa. that's why humana agents will sit down with you, to listen and understand what's important to you. it's how we help you choose the right humana medicare plan for you.
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hi hi ♪(whistling tune) ♪("don't worry be happy") cheryl: we are getting some breaking news on the feed problem grounding many american airlines seats. we got an update on the seat issue. the seats have been moving. mecca airlines telling fox business to add to troubles they had the worst performance, that is not true, here's a
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statement for american airlines right now. our maintenance teams are securing an faa approved locking mechanism to make sure the seat cannot be dislodged. they just found out they have the worst or form its record of any of the airlines. this is a statement they're giving to us continuing on repairs are complete on 46 aircraft, all of them will be back in service by saturday. wanted to bring that to you, lots of issues with the seats moving around, hopefully they are being set. dennis: phil, why is oil tanking today? speak him in may because of the concerns about refineries being shut down in maintenance season not quite concerned about syria
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and turkey as we were yesterday. but i have to say, look at what happened with the jobs report, the magical jobs report were jobs magically are created in the employment rate falls below 8%, gives a boost to a lo the lf the dollar related commodities in the bond market putting pressure on a lot of commodities. we really see it in gold today. the market was blindsided by this number. we saw a big drop down in gold, increasing back a little bit because there is a lot of disbelief about this number. they do not know how they're adding this number up. a little bit better than the street, but for the gold traders are hesitant to move higher because they can think about this a little bit longer. back to you. dennis: nicely done, phil flynn. cheryl: the company is hoping to glimpse up cleveland, ohio.
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what does this mean? >> barclays center just opened for the brooklyn nets. revitalization project, denver stapleton airport major metropolitan cities would like to reinvigorate their area, they come here to cleveland. the chairman and the ceo join me live exclusively will give you an outlook on commercial real estate, what is happening in the renters market when it comes to apartments and what are the new big projects? and they're stock up over the past year. open for business here in cleveland, ohio. [ mujahid ] there was a little bit of trepidation,
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not quite knowing what the next phase was going to be, you know, because you been, you know, this is what you had been doing. you know, working, working, working, working, working, working. and now you're talking about, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it's my world. that's my world. ♪
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cheryl: we all know times square with a renovated theaters and huge hotels, but it wasn't always that way. crime and pornography shops used to be the way of the world, but cleveland real estate developer times square was saved. liz claman with the chairman and ceo on their newest slam dunk in brooklyn. please explain.
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>> the barclays center. when i wanted to do that project they came to cleveland. but this is just one of many projects where this organization, this business has revitalized many areas around america, the heart of cleveland. we're proud to be joined the chairman and ceo. in now, this is great because right over my shoulder is terminal tower, which revitalized many years ago. let's get to occupancy rates. >> reflective of the marketing in cleveland in general. depending on demand from business, in the mid-80s. 80% occupancy. the addition of the casino has really helped the retail part of the tower city center.
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and the parking and the people who, as a result of the new attraction, the new convention center opens up we expect cleveland to continue to add good momentum in terms of occupancy. cheryl: now let's broaden the picture and go to brooklyn, talk about that project, it was not an easy one coming. >> it has been a long journey. our whole enterprise effort in new york city with our partners originally and now in new york have done a wonderful job, almost a third of our company today. we have been a part of the renaissance of them. we feel really good about that. i think what it is indicative of, the ability of real estate to play a role in real estate development, revitalization of urban america.
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cheryl: we were talking about the financial crisis, the height of it, what we are seeing in 2008, what was it like back then, david? >> worst recession since the depression, it affected i think everybody's portfolio. occupancy dropped, retailers are closing stores, office buildings were contracting, that was all a direct reflection of the world's financial crisis. cheryl: how about today? >> it is coming back today. the apartment business, a major part of our portfolio, very strong all over the country and in cleveland, over 90% occupancy in downtown cleveland. the core market for us like new york city, washington, california, occupancy is very strong. cheryl: the big chatter is the jobs number that came out.
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job creation of about 114,000, what do you think about that? >> it is an indication of just what we know. it is a lot slower than we all had hoped it would be. we've certainly come up off the bottom and we have started to create opportunities and it is starting to happen, told continue to be slow but it is pretty well entrenched now. cheryl: what project ar projectu most excited about right now? >> we are very excited about the atlantic yards project. we open the barclays center which was just the beginning of what atlantic yards is going to be. on december 18 of this year we will break ground on our first residential tower. in washington, d.c., we have two buildings under construction getting ready to start a third. it will have retail in the basement apartments above. and stapleton, which was a great project for us and continues to
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be. liz: as we finish up, chuck. as the rent double burst? >> has the rent bubble burst? liz: is that a yes? >> know, rent is continuing to recover and go up. they're now just getting back where they were before the recession. liz: are people now buying more? >> we have not seen that yet. people are still choosing to rent rather than to buy. we have a ways to go yet. liz: you are in cleveland tuesday? >> we are. liz: the stock up 60% year-over-year, not bad, thank you for joining us here exclusively. we look at the backdrop of cleveland, so much of it has the city on it, but nationwide eighg
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bet they have something on it. great guests throughout the day. don't miss 3:00 p.m. eastern, a business so good in cleveland warren buffett bought it from underneath their feet. cheryl: thank you. dennis: all three indexes in the green aid nicole: a new intraday high. levels are not seen since december of 2007. seeing many names on the dow hitting 52-week highs. the stock is moving to a new 52-week high. raising their outlook, turns out they're doing quite well with their sales. corona is one of their brands,
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beer sales jumping 8%. they haven't seen that much strength in spirits and wine. however big picture, they did better than expected, raised its outlook and some of the wine you might be familiar with under their umbrella as well. cheryl: one of my favorites. thank you. dennis: zynga getting zinged today. he coulit could actually hurt f. coming up. cheryl: and we will have an executive coming up. also as we go to break, take a look at some of the s&p winners. some losers as well, but some nice names on the upside. we will be right back.
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cheryl: sears and kmart not say how i they plan to drive store traffic and sales. executive vice president, chief marketing executive of sears holding both stars. great to see you. you're always gracious enough to come on fox business as the ceo of stone. he turned that company around, what are you planning now for sears? >> obviously the biggest thing going on is the shopping rewards program we have been building out the infrastructure to provide truly enhanced value to our customers and reward them for purchases.
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cheryl: do you worry to obey cannibalization of customers? two distinctive american names in retail. we all grew up with both of these names, are you worried at all? >> we are focused on optimizing experience in both formats. distinctively different brands and marketed differently. sears is extremely strong with their sears brands. on the kmart side, really about getting strong value to our customers, fashion with a flair and things big on the kmart side and of course the value programs are huge. cheryl: one of the struggles both names have had is the condition of the store whether it was across the country
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deteriorating and affecting sears as well, is that something you can see yourself reinvesting in? speak of the investment has really been about building out the shopping system of the future, customers in the future are more and more shopping on the phone, online than in store, they want an integrated experience in the significant investment, one of the most exciting things about both rands is the infrastructure we've built out to communicate to our customers about what they want, where they want it. you can buy from a sears website and item at lunch on the way home in five minutes pick it up at our drive through. that experience in multi-channel experience, another example is going into a sears store and looking at a refrigerator looking at an ipad, shop the sears ad. they can share it with your
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husband and buy it at home. cheryl: a lot of big-name companies announcing higher plans for the holidays. >> we are hiring for the holidays. cheryl: the stock is up 80% year-to-date. congratulations, ron boire. come back soon. >> anytime. cheryl: dennis, over to you. dennis: zynga is getting zapped and facebook feeling the aftershocks get tumbling 20% today after the maker of farmville in the facebook favorite reduced its forecast and shares falling today catching 2% or so, zynga games providing 14% of facebook revenue. for facebook, it raises a troubling question, people are playing less farmville does it mean they are less engaged with facebook altogether? watch for that in the stock. cheryl: do you think you are
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paying a lot for gasoline right now? wait until you hear what it is costing drivers in california. and you are not going to believe how much some lawyers are making. we will tell you about an award that could be a new world record. but first, as we go to break the 10-year treasury. we will be back. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand,
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grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.
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>> i'm tracy byrnes with your fox business brief. stocks are up after a surprise drop in the country's unemployment rate. now 7.8%, nearly four-year low. at the dow hitting the highest intraday level since december 2007. the dow up 65 points. halting sales of the experience tablet a month after its launch. the tech giant discovered the device may not be water resistant as advertised. a manufacturing issue was to blame. 100,000 devices have been shipped. game over for dave and buster's wall street debut. the latest in strin a string of companies to defer or cancel initial public offerings. withdrawing the original public offering plans in the u.s. citing market conditions. that is the latest giving you the power to prosper.
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dennis: stocks of a 50 minutes, apple usually green now in the red and not so delicious. >> today on a little bit of pressure. today is the on one-year of steve jobs death. that is something people are talking about on wall street but over this past year apple has had an incredible stock run hitting new all-time highs up over 75% in those 52 weeks. 658.24 apple. a broader market check with the dow at levels we haven't seen since 2007. multi-year highs, the vix, the fear index to the downside, the banking index higher, drug index higher, retail index higher, transport and oil services higher. there are lots of sectors that that are doing quite well.
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dennis: thank you very much, nicole. cheryl: who else but ashley webster here with more details on what is going on across the pond. >> a look at the final numbers. just trying to make something out of this. three quarters of a percent. now, not only has a market benefited but look at the 10-year yield on the spanish bond also on the jobs report, guess what, the yield coming down another point to 3%. eu officially adding to what we have heard from spain, germany, they will not be asking for a ballot this weekend, the spanish finance minister said spain does not need a bailout. said at a speech at the school of economics, everyone laughed. cheryl: angela merkel going to
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greece? >> she is going to athens, to be an interesting reception. really become the face of anger for the greek people. leading the call for the harsh austerity measures. put in the greek papers as an officer, and she is often the figure of blame among the protest, so it will be difficult. said she is a great leader of a fractured country. cheryl: i hope she has really good security detail. we will see you at 6:00 p.m. eastern time after "markets now." time for your west coast minute, california may be on track to break gas prices records. while the rest of the country will get a break at the pump, california will not be that lucky. supply issues keeping prices elevated and in just one day prices for a gallon of gas rose $0.18, but good news, wholesale
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gas prices in the region are dropping. so we will see. alaskans are getting their annual oil wealth checks courtesy of the oil savings account. residents getting $878 a one-time dividend payment just for living in alaska for a full calendar year. and the downgrading shares of hewlett-packard from a buy to neutral. the latest from the disappointment warning the slow economy could cause earnings to fall by 10% next year. take a look at this company shares plummeting on wednesday but now trading narrowly higher. and that is your west coast minute. dennis: in alaska they pay you to live there, in new york, you pay to live here. only the lawyers are getting rich, you will not believe how much they made one case. and how much singer adelle is making on the 50th anniversary
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of james bond. first, a look at the winners on nasdaq.
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dennis: lawyers running wild, their fees out of control. a whopping $35,000 per hour in one case we're talking about, that might be a new world record.
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joined by federal, general counsel, thank you for being with us. in 2004 the company, it to minors that you control, they do a deal together approved everybody except some of your holders. you end up losing october 2011, what was the award the court awarded to the other side? >> it was basically an award of $2.1 billion. dennis: how much money did the lawyers get? >> $350 million. dennis: $35,000 per hour. look at other cases, that turned out to be compared with the enron case of $7800 per hour. so you appealed this case and then you got a ruling in august, what did it say? >> basically we lost, we tried a
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motion for rehearing which didn't work out. it sets on presidents for the businesses trying to do basically operations in the u.s. we are surprised about the judgment, basically as explained, the control 80% of that business. so actually the fee awards to ae plaintiffs lawyers represent 80% of the economic benefit of the actual thing. dennis: ordered to pay $2 billion to the copper, you're kind of paying it back around to yourself. the guys who sued you got this award, but then the lawyer fees are based on their cut and the payment you make yourself when you didn't even hire the lawyers. you appealed that and loss, two other companies worry about this? >> this is a delaware court. the way it came out, treated
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unfairly. the largest conglomerate doing business in the states in other parts of mexico and latin america, what we believe is this will set a bad precedence. dennis: at trial the judge would not let a goldman sachs advisor testify, why? >> basically it was sitting dormant for six years and they would not allow them to modify the schedule for the goldman sachs banker to testify. it is a case of evaluation. dennis: you should've had your evaluation expert come in and testify. we hope you well, we appreciate you being here. lawyers $35,000 per hour, i think i may switch careers.
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we appreciate it. >> thank you so much. cheryl: coming up next, melissa francis and lori rothman has more on the jobs number raising a lot of questions about what qualifies as working? we'll talk to liz claman live in washington coming up. stay with us. ñ
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