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tv   Markets Now  FOX Business  April 2, 2013 11:00am-1:00pm EDT

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you can still do it if you get the right scenario in place. stuart: she got the last word. charles: she did. stuart: can we end it on that? >> sure. dagen: elizabeth macdonald has no shelf life. connell: she looks terrific. dagen: who will find a husband in college? they are all drunk dopes. every last one of them. liz knows that is a compliment. connell: thank you, stuart. good morning. i am connell mcshane. dagen: i am dagen mcdowell. connell: new numbers. look at this. the unemployment rate across the euro zone. dagen: you know her from the hit show "shark tank."
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where she is putting her money right now. connell: sorry china. we have those stories and much more coming up on "market now". dagen: top of the hour. i haven't seen you since last tuesday. do i get a hug? nicole petallides is at the floor of the new york stock exchange. nicole: let's take a look at the dow jones industrials. the dow gaining three quarters of 1%. the tech heavy nasdaq, the best of the three. certainly a great day on wall street. wanted to take a look, as the
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dow hit record intraday highs. the highest level ever. not only gaining, but hitting some new 52 week highs. if you own either of these names, you are probably pretty happy today. procter & gamble, johnson & johnson, coca-cola, just to name a few. connell: 78 cities adding jobs in the fourth quarter. according to a report from brookings, only 14 of the nations have what they did for the recession. let's bring in former senator out of north dakota. another state, by the way that
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is doing pretty good in the hiring department. what do you make of this? >> i have not all that surprised. states have different kind of economic circumstances. some are able to recover more quickly. some less quickly. with the great depression, it took a decade and a world war to really pull us out fully. it is taking a time and it applies unevenly to different parts of the country. connell: it has been brought up over and over again that maybe those jobs are gone and they are never coming back. is this something we will be talking about years from now? >> the first book i wrote was about that very subject.
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i think some of the major cities are probably not coming back anytime soon. i think the energy areas, north dakota has full employment. you mentioned texas. it is interesting to me that we are talking about jobs. we need more jobs. the stock market is way up. corporate profits at record levels. connell: it does bring up that question about whether it ever will. it also had a political component to it. is the administration doing what it showed all it can to promote hiring? look at texas.
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why is the president going out and attacking any of the big oil companies? shouldn't we be doing or to promote it so it continues to do well? >> we are producing more oil than we have in a long time. we are producing a lot of oil, a lot of natural gas. j paul getty wants to find success. go to the best school you can find, do well, find a job and then strike oil. connell: if you are not in the right industry, as these numbers
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show, it is a very popular we are going to talk about that oil boom. thank you very much for joining us. dagen: u.s. energy production could change our countries dependence on the middle east and our foreign policy. connell: a geopolitical strategist at barclays is with us now. i saw you nodding your head. >> it is a huge boom. between 2013-2014, the u.s. will produce around 1.4 million barrels a day of new oil production. what does that mean for our dependence and the middle east? i still do not believe we will be able to walk away from the mid east. dagen: we have not seen any move down and washington that would suggest they are coming easier
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about our relation with the middle east. >> they talk about the l and g trade. what about potentially break russia's monopoly? they are not talking about walking away from the middle east. dagen: is also unrealistic? could the policies be different? if so, what? >> it is a globally traded product. if we had a supply disruption, even if we are less dependent, we will still have the price of facts. i do not think we will get away being able to protect sea lanes right now.
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if we move more towards asia, will we have to scale back in some respect from the middle east? you look at the report from a couple months ago. they talked about the fact that 45% of new supply growth globally is supposed to come from iraq. if we do not have them meet expectations, we will not be in a great place in terms of global balance. the global balance will be in shortfall. dagen: are you worried about that? >> i am very worried about iraq right now. look at the fact that they are having elections. a leading candidate at assassinated. iraq's security situation seems to be going south. we are not really there. we had a secretary of state visit iraq.
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again, we are gone if you are not there, you cannot really influence policy. connell: also elections in iran. >> absolutely. it is a crazy year for the middle east. dagen: it is always great talking to you. come back anytime. >> thank you. spirit you are a wonderful asset to this program. don't even look pregnant. when are you due? >> may. dagen: a little over a neat deal were announced world wide. the lowest number of deals sent 2003.
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funky town. an update on jack lew's signature. the newly minted treasury secretary's unique mark will of guy on our nation's currency in about 18 weeks. you remember, well, that is what it looks like. look at it. doesn't it look like, well, that. the top of a hostess cupcake. he still has to submit his official signature to be used in the currency production process. get with the program. connell: that is just a little ridiculous. top news coming out of europe. unemployment is at a record high there. 12%. dagen: tim cook says he is sorry. connell: another.
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payday for one of the star coaches in ncaa. he is making a lot more money than he used to be. let take a look at the price of oil. we are coming right back. ♪ [ male announcer ] this is the age of knowing what you're made of. wh let erectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action.
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♪ connell: we are making money with our friend charles payne. making profits through car rentals. charles: i don't know, for most part, i don't have pleasant experiences. we are a hertz family.
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people watching it, you know, this kind of market, there are some stocks you will have to chase. this is one that i think may be worth it. going all the way out to 2015. very few companies can do that. march of 2009, they have come so back. a billion people travel outside of their homes these days. we are starting to regain traction. we are getting visitors from all over the world. in 2015, our fleet cost will be down. cash flow will be 26% of revenue instead of 18%. by the way, the estimates they gave for 2013, today, they were just a little bit both the street.
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connell: why are they better than the competition or are they? charles: i think enterprise shook the whole industry up. they are not publicly traded. this one may have the most value. connell: thank you, charles. dagen: a good one. connell: let's go back to nicole petallides. nicole: i am taking a look at some of the insurers hear. this is humana think that medicare rates are improving.
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take a look at how the others are airing. originally, there was going to be a cut. that would not have been good for the group. we are seeing names like aetna at a new annual highs. you are seeing all of them with arrows. i checked those numbers a few minutes ago. still some great moves there. connell: all right. dagen: more things like this could be on the horizon in europe as more and more people are out of work. connell: you know barbara corcoran if you watch "shark tank." she will be on in a field to talk about the market.
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>> i have your fox news minute. north korea is turning up the heat again. the country is restarting a plutonium reactor. the reactor was shut down in 2007 as part of nuclear talk. north korea is on a collision course that could lead to war. this morning at the white house, president obama called on congress to spend $100 million on a project to map the human brain. remember the seinfeld character, the actors name is larry thomas. thomas is an advocate for the control. the company has agreed to remove his image. back to you.
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connell: thank you very much. more than 12% unemployment (. 7.7% year. the rates really very across we have the chief economist from isf. >> this is a pretty bad number. this recession will keep going for a while longer. there is not a motto of the news here. the one little tidbit is that the rate of the increase of the
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unemployed -- connell: germany has done a good job. their nation is the best of the bunch. that should mean something to how we operate here. is that an apple to apple comparison? >> germany did a lot of tough stuff about ten years ago. spain, greece they lost competitiveness. there is a lesson here. it is not an easy lesson. it is a lesson that saves time and it is painful. they have to do it. connell: you hear the overly
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pessimistic people who say we will turn into greece if we keep going on this path. where'd you come down on that? >> i tend to agree that we are in much better shape. our forecast, for example, by the end of this year, we think we could hit 3% wrote. germany, the best they can hope for is 1% growth. we are in good shape. connell: that does not bother you. >> there will be a small, but temporary hit from the
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sequester. by the fourth quarter, we will bounce back. more and more the private economy seems to be ignoring washington which is the really good news. washington, for a while, was hurting confidence. connell: we are showing the stock market as you are speaking. we are of another 100 points. getting closer to 15,000. still, it has to help a little bit. >> absolutely. if you look at individual wealth, absolute terms we are very close to the peak we had in 2007. we are pretty close. it is improving.
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connell: it is better to be here than there. thank you. >> thank you. dagen: isn't that always the case? i can find plenty of butterfat to eat in this part of the country. barbara corcoran is enough to talk about your next big investment. connell: tim cook says he is sorry about apple's customer service over in china. first, before we get to all of that, look at some more on stocks. a good day for the markets. here are some individual winners on the s&p 500. ♪
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call the number on your screen now! connell: real estate right now on "markets now." barbara corcoran is here. she's coming up. then we have the c.e.o. of apple. he's sorry for the way the company has been treating customers in china and the dream liner set to take another test flight. talk about what boeing is doing to get this prized plane back in the air again. dagen? dagen: thank you so much. stocks now, nicole is at the new york stock exchange with what you got? hit me. >> i'm taking a look here at telecom companies, at&t and verizon. both are jumping. here is at&t, up 1.1% on very interesting news and verizon also higher by about 1% and verizon looks like it's the levels of 2001 so over a 10-year high for verizon and this is on
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the news that there may be a joint bid coming around and, you know, it's very unreliable but on every single headline so you have to report on it. joint bid for vote a phone? that would be surprising according to citigroup. this would be like the biggest deal ever. that would give vote a phone an enterprise value that would surpass the previous record of a.o.l. you remember when a.o.l. had $182 billion takeover of time warner back in 2000 so on this news, and again, you know, we're seeing it on different areas but i would just sort of take it as you read it, too. do you know what i mean? certainly not happening, not underway but certainly worth watching, these telecom companies, at&t and verizon. dagen: thank you. housing market continues to pick up steam as the spring home buying season kicks into full gear. who do you want to talk to about
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housing and investing? barbara corcoran from "shark tank." >> it took four years. we all knew it was a great show. we were all in love with it but the problem was, nobody was watching until season two and then season three, everything. dagen: why do you think it took off? the weakness in the economy and we still have the entrepreneurial spirit and people want to be inspired by it? >> i don't think so. i think people found the show. it was moved around to different time slots. now we're in a home and people tune in all the time. i love every one of them. dagen: what do you think it says about people in this country wanting to be their own boss and be there and start their own business? >> the show works on so many levels because it hits people in all different ways. it lets people dream and let's the buyer at home -- i'm thinking real estate now. it lets the viewer think, i have
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an idea or i could do that but what it does more than anything is encourages people and if there's one thing in short supply, that's encouragement in today's economy. dagen: i'm curious how involved you are in these businesses that you've put money in. >> i didn't expect to be involved. i expected my money to be involved but guess what? the cakes business. daisy cakes. >> what a salesman. the reason that does so well, she's a phenomenal sales person. boy, can she bake a cake. daisy cakes.com. everyone who buys one will buy another 10. dagen: it's getting over the
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hurdle. >> she's a charm and the cake is an extra. dagen: let's talk about housing. look at all of these investments on the show. would you be a buyer of housing now? >> oh, listen. most importantly i wouldn't be a seller of housing right now because two out of three markets in america are shooting through the roof. some of them are phenomenal numbers like 35% in phoenix. this is the time to hold if you possibly can and a time to get off your bum and get out and buy something as quick as you can. bottom happened about six months ago. dagen: in terms of holding on to real estate, you do think they're going to keep shooting higher if you're telling sellers to hold off. >> this is fortune telling and i'm not always right but let me tell you. there's not a single black cloud on the horizon out there. everything is positive for the market.
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shortage of housing, half the inventory we had. cheap, cheap money. it's like the housing market is a runaway train fuelled by cheap money and all the pent up demand for everybody that should have gotten off the fence six months from now. dagen: do you sell your properties now? >> i would never sell the properties. this is going back two years ago. i own a lot of problem in the new york city region and i just couldn't do it. thank god i didn't. now all of them are positive within four months. how did that happen? it's a miracle. it's like a real estate miracle. everything exploded. if i had sold it, i would be sicking myself getting up every morning. dagen: i get up at 2:30, i might have you beat on that. >> where do you get your tan? dagen: i will tweet where i tan. how is that?
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>> give us some insight. dagen: and i hate the 10% tanning tax. >> i don't feel sorry for you. dagen: we never want anyone to feel sorry for us. it's the hallmark of what i do. "shark tank" friday nights at 9:00. connell: it's not all natural? dagen: you shut up. it's not like you're not in the same room. connell: that was the best interview ever. boeing taking another step to get the dream liner going again. we'll get to it. here is the plane on the ground. then tim cook, the chinese were not happy with the customer service they were getting. we'll tell you what's going on over there as we continue on "markets now." here's another one for you. treasury yields today well below 2% on the 10-year. we'll be right back. she's always been able to brighten your day.
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connell: we're back here with an update on the 787 deem -- dream liner by boeing. they had to work on the battery
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problem. there was a test flight yesterday but not for the battery problem. this one was designed to check the system upgrades on the plane. try it again. let's take a look at the stock today and see where boeing is trading. just barely above 85 bucks, down just a little bit. dagen: i'm always tempted to say it like the guys on the british version. tefla plans to report a profit after the luxury sedan topped expectations. gary is editor of boxcar model.com. there's a limited one for the electric fancy cars. >> pretty big limited market. it's actually outselling the chevy volt and the aninissan le. i thought the volt was going to take off this year. so far it hasn't.
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that's the chief version of the model. but they're selling $80,000, $90,000 cars. dagen: you can argue with me, please. i say not shocking, though, because wealthier people in this country, kind of younger tech nerds are early adopters of this technology, are they not? it will take more time to get the lower end car buy other board with it. >> but their sales are starting to accelerate. you figure everybody would have bought the cars last year. they're starting to come on market now and again, if they thought it was going to trickle down a little more, they would have kept the 160 mile range version available but right now they're not even going to make that. dagen: that's what's interesting about the cars. you can essentially pay for a bigger -- basically a longer battery life or a longer driving time, correct? and it's built intu the car as it exists. you can pay for the quick charging. is that how it works?
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>> the model s, you get it with a battery that goes different mileage and it starts at different prices. they only have 4% of their reservations for the 160 mile version. for the people that put their $5,000 down on the reservation, they'll give them the 60 kilo watt hour car but limit it with the software to only go 160 miles and if you want that unlocked, you pay $10,000. dagen: there's a super charging option on it. >> we heard about the super charging network they're building so you can go on long trips with it. that's an option on the lower end cars but what they've been doing is actually installing the hardware for it on all the cars they're building and later on if the owner decides they want to activate it or someone who buys the car from them as a used car, they can have it activated for
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like $2,500. tonight at 5:00 p.m., they have a game changing announcement. dagen: what is it? >> no one really knows. he said he's going to put his money where his mouth is. some say they might be having a charging network from l.a. to california and others say it's going to be a smaller model that will sell for $30,000 we've heard. it's really a mystery. dagen: thank you so much. be good. i've got my car key in my pocketbook. i'll show it to you later. connell: there you go. let's go back to nicole for another edition of "stacks now." what do you have for us this time? >> looking at those, ford and general motors. these european auto makers better be a little scared because ford and g.m. doing well. you can see the stocks are up today. ford up 1.3%. g.m. up a quarter percent. general motors march sales are up month over month. ford up nearly 6% as well. for ford you saw the fusion doing well, the escape did well.
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lincoln was the weak link for ford. that was something that we watched, certainly, and when you looked at general motors, we watched that one on the move to the upside, up about 6%. it started in the red territory. dow jones up 93 points. highest ever for the dow on this day and right now the s&p 500 up as well. back to you. connell: thank you. dagen: newest celebrity coach in college basketball is headed west for a big fat payday. connell: big time compared to what he was making. we'll get to that and apple examine much more to come. take a look at the winners today on the nasdaq. with the spark miles card from capital one,
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dagen: apple trying to save face and one of the fastest growing markets. connell: here are the details on that. what's happening? >> well, it's not often we hear tim cook or the company of apple making any sort of apology, essential -- certainly on a world stage. china has overtaken the united states in the last quarter to become the biggest market in terms of smart phones and so when it has a problem with apple, apple is going to come grovling back and that's exactly what tim cook and the company did in a statement on the apple's china website. tim cook saying, quote, we recognize we have much to learn about operating and communicating in china. we want to assure everyone that
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we bring the same deep commitment and passion to china as we do to any part of the world. take a step back. the issue is that apple has been under attack in the chinese media when cctv has been attacking apple for policies and procedures, specifically the warranty policies accusing the company of treating locals as second class citizens. cctv waged similar attacks on other u.s. companies, including k.f.c. as well as hewlett-packard and citigroup said that recall a similar campaign hit hewlett-packard hit in 2010 leading to a 50% reduction of their pc share in china. this would equate to $13.1 billion or $3.62 per share in terms of e.p.s. this is a big dollar figure and that's why apple is crawling back to china right now.
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connell: that is a big dollar figure. if you've been watching ncaa tournament as well. you know that florida gulf coast became the darling of the tournament this year. coach andy enfield just accepted a job as the head coach out at u.s.c. yeah. southern cal. he was making $157,000 a year at florida gulf coast but the espn report says he has a six year deal now that pays a million plus per year. a pretty big difference. dagen: that won't buy you jack when you're living in los angeles. not with a wife who looks like that. connell: he's been married to his fine wine who used to be a model and he lived in florida. big difference, $157,000 and over a million dollars. dagen: but it's l.a. you've got to go out, have the car, keep up appearances. biggest and most likely
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controversial city to date. a judge ruling in stockton, california can officially go bankrupt. connell: what does that mean to lenders of the city? >> good to be with you guys. i mean, this is real a contentious issue. issue is whether or not stockton can take do you know what? you have to take a hair cut on the pensions that you want to pay out to state -- excuse me, to city workers. here is what's important what the judge is saying. here is what the judge is saying in this case. he's saying that this is not me. there's potentially a serious issue involving calprs. the creditors, wells fargo, frankland funds took an 80% hair cut and calpers did not get touched. now, here's the other important
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issue. when they go into bankruptcy court, u.s. law could trump straight law and that means in the plan of adjustment, calpers does take a back seat. they do not get favored status in bankruptcy law. that's why there's talk this could hit the supreme court, that the supreme court may need to weigh on this. other part of the fight is very important. calpers could say stockton already wiped out health benefits so they may have some leverage there but here is another thing. calpers is interested in other cities. both cities have basically stopped paying calpers. riverside is trying to file bankruptcy. calpers is trying to stop that so this is turning into a nasty fight on the city level and whether calpers gets bankruptcy court could set a precedent for the rest of the state of
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california. back to you. connell: liz mcdonald. good stuff. that's a big bankruptcy out there. call this one a no brainer. president obama asking congress for $100 million to map the human brain. no brainer? human brain? that's where they're going to spend the money. greg wants to know where the budget is. dagen: you might see former house speaker newt gingrich walking around with the goofy google glasses. connell: stop. dagen: i just love this. do we make that graphic up or -- we did make it up? it looks awesome. more "markets now" after this. you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪
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what's the "new" in the new new york?. to enjoy all of these years. a new property tax cap... and the lowest middle class income tax rate in 60 years... and a billion dollars in tax breaks and incentives. new opportunities for business. over 250,000 new private sector jobs were created over the last two years. and 17 straight months of job growth. with the most private sector jobs ever. lower taxes, new incentives, new jobs, now that's news. to grow or start your business in the new new york visit thenewny.com dennis: dollop almost 100. shape noon eastern time. coming up, car sales, one of the things that are running up the
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dow at this hour. up 97 points just off session highs. g.m., chrysler and ford reporting the best march sales in five years or more. the good times for all for these markets are going to continue to roll on. dennis: no brainer or is it? president obama calls on congress to spend $100 million to map the brain. but greg is here to say the president's budget is dead on arrival in congress. cheryl: why you may see newt gingrich walking around with these strange looking glasses. going to get the paparazzi on that one, dennis. dennis: yep. nicole on the floor of the new york stock exchange, rally, baby. >> what else do the glasses do? are they just glasses or something more? rally, baby, indeed. if you're a beau out there, you're glad to see stocks up.
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the nasdaq up 3/4 of 1%. s&p 500 up over a half a percent as well. certainly the requirement is a good one on wall street. the dollar is stronger. retailers, drugs, banks, all indices are to the upside. the transports are pulling back. oil services also with up arrows. up arrows with the exception, really, of hewlett packard. and that's on a goldman sachs sell rating but you're seeing a lot of names on the united health care as is humana in the s&p 500 because of news by the government. many of the names are hitting multi-year highs as well. so a day out there that's great for the bulls. back to you. cheryl: thank you so much. and health care one of the best performing sectors in the first quarter and sicking off the second well. see you 14 minutes from now. dow is continuing today. it is hot. next guest says the markets have
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enough fuel left in the tank for a long-term rally on three big drivers, three things here. u.s. energy revival, durable manufacturing and the rebound in housing. john burns, c.e.o. joins me now. she mentioned oil services, john, nicole did from her report from the new york stock exchange and we're pushing ahead of saudi arabia. is that why you're so bullish on energy? >> for a couple of reasons. primarily what it does for the rest of the economy. with the entrepreneurial spirit and technology that's really led to vast resources that we can't find imaginable 10 or 15 years, it helps manufacturers, the american consumer. so those are all great drivers for our economy. as we look into the future, we should be and can be much less depending upon foreign sources. cheryl: i want to get your take
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on some of these new stocks we're seeing. nicole was just mentioning some of these big names and united health care is one, johnson & johnson, pfizer, coke, big names we've seen moving in the first quarter of 2013. the reason i ask you this is because overall, when we looked at manufacturing data, durable ggods orders coming in, some that far da -- of that data was little murky. what do you see happening right now? >> i think part of that data that you talk about really shows that we are recovering and having slow growth but i would say that the expectations in general are so low, these are relatively easy hurdles for us to hit. so as that affects stock prices in general, broad based, that leaves a lot of room higher over the quarters and years to come.
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cheryl: and we're seeing home builders have been doing well. you like that group as well. you have a couple of interesting picks and they are outside of the united states, if you will. that's where you're seeing growth. first pick is d.f.a. so this is small cap stocks but international. non u.s. small cap stocks. do you see that group doing better than u.s. small cash this year? >> oh, sure. all things being equal, investment returns are inversely related to the prices that you pay for the profit associated with those firms so right now, international small value companies are trading for about 75 cents of book value, of actual book value of the companies. that's vastly different than small cap or any domestic stock in general. so on a relative valuation basis, we absolutely love that as a portion of our portfolios. it should do very well. cheryl: the other thing so interesting about the small cap value is also the fact that one
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of your other picks is van guard. it's international. home builders the big star of 2012. you're saying let's go overseas to make some money. >> yes. i think there are two different issues that you bring up. we can talk about both but specifically, international real estate has been very depressed for awhile and not too long ago it was trading at about, you know, 90 cents on the dollar for book value but it currently has a 5% yield. real estate should be able to provide a yield and have a little inflation kicker, i.e., prices and yields over time should rise with inflation. so an investor might look at a 5% yield and that's a very attractive investment, particularly relative to where many investors are looking for income, such as bonds. that could be a fantastic addition to the portfolio. cheryl: and so many say that the bond market overall this year is something to shy away from.
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there you go. john, thank you very much. good to have you on the show. >> absolutely. thank you. dennis: president obama asking congress to spend $100 million next year to start a project to map the human brain. >> the budget i will send to congress next week, i will propose a significant investment by the national institutes of health, darpa and the national science foundation to help get this project off the ground. dennis: mapping the human brain. sounds great but we don't have a budget from the president. greg says once the president does produce a budget, it will be dead on arrival and he's here from potomac research group. thank you for being here, greg. the president wants to map a brain but meanwhile, congress will not give him what he wants? >> no. as somebody who has had relatives with alzheimers, i think it's a worthy cause. but on the bigger issue of the budget, you're absolutely right.
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i think that it's dead on arrival because the president will produce a budget with big tax hikes going nowhere and lots of new infrastructure spending that's also going nowhere. dennis: and you have to wonder what that means given the effect of the furloughs taking place in the budget sequester. now, you see the budget deficit continuing to shrink and more spending cuts to come. >> it's the least depreciated story in washington. budget deficit is falling and it's falling dramatically. people think i'm medicating but it's true. the deficit i think in the next year or two will shock people by how much it's falling and there will be more spending restrantd in a new budget deal this summer to deal with the debt ceiling. dennis: i wish it could fall on economic growth that brought in tax money. what happens with the fed and the loose money policies in the
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meantime given your outlook on the budget and deficit? >> we're telling our clients that there will be a serious discussion in the june fomc meeting that might pare back that $85 billion they add every month to balance sheets. it could go to 40 or 50. a lot depends on economic data between now and june. dennis: i think as wall street we have a very unkind reaction to that if the fed were to start taking back even a tiny bit because overall, the economy, a lot of people think, is still wobbly and it's going along on artificial fumes. do you think the same thing? >> no. i disa grow. here's my quick take. i think we'll have a pleasant surprise in the first quarter g.d.p. despite washington, despite the payroll tax hike, despite sequester. we'll still have decent growth and because of that, the deficit will fall and i will also say some of the fall on the deficit is going to be because economic
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growth is a little better than expected. dennis: you know, if we could just sort of push the spending debate off of the front page and worry less about the deficit, that might allow us to feel better because every time we hear governments start worrying about that, we worry there's going to be deeper cuts and we start to get a little insecure about economic growth, don't you think? >> yes. but this time it's entitlements. i think that's the big focus this summer and i'll tell you one thing. we'll not hear much about the credit rating agencies. they'll go away because we're making progress. >> exactly. okay. and lastly, what are you thinking about the brain research project? i just want to point out as much as everyone applaudes, $100 million in government money, government wasted millions of dollars trying to map the gnoe and it was only a private effort that he really got things going. why do we need government money for something like that? >> you could make a strong case that private money would do it
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better, more efficiently, more quickly but for n.i.h. which is going to be having this grant, they're still looking at pretty big cuts the next year or two because of sequester. dennis: thank you for being with us today. >> you bet. dennis: good day, sir. cheryl: take a look at the auto sector. a lot of big names that you know are soaring. march a strong month posing the biggest figures in five years. dennis: jeff is at a ford dealership in i will toil break down the numbers. >> it is the best single month of auto sales since 2007. i'll tell you, the sun is shining brightly in chicago. these are ford focuses and on the other side, ford escapes and they had their biggest sales month ever for those two vehicles. i want to take a look at all the auto makers if i can. let's put the numbers up. g.h. had a good month.
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toyota not so much. the economy. it's really driven this. >> it has. we are really, you know, looking forward to all the business that the economy is definitely on the rise, especially here. it's up and we're looking to sell more cars. >> take a look at the breakdowns on the big winners. some of the g.m. brands. cadillac up almost 50% this month. buick up a lot, too. the ram truck brand for chrysler up about 25% and dodge up about 15%. they did well, too. who were the losers? llncoln. the lincoln folks not get being any traction yet. they were down 22% in the month. jeep has had a problem making enough jeeps. chrysler down 2% and chevy was flat. >> you know, lincolns, it's a tough market right now for being a lincoln dealer but on the other hand, ford is really on the rise and we're looking
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forward to big things this year. >> this used to be a huge auto row in chicago. you sold how many? >> out of all vehicles on this row, i sold about 1,500 automobiles before everything came down. >> 1,500 per month? >> yes. 1,500 per month. >> still going strong and i'll tell you, when you go through a recession like this, weak sisters get weeded out and the strong survive. cheryl: thanks very much. appreciate it. dennis: one car maker is on the slide. the electric slide. fisker is furloughing all its employees. cheryl: credit card companies are doing quite well but better news is how many people are making those car payments on time. there's a sector for you. as we go to break, take a look at oil and in particular, oil has been doing better. $96.46 right now. we're pushing 100, guys.
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cheryl: you ever got a lot of names. proctor and gamble, j & j, united health, pfizer, coca-cola and dow up 96 points and who else watches the dow? stocks now, nicole is on the floor of the new york stock exchange. you're looking at apple and big news. not good news for apple today. >> right. big news, not a 52-week high like other names. on the contrary. what's interesting today, apple has turned back from the green earlier this morning. you see it up almost 2% right now but the big news is that goldman sachs dropped apple from the conviction buy list. they kept the buy rating. they changed the price target. they reduced it to 575 from 660. but a couple of things to note. first of all, they also
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downgraded hewlett-packard to a sell and this is a cautionary tone concerned about demands. we're focussing on apple here. here's the five-year chart. question people are asking today is why and where was goldman sachs from $700 last september down to $428 yesterday? and now they make the call. so, well, they say it's a buy rating. they've taken it off the buy list. they're still hot on it but not on the conviction buy list. cheryl: that company cannot catch a break. i swear. snoip dennis: charles payne. >> let me set the stage for you guys because this is a spot that's been hammered in part, what i think is a campaign by the shorts. in september they reported medical device malfunctions so as a way of changing it, they reported more malfunctions and everyone leaped on that particularly the shorts and people that had an ax to grind.
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the company said most of the changes had nothing to do with the system and none involved injuries or deaths. the stock has come down a lot of. intuitive surgical is the gold standard in the industry. if you were going to have surgery tomorrow and if there's a chance you would have less necessitied for a blood transfusion, less risk of wound infection, less pain and a faster recovery, would you say, oh, i don't want that? cheryl: i'm thinking of surgeries i need right now. >> people are getting operations, they really like the less pain and faster recovery part and that supercedes money if they can afford it. the point is this is an amazing jargon. they fight for these machines within hospitals themselves. let the dust settle on this. when this stock rebounds, i think it's going way north to $600, maybe $750 the next year or so. dennis: medical makers got hit
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with a tax on revenue. i had equipment maker c.o. tell me that was going to devastate profit growth on the the company. one house to the other in congress voted to lift the tax and if that goes through, i think this guy could left. >> all of them could benefit from that and we saw what the medicaid and reimbursement for some of these, you know, hmo's, these stocks are going through the roof. absolutely through the roof. this is one, intuitive surgical, i love it down here. i will have the caveat it's a little volatile at this time. cheryl: north korea making new nuclear threats. fox news minute is coming up. dennis: and making credit card payments. peter barnes is getting reaction. >> that's right. after a surprising new report from the american bankers association, we're talking to families about whether or not they're making their credit card payments on time. we'll have more on that story
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>> 22 minutes past the hour. i have your fox news minute. north korea is back at it. country is restarting a plutonium reactor and increasing
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production of nuclear weapons materials. that reactor was shut down in 2007 as part of disarmerment talks. remember the seinfeld character, the soup nazi? the actor's name is larry thomas and he's upset with the gun manufacturer. they used his image on a campaign against new york state gun laws with the slogan, none for us. the company has agreed to remove his image. with more major league teams opening the season today, yankees lost yesterday to the arch rival red sox 8-2. yankees had $98 million of payroll on the disabled list for the opener. according to the "usa today" report, 16 teams have total payrolls of less than $92 million a year. that's the fox news minute. now back to cheryl and dennis. cheryl: good excuse. i'm not sure i know about that
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one. more americans are making their credit card payments on time. quinn -- delinquencies in more than 20 years. >> looks like we might have all learned something from the financial crisis or we might be scared of another one. according to the american bankers association, and a new report out today, more people are making their credit card payments on time. payments of more than 30 days late fell in the fourth quarter to the lowest level since 1994. about 2 1/2% of accounts were delinquent, continuing a trend that began in 2009 as you can see from the chart during the crisis and well below the 15-year average of about a 4% delinquency rate. >> i think the fourth quarter of last year was a strange quarter in the sense that everybody was worried about the fiscal cliff
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and what that meant and i think that led to people even being more cautious, making sure they have a financial buffer. >> joined now by a family from north carolina, the edwards' family. don is a landscaper, sara is a teacher and this lady in the middle, linda, claims to be the grandmother here but she can't possibly be. she must be a sister or something. but don, you said that you are being more cautious with your finances and you are doing more to make sure you make your loan payments and credit card payments. what's going on? >> we got into a little financial problem two years ago and we're more aware of it now. we don't want it to happen again. >> with that we're going to let you cut out and see some museums here and pull out your credit card to make sure you get presents for the girls. edwards' family, thank you very much for joining us. back to you. cheryl: all right. looks like a great day on the national mall. thank you very much.
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dennis: illinois has the fourth highest minimum wage in the nation but now governor pat quinn is looking to hike the minimum wage. will that hurt job growth? general council of the merchants association talks about the fight against that hike. cheryl: jobs in the cloud. we have a guest ahead who says the cloud computing revolution is not taking away jobs but creating them. dennis: and why newt gingrich may soon be walking around wearing these goofy glasses. cheryl: s&p 500 may be making another run at a new closing record. we shall see. as we go to break, take a look at names that may take the s&p 500 over a new threshold. we'll be right back.
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dennis: the bulls charging up wall street fueled by car sales and higher health insurance. jobs in the cloud, we have a guest who says cloud computing creating employment, not taking jobs away and why plug-in car maker may soon run out of power. cheryl: it is the bottom of the hour, stocks now every 15 minutes, nicol nicole petallideh a new intraday record set for the dow. this is a good day for stocks. nicole: there is a lot going on, cheryl, indeed. recent news, tj maxx. announcing they're raising the dividend is 26% for the stock dividend setting quarterly dividend 1.45. sorry, 0.145 per share. that is obviously worth noting.
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big news sending the dividend 26% increase. i have united health care, that will be one, also johnson & johnson. united health care up about 6%. johnson & johnson up about half a percent. other names in the dow jones industrial hitting multiyear highs. a lot of the health insurers have healt helped lift the markt overall with the government and others. one of the reasons you're seeing united health. pfizer, coca-cola, other 52-week highs, multiyear highs, and we have been watching that. the s&p 500 set an intraday high. has not broken the all-time high we set back in october of 2007, but certainly getting closer and closer. of course already surpassed the closing high it set back in 2010.
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dennis: thank you, nicole. the sky is the limit. our next guest says the next big frontier for the jobs is clouds. joining us from indianapolis. thank you for being with us. the good news is 14 million jobs by 2014 in the cloud, but i read only 1.2 million in the u.s. and canada. why is that? >> cloud computing is here to stay. a powerful trend great for software i and business and gret for organizations using cloud or software or service platforms. we are a shining example of an organization over the last decade creating 2000 jobs for the leading provider of software service helps organizations like e-mail, mobile and social media. creating jumpe jobs must agree l over the world. dennis: what percentage was in the u.s. and offshore? >> strong majority in the u.s.
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our headquarters is in indianapolis. i think that is one of the powerful tenants of cloud computing and software services, organizations can really be created anywhere. a strong work force, strong universities and creative inspiration that drives new ideas and commerce and jobs. dennis: in this era of internet and fiber optics enabling billions of bits to go around in seconds, isn't there still some advantage to having your cloud service people near to you rather than the other side of the world? >> i think it is important when you think of data centers, operating to have a concentration near the corporate headquarters location, but also important to distribute the cloud computing capability all over the world. we are in an organization of multiple data centers, connecting organizations to consumers in every corner of the world so ultimately cloud computing companies end up being very distributed.
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dennis: the cloud battle already over? wilwill it go to the big tech fs like amazon and google and ibm will go to the specialized firms in the cloud little more upstarts like exacttarget? >> we believe we are in the early innings of cloud services. it is growing very quickly and levels the playing field. large organizations have the same tools as smaller organizations, and the cloud is fueling an enormous amount of innovation and entrepreneurship. i really think cloud computing is a great normalizer localizing the playing field allowing smaller companies to compete against the largest organizations in the world. dennis: outthink the two biggest obstacles are not technological, just worries about security and a company convincing its own it department that core competency is something other than what the it department is doing. are those two obstacles lowering?
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>> they really are. cloud computing has reached a high level of adoption allowing it departments to focus on strategy rather than worry about data centers and servers and managing their own infrastructures. so we have seen over the last decade as we have been building targets, a growing warmth and receptivity of solutions from the it department allowing the organization and department to focus on more strategic areas of the business rather than managing their infrastructure. in our case we're selling to marketers and also to it and is a win-win for both groups. dennis: thank you for being with us. >> my pleasure, thank you. cheryl: we showed you this earlier on in the show. you may soon see newt gingrich walking around looking like not really newt gingrich. among the winners of the lottery the first to where google class. having a web rejected in front
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of them on the glasses. actor neil patrick harris, soldier boy and others picked to be on the shortlist of users of google class. look at the stock. you cannot make fun of a one-year chart of google up 24% over the last year. dennis: you end up with them in that kind of a lottery, sure it is a lottery. cheryl: they must be doing something right. dennis: call this one electric slide, electric cars slide. electric carmaker fisker has furloughed all of its staff putting them on unpaid leave considering bankruptcy. the company makes high-end plug-in sports cars popular among celebrities like justin bieber. but they haven't produced a car since july, facing april 22 deadline for a loan from the u.s. energy maker.
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fisker has now even opened to selling the company in pieces including rights to the electric technology. tesla is up at reporting its first profits. and elsewhere, jimmy fallon and be about to replace jay leno, but why the two are singing together in our media minute. cheryl: china set to overtake the u.s. as the top travel market. how you can actually catc cash n the hotels and airplanes. dennis: first, a look at the 10-year treasury.
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tracy: i'm tracy byrnes with your fox business brief. your study orders rose 3%, the biggest jump in five months. nondurable goods were up 0.8%. orders for core capital goods like machinery and equipment actually fell 3.2%. unemployment in the euro zone hit an all-time high in february. the jobless rate across the 17 eu countries hit 12% for the first time since the euro was launched in 1999. federal court judge in manhattan
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is questioning citigroup's plan to settle. a shareholder lawsuit accusing the bank of hiding billions of toxic mortgage assets. the judge wants lawyers on both sides to address several issues of a fairness hearing on april 8 including $100 million in legal fees. that is the latest from fox business, giving you the power to prosper.
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cheryl: business travel in emerging markets flying high expected to grow to nearly 14% in china alone this year. mike mccormick executive director of the global business travel association and you found in our research united states they will fall to number two within the next couple of years. we surprised by these findings? >> not surprised, but it is a dramatic moment for business travel, but also for business, global business at large. yoyou're talking about a changen
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who is the leading business travel market. it will be china. and that is a situation where we will likely have happened and will never change back. cheryl: a 14% jump is pretty good. beijing international airport will take over atlanta as the busiest airport in the world. many of the biggest airline companies would follow on the business network as stocks and companies, they have been pushing those direct routes to beijing out of the major money centers like new york and los angeles. do you think we will see those continue? >> yeah, and those claims are mostly false. you have over 500 new construction projects with hotels in china alone. happening right now. you have 100 new airport projects on the books in china in the next 10 years. so you have a massive infrastructure happening to try to keep up with demand.
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cheryl: we're looking at a lot of the stocks on the bottom of our screen right now hitting profitability, but it is overseas travel, which i find fascinating. hotel a big expansion looking to capitalize on the chinese traveler. not just a business traveler, but that domestic traveler going around overseas and spending more and more. did that factor into your research? >> it certainly did. business travel drives business growth. with that comes expansion, the growth in the economy, and tourism follows as well. but you're looking at a change in the marketplace and the global landscape that will never change back or likely never change back. cheryl: trip volume is down 1.5%. do you think the business confidence is falling overall in the unit takes where do you think that is a sign corporate america is pulling back on what they want to spend on business travelers, especially international travelers?
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>> is a few dynamic haapening here in the u.s. our job growth overall like you said, little over 5%. trips are basically flat or slightly down, although we are improving our forecast, or will be in the coming weeks improving our forecast for the rest of the year looking at maybe slightly up or flat year over year. you are seeing a change in the way people travel in the u.s. there has been a growth in outbound international travel, but domestic trips are flat, slightly down. companies are always looking for ways to get more out of the same travel, dollar out of the same trip. more multi-segment trips where travelers are trying to get more out of their one trip an than ty would in the past. cheryl: mike mccormick, interesting research you all did. it will affect many of the sectors we follow here. thank you. >> sure thing, thank you.
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dennis: corn prices have been on a bipolar ride. phil flynn at the taste of the cme. phil: you want 400 million reasons to be short corn? but how many more bushels the u.s. department of agriculture found when they shocked the corn world with the inventory report. since then, the biggest two-day drop in the corn market since the mid-1990s. the whole world was looking to the u.s. thinking we had a shortage of corn, and all of a sudden we have 400 alien more bushels than the world had thought. and that is impacting buyers around the world. are they going to wait for the u.s. prices to get more in line with what is happening in south america, or will they wait for the u.s. crop? today going down for the third day in a row, the corn globe is still shocked. back to you, dennis. cheryl: thank you. stocks every 15 minutes.
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nicole is on the floor at the new york stock exchange. really exciting market day. i know you're looking at the big movers right now. nicole: that is right. it is a big day especially if you are eigh a bull out there. it was moving up 3.7%. you can see. verizon and at&t are gaining some headlines, and that is because, in citigroup saying what they thought, coming up with the fact both verizon and at&t may make a joint bid for vodafone. that would be the biggest merger. ford was a winner, gm fell short, but gm and chrysler really beats the street. gm is doing well, but the big
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picture is the ford fusion and escape are doing so well. urban outfitters and several other names, american eagle, gap, under armour, all with a perilous. cheryl: what a dividend. thank you so much. dennis: "media minute" time. is it legal to grab the march madness final four out of the air and sell it to subscribers without paying cbs a cut? yes, for now. they deliver broadcast network shows to cell phones in new york. expanding to 20 other networks. the court refused to issue an injunction against the service for copyright infringement. that case now goes to trial. the unfolding saga over nbc moved to push jay leno into retirement making way for jimmy fallon, the two hosts showed america we can all laugh about it.
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this is a musical ♪ ♪ tonight ♪ tonight ♪ who care who hosts "imus in the morning" tonight "imus in the morning." dennis: that is much better than what they tried, but it is mutual. jimmy kimmel on youtube, they have 1.5 million subscribers. jimmy fallon has 200,000. jay leno has only 20,000. cheryl: good for them trying to make a joke out of the whole thing. seattle's boeing tried and the dreamliner nightmare. coming up in the "west coast minute." dennis: take a look at today's winners over on the nasdaq.
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cheryl: time for your "west coast minute." seattle boeing testing the dreamliner again flying over the west coast. the company says the test was not focused on the battery problems that led to the grounding of the dreamliner back in january. the plane is still sitting idle around the world. boeing stock up. right now up $0.23. arizona-based first solar buying a power project in southern california. construction will begin this year, the plant should be online in 2014. the first solar system planet could power up to 60,000 california homes. the stock down $0.30. and silicon valley recently passed law called the money transmission act is coming under fire.
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the 100s to regulate financial firms being applied to small tech startups that create mobile payment technology. one company already shut its doors and another has filed suit against the state claiming discrimination. that is your "west coast minute." dennis: speaking of west coast, stockton, california, bankruptcy. what does it mean for wall street pension and cities? >> it is good to be with you. these pension plans for the stockton government employees were called lamborghini plans because they were so rich and lucrative, you could retire for life with 80% or more of your pension including your dependence being on the plan. in this bankruptcy, wells fargo, franklin funds and other creditors are angry. they had to take up to 80% haircut on the lending to the city of stockton, the lending went toward building a new sports arena, city hall
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building. the city officials said we can't cut our pension, we don't want to trigger a mass exodus out of the city of stockton because most people like the pension, and also calpers is weighing in heavily here. this case could head to the u.s. supreme court. basically the judge in the bankruptcy case says yes, calpers has a serious issue because under u.s. bankruptcy law the calpers does not get favored status. it is in there with a bundle of creditors, so calpers could see a big cut here. the other problem for the creditors in stockton. calpers says listen, stockton cut their benefits so that gives calpers leverage in this fight. this is basically u.s. law versus state law. i will tell you something the other big points, san bernardino, compton, other cities cutting payments to calpers.
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calpers got a big fight with it, and calpers is fighting riverside which testify of bankruptcy. calpers is seeing fights break out all over the state over the pension fund it is saying it is protecting but the city officials say it needs but creditors so those are really lucrative and rich. cheryl: this could go to the u.s. supreme court. thank you very much. quite a story. dennis: finally subsidies going to bankruptcy. when we come back, the mother of all crashes. former reagan budget director doomsday market call. that is next. cheryl: that story continues on today. and lou dobbs on the growing north korea threat. the country says they will restart a nuclear reactor. dennis: washington residents protesting taxes. melissa and lori are next.
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melissa: wel welcome. i am melissa francis. lori: i am lori imac lori rothman. the scathing rebuttal, the scathing rebuttal in its. melissa: north korea ratcheting up the rhetoric saying it will step up production of nuclear weapons to real. should we be worried this time? lou dobbs weighs in. lori: and wonder what steve jobs would think about this one. melissa: when minimum really means maximum. businesses fighting back against the call for hiking the minimum wage to $10 per hour, that would be the highest in the nation. i wonder how that would impact on
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