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tv   Markets Now  FOX Business  January 15, 2013 1:00pm-3:00pm EST

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lori: a very good afternoon, everybody. i am lori rothman. melissa: and i am melissa francis. what does facebook have up its sleeve and will it live up to the hype? lori: urging new warnings on the debt ceiling. warning of a possible downgrade. would the u.s. lose its aaa rating? melissa: more than a quarter of workers are dipping into the 401(k) account early. lori: let's get you updated on the market as we do every 15 minutes. time to check with nicole petallides at the stock exchange. we do have losses. nicole: it depends if you are
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looking at the s&p 500, that would be the case. the dow jones industrials, not the case. we finished higher yesterday by 18 points on the dow. what we are looking at today is the same sort of sentiment where we are right near that sentiment. we actually moved into the green for the dow. some of the names that are weighing on the dow include hewlett and packard and american express. a lot of the financial names will be coming out. it traded as low as 483.80. $487..95 a share. some of the traders say under $500 looks good to them. others are saying by on this fullback.
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melissa: thank you so much. facebook mystery president taking off the headquarters. guess what is being revealed, though. shibani joshi is following it every step of the way. shibani: the stakes are high. they have virtually been about 1.5-2% higher on the day. they are taking a little bit of a step back. the company inviting friends and members of the media to come and see what we are building at the company headquarters. a copy of my invitation that i received. let me tell you what i think we are starting to see a little bit of a selloff. i do not want to undersell this, but i do not want to oversell this as well. first, i think it is very unlikely that we will see a smart phone out of the company.
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mark zuckerberg has said he does not want to play in that arena. we will also not likely see anything of major financial impact. the company is in a quiet. companies do not reveal any major deals or partnerships. the other reason is no analyst or members of the community are at this meeting. i was told earlier today that the company has about 100 members of the media there so no questions about financial impact from the street likely today. what could we expect, we have a couple guesses and speculations. a cloud computing data center. possibly video ads. maybe a standalone ipad app or search capabilities to compete with google. a new wing of the corporate headquarters. i doubt that that new wing is what everyone has gathered there for.
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the meeting should be kicking off momentarily. i will be watching live logs and event updates as they come out. i will be bringing them to you throughout the hour, as well. melissa: that is so typical of tax. when it comes out, it better be a big deal. shibani, thank you so much. we will stay on top of it. lori: it feels like the developers conference where they create so much hype. then, if it is not a big deal, you are taking a big risk. in the meantime, in washington, the clock is ticking. just a month away from reaching our debt limit. they are considering proposing a
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delay to president obama's health care law in exchange for raising the debt ceiling. rich edson has the latest. rich: they have been figuring out what they want to propose. perhaps floating a delight in the implementation of the president's health care law. the bulk of the spending starts in 2014. that is just one of them any options they are hoping to discuss. major tax and entitlement reform. that will be discussed throughout the rest of the week.
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>> we have to come to a point where we stand and fight. i hope this is the time. there is no such thing in this definition. we'll pay social security, will you pay medicare or would you use it as a tool to try to get the house republicans to cave? rich: president obama said he will not negotiate. he will talk spending cuts and, perhaps, revenue. back to you. lori: thank you so much. new warnings on the debt ceiling. timothy geithner telling congressional leaders that the u.s. will exhaust its limit mid-february. bernanke urging congress to extend borrowing authority well before the deadline. the u.s. could lose its aaa
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rating, so where do we go from here? wonderful to have you with us. you believe the u.s. will not default on its debt. how will washington get to that point? there is a proposal of delaying inflammation of the obama law. >> everything is on the table, including the delight that the republicans are talking about. my guess is, or that our guess is, they will go all the way down to the wire. whether there will be enough to talk about a substantial reduction in the debt, i think that is a little bit more up for grabs. we will get pretty close to that line. in the process, the worry is not that we do fall, but that the markets could get very upset. as they did in the summer of
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2011, especially the stock market. lori: the markets have to be somewhat jaded. having said that, how will that impact the first quarter? >> the markets are starting to get a little jaded. oh, well, here is another silly episode. we saw that in the fiscal cliff debate, of course. this could be a bigger deal. in particular, we have seen in the past that it tends to affect the stock market much more than the bond market. that could be different this time. we see more agencies go through a downgrade. lori: this is more sustainable footing.
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they will have to really look at the u.s. sovereign debt. no market reaction after the first downgrade a year or so ago. what happens after a second downgrade? are you sure we will not see a sharp rise in interest rates or not i am not absolutely sure, of course. nothing is absolutely certain here. even if there is a downgrade, my guess is the bond market will not react that much. just remember, you know, the bond market shrugged off the s&p downgrade. since then, rates have gone down. it is always possible. a lot will depend on whether or not this next round triggers confidence, if you will. lori: better than expected news on retail sales today, housing has been improving, what is the likelihood the u.s. economy
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could have a stronger here than economists were expecting? >> and excellent question. i think the risks are just as good on the outside or they are on the downside. there is a lot of growing momentum in the u.s. economy. all of this in then you have the energy boom in the whole shale thing helping in that industry and related industries. there are a lot of bright spots in the u.s. you know, the guys in washington do not mock it up, we have a good shot. melissa: we have breaking news right now. i want to point you to the shares of facebook.
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down $0.60. that is good for almost 2%. we have this meeting going on right now. it is a major reversal for the stock. we are trying to get more details out of this meeting. we will have rob enderle on at the end to talk about it. shibani: i am following a couple of live logs on the event. the three pillars of facebook. when he unveiled today is his 23 pillar which is being called graph search. it is a graphical search. it is not a web search. that is one of the reasons we are seeing a selloff of facebook shares. again, what the company has unveiled at this moment is a
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surge in addition facebook. we will bring you more headlines as they come out. melissa: it is interesting to see that they would dump out on that. lori: google has such a large market share. it is probably optimistic to think that they would have a shot at competing. melissa: it turns out it may have been the government. lori: the bitter cold gripping the northwest. we will show you the metals. as we head to break. back after this. ♪ [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals,
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lori: let's update you on the markets. nicole petallides is on the floor of the new york stock exchange looking at some insurance companies. nicole: a dow component did hit
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a 52 week high. metlife has an up arrow. aflac is pulling back. this is the one that we really featured right now. down about 1% today. it accounts for the whole week's move. there is a look at the intraday chart. they have been downgraded from a neutral to a buy rating. the dollar will negatively impact their earnings. at the same time, late last week, citigroup called it a buy. back to you. lori: thank you. melissa: time to make some money with charles payne. charles: just out to the
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sidewalk. [talking over each other] the stock took a hit. by friday, it started coming on. it is relatively cheap using traditional valuation metrics. last quarter they reported, gross margins were down. it really is all about uggs. the stock has been hammered to death. shorts have been on the hills.
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this is a stock if it cracks 40, i will pull the trigger. i will say they will be at this big conference that everyone is talking about. they will present january 17. i will pull the trigger looking for a trade. melissa: it will be interesting because they have not reported their holiday sales yet. charles: we talked about the man store with coach. they are really pushing hard with men and tom brady as their spokesperson. lori: facebook's new reveal. a new search feature. now investors do not know what to think. we will be joined by rob enderle in moment. melissa: when regular unleaded gasoline just will not do the
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trick, we have an inside look at the jeep grand cherokee. that is coming up next. ♪ ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense.
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from td ameritrade.
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seven breaking news. let's take you back to the auto show. fox business is confirming jeep is going to build some of it materials in china. jeff: it has been a big show for chrysler. this is the truck of the year. the ram truck 1500. big news also from jeep. mike manley takes a manly man to run jeep. you just confirmed that you have a deal to build jeep and china. >> we announced the beginning of the process. jeff: they are going to take
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jeeps jobs and and move into china. are you moving jobs from the u.s. to china? >> absolutely not. we have been very clear on that topic. this is volume that is not available to us. jeff: only jeeps to be made in china and sold in china. >> correct. jeff: the only ones that will sell their are these updated once. the biggest sexiest one for you is the grand cherokee. >> absolutely. we updated them again. we did some work on front and rear as well as material work. jeff: the grand cherokee, the big news on that has to do with diesel power.
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>> it is big news for this vehicle. jeff: your boss probably worked harder than you, but you guys both work pretty hard. the grand cherokee is a you as a vehicle. the wrangler is a u.s. made vehicle. you will not make those anywhere else. >> bigger segments of these vehicles are clearly in north america. the jeep is an american brand. the icon on the hand a wrangler and a grand cherokee are very important for us to have their heritage and roots here in the u.s. jeff: it has been the most awarded suv ever. the explorer is a big love. pw has announced their own version.
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you have not seen a get. it is called the cross blue. they also bought a piece of this pie. what about the competition? >> we have done very well over the last two years. we have more than doubled our share. without faith, which include, by the way, a new transmission, not just the diesel. jeff: mike manley, thank you very much for the breaking news. you heard it here first on the fox business network. lori: we are ever so grateful for that. melissa: diesel is making a comeback. lori: or more cars are accommodating diesel. melissa: a bitter cold spell has hit the west coast for six straight days. farmers are reporting damage to crops. temperatures dropping to 25 degrees in some areas of
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california. citrus farmers are struggling to protect their fruit. the orange is more affected by cold weather. arizona farmers are feeling the chill as well. the cold weather has been freezing the heads off of lettuce. that is affecting the quality of the yield and crops. the price of a head of lettuce was between $7.08. this week, it is up to $20. they always say it is more expensive to eat healthy. lori: my mom has been complaining about the cold. i am always so tired of hearing her complaint about the weather. they are actually freezing cold out there. it is really funny. melissa: for whom the bell tolls, charlie gasparino is here next with new details on dell. take a look at some of today's winners and losers on the s&p 500 as we head out to break.
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♪ this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.
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melissa: time for stocks now as we do every 15 minutes. let's head to the floor of new york stock exchange. nicole petallides is standing by and she is watching homebuilders for us. >> it is a great group, melissa, to take a close look at right now. pulte group and meritage have up arrows. kb home, lennar and hovnanian are pulling back. lennar we'll focus on here. they came out with their numbers. the stock is down 2%. don't be fooled. the shares surged over 85%
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in the last 12 months. they came out with a quarterly report that beat the street on revenue and earnings and a nice outlook. the ceo is looking for strong profitability in fiscal 2013. back to you. melissa: nicole, thanks so much. lori: herbalife short seller bill ackman is plotting his next move to the company. some investors say he is manipulating shares. fox business's charlie gasparino has the latest on that and dell's plan to go private. joins us on the telephone. dell shares are up huge today. what is going on? >> right. listen what we were able to figure out last night there are clearly talks going on. one of the impediments i guess, there is lot of doubters that this deal will get done i say that because one of the impediments was lining up bank financing. they will have to get banks involved. there are new dodd-frank provisions to do a leveraged buyout which this would be and banks are not that willing these days to part with cash because of all these capital restrictions.
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but apparently they do have the bank financing at least that is what is crossing the wires now. once you take out the bank financing problem, well, then this deal look is like it could happen. i will tell you this, guys, many bankers remain dubious about the deal because when they look at the economics, what is going to be the private equity guys point of return, you know, when they, when they sell this thing in five years, which is the concept here, right? you buy it now and sell in five years, what is dell going to give them. as you know the pc business is pretty, is not a great business right now. dell, the reason why they're going private, a company at the crossroads. but, you know, apparently there is a lot of deal interest out there. you know, here's one of the things i think people forget. because it is a leveraged buyout there will be probably junk bonds here. there is huge appetite for junk bonds among vest, to. i think, listen, i was dubious yesterday. i didn't think it would happen. looks like it is happening but i would just be careful, you know. this is not a deal, not a done deal until it is done.
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that said, go to herbalife, which is kind of interesting. it has been quiet for last couple days. they had their meeting last week. when you hear now is interesting behind the scenes battle going on. ackman is still apparently in burma, wherever he is, scuba diving. he is going to plan a counterattack from the investor meeting last week. that counterattack from what i understand is the next salvo is coming later this month or early february. that is what sources are saying. that said right now what you see is the longs, they know who they are, these are long investors out there basically pounding ackman to reporters every day, basically saying he is guilty of stock manipulation. now what exactly this stock manipulation i can't figure out. you know, i have kind of a testy exchanges with one on my e-mail account, you know, just every day, where he is saying that i'm going easy on ackman and all this nonsense. you know, i want to know
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what these stock manipulation is for a guy that has an opinion. he has an opinion that herbalife is a pyramid scheme. we should point out at least right now looks like herbalife is more right than ackman. the shares have recovered. >> i was going to follow up, charlie, and suggest has ackman gotten in too deeply with herbalife? >> i can tell you i spoke with him before he went scuba diving. lori: good timing. >> this is what he told me. he said listen, i, he is a rich guy. he doesn't need to, you know, attack companies if he doesn't think it is right. he claims he will give all this money to charity. we'll see if he makes money out of this but he put a big bet down. he really believes this is a pyramid scheme and that, there's a lot of regulatory interest. if you listen to the longs, guys that are calling me, they're essentially trying to say that the ftc and the sec interest in this is more an interest into ackman manipulating the stock than the company itself. that does not make sense to me. these guys usually go after, when the sec and ftc look at
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the companies, particularly their disclosures. so, you know, herbalife is winning now. but this is far from over. melissa: all right, charlie. thank you for your latest reporting. charlie gasparino. >> okay. melissa: so ho, ho, hum. turns out retailers didn't have a jolly christmas. the national retail federation reported that holiday retail sales climbed 3% to $580 billion. that is less than the 4.1% the group expected. they blamed the fiscal cliff for disappointing numbers as shoppers cut back on spending due to concerns about the economy. i think that 3% is pretty generous given what the economy looks like, how many people are unemployed. 4% always seemed a little nutty to me. lori: back up it up against the government numbers. retail sales, 5%, concluding autos. at least it rose. that was higher than the forecast there. you have a lot of data floating around, the bottom line in my view, numbers rose but were still
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lackluster compared with the overall situation with the economic challenge. >> a power grab on guns. the white house is considering bypassing congress and using an executive order to take action on guns. lori: plus there were some new trends. more than a quarter of workers are dipping into their 401(k) retirement accounts early just to pay bills. ♪
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>> i'm cheryl casone with your fox business brief. wal-mart is putting out the help wanted sign for veterans the world's largest retailer plans to high more than 100,000 in the u.s. over the next five years the company says most of the veterans will work in the company's stores and clubs. some will have jobs in distribution centers. the job offers will start going out memorial day. and at the detroit auto show ford ceo alan mulally talked to liz claman about ford's plans to increase the dividend to 10 cents a share. >> because of our liquidity and our strong free cash flow we have been able to reinstate the dividend. we announced we will double the dividend going forward and our strategy is to maintain that dividend through the cycle. >> to make sure to catch the rest of liz's exclusive
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interview with alan mulally during the 3:00 p.m. hour on "countdown to the closing bell". that is the latest from the fox business network, giving you the power to prosper
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melissa: vice president biden's gun control report made its way to the white house and they expect him to address it during remarks tomorrow. we have speaking with gun owners how they feel about the potential new gun laws. adam, what are people telling you? >> melissa, people are afraid, especially those who are supporters of the second amendment that semiautomatic rifles like this one will no longer be available. it is driving the up price. this firearm selling for $2,000. two months ago it would have sold for $900. i will put it down very carefully. joining me to talk about all this is the owner of the brick armory, one of the owners. phil, i want to ask you, what is the most important
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thing as far as second amendment supporters are concerned as to what the vice president and the president are going to announce tomorrow? what are the concerns of people who are your clients? >> act able to keep our second amendment rights. keep them and still bear arms, protection of ourselves. >> do you think that the concerns of firearm enthusiasts have been lost in this discussion since the tragedy over a month ago? >> yes. without a doubt. folks basically what happened, the weapon, the firearm itself doesn't hurt people. the person behind the trigger is what hurts people. >> do you think that the vice president or the president or anyone in congress could have any kind of answer to that? you know, dealing with people who are mentally ill, who obtain firearms? >> yes. they should propose stronger background checks for it. >> quickly, we've been talking about the prices. your clients, what has happened. it has been dramatic. price of different firearms shot up. >> it is supply and demand. when this first happened
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these rifles were flying off the shelves. getting them now to replace them is impossible. it is jacking the price of them up. >> phil, thank you very much. one. owners of the brick armory. i will throw it back to you, melissa. that announcement is expected tomorrow, the president outlining what he intend to do. melissa: adam, have they been seeing hoarding among people with firearms or type of ammunition they think will be threatened? >> absolutely. phil was telling me when we first got here people are coming in to buy ammunition, stockpiling ammunition. take a look. i want to show you some of the automatic rifles. he was sharing with me even with the prices, $2,000 for this firearm right here, this will most likely be sold by the end of the day. melissa: interesting, adam shapiro, thanks so much. lori: and as just about a quarter till the top of the hour. let's check the markets. nicole is on the floor of the stock exchange with energy m&a action for us. >> that's right. take a look at conocophillips and danbury resources, news here.
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talk about the stocks first. danbury resources is up 4%. conocophillips is up more than half of 1%. conocophillips agreeing to sell some of their properties over in montana. also in north dakota, over to danbury resources. what was the price tag, the value? $1.05 billion. and this is, as we have the houston company, which is danbury resources obviously trying to expand in this area. so this is one of the moves that conocophillips is doing in this area and so you're watching both of these names. as far as the oil services index, higher. oil itself is pulling back by about 19 cents at 93.95. back to you. lori: thank you, nicole. melissa: facebook ceo mark zuckerberg taking a page out of the steve jobs playbook with highly touted mystery event. did the announcement live up to the hype? analyst rob enderle is here next. ♪ .
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>> the write did -- the wait is over. mark zuckerberg revealed his loaning awaited project. shibani joshi is following the event. describe the new search technology facebook is day you booing. >> i want to show you what is happening to facebook shares. they are at session lows. down 1.6%. buy on the rumor, sell on
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the news is exactly what investors are doing right now. we didn't get a phone. we didn't get anything else that we thought about. some video ads. what we're get is a new search feature on facebook that does not compete with google. so i want to show you what is happening with google shares. google shares took a dip while, facebook shares took a dip while google shares went upwards on the news. people say this is less a direct competitor with google and more a direct competitor with linkedin or even yelp. linkedin shares are also down on the news. here is basically what the company announced. a new graph search function with you does not do what you do on the web. basically it searches for photos and news feeds and anything else that exist within facebook's ecosystem. so you can search within your friends. search for things like photos that existed before 1999 and get specifically what you're looking for that only exists on facebook. it is a very targeted way of
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getting people information. it is something that can not be done and data doesn't exist anywhere else. facebook's mark zuckerberg still at the menlo park headquarters talking about a couple of other features. still talking about mobile. also video time, and some other features, so that, the event is still going on. i will bring more details as they come out. right now the big announcement is graph search, following latest for you. bring it to you later. lori: i am concerned about my privacy in all this. thank you. >> absolutely. joining us on the phone with more on facebook and graph search is rob enderle. give me the off-the-cuff response. investors you see are selling. how do you feel about this announcement? >> i think it is a good announcement, a good announcement for them. i think what happened, missed expectations. folks were expecting more from the company and the end result is they didn't get what they expected.
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so the market is punishing them a little bit. melissa: i mean, lori raised an interesting concern. as i see sort of searches a cross-section of everybody in your group. one. examples that was put out there was, you know, look among my friends who lives in menlo park and also likes "game of thrones". immediately, you think about your privacy anytime you're mining data like this. and also feels like something they would sell to advertisers. what do you think about all that, rob? >> absolutely right. the thing is, if they're getting access to really the value here will be in advertisers. they will have to make use of the data. remember that is face pock's model. it is not, charging you for this access. charging other people for access to your information. and of course that brings up this specter. recognize at least in this case it is allowing you to use information as well for your benefit. they have always had this information. so this is more of a personal benefit. clearly they know how you linked up and, and what
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you're doing with those links which would be valuable. melissa: maybe at this point how they're able to mark you outside. maybe i'm old so i'm paranoid about this as opposed to their users. let's talk about the other companies this threatens of course. google stockholders were relieved because it is not search in the traditional sense, it is something very different. it threatens linked in whose business model is connecting people together through relationships which is very relevant to what we're talking about here. it threatens yelp to a certain extent? >> yeah, most certainly. linkedin, probably the biggest, biggest threat because this is linking people to people. so in the end, i'm not seeing so much with regard to yelp only because yelp is much more of a review site where you don't necessarily link with others to find stuff. you go to particular store and look how people reviewed the site.
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it is a little different. i'm not as worried about yelp because of the way you approach yelp, but clearly linked in is exposed because even though this is mostly focused on the social aspect of the relationship, it could easily flip into solid business and it is much closer to linkedin than anything else. melissa: mark zuckerberg presented it as the third pillar of facebook. do you think it is a big enough deal to warrant that? >> well i think this is one of the values that facebook was somehow missing. one of the problems with facebook you have thousands of friends, most of which you don't even know and have nothing in common with you. this would allow to you use a feature and create a group of friends, kind of a supergroup of friends, of people that had similar interests to you and where you might have some synergy you could then use in that group to accomplish common goals. that was really thought to be one of the powers of facebook that never really emerged. this would be one of the
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steps actually making that happen though i didn't think he articulated that particular aspect particularly well. melissa: it immediately flips to how you do you monetize this? is the value that encourages more people to join because can then do this graph search? or you know, is the value to advertisers, because as you said they kind of always had this ability. you didn't really look under the hood and see they were sitting there, doing, searching out who does this and this, solve that group of advertisers. is this worth very much from a monetary standpoint? >> it makes facebook more attractive. people are bleeding away from facebook. people were getting board with the property and drifting away. a property that doesn't have anybody going to it isn't worth much for advertisers. from the standpoint of holding onto a facebook audience as affinity ventens that is -- strengthens, that is interesting to advertisers. doesn't have to necessarily violate your privacy. just makes facebook more
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popular. at the end of the day facebook was acquiring the information. it was delivering it to advertisers but for the most part wasn't giving you the benefit of the information. i see this more providing you benefit than necessarily providing benefit to the advertisers who always had access to this information. melissa: rob, thank you very much. >> my pleasure. lori: we have new information for you showing a growing number of american workers are tapping into their retirement savings accounts for nonretirement needs. according to a report by hello wallet, one in four workers with a retirement account actually uses it to pay current expenses. melissa: no. lori: draining nearly a quarter of the $293 billion in these accounts each year. the most common way americans tap into the retirement fund is through loans we must be repaid with interest, followed by withdrawing money which can lead to heavy financial penalties that is too bad to hear. melissa: i know. if you don't repay the money certain amount of time, that is real problem. lori: people are so desperate right now. melissa: really a sign of the times. coming up tonight on mony
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we'll talk about that story more and have other tips for you how to avoid that. we'll have legal experts and a power panel. lance armstrong's doping admission. will you have to pay back sponsors? lori: he should. melissa: is there anything he can do --. lori: no. melissa: to make you believe in him again? lori: no. melissa: he is dead to lori. we'll see if we convince anyone else. 5:00 p.m. eastern on fox business. there is something he could --, no, he is dead to lori. lori: coming up, really nothing else to say to punctuate that. such a disappointing story. disney's new gaming push. the media giant expected to unveil inifiti in moments. i'm sticking around. tracy joins me. we'll he is you see you back here at 5:00, melissa.
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lori: top of the hour. 2:00 p.m. eastern, good afternoon, i'm lori rothman.
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tracy: i'm tracy byrnes. one month to go until we head the debt limit. america's aaa rating is at risk. we sort of heard that before though. republicans are planning their next move. do they have any leverage to cut spending? "wall street journal" washington bureau chief gerry seib is here with us. lori: will disney deliver? the media giant unveiling what some are calling a game changer in gaming. it is happening live right now. we'll bring you the very latest all hour. tracy: so much hype. we got a little bit of a facebook letdown. general motors focus on the future. unveiling the first electric cadillac. gm chairman dan akerson speaking out about the government debt and spending battle in washington. his interview with jeff flock is coming up. growing up everyone i knew had a cadillac. lori: not your grandpa's cadillac. >> really not. it is top of the hour. time for stocks. as we do every 15 minutes, nicole petallides on the floor of the
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new york stock exchange. hey, nicole. >> hey, tracy and lori. we were talking about the debt ceiling that is something that moved front and center very quickly and will remain right in front of every day's trading in the minds of investors and the traders here on wall street. today the dow is down about 12 points after being higher four days in a row. the s&p has been lower. we had the back and forth action, much of the same today. when i talk to traders about the action we've seen, sometimes they're saying that the moves to the downside haven't been decisive. which then tells them that maybe the market needs to test recent highs before it can really sell off. trying to move lower and it can't. be wary of highs that sell into the profits. let's look at apple, a name we can focus on. nomura cut the price target. they reduced to 530 from 660. right now 487.16. these are the lowest levels since basically february of 2012 and obviously they had
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to cut their supply orders. back to you. tracy: you said yesterday, ubs kept their 700 target as well. people still have confidence in apple. lori: maybe an entry point around below 500? so back to the debt ceiling. a lot of people just want to tune out, turn the channel. but it is really important because interest rates are at risk of a shock mode going up sharply higher. so it is really important. house republicans right now struggling to come out with some kind of a strategy to tackle the debate with the president. they canceled their weekly caucus earlier we learned. the focus shifts to this week's gop retreat. rich edson with the latest on the capitol hill negotiation. rich? >> good afternoon. republican leaders assemble ad man you of options they for their members in williamsburg, virginia. one. items is delaying implementation of president's health care law. savings would go to decrease the debt ceiling.
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there are a host of options on the table. short, three-month debt ceiling increase, with smaller amount of cuts all the way to multiyear, perhaps 4-year increase in the debt ceiling so long as it is accompanied by a major tax overhaul. and overhaul of the entitlement system. this on a day after fitch offered another warning saying a couple of things. one that the aaa credit score we have is at risk if there is another debt ceiling fight but republicans are focused at the part that says credible meaningful deficit reduction has to be part of this in order to keep the aaa credit score. house majority leader eric cantor responded to that with a statement saying, it's time for president obama to stop putting our credit rating at risk and acknowledge we need a credible deficit reduction plan attached to any increase in the debt limit. from the white house we heard from president obama yesterday at a news conference. he says that he is not discussing any negotiations in the debt ceiling. that if congress's responsibility to essentially allow him to pay for the bills that congress has already rang up.
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and from here he says he will discuss deficit reduction, perhaps, modest changes to health care spending, so long as it is included with cushing or cutting loopholes in the tax system but that is something he says is an entirely separate debate. here we are having debate where one of the sides wants a debate and the other is trying to figure out their opening offer. that happens over the next few days. back to you. lori: the tick-tock, rich, grinding along on this. i guess no one should be surprised at this point. tracy: yeah, really. for more on the debt debate, will house republicans decide to use the debt ceiling as leverage for spending cuts? we have to bring in gerry seib, "wall street journal" washington bureau chief. gerry, i'm glad you're here. you know what is going on. where are the gop as far as the debt ceiling goes? >> i wish i knew. and i would be happy to tell you if i did but i think there's a choice to be made here. i think they're coming up on a discussion point as you mentioned. retreat later this weekend maybe they will have to decide what the strategy is here. i think republicans have a
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choice. one to take a stand on the debt ceiling, use that as leverage to try to extract spending cuts out of the white house. or, to not use that because it is a fairly sensitive subject as you've been discussing with market implications. maybe move on to have this showdown over spending, over an actual spending bill, continuing resolution that continues to fund the government which will expire in march. and sequestration, automatic cuts that will kick in about the same time. in other words, is the best tool here to use the debt ceiling or is the best tool to use spending bill and there are a lot of people in leadership who think let's not touch the debt ceiling argument that is toxic. let's focus on spending bills because that is the subject at hand. tracy: especially for the american people. the last thing they want to hear is we'll raise the debt ceiling again the notion we hit it back in december and they did accounting trickery to buy us some time i think that is disheartening as well. >> that's been done before. we already hit the debt ceiling that isn't commonly
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realized. the question do you want to draw a line there and mess around with a market reaction or draw a line on funding the government? if you're not going to fund the government our option is to shut down the government. if you want to resort to drastic measures talk about a threat to shut down the government, not a threat to default on america's debt. that is interesting choice republicans will talk about over the next few days. the white house would prefer to have none of the above. tracy: right. >> if you're going to use leverage, which is the smartest leverage to use. tracy: talk about that. is it legal for treasury to prioritize its bills basically? regardless what happens, we're probably still going to make our interest payments aren't we? >> that is kind of the argument that emerged in the last couple days. republicans are saying look there is no threat of default here. if we hit the debt ceiling it means the government can only spend as much revenue coming in on any given day. you can use that to pay back bondholders, interest on the debt. therefore you aren't technically in default. the federal government, the executive branch will simply died what other bills it can or can't pay.
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president obama at his press conference essentially said that is not a solution. if congress authorized and appropriated money, i as the chief executive am legally obliged to spend the money. if the debt ceiling isn't raised i won't have it. that is not really a legal answer. we're at a place we've never been before. i don't know anybody actually knows the answer to the question. tracy: right. it is actually kind of crazy. in addition to all this they have all this other stuff going on. tim geithner leave on 25th. gun debate. inauguration, first state of the union. enough to make your head spin. yet they have this to focus on as well. >> this has to be the first priority. if you can't fund the government and if you can't basically keep the federal government runnings, either because you have hit the debt ceiling or because you have run out of legal authority to spend money, because the spending bill has expired, everything else looks secondary by comparison. i think both side agree you have to deal with this first. then maybe you move on to guns and immigration and other issues down the line of the first order of business of the government is to fund the government
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itself. you've got to do that first and that is really i think the way washington looks for the next couple weeks. tracy: i have a few seconds. we've been hearing and rich edson reporting they might talk about delaying obamacare to keep money on the table. do you actually think that would fly? >> no, i don't. i think that is probably not possible. other things that happen short of that. you will not get votes in the senate to see happen. tracy: gerry seib, thanks for being here and explaining at least some of it to us. "wall street journal's" gerry seib. >> sure. tracy: it is confusing. lori: the bottom line is our debt-to-gdp ratio is unsustainable. tracy: right. lori: a whole lot more to come this hour including disney's new gaming launch. will it change game as we know it? who better to ask than denness neefl. he is all over the story -- dennis kneale. wal-mart planning to hire veterans. such a cool story. let's look how oil is trading. the dow is down nine points. oil at $93.73 a barrel, down
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about half a percent. we'll be right back. ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade.
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tracy: it is that time of day. the dow is only down five points but charles payne is here to tell you how to make some serious money. he is following up on a cybersecurity stock. lori: notes on a cocktail napkin. where did you have lunch, sir? >> in my office. i write them anywhere. one thing i don't do is waste paper. fire source, i did this with tracy and ashley in september. down since i did it but i like this a lot. execution is phenomenal. beat the street by 32%. 18%, 19% but the stock is continuously under pressure in part because it is expensive. no way i can come up here to say it is cheap by any value
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metrics. it had a 200 trailing pe. it has 18% short position. but guys, the guy who started this company, in 2001 he authored a program, open source cybersecurity program called snort. lori: is that act acronym. >> could be. been downloaded 4 million times and let me tell you this company, ultimately i think they will be acquired to being frank with you. i like the stock. the caveat it is extraordinarily volatile. we know cybersecurity and how it changes every day. viruses, then we have the worms and then we have the macro viruses, and spyware. it is something always involves --. tracy: not going anywhere. cybersecurity is here to stay. >> it is here to stay. crooks are always one step ahead or attempt to be. that's why i look the company. growth has been strong the 31% compounded annual growth. lori: is it competitor with mcafee? >> yeah. lori: we know what it going
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on with him. does that benefit security. >> not really. that is security for everybody in the vicinity. that is whole different story. but, this is a company i think, if you can handle the volatility, it breaks out at 45. you have a trade up to 49.50. long term though i think if something were to happen they could command at least $56 a share. lori: charles, love it. tracy: ticker is fire. i think that is cool. >> probably definitely, glad you mentioned that. should have a 10% stop loss. tracy: there you go. $43.5 right now. charles payne, thanks very much. >> thanks a lot, guys. lori: market down 10 points. the dow. let's check in with nicole. it has been 15 minutes after all since we heard nicole. facebook shares are sinking. what a disappointment. >> listen, we know it has been running up for three months. we know today was the big announcement over last weaker-than-expected it continued to climb. it is heaviest traded stock
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here. certainly very heavy volume we've seen for a couple of months for facebook. today, right now, it is down 1.6%, though it is holding $30 mark. talking about a graph search. they call everything that they do a social graph. they're talking about, all the things that you would search in facebook, including photos, people, places, members interest. it is new way to search. that is basically it. okay? so this may bode well with facebook the you know what didn't do well? this competition, google, yelp, linked in. we're seeing yep selling off dramatically, it is down 6.6% as facebook made their announcement finally. quick check in on dell. we talked yesterday the stock was soaring. it remains to the upside. up 5.% percent, gaining momentum as we talk about potential buyout offers. that may be becoming more clear. silver lake and potential
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investment funds. we're learning more about that. tpg also in there. it is at 12.98. back to you. lori: google popped on facebook release. interesting competition in the search space right now and how investors and users will implement this search. tracy: try to figure out where it all plays in. like telling your kids you're taking them on a big trip and turns out the trip is just to grandma's. that is how it feels. lori: rob enderle, noted tech analyst last hour was really bullish. that is what makes a market. tracy: emac is laughing at me. she agrees. >> i find grandma's house very exciting. tracy: no you didn't. >> just i had canning. lori: you knew where she hid the cigarettes, right? >> i wasn't into that. maybe you were. lori: no comment. introduce her properly. tracy: wal-mart putting out a help wanted sign in a very big way for military vets. the white has taken notice and so has liz macdonald. she is here with more. it's a great story. >> yeah the president of
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wal-mart u.s. was speaking to the national retail federation. he made the announcement and was really something to hear what he had to say about hue wal-mart is now going to be hering 100,000 military veterans over the next five years. here is bill simon from wal-mart. >> we all know hiring a vet can be one of the best decisions any of us can make, they perform under pressure, quick lynners and team players. >> wal-mart is already the world's biggest retailer, the country's biggest private sector employer. you have to be honorably discharged if you're a military vet to get a job there but they really, wal-mart is saying listen we want vets to work for us. bill simon used to be in the navy. he says when we was out of the navy got a job washing dishes for two bucks an hour. he says the pay will be a little better at wal-mart. he is interestingly enough getting a lot of white house approval. hear is the first lady talking about wal-mart's decision to hire more
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military vets. look at this. no one who serves our country should have to fight for a job once they return home. wal-mart is setting a groundbreaking example for the private sector to follow. the first lied did i is calling this move historic. so what we're also seeing, get this, bill simon at wal-mart is out there dispelling what he says are urban legends. that wal-mart's products come from overseas, majority. he saying they don't. 2/3 actually come from u.s. manufacturers. so now he is also announcing $50 billion will be spent to get more u.s. products on wal-mart shelves. big picture push here, that is out of 455 billion in revenues. so that a drop in the bucket. lori: great wal-mart is hiring veterans but is it cost effective to do so? do they certain type of job training? >> he didn't say that. he didn't get into that. all throughout the keynote which i read, he is essentially saying these guys and women are great workers and they're very organized and very focused. in their home office in
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bentonville arkansas, they have military vets as well. they're saying they are good for the workforce and good for wal-mart. great pr move at a time union protests are really coming down on wal-mart. interesting move. lori: unemployment among veterans is higher than the national average. >> good point. lori: thanks, emac. tracy: thanks, girl. lori: how disney is hoping to break through on gaming. dennis kneale has this one next. tracy: look how the dollar is faring as we head out to break. we'll be right back. she knows you like no one else.
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lori: tough couple days here for apple, still in the red. latest report of a big production cuts spur concern that the iphone 5 is not the hit the company was hoping for. how low can apple shares go? sandra smith is looking at her crystal ball. >> lori, let's throw the apple hot board up there. a lot of people own this stock. people with etfs are affected by apple. down 3% today, another $16 plunge well below the $500
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level at $485. look at a one-week chart. this tells the real story. down 8% over the past week. over a 3-month chart, this stock has lost a quarter of its value over the past three months. the big question becomes, how low will apple shares go? you will be surprised did not hear very bearish sentments coming from analysts covering this stock. 54 analysts cover apple shares. know your a -- nomura securities only bear. downgraded them to neutral from a buy. baird expects it to go higher from where it is today. they're calling for $750 apple shares. and fref frist group reiterating their buy rating and putting an $800 billion price target on the shares. the reason being it is still cheap. at 11 pee jeffries saying the news about the supply chain says nothing with
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regard to their thesis so they're keeping the estimate. one of the things i want to show you, guys, etfs heavily weighted in apple. look at influence of apple is having on etfs today. spdr technology, closely tied to the s&p technology sector which is the biggest loser today. that is one of the biggest losers as far as the etfs are concerned. so everything is affected. by the way, tracy and lori, apple reporting earnings a week from tomorrow. so everybody stay tuned. might be a warning from the company. tracy: that will be really interesting. sandra, i will stand by my own personal opinion. samsung galaxy will take over, it doesn't fit in your pocket. lori: that is important. tracy: us did not fit in your pocket. there is no way that -- not mine. that little sleek iphone. lori: back pocket is smaller than most of ours. tracy: not true. i'm just saying. it is not practical or need a bag or something to carry the phone. it is not going to work.
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speaking of digs any, that is my formal invite. disney looking to make a flash in gaming with its new infinity. was this your invite? >> no, it wasn't. disney unveiling one of the biggest roleouts never its long and costly struggle to win in the videogame business. known by the game, toy box and unveiled as disney infinity. this will let them mix and match disparate characters and woody the cowboy and buzz lightyear the space invader though they never got to play together. forbes says the first three characters will be from "monsters inc.". and johnny depp character from "pirates of the caribbean" and hero from the incredibles. rather than introduce a game, disney inifiti will be a service business. they will be able to buy virtual accessories and upgrades a la "farmville".
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they have suffered 3 1/2 billion dollars in losses and acquisitions. club penguin and online world for kids. ran up 2 billion in losses at interactive division of disney of the this roleout could be different. this is a big breakthrough to let the characters from pixar and disney get mashed together. disney is the ultimate corporate control freak and persuading its myriad parts to go along with this had to be a monumental task. we'll have more details and pricing. wait until you hear the pricing as they unfold in the next hour. lori: fascinating. >> my kids love club penguin by the way. that means i could buy buzz lightyear for the xbox? >> means you can take buzz lightyear, it will come with the actual characters you plug into a piece of hardware. lori: action figures? >> boots up the game. now buzz lighter is inside buzz lighter. then you can create your own kind of thing where buzz can be talking to some other disney character. it starts with these three
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characters that have some kind of hardware in them that kind of clicks in. you will get more characters and you can buy costumes for them online. it is a whole up sell. lori: this interactive division, huge disappointment, $216 billion loss? >> 1.4 billion over the past five years. lori: that was just last year. >> that is investment when you lose money. that investment. they eventually want to get that right. few other companies have the great intellectual property they have with the characters to do stuff with them. one thing i ask, call of duty, most popular game in the world, i don't need inside call of duty to grab buzz lighter. >> light year to put him in "call of duty". tracy: dennis, you will be all over this. really interesting concept. the interactive co-president will join liz claman and dave asman will join them with more on this "after the bell." 4:00 p.m. eastern right here on fox business. so don't miss it. lori: meantime is the president about to bypass
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congress again, this time to limit gun sales? fox news senior judicial analyst andrew napolitano weighs in next. tracy: he has a lot to say about that. first look at some of today's winners and losers as we head out to break. the dow is down nine points. we'll be right back. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation.
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♪ >> half past and you are looking at the dow 30. one name unchanged and that is
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bank of america. let's head to the floor of the new york stock exchange where nicole petallides is standing by. nicole: you are looking at some of the retailers. >> if you look at consumer discretionary, they have rogen off to new high territory. this continues to be one of the strongest sectors. despite the s&p being at a 1% range over the last ten days, this continues to be an area of favor. nicole: what interest you now? >> you definitely have to be a little more selective. it is still an area to stick with. you have to be diversified. the whole sector continues to show a sign of performance. nicole: thank you so much. back to you.
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>> from stocks now to commodities. let's go ahead and check the oil trade. $93.28. a drop of nearly 1% today. tracy: we have been talking about this all day. president obama expected to lay out a comprehensive gun-control program. can you do that? is it legal? judge andrew napolitano joining us. i know there have been executive orders through the test of time. emancipation proclamation -- say that ten times. with this, we have a lot of people in congress who are completely opposed to this. there are areas of behavior
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where the statutes allow the president to exercise his personal discretion. i will give you an example. the last crime control law, it is called the omnibus crime law of 1968. it gives the president of the united states the ability to ban the importation into the u.s. of weapons that are not "suitable for sporting use." it lets the president decide what the definition of "suitable for sporting use" is. george h.w. bush narrowed the definition which excluded it. president obama could lawfully narrowed the definition again. he cannot make it illegal to own or use, but he can make it illegal to import. lori: why does he have this privilege to begin with?
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>> that is a very interesting question. the congress is lazy. the president sometimes take power from congress like starting wars and congress does not do anything about it. three, they are political hot potatoes. they assume not to address so it gives the president discretion. the drug enforcement administration which is part of homeland security, monetary the sales of heavy weapons. they do this by walking into the shops that sell them every six months and demanding to see the books. they have the right to do that. it will preoccupy these sellers which means it will cost them more to operate business. they will sell less and they will charge more. there are little things that the president could do within his authority. lori: it is an interesting
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question about the president even using the term executive order. does it make you wonder why he is using this tone? >> there are two ways to look at it. he wants to throw down the gotland and numbers of congress would disagree with him and know he has a job to do. he does not respect the constitution. the right of the people shall not be infringed. lori: do we know what any of the executive orders are? >> no. i know fox news will take it live. that is a tax that the congress would not enact which could make a tax on ammunition more
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expensive than the bullets themselves. lori: and a lot of people watching tomorrow. judge andrew napolitano, thank you. get your popcorn out for that one. that is deathly something to chew on. how is washington that impacting american business? tracy: let's take a look at your ten and 30 year treasuries as we head out to break. we will be right back. ♪ [ male announcer ] you are a business pro. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and from national. because only national lets you choo any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price.
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♪ >> here is your fox business brief. -- sentenced to more than four years in prison for insider trading. he pled guilty back in july. it was following the governor's broad insider trading crackdown. at the auto show, liz claman hears about new lines. >> already incorporating more and more aluminum composites. not only are they lighter weight, but very strong and durable. that is the essence for fuel
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efficiency. >> make sure you have catch all of the interview during the 3:00 p.m. hours during "countdown to the closing bell." for now that is the very latest. giving you the power to prosper. ♪
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lori: the battle of the pickup truck is heating up with board unveiling a concept version of its top-selling f150. jeff flock is at the auto show in detroit. what do you think, jeff? jeff: i am right here with that truck. this is the atlas. we have pictures of the unveiling, as well. they drop this from the roof of the joe louis arena. this is their attempt to upstage
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gm's unveiling. chevy has had a very good show. i say chevy, i mean gm has had a very good show starting with the cadillac that was released today. unveiled the new electric cadillac. we talked with bob ferguson with cadillac. he said today it will be available in one years time. electric bike cadillac just like the chevy volt. more importantly, though, dan akerson talking exclusively to us on the fox business network about the debt ceiling. he is saying i am all for spending cuts. holding the debt ceiling hostage is not the way to deal with that. take a listen. >> the uncertainty and washington is troublesome. jeff: what message would you sent to the president, to congress, other than, get it
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done? >> i would like to be a little more respectful than that. you have to find common ground for the good of the country. it has to be a win-win for both political spectrum's. jeff: if they do not extend the debt ceiling, does that damage the economy beyond what you would want to see? >> i do not know exactly what the damage would be. i think it is clear. both the president and congress know we have a spending problem. i do not think you can hold one aspect of the sequester part of the budget or the limit on the national debt hostage to the good of the country and the economic progress. jeff: dan akerson exclusively on the fox business network talking about the debt ceiling. possibly the sexiest unveil of
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the show. it was the chevy corvette. the seventh generation. that is one of the things that dan akerson is concerned about. they are launching all of these new products and if you have a problem in washington that derails the economy, that puts everyone in jeopardy. this is an f1 pickup. that is what i would drive, if i had my way. tracy: i went and checked the price tag of the sting yesterday. we should share it every weekend. lori: that is one sexy car. does that ford pickup look like what is old is new -- what am i trying to say, it had a little retro feel to it? jeff: that is the old one. there you go. good eye.
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they should bring that back, though. i would buy that today. tracy: i am so dense sometimes. jeff: lori, you know what the dipstick is on the truck? lori: now we have to go. [ laughter ] tracy: it is quarter till. we are tossing it to nicole petallides on the floor of the new york stock exchange. nicole: let's take a look at one of the homebuilders. it is lennar. revenue beating the street. we are seeing a pull back some now. down about 2%. we should note here and the ceo talking positively about fiscal year 2013. there is a great one-year chart of lennar. it is pulling back today. lulu lemon is another day we are
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following so closely. they did see the crunch in the holidays. here is a look at lulu lemon right now. back to you. tracy: thank you, nicole. there was so much anticipation. lori: nothing major has convinced me. maybe shibani joshi will convince me. shibani will have all the details. tracy: first, let's take a look at some of today's winners and losers. a little bit of chatter. we will be right back. ♪ ♪
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tracy: facebook ceo mark zuckerberg releasing a new feature on the site. i am not sure if users are impress. shibani joshi has been following this story. shibani: this is having a field day with this announcement. it is being called the ultimate dating will. i kid you not. this new feature would allow you to search your friends and product the following inquiry. i want a girl born after 1986, likes football, went to stamford and listen palo alto. you get your search and possibly a date.
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this is being called the 23 pillar of facebook. this allows you hone in on things based on certain categories. it is very different than web search. it is not competing against google search. facebook share is at session lows today because we did not get this big moment. instead, people sort of selling on the news. take my word for it. a lot of mixed momentum on facebook shares. lori: is it a case of
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expectations being so darn high these days? shibani: i think that is what you can expect out of apple. this was the first public event that the company had said it went public last summer. when you make a big event and you have a big public thing, the expectations are high. the companies got to deliver. the stock is up in the last couple months. they need to deliver. people were expecting more. it is a dating tool. or so i hear. tracy: everyone should set their expectations superlow so no one is disappointed. shibani joshi, thank you very much. lori: and overall crummy economy. it seems like these stocks -- retail sales in december rose
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higher than expected. let's bring in managing partner at retail systems research. we have two different sets of retail data today. we also got the national retail federation which showed a slower rate of retail spending. what is the ultimate take away? >> i think uncertain seems to be a theme everywhere you look. i do not think it is different and retail. these barely positive results play right into that. lori: now that we are in a new work on your year and payroll taxes are going up, that will cut into their spending? >> unemployment numbers are kind of going down a little bit. maybe there are more people who have money to spend that did not have it before. it is kind of that too close to
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call sort of thing. lori: we are watching apple plummet today. disappointing iphone5 sales. you also are watching facebook shares fall. trouble in technology. is that sort of indicative of what is going on with people? they do not have as much cash to spend so this is where they are pulling back? >> consumer electronics and technology definitely tend to do better in the holidays. if that sector has not done as well as expected, then that certainly would play into the results that you see. lori: it definitely signals housing is improving. >> definitely. when consumers feel good about the value of their homes, they may feel like they can spend. lori: what are your forecast for spending throughout the rest of the year? >> i think, you know, i was just
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at the national retail federation big trade show and a bunch of retailers were there, their plans are pretty enthusiastic. i would not call them, you know, euphoric, but they are definitely more enthusiastic given the holiday results that we saw. we are kind of seeing some signs of good. lori: thank you so much for joining us. tracy: liz claman takes us to the last hour of trading. talking trucks at the detroit auto show. interesting things about fords future. countdown to "the closing bell" is next. do not go anywhere. ♪
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