tv Markets Now FOX Business April 17, 2013 1:00pm-3:00pm EDT
further away from 15,000. the nasdaq and s&p shedding 2% or more. we are tracking every move these markets are making until the close. melissa: oil prices tumbling below $87 a barrel, another four-month low. john kingston will tell us how low oil will go. lori: a letter sent to president obama was poisenned with ricin, parts of capitol hill shut down because of suspicious packages and letters. the buildings are just been cleared. latest ahead. melissa: the senate in the middle of the night, literally, boost the u.s. economy as supporters claim it will? lou dobbs is here. lori: let's update you on the markets as we do every 15 minutes, happening fast and furiously. we have the first check in this hour with nicole. what's the word on the floor among traders there, nicole? >> a couple things to note,
obviously, we were selling off, back looking at what we looked at on monday, monday, we dropped 265 points, below even those levels. the vix, fear index, up 20% easily showing the nervousness in the market. selling across the board, particularly in economic sensitive areas like energy and technology, and apple, for example, below $400, and we'll is more on that throughout the show. the one thing to note is the volume is not as heavy like we saw on monday. there's less volume and less conviction to the selling; however, the selling is happening across the board. there's economically sensitive areas like financials bringing me to bank of america. reporting their quarterly numbers, look at bank of america. this weighing on the dow jones industrials, but more importantly, bank of america, itself, down six and a quarter percent. financials down with it, and missed estimates, the big story, despite profits qaw drupe --
quadrupled for the quarter. sector to sector, defense sectors doing better, utilities, health care, and telecom. back to you. melissa: thanks so much. lori: fbi confirms preliminary tests on a letter sent to president obama tested positive for ricin. rich edson has the latest. rich, when you hear news like this coming after the bombings in boston, you understand why the fear trade is in play here on wall stroat. >> absolutely. in washington, d.c. as well. this is the nation's capitol in a heightened state of sensitivity this after three suspicious packages now all clear from u.s. senate office buildings, a report we had brought you last hour. the u.s. capitol police have taken care of the packages in the senate office building that are now all cleared. the letters, one sent to the president of the united states, the other two a u.s. senator. this from the fbi saying filters in a second government mail screening facility, preliminarily tested positive
for ricin this morning and mail from that facility is tested. there's no indication of a connection to the attack in boston. also, u.s. senator carl levin, a democrat of michigan, reports a suspicious letter at his office or one of the offices in michigan. we are focusing on two letters that preliminarily tested positive for ricin, one to wicker, one to president obama, and the first time, the white house is commenting. >> there was a letter sent to, addressed to the president that, at a off-site mail facility, was noticed to contain a suspicious substance and tests were undertaken. the fbi has the lead in that investigation, and of course they said in the statement they'll be conducting further tests to determine what the nature of the substance is. >> more about the letters here, one to the president, one to the senator, both preliminarily
testing positive, and an off-site place and workers who handled this, the fbi says show no signs of infection thus far. this was in the letter, both letters to the president and the senator. in it, it contained both enveloped are postmarked from memphis, tennessee, on the 8th of april 2013. there's identical words including the phrase "to see a wrong and not expose it is to be a silent partner to the cons wans," both signed, "i am kc, and i approve this message." the white house and officials contessing to work on, basically, much like federal authorities are to figure out what happened in boston, what's going on with the letters. back to you. lori: to reiterate, rich; right, no connection yet determined between boston and the letters. scary stuff this week. thank yous. >> yeah.
melissa: despite unexpectsedly bullish report from the eia, where does it go from here? let's ask john kingston, director of news at plat. you know the report at first glance looks bullish, and it did not work out that way. >> no, got the report last night, considered a little less definitive, but that jumped, and we have two steps, and no way oil rises in the face of everything else going on. there is a correlation that's not a one for one, and it doesn't go off track between gold and oil. you can imagine what gold is doing to oil. there's a correlation too between the dollar and oil in the short term. the dollar getting better against the euro. that's having an impact too. no way that a weekly api or eia report that comes back next week can be revived is going to turn that around. melissa: your organization, boots on the ground, a reporter in venezuela, that situation is getting inflamed now. >> it is. communicated with her this morning saying that, you know,
certainly there's -- said actually today was quiet whereas yesterday, it was not. her sources are saying that so far known of the oil facilities are affected by this. melissa: look at the pictures. we have on the screen now. it's not about the threat, but the fear of what's happening, about the fear and the threat and pictures we are seeing. the fact this is not having an impact on oil tells you how fundamentally weak the trade is now. >> the oil facilities are aways away, but there's some of the new government that's going to be somewhat weak, and you're right, it's not enough to boost it because there's this massive commodity selloff. city -- melissa: why? what's the basis? >> citi came out friday, commodities research group head by ed morris, one of the most respected men in the industry saying essentially the commodity's super cycle is over. that started at 99 when you're on the floor of the imex, with
the assumption it was going to go on for 15 years. melissa: peak oil was popular in the >> just everything, commodities were going to run for a long time. well, into about 13-14 years. if you start from, say, when oil rose, gold with the low two or three years later. the view of the citi now is the commodity superpsycher is exhausted. melissa: do you believe that? >> well, if you're just going to go up for a long time, just on the strength of a broad super cycle taking everything up. his point is not that everything's going to go down. the point is also that they are going to -- that commodities fall a little bit better towards rational evaluations. for example, in the last few days, the price of natural gas held up firmly in the face of this fall. well, you know why. u.s. production slumped somewhat. demand is rising for it. the fundmentals are going to pay. the whole idea everything's going to go up on this big wave -- melissa: feels like not happening. brent crude breaking down as well, oil sitting near 88, i
think, i was just looking. >> and brent is in tango now. melissa: where is the price of oil in the next month? >> i have to see the price of gold as a factor. melissa: okay. >> i think, too, this is driven down by the price of gasoline. the contract, a spot contract for gasoline blend stock fell almost 50 cents. i felt that was over done given demand figures, and it's been reversing a lot harder than oil has. i think they may have a ways to go to drag down oil. melissa: wow, bears in control here. >> no doubt. melissa: thank you very much. lori: speaking of bears in control, that describes the market place today. in particular, shares of apple, watching apple today as shares sink more than 5%, briefly breaking the $400 a share level. they have not traded below the level since december of 2011. the company is one of the top losers, in fact, on the nasdaq after taiwan biased newspapers
said suppliers are bracing for a 20-30% slow down in shipments in the coming quarter for the smaller ipad minis. stocks tumbling on concerns of corporate earnings and fear, the dow off 160 points, 14597. below 14096. melissa: first, how metals are trading, just talked about the break down in gold and how it's driving oil. it continues, down another half percentage point. silver and copper trading lower as well. copper hammered down 3.5%. we'll be right back. ♪ everybody has different investment objectives,
we're aishares core.fferent. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
melissa: time to make money with charles payne. you are looking at matel. >> the numbers good, worldwide up 7%. international sales up good. the interesting thing is all their traditional stuff, the core stuff we know were down, down 2%, hot wheels down 3 percent, fisher price down 7%. melissa: 7%? how is that possible? >> it's absolutely amazing. melissa: it's still everywhere. >> i don't know that that new generation of parents are not necessarily buying it the way. lori: what are they buying? >> you know american girl is hot. i'm sure you probably helped to contribute to that, up 32%. you know,ing the girl of the year was sage, the 2013 girl of the year led the way. monster high, i didn't know about this. melissa: i have not heard of that. lori: a hot show. the animation is unbelievable, the detail, the characters, crazy hair, outfits, check it
out. >> i saw a video, but it's all the kids of the famous monsters. there's like all the monsters, and dolls up 56% in that category. it's interesting because we have a company that -- melissa: wait, wait, wait, up 56% up what? a new show that was small and now -- >> you know, what's good about it is, well, you see what mattel that lost its way for a long time, made acquisition of american girl in june? 1998, a brilliant buy, now a monster high, the organic thing. it's a one-two punch. in stocks, hard to stay ahead of the competition without acquisitions and organic growth. that's good. a little slight controversy though to share with you at the mexican barbie. people are upset because she came with a dog and her papers. melissa: do we have a picture? here she is. she's adorable. lori: all the barbies come with
a birth certificate or passport. >> right. every one has a passport, but the height intensity of immigration right now in america, some actually were offended. there's a dog and papers, how typical can it be? a little controversy there, but other than that, mattel had a solid quarter. melissa: thanks for that. lori: fun in an otherwise very gloom and doom day. back to nicole on the floor of the new york stock exchange, stocks were in the red, 164, support levels, technical levels in focus to figure out if there's an and flexion point. >> hard to gauge it. that's certainly one thing we have to note that the dollar is something that everybody on wall street is following closely. the three major averages, techs hit hard with the nag #* nays -- nasdaq down 2%. the selling is broad based and
all to the downside, the dollar is ripping as the traders say here on wall streeting and there's, obviously, been a lot of selling and concerns in europe, and that also adds to selling in the states. an ipo today, fareway supermarkets, those in new york are familiar with fairway. the ipo up 30%, a $13 price at the upper end of the range trading as 1841, using the money to expand and build more fareway supermarkets. they were to have the ipo, but sandy came along, and, obviously, pushed back. back do you. lori: thank you so much. melissa: a near two-month high, a live update from the cme just ahead. lori: lou dobbs weighs in on immigration reform and mexican barbie. will it help the economy in the years ahead? how's the dollar? stronger dollar in the wake of the deep, deep loss for the stock market.
interest rates also a little bit lower here today as well as the classic flight to safety is underway. we're back after this. ♪ ♪ with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity option.. evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors
are choosing fidelity. now get 200 free trades when you open an account. and you wouldn't have it any other way.e. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough
for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
>> 20 minutes past the hour, your fox news minute. in just the past 60 minutes, the number of reports spiked of lawmakers' offices sent potentially deadly letters. fox news confirming authorities have been given an all-clear at two senate office buildings where suspicious letters were sent to members of the nation's congress. removed a letter from the hart senate building and envelope from the third and fourth floor of hart and russell office buildings as well. the areas are open again, but there's a suspicious item in west virginia democratic senator mansion's office at this time. his staff quarantined at this hour. meanwhile, the fbi confirming initial tests show a letter sent to president obama tested positive for the deadly poisen ricin. further testing required. earlier, a letter that tested
positive for ricin sent to mississippi senator wicker intercepted in a screening center. those are the headlines. we'll stay on the stories for you on the fox business network. back to you. lori: thanks as the situation is developing rapidlier at 2:38 eastern time, this morning, the gang of 8 filed their immigration reform bill on the senate floor. the bill would have begin million of illegal immigrants a pathway to citizenship as the wail=" supported the immigration reform to boost the economy. douglas holtz-eakin says, in part, millions of immigrants help congressmen sate for the united states declining birthrate. lou dobbs is here to weigh in and the other profound issues today. >> great to be with you. lori: likewise. >> first of all, we don't have a declining birthrate. what we do have a the strongest
natural birthrate in the oecd. just to get rid of some, and i like douglas holtz-eakin tremendously. he's an able economist and social critic, but talk straight here. there's any part to growth, labor, of course, and capital. what's left out of the discussion is, without question, population growth. we're dependent on a capitalist society on that and any other real form of economics, population growth. lori: right. >> what we have now is a u.s. chamber of commerce. we have a certain body of orthodox of the establishment represented by doug and his folks down in washington. he suggests that population growth is now the critical component because we do have
capital in unending streams now running into the economy. population growth is what is missing. this is their idea. we had 54 million abortions in this country. we brought in app estimated, as many as 20 million illegal immigrants, and, yet, we still have an economic problem. the best minds have got to do better than to say what we have to have are illegal immigrants in the country. it -- with this in view, why not bring into the country the most highly educationed, the most highly skilled people, the most deserving, frankly, in the world from all quarters. what we are committed to through this program is a decision to continue to bring in the lowest skilled, the least educated, imgrabts who will be years, if not generations in contributing mightily to a productive free enterprise seat. what we are seeing is the exploitation of immigrants and
cheap labor. we need a debate, a dialogue, and discussion about what we're going to do here. the head of the senate judiciary committee wants one hearing, now that's been delayed, maybe two for one of the moes important decisions that the american people and our representatives will make. in is not a simple thing. i understand the thrust of the republicans who are desperate for new mmmbers. they apparently missed the point that his his panic-americans voa 70-30 margin for democrats. lori: you mentioned the delay in the hearings caught by the acts of terror. do you think that causes ultimate changes in how immigration reform comes to be? >> i think whether or not it succeeds as public policy is dependent on how -- and rubio said so rush it through without
careful markups invites utter disaster. we can't afford more disaster, and we got to have an understanding as to what we are doing here. the american people are a generous warm welcoming people. that's why we have so many immigrants, more than any other nation on earth, but when you turn over a piece of legislation to a gang of eight saying that's it, it's done, and the american people will just like it or lump it, that's not how we do business, and it's a change in the country and our government, but i don't think we should tolerate. lori: lou dobbs, thank you as always, sir. >> great to be with you. lori: 7 and 10 p.m. eastern, tonight, jeff flake of arizona, gang of 8 member, joins lou to discuss this very topic, along with gun control currently considered in the senate. melissa: stocks falling off the second time this week and the vix surging again. live updates on the market next. lori: one fcc official says the
bond market has to be more fair for all investors. he weighs in next, and also i want his take on the flight to safety today. see if here's changing outlooks on fixed income. who is up and down? most down, johnson & johnson, coca-cola, and home depot are the only ones trading higher today. we're back after this. ♪
melissa: okay. we have some breaking news right now. we are getting reports that investigators believe they have identified a suspect in the boston bombing. the reports go on to say, that this could be originating from that video we saw earlier today. there should be an official announcement that is expected later in the day. this is according to law enforcement sources and
multiple reports. we're looking at a potential suspect identified now. lori: let's look at the stock market in reaction to the latest breaking news that a suspect has been identified in the boston bombing, still down, a sharp selloff. off 150 points. let's check in from nicole. she is monitoring things from the new york stock exchange. >> right. it is the kind of day where we have had down arrows all day long. almost every name on the s&p 500 has a down arrow. 47 names at one point were lower -- 487. a few are trying to squeeze out some gains. you're eseeing broad based selling. weakness in the dollar and in europe. in addition to breaking news out of washington and boston. take a look here at dow component caterpillar down over 2%, the biggest loser this year. it is a big loser today. downgraded and deere also lower. lori: thank you. melissa: wall street fear gauge, the vix, trading near
a two-month high. what is it trying to tell us? sandra smith in the pits of the cme. sandra. >> this is spike in the vix. it is above 17. this is the highest level we've seen in a couple months going back to the week we were headed into the sequester deadline giving you an idea of heightens fears in marketplace. he maybe can answer the question, average joe.com. what is the vix trying to tell us in the 20% spike in today's trading and the weak? >> we may be seeing a shift in the market. we look like we're a little toppy here. maybe this is signal the market is reaching a top. maybe we're getting some fear. there are options buys coming in which shows the vix rise and maybe a change in direction. >> you're having skin in the game. you're trading the vix. what is your position? >> i'm long the vix calls. >> meaning what. >> i think the vix will go higher here, which i think
the market will go lower here. this 1550 level on the s&p is my key indicator f we stay below there, looks like the vix will be up in the 20s or higher going into this weekend. >> average investors should they play in the market in the form of vix etfs? are you believer in that at all? >> i'm not a believer in the vix etf. they're leveraged and take a lot of fees out. they're okay for a quick trade but not a long-term trade. >> we're showing those, many getting double-digit percentages. todd horowitz, average joe.com. todd saying the contrarian play is in right now. when you get spike in the volatility index that means we'll see a turnaround in the stock market. he is certainly calling for a seeloff in those record-breaking stocks as well. back to you. melissa: sandra smith. thanks so much. >> thank you. lori: well, u.s. treasury yields have been spiking so far this year but what does that mean for the retail investor unsure of how to
play what my next guest calls a range-bound market? joining me anthony valeri, lpl financial strategist. anthony, thanks for joining me. i wonder if this is a game changer for you? we had this safe play in effect. you told me interest rates are range-bound. we're at the lower level of the range with everyone so concerned and worried about global economies on the back of these reports of terrorist attacks in the united states. what do you think? where is the low point on the 10-year-year-old? let's start there. >> i think the low point we're very close to it. there is a chance we could revisit 1.55ish. that is 1.50 handle on the 10-year treasury. i should add the treasury market reaction today and also monday is really muted considering the selloff in equities, considering as you mentioned the scare from boston. to me it is a sign the market is having a little trouble here. 1.68 on the 10-year which
we're at now is very strong resistant. i think we need a further could pitlation in the equity market or worse news from europe to justify the return to the 1.50 level. we're looking at lower end of the range and yields are actually lower on the year now. so i think the bond market is priced in a lot. lori: if i'm understanding you correctly the 10-year should be lower than the 1.68 level than it is right now? where the is lowest level and that presents buying opportunity, no? >> this is roughly fair value given the level of fear. i think this is roughly about it the if we get a ten or 15 basis point drop, as an investor that is hard to get into. the move in treasurys here has been happening over the last three weeks so it's a little late. in terms of an investment strategy i think if you look out beyond the year, yes, yields are range-bound but it forces you to look at higher yielding investment opportunities. we think areas like bank loans and prefered securities, high yield bonds, granted less than some
returns delivered in the first quarter because they did have a good first quarter. those are the areas you need to focus on. melissa: i want to back up a little bit to figure out what would cause rates to back up. upper range on the 10-year is 2.25. so we've got some room here. what do you think it will be to cause that turnaround? it is so slight. we're not talking about a tremendous amount of spread to really make money on here. >> no, it is difficult and that's why you should be focusing on yield is the name of the game. i focus on higher yielding invests at lpl financial. in terms of what will cause a yield spike i think data has to improve. we had bad employment point in march. retail sales in the week also roar. i think whether the fed pulls back from stimulus, think that's quite frankly could go either way. if the market believes the economy is not strong enough on its own that could lead to lower treasury yields. first and foremost needs to come from domestic economic data. and i think data from china has been a big driver of this market as well.
so i think first and foremost the, from the economic data it where we need to see it in terms of a spike in yields. lori: in reading some of the analyst reports a lot of people see opportunities in fixed income and emerging market debt. i don't know what you think but we know emerging market debt come off extraordinarily weak quarter dealing with slower growth and central bank easing policies in the u.s. and japan just look at our u.s. treasury. this is where interest has been but do you see opportunity in the mds? >> actually i do. that is one. few opportunities that opened up for bond investors in the first quarter. there is not much opportunity in a low yield environment. we're looking low single-digit type returns. maybe mid single at best. i think emd is is one of those opportunities. central banks paused in the first quarter in most markets in emerging market countries. i think the bump in yield we saw in the first quarter is an opportunity. we still think longer term those economies grow faster than developed countries.
much less debt relative to the size of the economy. lori: i have to sop you there. we have breaking news. >> that opens up potential easing in the coming months. lori: it is an important part of every once investment portfolio. anthony, thanks. we'll check in with you. >> thank you. melissa: we have more breaking news about those reports that investigators believe they have identified a boston bomb suspect. rich edson is live at the white house with more on this rich, what have you heard? >> here are the details. fox news confirming authorities investigating the boston marathon bodies have an image of a young man carrying and perhaps dropping a bag at the second bombing scene. authorities in fact have video of someone placing one of the devices, don't know if they're able to identify so that's what we're looking at right now. video according to fox news confirming at the boston marathon second bombing site, a young man carrying and perhaps dropping a bag at the second bomb site. doesn't mean anyone is in custody here. just identifying on video,
perhaps, someone, perhaps a young man at the second bombing scene, dropping perhaps and carrying a bag. back to you. melissa: rich edson, thanks so much. lori: wow. melissa: new details on the insider trading charges against steve cohen at the sac capital story. charlie gasparino is next. lori:. let's look at treasurys. 1.69 for 10-year. out the curve, 30-year is yielding as people snap up government debt. we're back after this. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade. me. (announcer) scottrade. awarded five-stars from smartmoney magazine.
trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those whoo are or who may become pregnant and children should avoid contact where axiron is applied as unexpectesigns of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased d blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment,
axiron. lori: here's your fox business brief. there is selloff on wall street following a round of disappointings earnings reports. eight stocks in the s&p hitting 52-week lows. right now the dow is down 129, 14,6 it 7. bank of america reaches a record half billion dollar settlement with countrywide mortgage investors. countrywide was accused of misleading investors to buy risky mortgage securities. the settlement still requires court approval. bank of america purchased countrywide back in 2008. proctor & gamble will than usual to pay suppliers. according to "wall street journal" the world's largest household products company aiming to pay its bills in 75 days. "wall street journal" reports that could preup -- free up as much as $2 billion in cash. that's the latest from the fox business network, giving you the power to prosper.
lori: we do have more breaking news from fox 25 in boston. investors have identified a suspect believed to be responsible for the boston marathon bombing and that an arrest is imminent. so the details of this story developing rapidly. we've got a close eye on it. we'll bring you all the latest developments of course. melissa: will he or won't he cooperate? that is question being debated in hedge fund business as government officials move forward with their insider trading case against former sac capital portfolio manager matthew march toll la. charlie gasparino has the latest on this one. >> i can't say whether he will or won't, when you talk to government officials involved in the famous case involving matthew march toma, trading on information on drug stocks and allegedly
involving steve cohen. there was a conversation between the trades were made. a huge swing in position. they were long and went short and started selling and there was a 20 minute phone call between march toma and cohen and they would like him to build a possible case against sac and cohen and but he is not. chances are going down every day that this goes he doesn't cooperate whether he will or won't. here's the problem that also they face. if this thing doesn't happen soon, this cooperation, their case against cohen will evaporate. why is that? from what i understand in july the statute of limitations runs out. these are 2008 trades. you have got five years. melissa: july? that's it? >> from what i understand that is really quick. melissa: that's soon. >> this is the problem that they have. so i guess the best thing we can say is this. no trial date yet set on the martoma case, okay?
spokeswoman for, spokesman for sac and cohen says they, they have done nothing wrong. martoma has pled not guilty. his attorney did not return my phone calls but the government is starting to get very frustrated at this. i was talking to one government official. he said this reminded him of some case he had years ago where a drug suspect, i'm not saying matthew martoma is guilty but this is how he related, a drug suspect they had under, all sorts of wiretap evidence, evidence against him was staring at a 10-year prison term, if he cooperated he could reduce it down to two. he chose not to cooperate and got thrown in the slammer for ten years. matthew martoma we should point out he is facing, this is not drugs but insider trading facing a similar long prison term. melissa: ten years? >> at least. remember how much money was involved in insider trading here. they're saying like a couple hundred million dollars of savings from trades that would have gone bad if they
hadn't done this and earnings. this is, this is described as the largest insider trading case ever in terms of how much money was made or prevented from being lost on a trade. and so, you get convicted on this, these are multiple counts, you're going to jail i think. there is a raj spending 11 years in jail. martooa doesn't have the name recognition of raj rajaratnam, the former galleon ceo. that's why everybody thought he would flip. what did he have to lose? we should point out i wasn't listening to the call between he and cohen. for all i know nothing was said, that could, you that could prove mr. cohen knew anything or not. i can tell you this. prosecutors are incredibly frustrated from what they're telling me. and they're telling me the case is moving forward against march tomema.
that means they're focusing on martoma, every day closer to july the case looks less and less likely against steve cohen. melissa: charlie gasparino, thanks very much. lori: as we do every 15 minutes let's get you updated. keith bliss on the floor of the new york stock exchange for us. we have the dow down 123 points. we have been whipsawed with the markets last three trading session. wondering what you're seeing with technicals and fundamentals and reports of terror attacks and news we're getting out of boston d.c., and boston for for that matter? are we at an inflection point? >> no, we haven't. market giveth and taketh away. we're getting whip saud and we crossed over a couple key technical levels, 1562 on the s&p if we trade and close below that, certainly looks like we're going to do that, we probably consolidate a little bit here and then move down to
1540 is our next level on the s&p. the price destruction going on in the market doesn't give me a good feeling. i'm very skiddish the about the market moving higher anytime soon in the near term. lori: actually that's what i was getting at. have we seen gains for the year, perhaps if i stated it, i wasn't as clear as i could have been, keith? where do you think that we head from here? what's your outlook for the s&p? >> it is difficult to estimate at this point in time. i mean if we continue to see the price destruction, what is really happening inside of the market the downdrafts and when we sell off we get a lot more volume than we do if we ever move up that is troubling sign. it depends if we get putting in economic data and everybody expect as spring and summer swoon. the data is pointing to that. we calling for that once we clear out some of this congestion with the economic data and imf and other things going on around the world. so i wouldn't be too concerned we'll get into a 20 or 25% correction but for
right now i'm a little skiddish and a little cautious on the market. lori: i think you echo a lot of sentments. keith bliss, thanks for joining us. melissa: apple shares briefly touching below $400 a share. this is the first time in more than a year. shibani joshi is on that story coming up next. we'll be right back. friday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com.
all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.
lori: a lot of breaking news this hour but this is a meaningful development, a major breakthrough here. the associated press reporting an arrest is imminent in the boston marathon bombings. it all started moments ago when we got reports they did capture the image of a potential suspect. so we're trying to link all
the information together but we are now learning that an arrest is imminent in earlier this weeks bombing at the end of the marathon. we'll bring you the very latest developments as we receive them. melissa: so apple shares are taking a huge hit today, dipping below the $400 mark. what is taking a bite out of the tech giant today? shibani joshi is here with all the details. >> well, investors, melissa, are here to scoop up shares of apple hitting a bargain basement price under $400 a share. shares are up after hitting a floor earlier today but still down 22 bucks a pop. three pieces of news i'm hearing along the from the tech world influencing and moving this stock in particular there. there was a report that came out that said ipad mini shipments reportedly will drop between 20 and 30% in the second quarter. questions about demand issues. whether or not this may be a lull before a new iphone five s to come out. we're not quite sure. a "wall street journal" report about apple and samsung locked up in a price war in india over smartphone
prices. when you start to get into price wars that impacts margins. that is something people are talking about. lastly a great piece out of forbes today about the technology required in some brand new ideas that apple is working on. we're talking about the i-watch and the television set that the company doesn't have the technology in place yet so we won't get a new product from apple until 2014. so that's why we're seeing pressure on the stock today. melissa: another big tech name in focus, ebay, down ahead of earnings. they're coming 5:00 p.m. eastern. what can we expect? >> a little bit of a contrarian reaction here. we're expecting good things out of ebay. this company reported two straight years of beats on the bottom and top line. that means eight consecutive quarters. revenue, revenue from listings on ebay and paypal big drivers here. earnings per share of 62 cents a share on revenues of 3.76 billion. those are the numbers to beat. we'll watch ebay after the close when they report. lori: thanks so much,
shibani. keep it here on fox business for full coverage of earnings from ebay and i will join david asman on "after the bell" with breaking developments and news out of boston. that starts 4:00 p.m. eastern. melissa: tonight on "money," congressman lee perry joins me to discuss the keystone pipeline and that cleared a major hurdle. how to protect infrastructure like this in light of the attack from the boston bombing that is tonight here on fox business. lori: the federal reserve releases the latest beige book. we're chock-full of news. stocks are selling off. the fear index is soaring. the report could have a big impact on the remainder of today's trading. you want to keep it here for tracy byrnes and ashley webster making their way in. they will be here at the top of the hour. you can't afford to miss it this is america.
tracy: hi, i'm tracy byrnes here with. adam:. we have breaking news an arrest has been made in the boston bombings adam: this individual will be in court in next hour or two hours. the reports say the person will be in court. the last hour there were photographs that showed a man, a young man carrying what appeared to be a black sack. they're not saying if this person in those photos is the actual suspect. again as you said --. tracy: but he was seen as adam said, carrying possibly dropping a black bag near the second bomb explosion. again we have a federal source telling fox that an arrest has been made at this time. adam: we will be watching that throughout on the fox business network. in about 20 seconds we will be able to talk about something that could affect your investments. tracy: we're waiting on breaking nuge from the beige book.
a market down 140 points. a lot going on. i don't know how people make investments decisions these days. adam: it is nerve-wracking with apple falling below 400. tracy: it is back above at this time. adam: peter barnes with the beige book. tracy: peter what have you got. >> hey, tracy and adam. overall economic activity expanded at a moderate pace according to latest beige book. this is the report of economic conditions that the fomc will use when it meets again at the end. month to consider policy steps. this report does not read like the economy is getting strong enough for the fed to pull back on stimulus programs or low interest rates or quantitative easing. one major pole of these programs as you know is to create more jobs faster and on jobs the beige book says quote, employment conditions remain unchanged or improved somewhat. the fed also talked about he had headwinds to economic growth it is worried about like higher taxes and the
cuts. beige book quotes some firms in some districts quoted higher gasoline prices and expiration of payroll tax cut and winter weather as factors constraining sales and. numerous districts reported uncertainty or weakness in certain military and defense related sectors. tracy: peter barnes, thank you very much. payroll tax, gas two things affect my wallet. adam: they're looking backwards. you have oil below $88 a barrel. tracy: i haven't felt that. adam: hopefully we'll feel it soon. tracy: we have stocks selling off, down about 19 points. the vix also known as the wall street fear index is soaring. let's head down to nicole petallides on the floor of the exchange. the vix will tell you what will happen 30 days from now, right? it is a gauge of the future. that means we're nervous about the future. >> that's exactly right. what it does it takes into account the volatility and fear in the market over the 30 days ahead for the s&p 500. that's exactly what we're
seeing here today. we're seeing it at a level of 1 d. it was up over 24% earlier today. we're certainly seeing the volatility here on wall street. we have really seen that just this week alone. on monday we were down 265 points. yesterday we gained only to pull back again today and take out monday's lows. we're seeing broad based selling across the board. the more economically sensitive sectors are the ones getting hit the hardest, technology among them. i heard you at the top of the show talking about apple and let's look how appeal is faring. trading at 398 and change. those are the lowest levels for apple since december of 2011. now back to 403. so it is above that key level..3 people clearly owning apple at 700 "dallas" september are obviously upset with this kind of a move. we're trying to cover it for you when there is plenty of breaking news. tracy: i know we're blaming it on the mini.
i have a mini. i love it. for what that's worth. adam: according to federal sources an address made in the boston bombing case. rich edson, what can you tell us. >> fox news reporting an arrest made. the suspect will be in court soon after fox news confirmed authorities had an image of a young man carrying and perhaps dropping a bag at the second bombing scene. that is ongoing very quickly. news coming out of boston. back here in washington, d.c. president obama sent a letter with ricin in it or suspected ricin in it. still has not been confirmed yet much like senator roger wicker both letters were intercepted before they reached their destinations at off site facilities. fbi is testing both letters for ricin. preliminarily littlely they both tested positive. fbi says filters at second government screening facility preliminarily littlely tested for ricin. there is more testing going
on there the fbi is saying there is no indication of the a connection to the attack in boston. in the heightened state of alert in washington, d.c. there was a flurry of activity at the last couple hours at the senate office buildings where a handful packages were reported. hazmat showed up. they cleared all the suspicious packages and it is all safe to go back to work. there are reports and senate offices are reporting, in some local offices, carl levin among others have received suspicious packages. this is time in washington especially what happened in boston where officials are warning those on capitol hill and government officials to be on high alert for these things. better safe to check with authorities than just to ignore things. could be some of that. we're just not sure going through the reports right now. big news coming out of boston, fox news reporting that a suspect in custody will be in court soon. back to you. adam: rich edson in washington, d.c. thank you. tracy: everyone jittery. back to today's selloff,
speaking of jittery. wall street, we have got three major averages erasing all of yesterday's gains. joining us michael block, phoenix partners group chief equity strategist. michael, the market has jitters too, doesn't it? >> definitely we're seeing some jitters. everyone wishing for volatility has certainly got it now, tracy. what is going on here we're seeing a situation where you saw this great move in gold that's really started people off on monday. tracy: right. >> the one thing i noticed about gold and i was telling clients this all day monday for the morning, i said, hey, look we're seeing gold unwind here. that is very unique to the commodities traders and commodities markets, aalot of quantitative traders using machines got caught the wrong way and exacerbated move. i watched everyone to watch the yen. if the yen started appreciating a lot and gone down recently we would have known right away something bigger was going on. what happened 1:15 that afternoon, i'm going back to
monday it started moving. i imed my clients saying run. sure enough. stocks took another leg down. they started rallying again. unfortunately at 3:00 we had this terrible news we're talking about today. adam: let's talk about bring it to today. if i'm a retail investor, if i'm mom-and-pop watching right now what should be doing? you see opportunity here and you like consumer discretionaris. >> i do like consumer stocks and here is the rationale. all the recent volatility aside the fact of matter we're seeing u.s. growth stablize. some of the numbers have been softer, they haven't been soft, adam but they continue to show some stability in housing, jobs, less payrolls report notwithstanding but we'll watch claims tomorrow. there was a lot of concern that the u.s. consumer was going to hit a wall. i know folks who still think that is happening and still looking for that. but the fact of matter, payroll tax cut expiration, sequester, the softer economic numbers, they're not making a dent yet. the lowered gas prices are
actually going to be a tailwind to the u.s. consumer, a tailwind to disposable income. i like the u.s. consumer. talking about companies not exposed to this european slowdown, european recession that we're seeing across the board. we saw the dax and cac in paris get killed today. these stocks have nothing to do with that i'm saying buy american. anything that generates revenues in the u.s. should do well that includes consumer stocks, that includes a lot of health care names. it includes a lot of the real estate names. people say maybe it is a defensive move. what i'm trying to say try to think in terms of like factors. what are the factors i can making these companies grow? u.s. revenues and stead confidence in growth of generating your revenues in the u.s. it is cash flow growth. it is income. there is a lot of reasons to own these stocks. tracy: one of the things that always comes out of events like the one in boston is our renewed patriotism right? >> sure. tracy: investing in america sounds like a great thing right now. it doesn't hurt that uncle ben is pumping liquidity
into this market, right? so we are indirectly helping ourselves with all that cash flow. >> we are. we can rail about that and say this is not what a central bank should be doing. we're heading for disaster and heading for hyperinflation. guess what? it is working. the dog hunts. instead of shouting in the wind let's take advantage of it. let's do it. adam: are you seeing opportunity, i want to go to technical stocks. google apple especially being down, microsoft. do you see opportunities here? some people counting apple out because they broke $400 today. do you see them growing? microsoft hitting, goldman sachs set a $27 price target but another analyst was saying $35. where do you go with microsoft? >> adam, great segue. i will make my friends in the investment community happy. this is great time to be stock-picker. within technology you're going to have some winners you're going to have some losers. you will have google continuing to learn to how
to monetize their search. apple will figure out, we talked about the ipad minis today. we'll see how well they figure out. the stock will find a level and see where the growth comes. where will be on the chain? is product cycle working for apple? is intel going to be okay? is broad come going to be okay? this will be a lot of fund. adam: i like apple but a lot of people don't. tracy: i love the notion of buying american. michael black, thanks for being with us. >> thanks, tracy. adam: thanks, michael. we're tracking today's selloff led in part by disappointing earnings from bank of america. we're going inside those numbers with an analyst. tracy: trading on insider information may be more common than you think. "wall street journal" reporting that the sec is looking into insider trading in the political intelligence industries. we'll have details on that. but first as we do every day at this time of day we've been talking about oil dropping and look at it go, down $1.79. $86.91 a barrel. we'll be right back. everybody has differt investment objectives,
ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investmentbjectives, risks, charges and expenses. read and consider it carefully beforenvesting. risk includes possible loss of principal.
tracy: sec is launching a preliminary investigation into possible insider trading violation in the political intelligence industry. this is according to our partners at "wall street journal" at issue an incident two weeks ago when health care stocks surged just before the close on a research firm's report about a upcoming policy change. the journal says a source for that report is former congressional aide mark hayes currently a lobbyist for humana. his tip to investment research firms led firms to e-mail clients to buy health care stocks and off they went. charles payne is here right now. he has been talking about this leaked information and how just unfair it is to the average guy. >> there is no doubt. listen when, you see a story like this people watching should be the% pissed off about.
and remember life isn't fair and not let this harm you in the goal achieving some financial independence. tracy: last time we talk this you were on and you brought in the general mills chart gone through everything you can think of but a pretty nice chart that keeps going and going and going. the lesson has to be block the noise out, right? invest in the good, solid american companies. >> yeah, i mean listen, the real lesson is we have to make a distinction between wall street, you know the canyons of lower manhattan and that whole, those people if you will, and owning great american companies. there are two different things and i don't get it. when i go, i was at the nike store two weeks before the earnings came out. the place was packed to the gills. if i was to question 50 people in there i betcha one would say i own the stock and most would say i never own the stock. but you buy the sneakers for 150 bucks. you will be here next year buying them for 150 bucks next year after that because they will be obsolete.
you never think about owning the company. because we are so upset and we have a right to be. we're really upset at the hijinks in washington and wall street. adam: did i thought that congress passed legislation to make transparent their transactions. just recently, within a matter of seconds, members of congress decided to remove that part which required them to post their transactions. tracy: shocker. adam: the president sign it into law. i would think all the people would want us have even playing field to buy stock. why do we give congress an advantage? >> they have a lot of different advantages, right? we could start with their health care and laws they have to abide by, drink and drives a long as on official business. what we live. with a lot of people watching the show go to work at a place where what the boss's son got the promotion, not them. or person with the right pedigree. these things hurt us, they make us disappointed, shouldn't change the fact we're living longer and live better lives. we know social security the
so-called safety net ain't the only answer. if we can look around this stuff and say i still have to protect myself. not accept it. we should be woke kal about it. i watch the tape all day long. 90% of the most news, earnings, brokerage upgrades and different types of news events are leaked still after all the legislation, adam. tracy: comforting. >> yeah. tracy: charles payne. we've got to keep talking about this. >> you got it. adam: let's keep talking about stocks at least because nicole is watching what is happening on the dow. we've been down triple digits all day. where do we stand? >> adam and tracy we're coming off the lows of the day and doing a little better here. for example, on the s&p 500, at one point 487 names were lower. now 471 names are lower. we're seeing improvement though still obviously a day of complete selling across the board sector to sector. that being said, as we see the dow is down right now 136 points.
we're taking a look at names on the s&p 500 that are hitting some 52-week lows and what's interesting they're in some sectors very economically sensitive such as materials, energy and technology. among those you see u.s. steel is down 3%. peabody energy down 4%. jabil circuit down 3%. we make sure we get up there, apple at the lowest point, 398.11, we noted the lowest point since december of 2011. newfield exploration turned it around and but was down earlier. it is squeezing out a gain. back to you. adam: nicole petallides watching your investments at the new york stock exchange. we'll see you in 15 minutes. tracy: let's get back to the boston bombings. we have breaking news. an arrest has been made in the boston bombings. we have a former fbi assistant special agent in charge of the new york joint terrorism task force so he certainly knows what is going on. thanks for being with us.
give us the latest. tell us where we are with everything? >> obviously this is a great piece of news. i'm trying to follow along myself. it is breaking rather rapidly as has been reported looks like the investigators were use that, the video from a department store and from a television station and possibly other sources to identify somebody enough to the point where they could, you know, make an actually i.d. of a person and pick him up and take him into custody. so this is a great piece of news. adam: don, isn't there danger announcing an arrest has been made? if this person had comply is they are notifieded get out of town. i suspect if he had accomplices they would get out anyway but doesn't this let them know the police are on their tails? >> it depends the announcement was made and in connection how soon they identified him. obviously by the time the official announcement gets made you can assume that there's surveillance on this individual and they're doing
all this kind of background investigation to try to figure out ahead of time if there are any accomplices. learn as much information about this person as they can in a short amount of time. however, you don't want to wait too long with a situation like this. here's a guy capable of making bombs that kill people. so do you wait and follow him and watch him and god forbid the surveillance loses him and he plants another bomb? these are all the kind of equations law enforcement officials have to weigh how long to watch versus how long to act. tracy: we're looking live pictures of the courthouse where the suspect is expected to appear momentarily littlely. don, what is really interesting how social media helped. our sister station fox news was reporting yesterday that cops were actually asking people in the airport to say, hey, show me any pictures, show my any video you took of the marathon and how it is helping you do your work. >> exactly. i mean we live in an information age. obviously you can't walk
three steps in any big city without being on somebody's camera, whether it is a tourist, a surveillance camera, or law enfortsment -- enforcement camera. so, in this case, that information was certainly key to making a break in the case. now there's going to be some legwork. this case is far from over. adam: don? >> yes. adam: you have got friends when you were so involved in anti-terrorism efforts. have you heard from them any details about this individual? >> no details. no details. i'm certainly not going to call and ask them and put anybody in a position to compromise the investigation. so, you know, what i know is basically kind of been more or less reported in open sources. tracy: don, thank you so much for taking the time and sharing your insights with us. >> thank you. adam: thank you, don. tracy: just to reiterate again. we're looking at pictures of the courthouse. the suspect at some point is expected to show. good news for a lot of people we have at least one. adam: yep. tracy: all right. let's get back to the
markets. bank of america leading the dow lower in today's selloff after the company reported really disappointing first quarter results. we're going to dig into those numbers with an analyst next. adam: here's how the dollar is moving right now against a whole bunch of currencies. all stations come over to mission a for a final go.
tracy: want to bring up to date what is happening. we're getting a lot of conflicting reports on the arrest of a suspect. fox news are, we are working our sources diligently. the situation is very fluid right now. so soon as we get confirmed detailed information we will bring it straight to you but again, very fluid situation right now. adam: we'll turn our attention from that story to your investments and earnings we got out of bank of america this morning. shares tumbled nearly 6% after bank of america report the first-quarter earnings just below estimates. how much is this rattling investors? should you maybe get your bank of america stock or selling it? here to discuss this, jim senegal, financial services analyst from "morningstar". thank you for joining us. what do you think of the report in the first place? banks manipulate the numbers for instance, moving
loan-loss reserves over to the balance sheet. other banks have done that. can we believe numbers and are banks worse perhaps than we believe with bank of america? >> bank of america did release some reserves. that is something all the banks are doing. it is something i don't think a lot of investors look at. there is some help to the bottom line there. other than that it was a pretty clean quarter, asking considering all of the unusual charges for bank of america has had in the past few years. i think the problem is, the earnings really aren't anything to get excited about. even though bank of america's problems are receding into the past they're still not making a lot of money and a lot of that has to do with the macroeconomic environment. adam: when you talk about problems receding into the past, the big problem would be countrywide. i thought that was all put to bed? mr. moynihan and settlements the bank had reached with freddie mac and fannie mae put this behind them but it appears they face future problems and payments base of the mortgage situation with countrywide? >> yeah. i think the bulk of the big
risks are behind bank of america. they pretty much settled everything with the gses. if the bank of new york settlement goes through that will take a large portion of private label. they announced today a settlement in securities litigation they were facing. i think the big risks are out of the way. on the other hand bank of america is still spending $900 million a quarter on litigation costs. that is something will continue on even if the cases themselves pose a smaller risk. they're still paying a lot to deal with legacy assets, servicing, foreclosures, things of that nature. no one is you can talk about bank of america putting countrywide into bankruptcy at this point as they were a year, year-and-a-half ago but at the same time, it is still costing them money. adam: where is the revenue growth going to come from? i know they continue to cut, the headcount at bank of mesh. you don't cut your way to prosperity, do you? >> that's a great question and actually some of the compensation expense was up a little bit because some of the businesses are doing well. it is very easy to cut costs when revenues are coming
down but costs go up when you start to make money again and the revenue is the biggest problem. as long as rates are low, which it doesn't look like it will end anytime soon, as long as loan demand is not high, something we saw from all the banks. bank of america actually did better on the commercial lending side than some of its pierce. consumers are not borrowing, corporations are not borrowing, that is big problem growing the top line. adam: quickly i know they were proud of the mortgage origination numbers. should we as investors be proud of that number? are they on the right track. >> it is good to see them come back as they have cut down a lot but on the other hand there are warning signs there. something like 91% of the mortgages coming through this quarter were through refinancings. at some point despite rates being low that will end. they need some volume made up through new home sales, something we didn't see a lot of this quarter. we'll see if that continues through spring selling season. adam: jim sina gal, "morningstar" financial
services analyst. thanks for joining us on fox business. >> thanks for having me. tracy: stocks are still down big with an hour and a half to go in today's trading day. we'll continue to track the selloff. adam: stocks are down and fear is up. we'll tell you what has investors worried. first take a look at some winners and losers on the s&p 500.
johnson & johnson, home depot, coke, and, of course, we're talking bowel -- about intel all day. your basic, a coke is what keeps the market going. on the floor of new york stock exchange, down 125 # points. >> that's right. the point is we were at 14560, down almost # 00 points, we came up off the lows, seen improvement to the point, but, still, plenty of red to speak of todaying inning dow component caterpillar. right now, caterpillar's down 1.5%, was down 2% earlier. downgraded, and so was deere and company, by the way, the companies that have the same, earth moving equipment, tractors, bulldozer, and the like, and obviously, the types of companies do well with the great economy. everybody's building and the economy's building. on the contrary, concerns about
an economy that is slowing here and also abroad. it hurts big companies like caterpillar and it's on the heels of what we heard from the imf took in and curbed the numbers for this year and next as well. back to you. >> thank you, nicole. see you in a few minutes. breaking news for you know. oil closing down $2.04 at $86.68 a barrel, a loss of 2 #%. man, we have not seen that in a long time. >> fear back on wall street, the vix, nope as the fear index, seeing swings this week, and it near two-month high. sandra, what are they telling you about this down there? >> well, i have ben of traders audio, up there quoting markets all day long, looking at the rapid spikes and falls in the stock market, but green is in volatility, predictions of volatility huge. >> no question. there was a huge spike, come
back a little bit now, but that 17 level right in the middle in between the 14 lower extreme that we saw and the 20 we want to see. we'd like to see the volatility index at 20, so -- >> why? >> well, because it means there's more energy in the pits, more activity for the traders to participate in. there's more participation 6789 there's heightened fear, increased volume and energy. >> talk about the fear for a second as we watch developments from boston, possible arrests, are the markets, are traders closely watching that situation? >> sure, no question. that was a big part of the sell off monday. remember, again, high activity, downside price wise, but when the bombings happened, it opened the door to the downside. today, the fear factor came in when the russell broke, down 2% at one point today. the nasdaq as well joining in. any time you have major market moves to the downside, there's fear factors associated with it. keep in mind, we're dealing with the fact there's a strong runup
in the year, 2013 something like 13 # out of 15 up weeks this year. a week to the downside brings in that heightened participation and fear. >> what do you say is the overall trade happening, tracy quoted crowd down over two bucks on the session, gold with the massive selloff. what is the big trade right now? >> today, watching stocks lower, a dollar bid, the last trade over the gold, the metals, and crude as well as. today, right now, it's related to dollar bids. >> there you go, ben. traders audio, guys, heightened sense of fear here on the trading floor, and, obviously, heightened volatility in the next coming weeks or so. back to you. >> all right, sandra smith sat the cme, thank you. >> thank you. >> president obama's nominee for labor secretary, thomas perez, has a senate confirmation
hearing tomorrow after the g.o.p. report slams him for what they call a questionable deal. basically brokered between the city of st. paul, minnesota and the justice department. everybody does that; right? next guest broke the satisfactory a year ago about the case. joining us now "wall street journal" editorial board member. mary, you've been all over the story. it's so complicated, that's why no one's addressing it because they don't get it. >> yeah, well, i'll break it down. it's a very simple story. tom runs the state i think you're discriminating against minorities, pay me money. >> it's that simple. >> it's that simple. the banks pay up, and all the sudden the supreme court says we're going to hear a case that could completely invalidate the legal fear in doing that. he goes to the city of st. paul says you got to withdraw the
case from the supreme court because i, mr. perez, my legal knowledge trumps that of the supreme court. it's not just this, tracy, but a bigger story. >> that's like strong arms. >> very, and plus, we found out monday he tried to cover it up. the deal was never written down, the word is your bond to the people involved, justice suspect giving up lawyers requested by the house oversight committee, and now he's been subpoenaed, but the crux of the case against mr. perez is that he doesn't believe in equal enforcement of the law, it's not just in the st. paul case, but other cases too. >> right, because, basically, he gett privileges of the rest of the world doesn't. >> yeah, but look at the broader sweep of the record. >> right. >> he brings a voter id case in south carolina to deny south carolina the ability to have solid elections. he prosecutes or tries to prosecute antiabortion abortion
cases, and he's laughed out of court. there's the black panthers intimidating voters, and he says i'm not going to prosecute you. >> okay. how does a guy like this who, like, where i come from, we call him a dirt bag, how does he become the labor secretary nominee? >> look at the cabinet so far. >> full of them. >> chuck hagel, basically incompetent, jack lew, on top of the citi group that blew up in the tax crisis, tax shelters in the cayman's, basically made money off political connections, and now tom perez hailed as a civil rights hero, but marlin luther king would be turning over in his grave. >> i know i screwed up along the way, and since you, thomas perez, are now, i won't look if you won't look, is that what we're saying? >> basically, the democrats hail him as a civil rights hero saying he's good he denied the
supreme court prief lemings, and republicans who want now to court the minority vote are averting eyes. >> why? why is this happening? >> the senate is to give advice and con -- consent. we believe he should get the nominees asked for for the cabinet, but what mr. perez has done is willfully misled house investigators, did a quid pro quo that's shady, has a record of unequal enforcement of the law. this man should -- >> bottom line, he gets through? >> a good chance. >> after all that? >> we'll see what happens in the hearing tomorrow. the house oversight investigation monday was so comprehensive, 270 pages unvailing this scandal so that i think some ?artses are going to give -- senators are going to -- >> there's hope here? >> always hold on. >> me too. mary, you're great, you'll keep following it, "wall street journal" editorial board, a crazy story, but common place.
>> what was the name from jersey? >> dirt bags? >> a lot of social resources, but are investments paying more? >> as we do every time this time of day, look at how the 10 and 30-year treasuries are trading as we head out to break. we'll be right back. ♪ she's still the one for you - you know it even after all these years. but your erectile dysfunction -
you know,that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you n be more confident in your abili to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needingo go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excs with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
>> this is your fox business brief, the federal reserve's latest views on the u.s. economy not doing much to boost markets. the central banks say economic activity expaneledded at a moderate pace from late february to early april. stocks in the s&p 500 today hitting new 52 #-week lows. right now, the dow is lower by 157 points. american airlines says operations today should return to, quote, near normal, and the airline canceled or delayed nearly 2,000 flights yesterday after a massive computer failure. american wasn't able to access its saber system used for everything from reservations to tracking luggage, wait, and fuel. the disaster comes as american is trying to team up with u.s. airways to become the world's largest airline. that's the latest from the fox business network giving you the power to prosper. ♪
>> breaking news, advisory panel to the u.s. food and drug administration recommended wednesday that the agency approve an experimental treatment for smoking-related lung damage made by smith kline, and their -- the shares are hitting a 52 # -- 52-week high, year to date is something like 13%. good news. >> i guess for smokers, although, that doesn't mean you should keep smoking. that's a public service warning for you. disenchaptered teenagers facebook has to worry about, but now the nation's small businesses increasingly feel social media's a waste of time. that's nod good for facebook, linkedin, and twitter. we have the bottom line with more. look, it takes a lot for a little small business to be so involved in that stuff. >> that's right. good to be with you, tracy and adam. this study is taking off on the
internet with a lot of feedback and people weigh in saying, you know what? the study has it right. ironically, you just ranked in the intrough what small businesses say are the worst social media siting for them to work with in order to get new customers. here's why social media is a bust for small businesses. the one they don't like the most is facebook, the next is linkedin, and next is twitter. they are saying it takes a lot of time to work on facebook page with little return. 61% are saying they get no return on investment in the form of getting new customers or leads for new businesses working with facebook, and, n. k some -- and, in fact, some have to hire an extra employee to monitor the facebook page. we have reaction from a top analyst tracking the study, stephanie schwab, and this is what she had to say about the study. >> i think that small businesses who think social media's going
to answer all business needs and bring them traffic and lots of customers are making a mistake in ignoring the other types of markets that they need to do. >> the study found that these businesses did use facebook about one out of three did get new customers, but they say on balance it doesn't basically give the return they expected, and they find it a costly waste of time. >> a generational thing? my mother goes through the value pack coupon thing through the mail, and i throw it out. will, eventually it work for small business? i get how now -- >> depends how they use it. the facebook likes don't translate into customers, but netflix uses facebook and twitter to disclose the offerings, but in terms of getting the business in the door, you know, they feel like it's not working. we want to watch what small businesses do. they grow up to be publicly traded companies to invest in in the market; right?
>> a great point, great point, good story. truth be told. >> sure. >> thank you, girl. >> thank you. a quarter til, and time for stocks as we do at this moment of the day. heading down to the new york stock exchange, we are joined with the latest on what's happening with the markets. dow down 156 points. why cowe go through this up-down, up-down, keith? >> there's a lot of gyrations in the market because there's a real war in the streets, if you will, between the bulls and bears and who seizes control based upon the latest news and data and economic data or noises out of the federal authorities or the central banks armed the world. that's what we see now. the bottom line is that we are seeing deterioration in the price action inside the market, and that's troubling here. we crossed through a couple real key technical levels. >> there the earnings we're seeing just not living up to what wail street expected? is that what's pulling it down? >> the bigger problem this quarter is everybody expected
the picture was not great for the first quarter, but, really, the bottom line, if you will, and the problem with the earnings is the top line revenue growth. there's no top line revenue growth quarter to quarter. you phak ton that in with the slow down and what you see around the globe, china with not great numbers and commodity prices coming in a lot, not a pretty picture for the overall global economy and that's impacted inside equity prices today. >> thank you very much for joining us from the new york stock exchange. >> my pleasure. >> lack of top line growth story has been one we've been talking about for a long time. >> yeah, we're going to keep talking about it. >> we are. the consumer's struggling. disney, though, in a fight with amc entertainment, and "iron man" caught in the midding. what the behind the scenes battle could mean for a big movie of the year. >> as we go to break, take a look at today's winners and
losers on the nasdaq. ♪ we went out and asked people a simple question: how o is the oldest person 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. ♪ the question is how do you make sure you have the money you need to enjoy all of these years.
♪ disney's iron man 3 opens in two weeks, but suddenly, its distributer, disney, is in the spat with theaters. dennis kneale is here with the why. jousting how to split riches from iron man 3. couldn't come at a worst time. disneyments a bigger share of the box office split, usually 50/50. deadline.com reportings amc entertainment, the nation's number two theater chain, fired a shot across the bow. deadline says another big chain settled. now, disney has the leverage here. iron man 3 is one of the biggest
films of the year, and the u.s. box office this year down 12%. theaters need a hit, and disney is pushing for a bigger piece of the pie just as it cues up the next sequels into the huge fran chizs like the avengers and star wars from the lucas films that disney just bought. the first two iron man films raked in 1.2 billion combined, but iron man 3 could top the billion dollar mark on its own because it would could be seen a sequel to the ajen jeers, and while theaters are down, robert downey, jr. is striving, making $50 million on the avengers hauling in more than 1 minute 5 billion at the box office, he had a piece of the growth, baby. the mouse house thriving too. mickey's stock at an all-time high above $60 a share.
some say not to worry. this split-spat will be ironed out before this pick pops on may 3rd. tracy? >> wow, thank you for all of that. >> that was variety speak. >> oh, my god. all right. shares of apple tanking today, no surprise if you look at the shells -- although, i like my mini. cheryl casone will take us through the last hour of trading. "countdown to the closing bell" is next, and dow is down 160 points. you can't go anywhere. we'll be right back. ♪ sleeping? sleeping? just wanted to check and make sure that we were on schedule.
we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur a. >> apple takes a tumble
dipping to the intraday levels not seen in two years. we will tell you what investors do now. ebay ready to report to the and it continued its street? what about its plan for emerging markets? we will tell you what to watch for. the investigation into the alleged insider trading about to be some -- shut for good but there is a catch that passenger was a bigger. countdown to the closing bell starts now. cheryl: i am sure all cassone in for liz claiborne and today. the last hour of trading and we're looking at a sea of red. who all the major indices -- industries are set down substantially.