tv Markets Now FOX Business April 24, 2013 11:00am-1:00pm EDT
it's a risk for investors, and talk about whether the technology breaches like yesterday will become more common. dagen: apple promises to return a hundred billion dollars to shareholders in buybacks and dividends, but it's not enough to prop up stock. connell: not enough. got the attention of board rooms, and one could force the breakup of pepsi. dagen: your facebook passwords, some employers want it. the judge will tell you if it is their right to have it or not. those stories and so much more coming up on markets now. ♪ connell: all right. dagen: embarrassed by your facebook page? connell: no, nothing out there for the public to see. dagen: unfortunately. connell: the judge is fine with everybody having your password. dagen: i'm sure. it's a fight of regular laters
versus state laws, you name it, it's a hot button issue. connell: it is. we'll talk about that and apple, of course, but top of the hour, nicole at the new york stock exchange to start us off. there's a lot of company today looks like. >> i do. these are the lovely high school girls from new york in a commerce class here with john checking out the place learning about the markets. all right, let's see what we are talking about. the dow jones industrials down by ibm. they are two names that are weighing, and they are worth 30 negative dow points. that is weighing, but on the other hand, there's a name like boeing which is adding more than 20 # dow points. we are in the thick of earning season, each is a market moving event for each of the companies, and they sometimes real suede major averages. watching apple as well, which has gone back and forth, and the u.s. dollar flat, oil, gold higher this morning, and, of course, we continue to talk about what we saw yesterday, the
big drop on the dow jones industrial after one o'clock losing 146 points on the dow, and then managed to bounce back. john actually talked about the fact that he was buying when it was lower. there are some people who made money on that big move. back to you. >> thank you so much, nicole. that's right, two minutes, and 2 # 00 million in market loss. stocks tanked after a fake tweet from ap came out about explosions at the white house. it was, of course, a hoax, a hack attack, and it's prompting a fresh look at cyber security and the vulnerability of not just the stock market, but what about our economy? i -- elizabeth joins us by phone, former fcc attorney, and mark rash, creator and former head of justices computer crime unit. mark, starting with you. i'm not surprised by this. are you? why not?
>> the conference in stockholm earlier this month where they talked about exactly how twitter could be hacked and how news feeds could be hacked to manipulate stock prices. we knew it was possible and what happened so we have to be prepared for it. >> dagen: stay on that. not prepared, clearly, are we? look at it two ways. basically, it was dispelled, this hoax very quickly, and the market, within a minute after the drop bounced back to where it was before the news came out. >> right, but we're not prepared from security stand point or a securities standpoint. if i i know i can leak information, and i know the stock prices of either one stock or the whole market's going to drop quickly, i can belt on those fluxuations created. we need better security on all the ways we communicate with the public. dagen: elizabeth to you, securities attorney, used to work at the fcc. what do you make of this?
were you surprised by the damage and extremist or terror groups could do to the stock market and the economy just with one little sentence? >> caller: i was surprised, but maybe i shouldn't have been. this is really, seems to me, consistent with the spammers who used to, five years ago, went after spammers who sent mass e-mails buy this penny stock, and the mass mailings would not be based on anything so i shouldn't have been surprised to see this, but i am. it was scary; right, to see how quick selloffs was, and the only thing that stopped it was the loss of liquidity. that's unserving. that's a problem. dagen: posing the same question to both of you, mark, to you first, though. is this illegal? you have this group taking create for it, a syria electronics group. is it illegal?
any way to go after the people who perpetrated this? >> the answer is ill illegal in a lot of ways. the actual hack is illegal, to break in, violates the computer federal crime law. the deceptive trade practices with fake information is illegal, and the stock manipulation is illegal, and if you traded based on stock manipulation, that's illegal. are we going to find these people? they have done this before, have for 18 months, and they have not been caught yet. dagen: fcc side, elizabeth, do they need to prove they intended to manipulate the market by putting this tweet out? >> caller: to some degree, indeed, the fcc has to deal with mens rea, but they can say it's wreckless for the hackers not to realize they were going to negatively impact the stock market, so i don't think there's an issue for the fcc if the fcc and doj can, together, track down the attackers.
dagen: mark, ending with you, is the upside of this, i suppose, that this happened now, wakes people up, maybe the damage was limited in this market drop, and now people can be prepared for it, whether it's companies, whether it's the government, whether it's investors? >> well, you know, interesting thing is nobody's validated whether or not it happened, the bombing at the white house. it was not important to investors. it is important to trade on rumors. vulnerabilities exist. we have to do a better job of securing all the ways that we communicate with the public, twitter and facebook as well. dagen: really quickly, does that mean going into a two-step verification process which you can do with google, for example, already today? >> yeah, it's called two-factor authentication. it's a good start. dagen: mark, thank you so much for that, mark and elizabeth, thank you so much to both of you. connell: all right.
one of the other big stories of the day today, and that would be apple. last night, apple comes out, better than expected, second quarter earnings, strong ifog, ipad sales, personning capital to shareholders by the end of 2015. with us, the president issue chief executive officer, $600 million in assets to talk about where to go from here. it's classic -- thank you for coming on. you know, light on revenue, third quarter margins are light. do you see it half empty or half full story going forward for apple? >> a half full story. are you a trader, investor? can you have a 12-month horizon, an 18-month horizon? connell: what's the positive case for apple? down already, but way off the highs. what's the positive case to buy here? >> number one, the market is growing. forget about the market share,
just the market's growing. apple sales in china and japan year over year, up 100%. they are in mobile in china, ths another 700 million people. smart phone sales are currently about 38%, growing to 65% in 2015. the market's good for everybody. con cop right. >> that's a good thing. connell: comparatively then, as cool as apple's been for years, others say, well, it's not as much anymore. others caught up, and now they are the hot companies, the cool phones and tablets you want to have. >> well, that's just wall street. love you today, hate you tomorrow. apple innovated well so far this year, probably for another three to six months they come out with something that's going to stimulate the appleoians.
connell: like they are an ancient people. why guaranteed that's the case? in the steve job's era, that's assumptions they made, but tim cook, not so much, no steve jobs. those cairn tees, assumptions made in the past are not worth making anymore. >> it was smaller. it's going to grow smaller, 37% margins, it's selling at 8.8 earnings. connell: you like the pricing? >> not growing at 15-20 to 30%. the price is off,ic, for looking forward, but the analysts need to listen. they didn't like tim cook so i think we have a small problem here for the next little while that analysts don't like how it is, lost luster. it's an opportunity. at this price, you can buy and hold. connell: have you done it? >> in it for a long, long time,
our entry price was $193. connell: in good shape. market's down, but what do you think? >> yeah, given the numbers this morning, looking for a little bit of a swoon like we had last year. connell: durables? >> durables a little bit light, consumers are not going to spend as much, so i'm not expecting much at the end of the year, a great quarter, and if we finish 8% better than this, happy boy. connell: thank you very much for coming in. appreciate it. >> sure, my pleasure. dagen: airlines are not running on time, but what washingtonments to do to get plaps back in the air. connell: big time investor could force pepsi to break up. how about that? ♪ [ shapiro ] at legalzoom, you can take care of virtually
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air travelers hoping to get up in the air op time. dagen: more than the twitter hack yesterday, apple's earnings, people have been asking me about is my flight going to be delayed when i travel? well, will it, rich edson, resident air traffic controller on capitol hill with more what dc's trying to do about it. >> i can't say it's because of the budget cuts, but it's new york, so, yeah. the budget cuts, republicans say the faa should find somewhere else to cut the $16 billion budge. democrats say they can't do that. the way the law is designed does not give flexibility to do that so they propose a bill that would use up used war funding to replace all of the automatic budget cuts. it's called a budget trick so there's not much coming from capitol hill that's going to solve this any time soon. right now, the faa's administrator is testifying before capitol hill committee, and there's an argument whether or not the administration has structured these cuts to maximize delays.
>> this imperial attitude on the part of the administration and you're the most recent of the imperialism is discussing. >> hardest thing to do is reduce these hours, but in order to hit the target, we need to hit, we don't have any choice. >> there's more than just cuts to the faa, and a short while ago saying there's frustration in the economic effects of the flight delays, but sequestering could cost the country and human kind a cure for aids, parkinson's or cancer referring to cuts in research. back to you. connell: okay, well -- dagen: okay, all right, we're all going to hell pretty much. stock market is also headed south right now. nicole is watching shares of yum. what's up, nicole? >> yum brands, a top performer in the s&p 500, which has gone
back and forth, itself, the major average. look at yum brands, up 7.25% surprising wall street with the quarterly report. they were plaged with bad publicity, shortage in chicken, and, also, bird flu over in china, a big revenue generator for kentucky fried chicken in china, but they managed to surpass and beat the street with the estimates. with their numbers, they beat the estimates. look at ford. they surpassed estimates art north america, a bright spot, but you see the stock down 1.1%, back to you. connell: thank you. dagen: she was just talking about it, fords' north american division had the best quarter in a decade. what's it look like? the finance chief from ford comes up next hour. connell: breaking up pepsi, soda and snacks could be going another way. the driving force behind that
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>> now 2 # 1 minutes past the hour. this is your fox news minute. parents the boston bombing suspects are being interviewed by u.s. authorities in dog stan in southern russia. the mother said her sons are only guilty of being muslim. a u.s. embassy official confirms the russian government is working with the fbi on that investigation. in bangladesh, the claches of a garment factory killed 87 people there. the 8-story building collapsed in the morning rush hour. it raises safety questions, and the clothing factories have been the site of two deadly fires in the past year. flood waters rose to record levels in several mid we were states. peoria, illinois, where the
illinois river there rose more than 29 feet, and that e clipts a 70-year record. the national weather service expects waterways to be high next month. those are the headlines. back now to dagen. dagen: thank you. the activist is shaking it up for pepsi and ceo. connell: the fcc timing show that they increase the stake both in pepsi and the snack company spun off by kraft. the ceo says she's not interested in breaking up pepsi, but there was a statement last week saying it's been talking with the firm about, quote, opportunity to drive long term growth and shareholder values, so, you read into it, and damm yen joins us now, watching pepsi here in studio. thank for coming in. >> my pleasure. connell: good idea to break up pepsi? >> pepsi, on its own, a good company. they are a global leader in snacks, number two behind coke
in beverages globally. they are doing fine. what's not working as well is the north american beverage business. i think from a shareholder perspective, i think things are improving and stock will be fine just as is; however, i do think if you were to break up the company, there is value, and if you were to merge and ways to do it and in an efficient mapper issue emerge pepsico tax business, you have a bigger snacking giant, which, i think, giving synergies in the top line and bottom line as well as scale, especially internationally. connell: right. >> internationally, both earn less as percent of sales because they don't have the scale yet so this would help. dagen: looking at the two stocks, coke, first, pepsi stock in 52 weeks out performed coca-cola, up nicely, but pepsi up 26%, coke up 15%. why is that? why would you make a move with
pepsi if the stock is performing so strongly, but is it because people think there might be some sort of spinoff of that business? >> i think you're right. the last point. i think, a, the stock has done well because business improved, but, b, i think there is a bit of stock -- you know, people -- the whole idea of splitting up beverages and snacks is not new, been around for two years. what's new and intensified, we know that nelson peltz owns 2.7 billion in both pepsi stocks. well, i think investors think perhaps something will happen k and for good reason, they have a history of doing things behind the scenes, talking to management k making sure they maximize value. they got involved with cadbury in 2006, and kraft spinoff. there's a reason why people are excited. connell: bigger picture, trends been around for awhile, the idea of the drinks business for the huge companies, coke and pepsi, obviously, the big ones, slowing
down. i mean, that -- finding ways, just generally speaking, other ways to look at to find growth when fewer people drink soda because they want healthier alternatives? >> sure. the last statement about fewer people drinking soda is only accurate for the united states. connell: overseas, not the case? >> still growing. plenty room to grow. per cap ratios, they are tiny what we drink here in america. people drink less soda in the u.s., but still drink a lot of drinks. both pepsi, especially, coke as well, they have a repertory of things they offer customers like vitamin water, propel, gatorade, and cola is the problem. it is declining in the u.s.. it's hard to offset with other categories, but, remember, the u.s. population is growing, and they favor beverages in particular. temperature years from now, over five to ten years, we'll be
fine. connell: thanks. we'll see what happens. dagen: because where it's fat as we can get as a nation; right? connell: thank you for that. end op a high note. dagen: the sugar police are not going into hiding either. thank you. jobs in the economy, according to latest fox news poll, there's nothing more important for all of you out there than getting a job and growing the economy of the that's the message to washington. steve moore here to tell you what law lawmakers might do abot it. connell: are you ready to give up your facebook password? some employer's going to start asking for it. oh, man, the judge's coming in here. guess what he'll say in a few minutes. first, winners today, market down a little bit today on the s&p 500. there they are. ♪
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nicole petallides is looking at at&t. nicole: i am bringing you right over to the post to look at how badly it is getting hit. shaving off about 18 dow points. we are watching it as a big loser. revenue is a complete disappointment. we also watched what they were saying about subscribers. rbc raised their price targets. morgan stanley cut it. citigroup cut it. the big picture is it is down about 6% here and wait on the dow about 18 negative dow points for at&t.
dagen: thank you very much. this is according to the latest fox news poll. 42% of those polled said just that. coming in second, but a less of a concern, the federal deficit. what to make of that, steve moore is joining us. a license for lawmakers to do all about our deficit. >> that is right. the budget deficit has gone a lot lower than putting people back to work and getting businesses profitable again. i was not surprised by this. i was a little surprised that terrorism was not high on the list.
where is global warming? dagen: if i am the white house, i read into that. people say spend more, do not cut spending. spend more to create jobs rather than worry about our debt and deficit. >> that is exactly what the white house believes. i believe just the opposite. i think that the sequester has actually been bullish for the stock market. i think it is good for the economy to get rid of a lot of this extraneous spending in washington. you are right, the white house will interpret this to say keep spending federal money because in the short term, that is what gets jobs out there. dagen: harry reid said this 2% cut in spending will mean that
we, as a nation, will find a cure for diseases. >> that is a laughable statement. the attitude of a lot of democrats on capitol hill that the government is the solution for every problem, even a cure for cancer. if only it were that easy. you know, look, i do not believe the american people believe that. i think the fight that we are having with the faa and the furloughs, this is really, you know, made americans focus on what government is doing. why can't they cut the bad eggs and keep the good things? dagen: do you think, again, if
you want to make the american people mad, that is certainly one way to do it. >> i had a conversation this morning with the chairman of the transportation committee in the house. he said the white house has the flexibility under current law to avoid these delays at the airports and, you know, the furloughing of these air traffic controllers. he said the white house simply has not chosen to do that. they have cut the most sensitive programs. the programs that americans care about. i think you can see more of this. it has become a public relations war about whether the american people say, wait a minute. why are you cutting this, but not that. dagen: it is an easy fight to win. >> there is a book of about
3 inches thick about wasteful programs. dagen: people always make fun of swine waste and the newer management. growing up in the south, that is not a waste of money. i will leave it there before i get myself in trouble. >> good to be with you. connell: absolutely. everybody weigh in on the facebook page. the crash continues for lance armstrong. usps paid nearly $40 million to sponsor the team between 1998 and 2004. 17 million of that going to armstrong himself.
the lawsuit could end up costing armstrong over $100 billion. >> that really hurt the postal image, please. connell: 87 and nine has killed 23 people in china so far. more and more people getting affected. dagen: handover joerres social media password to your boss. a last minute amendment to the cyber bill makes that a possibility. connell: a repeat of yesterday's twitter / crash. charles payne coming in. he will talk to us about the new world order, so to speak.
orders for durable goods fell more than expected. a drop in commercial aircraft demand. falling 5.7% from february. their biggest the client since august. meanwhile, shares of buckeye technology is soaring on news of a buyout. georgia-pacific is buying the company for $1.5 billion. walmart has bids on the man of steel. the retailer will be the only place to buy tickets for the next superman movie. those tickets will be available at 3700 walmart stores on may may 18. that is the latest from the fox business network. giving you the power to prosper. ♪ everybody has different investment objectives,
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dagen: will employers to be able to ask for your social media password? stuart: andrew napolitano is with us. give us your password, judge. >> this is legislation which is on stress and scope. it basically provides for the computer servers that we all use in the government to share information extensively to ward off cyber attacks. during the process of the go station, a member of congress proposed an amendment to it whhch would have barred employers to ask for passwords of employees and that amendment failed. that does not mean if this legislation become law, that
employers will ask for it, it only means that in states where it is not prohibited, employers will be free to ask for it. the larger picture here is a bazaar, unique partnership between the government and computer servers extensively to ward off attacks. computer servers know that whatever they get from the government they will have to give back in kind. their code, algorithms and our e-mails and our e-mail addresses and which you devoutly wish to have, our passwords. do we really want the government to have that bush mark are there other ways to ward off cyber attack without giving this
information to the government? is there no longer a right to privacy? dagen: now you have some wall street firms that are looking for exemptions to those laws because they say, well, we need to monitor our employees activities. >> wall street's concern is a legitimate one. if the person is high ranking enough in a wall street company and they are involved in insider trading, that could impose. if news corporation can ask us
for that, it does not constrain in the same affect. >> we all were afraid a week ago now with those monsters were running around boston and nobody knew who caused that massacre. people tend towards safety rather than liberty. although streets, all the microphones and cameras and it did not stop these crazies from doing what they did. it help the police find them, but it did not stop the carnage. i think it is human nature to
prefer safety over human freedom. yes, privacy is diminishing which is why geraldo referred to me yesterday as a minority of one. [ laughter ] connell: much larger discussion. we will have you back. dagen: thank you, judge. >> happy to be here. connell: let's go back to markets now. oil is above $90 per barrel. then willis joins us on the floor of the new york stock exchange. >> you see a trading on supply and demand fundamentals. that drawdown was greater than expected.
it is considered a positive or a bullish indicator for oil. use the oil moving up in price. you have to be very careful in commodities. they can trade on currency. they can trade on global expectations of growth, particularly out of china. today is one of those days, if you look at the chart, you saw the move include go higher. connell: thank you very much. dagen: $200 billion market value loss in about two minutes yesterday after that take to meet came out from the ap about explosions at the white house. of course, it was false. charles: what went wrong?
we had a big flash crash back in 1962. connell: it was not twitter. charles: but the reaction is the same to the general public. we had actually just came out of the longest bull market in history. from 1949 to december 1961. as we are starting to fall apart from this long old market, people are saying, our our best days over? i know that the system, so many things have deterred the general public. most people own apple, those people bought facebook on the ipo. they see the flash crashes. that bothers them. ultimately, it has to be about owning great american companies.
dagen: i do not believe that they only own a couple companies. older americans owned all those things that before the crash because they needed the dividends. that was a real burn, if you will. that is what turned people more than just owning what many people would own would be a speculative -- charles: most people, knows people, but i read a survey with 40% of americans on one stock. you could not believe the people who rode off the market for a long time. the experience with the market has been unsavory. the problem has been people are not investing. the same patterns that they have always got involved in. this flash crash does not help the situation. they have to look beyond that. we see that if they take it the
connell: let's go to sandra smith at the cme. sandra: take a look at what is happening on an intraday basis with corn charts. caterpillar, deere, they are all watching what will happen with this planting season. and intraday chord chart will show you what has happened with the day. there are a lot of forecast coming-out weatherwise. cold, wet weather has rolled through the midwest. there is concerned that we will not get to plant as much corn this year as originally predicted. we are up on the session. core prices already down about 8%.
this is an ever-changing world down here. a lot of these agriculture commodities are moving on this. corn is up on the session now. soybeans and wheat still both lower. soybeans down about $0.10 on the day. volatile environment. i always remind everybody, we are not just watching the commodities themselves, this affects a lot of stocks. we are watching all about for you. connell: the dow has market loss. cheryl and dennis are coming up as market now continue.
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cheryl: i am cheryl casone. dennis: i am dennis kneale. investors turning away, perhaps a little shaken. after yesterday's dive, $200 billion loss, what went wrong and how to fix the twitter problem. cheryl: ford's focus. i am going to go one on one with the cfo on success and overseas information. dennis: apple shares trading lower again. is tim cook vulnerable?
cheryl: we are coming on the top of the hour. we do not have the volatility. nicole: yesterday after 1:00 p.m., we sell the stock market fall out of bed. very market moving event and devastating to a certain extent. today, it seems a little more clear. the dow and the nasdaq slightly down. the bank stocks are managing to hold on. procter and gamble are under some pressure. i want to take a look at general electric. shareholders rejected the proposal to split the roles of chairman and chief executives.
they reelect all 17. back to you. cheryl: we knew that she would surface somewhere. dennis: a hack attack sending markets into a died yesterday. a fictitious tweet appeared. that was enough to freak out wall street. we are now hearing reports of a possible syrian connection? >> the syrian connection has long been suspected, not only in
this attack, but other attacks over the last couple of months. dennis: what is a theory and group? >> an organization that is allied with the president over there and they are just doing things to promote his side of the argument. dennis: elizabeth macdonald, they found that after that ap tweet happened, suddenly there was a 300% surge in the ap twitter site. 3000 people retreated this bogus report. liz: that is right, dennis. when not twitter feed went out
and took many companies out. the question for lawmakers -- the fact that the markets are so hardwired to news flow and market news is now released on twitter and the fact that the sec is allowing social media to be used, you have to say, wait a second, the markets need another layer of protection. dennis: i cannot think of a more reliable more instantaneous medium right now than twitter.
so much is utterly unedited and unchecked. why would wall street in its wildest imagination the attaching trades to twitter? >> wall street is looking for all kinds of information. they are always looking for that edge. the larger point candidly is how do we use social media and how do we use social technologies? dennis: who do you blame more in this? do you blame p or do you blame twitter because its system is not bulletproof enough? >> and perhaps also blamed the people who are relying on that information. i think there is enough lame to go around. we always have to remember that.
as far as blame for twitter goes, they may need to do things to increase the security of their product. they are in the process of doing so. dennis: i am seeing reports that there is a simple two-month process. liz: that is right, dennis. it is requesting the user to authenticate that they are the proper person to be using this. what is twitter's response? it has said it will do better in protecting the system. again and again, why is the fcc allowing companies to disclose important market moving information without first making sure that twitter is bulletproof , that it cannot be
hacked. i think they have to say wait a second, they have to be able to authenticate who is using the twitter feed. this is an inconvenience. it hurts their own credibility. dennis: let's get a last point from you, eli. >> i think twitter need to do more to secure their product. it is not just something you know. it could also be something you have, for example a token or an extra. that may be texted to your phone, for example. i would just be reluctant to add more regulatory burdens on
hacking. thank you for being with us. dennis: we appreciate it. social media receiving financial regulators blessing earlier this month. cheryl: the contract is still on track for a 12% drop. the precious metal reacting to durable goods, also a recent increase in demand from jewelers. joining me is harvey cantor.
>> thank you for having me this morning. we are, in fact, lower in prices. blue nile really has an incredibly efficient model. cheryl: i was looking at a note from the analysts. it is an asset to you. i know you are in a quiet. it has to make you feel like you are on the right path. >> our gold business has been good. it really should be a great lift for us. cheryl: let's talk about the contract overall. i am curious, do you hedge in
the business? do you find that the hedging helps or hurts you in a situation like this? >> we actually do not hedge. we are very lenient. it gives us just flexibility. cheryl: what is the average that your inventory stays in the warehouse? >> we typically turn around three to four times a year. that is significantly faster. cheryl: the engagement ring business, fourth quarter, 30% jump in sales. what is happening now? people just do not want to go to
the store and pick up and engagement ring? >> we have been around since 1999. the value with the education really helps educate consumers to make the best purchase. the value we bring and relative to our pricing is really the icing on the cake. typically 20-40% lower than typical brick-and-mortar stores. we have an incredible diamond count. 130-140,000 diamonds exclusively available on our site. it is an incredible offer. cheryl: can you give us a general sense? >> we are in a quiet time. we cannot comment on specifics. cheryl: okay. had to give it a shot. are you worried about profit margins at all?
>> our flexibility and turnover allows us to reduce prices and more importantly buy it back at the lower price. we really do not specifically worry about margin. cheryl: harvey, we would love to have you back when the earnings come out. thank you for being here. >> cheryl, thank you so much. it would be great to come back. have a great day. dennis: what is your password? employers could soon demand your social media passwords. cheryl: board once again beating street expectations. i will go one-on-one with cfo. as we do every day at this time, let's take a look at oil. ♪ [ male announcer ] you are a business pro.
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dennis: we have kind of a split here. you see boeing, the dreamliner could fly again. it is of nicely. it is quarter after that hour. as we do every 15 minutes, stocks now. nicole petallides. nicole: we are taking a look at a couple of movers. we are starting off with apple. coming out with their numbers after the failed yesterday. we saw apple all over the place. as high as 415 as low as 392. right now sitting out $400.95 a share. they beat the street with the sales of the ipad and the
iphone. the real issue here is that they are out of favor and they do not have a hot product that everyone is waiting for. yum brands was under some pressure because of what was going on in china with bird flu and that chicken publicity. in the end, they actually did all right. up 7.5%. 68.93. back to you. dennis: thank you very much, nicole. cheryl: it is time to make some money with charles payne. charles, you have brought this stock two hour show before. charles: january 209. it had a huge move. we took profits. i had it on my trading service. i like this one longer-term.
we thought it pulled back a little bit when crude oil pullback. peg ratio 0.55. we have some of the best margins in the business. strong cash flow. when was the last refinery built in america? dennis: 40 years ago. charles: it is in prairieville, louisiana. this is smart forward looking stuff. taking all the heavy crude from canada, be able to refine it and send it to places with no pipeline is huge. dennis: can i buy it if i think oil prices are going down from your? charles: as an investor, you would buy the stock. the fact of the matter is, they positioned themselves very well. there are absolutely no refineries. to your point, any stock up 100%
for the year, you can expect some profit taking. overall, it is extraordinary cheap. cheryl: do you like the energy sector overall? charles: i love the energy space. i think the shelf thing is just the most amazing godsend. i love the idea that ultimately we will be able to make liquid natural gas and be able to export it around the world. this is a grand slam from american companies. charles: charles payne, great pic. you brought it to the show. dennis: honoring the university police officers who authorities say was killed by the boston bombing suspects. cheryl: blockbuster earnings for board. especially in north america.
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them. to be on track in the first quarter after making the announcement of our transformation plan, that really gives me a pump. it is great. cheryl: let's talk about the fusion. pickup sales, they seem to be "picking up." how high is the pickup sales compared to the housing market? >> the housing market actually is correlated to the full-size pickup segment. the full-size pickup segment was 11.8% in the quarter. our share was very strong. going back to what you said
we are very excited about what it will bring to the business and the future. cheryl: what is the message that you get most from alan about the company and how things are kind of in general? >> outlet is just a bundle of positive energy. i think that influences and pervades how we all feel about the business that goes well beyond the senior management team. we can see the green shoots. we see a growth in asia-pacific. we are just so excited about our plan and what it is bringing to our company and its shareholders cheryl: it is great to have you
again. congratulations on the numbers. >> thanks a lot, cheryl. dennis: jimmy fallon news the tonight show to new york next february. cheryl: as they go to break, we will take a look at some of the winners over on the s&p. writer and yum just came out with their numbers. we will be right back. ♪ change makes people nervous. but i see a world bursting with opportunity, with ideas, with ambition. i'm thinking about china,
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>> stocks now every 15 minutes. nicole on the floor of the new york stock exchange with the look at the movers today. love earnings season. >> it's earnings season. i have names that reported quarterly numbers and are hitting all-time highs. dr. pepper and snapple, up 3% at 49.21. stock with an all-time high, reported higher than expected quarterly profit, and high productivity, and also the 10 calorie sodas helped them along. they did -- they stood by the full year forecast, and under the umbrella, other names recognized is canada dry, 7up, motts, and sunkist. lumber liquidators, double digit sales growth, income rose 9 #%. i mean, that's unbelievable.
topping it off, they raised their full year earnings, and lumber liquidators hitting all-time highs. thank you. >> from sea world to fareway, a big year for ipos, both gaining grounds since the recent market debut. next says you ain't seen nothing yet. carter mark joining us now. we appreciate the being here carter. why is it that ipos, dormant for a long time, why are they back big? >> well, i think there's a number of different factors that propel the ipo motion. it's the great overall performance in the market. we've had low volatility, a big backlog of transactions coming up, and we've had great performance from recent ipos. if you look at ipos done this year, i think 46ipos, on average, up 15%. that's great. >> 46 so far this year up an average of 15% since going public? >> yes. >> that's a huge annual return
if they hold on to the gains. >> exactly. >> is it because this crop of ipos are better quality than in the past, or is it that we as inveesers are optimistic and hopeful? >> it's a combination. the low volatility, but, also, i think the quality of the companies is very good. the companies we've been bringing out are solid companies with very big addressable markets, good growth, and seen really interesting companies come out of the last few months. >> as an investment banker adviser a client to go public, get them as much money as possible, the fact they are up 15% on average, doesn't mean they did a bad job because they should have priced them higher? >> no, i think they did a good job. people expect to get some price deappreciation on an ipo, and when bankers do a bad job is when the stock goes up 15% or a crazy number like that or drops significantly. 15% is what you shoot for.
>> oh, i see. now, i was thinking the facebook effect, the negative effect of a botched ipo back in may of 2012 # was going to hurt the market for ipos. did you see that happen, and has it worn off? >> yes, it happens, took wind out of the sails of the ipo market. we had a lull in ipos until late in the fall of last year, but we had the elections so we have not seen an uptick in ipos until recently. we have a really big backlog of ipos. i think that's the thing people have not seen because under the jobs act, you file confidentially, and people don't know what the size of the backlog is. i think there's well over a hundred companies right now confidentially filed. >> yet, there's complaints over years for venture capital groups that the ipos are diminished and reduced by sarbanes, why the increase now if that was true? >> the jobs act is kicking in,
and the jobs act for emerges growth companies, below a billion in revenue, which is most these days, and the blow, the cost of that right away, a five-year onramp. you've got the ability to file confidentially. you got the ability to do premarketing of the deal on file. there's a number of things i think help the small cap ipo. >> all right. your firm has two ipo softwares coming up, give us the stock symbols to check them out. >> don't know the stock symbols offhand. they are interesting companies in the next month or so. >> we'll watch for it. thank you very much. >> thank you. >> good job. >> have it your way, burger king's new delivery plan is expanding. details coming up on the west coast minute. >> wonder when the last time cheryl had it her way. advanced microdevices, and up next, one-on-one with hector
in the firrt quarter, toyota sold more than 2 #.4 million vehicles, autopacing gm at 2.46 million. the cash strapped postal service renewing the air contract with fedex, another seven years worth 10.5 billion. it gives them flexibility to respond to future changes, and thee news, $100 is set to go into circulation this fall. more than two years after the federal reserve initial target, but the central bank now expects to start circulating the new bill october 8th. it's added security features including a blue 3-d security ribbon and a disappearing liberty bell and ink well. that's the latest from fox business giving you the power to prosper. ♪
because company is not performing in the stock market. tell tim is trying to keep the job because he was, like, have you tried turning the company off and back on again? [laughter] >> okay. well, the joke has been on apple, certainly, for the last few sessions to be honest with you. a stock alert watching apple after yesterday's earnings release. we want to let you know cit igroup, deutsche bank, and other heavy hitters cut it. last night after the earnings came out, the stock moved higher, and i can show you that. this is the action as you see here on apple, or maybe not -- there you go, 480 shares of apple. the last six months, price pressure, and this is why people make fun of the company. it's down 33%. revenue warnings about q3, q2 looking okay, putting cash to work. i want to show you something else. this is the big technology sector, all the big names we follow, of course, here on fox
business, but i want to give you a side by side comparison of apple and microsoft. the joke was on microsoft for so many years, and jimmy fallon made the joke on apple last night. the six-month performance of microsoft in blue against the six-month performance of apple, which is in yellow. again, this is the story today. watching apple, but, dennis, again, the company not having a great day again. dennis: yes, bloom off that rose, i guess. remember the computer chip wars? odds stacked high against amd, but that didn't stop our guest from deciding to sue intel for a billion dollars, and we're joined by former advanced microdevices hector luis, author of "slingshot," a great title, and project slingshot was a big gamble take taken in 2005 and sue the biggest chip maker in the world. do you think it worked in >> yes and no. we were doing for the industry,
you know, customers like hp and others would tell us, you know, hector, help us, you know, we have to get rid of this charcoal from intel. department work as well as we hoped, but it's worked for the customers who are now pretty much free and open to choose anything they want to without fear at one point in time they had. dennis: yes, now, intel didn't admit wrong doing agreeing to pay $1.2 billion to amb, but at the same time, did it distract amd and intel both from competing and instead fighting in court? tech companies, years later, are doing exactly what. what do you think? >> it's terrible to go to court and fight for these things, frankly. it's like baseball, call the plays correctly so a fair game takes place. when they doarnlt do that, there's no option other file
suit. i didn't want to. it was the last thing we wanted to do, but, in fact, if i could say something, frankly, i think it distracted imtel more than amd. they have more challenges today than they had for the last -- dennis: missing on the shift to these now fading laptops and big computers. your big complaint in the case was intel went to customers say i don't -- saying you can't order rival products. they were competing aware of you guys, nipping at the heels; right? >> as a matter of fact, that's the irony. when you have fair competition, there's transformation of innovation. if you take exation, there's incremental exation. they fought in the wars, took the eye off the ball. rather than making a
transformation innovation like google did, they just got better, and look what happened to them also. >> yeah, apple, samsung had a big patent battle, billion dollar award, and samsung just taking it apple doing belter on gaining. do you think tech companies are too quick? >> i think there's way too much going on, frankly. i don't know how to reset the clock for that, but there's way so too much of that, and companies like samsung, for example, scare the hell out of anybody else because they become so strong in every aspect of technology that sometimes i think suing people is the cost of doing business. >> thanks so much for being with us. good luck with the new book. >> thank you. >> former ceo of amd. cheryl? cheryl: and it is time for your west coast minute. a renewable energy bill in colorado is facing a major vote in the state house today. the bill would increase renewable energy requirements for the state's rural electric companies from 10% to 25%.
the former wife of l.a. dodgers' owner says she was misled without the value of the team during their tenacious divorce battle. jimmiments her $131 million divorce settlement thrown out claiming the ex-husband committed fraud. closing arguments today. frank mccourt denies allegations selling the dodger last year for $2 billion. finally los angeles and san fransisco next in line for burger king's new delivery service. they started it last year in washington, d.c., and the competitive landscape is getting tough between mcdonald's, taco bell, and wendy's. they hope it gives them the edge. look at the stocks that trade in the sector. again, competitive, especially between burger king and mcdonalds. that is your west coast minute because, of course, dennis, if you want a thousand calorie burger, have it delivered, not walk to pick it up.
dennis: no extra exercise. quarter till or so, stocks now, and ben willis, and, ben, the market's still in the red. >> we are. we are still in the red, and that shouldn't be a surprise. apple probably is the best indicator. had a nice pop yesterday after the close, but it didn't manage to hold on because the negative earnings of bell weather stocks before we opened. the economic data, not pretty. stories europe and ama not pretty much. i hope there's a pull back, much needed, reset expectations for a slower global economy. we're still growing, but we're not growing as quickly, yet again, as we were last quarter. dennis: thank you very much, ben willis. when china speaks, hollywood listens. the red dragon's impact on blockbusters like iron man 3 coming up in my "media minute." cheryl: as we go to break, look at the winners.
i'd rather watch the movie. here's winners on the nasdaq. we'll be right back. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcncer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats andaily live webinars. andrade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
go with the money is. it was made by marvel and a local china firm opening may 3rd, and we'll see whether china 's finger prints are all over it. the new book came out this week, but now a scathing review of the book in the "new york times," a former tv critic likens it to a bad breakfast and limp bacon. i'm sure it had nothing to do with jealousy. jimmy fallon, new york loves you so much you get a $20 million tax break. hollywood reporters says the tonight show gets a break when it passes from leno to fallon and taping moves to new york from l.a. in 2014 to help profits down below 40 million a year, down from 150 million a few years ago. cheryl? cheryl: oil is on the rise crossing the $90 mark. sandra smith is in the pits of the cme a watching contracts and more.
sandra? >> hey, cheryl. it's been a huge couple weeks for commodities. volatility and volume as well. looking at the crude oil contract, back above $90 a barrel, and the most active front month contracts above $91 a barrel. nearly a $2 gain on the session. there's a couch l things at -- couple things at work. ubs, royal bank of scotland, they are increasing speculation in the marketplace that the european central bank is goong to cut its key interest rate to a record low. you have speculators buying up crude oil based on those reports, but you also got some fundamentals kicking in here. you got a report out from the government this morning showing a less than expected rise in crude inventories. that, too, is adding to the bullish sentiment in the market now, so a couple dollar gain in crude leading to higher prices for wholesale gasoline prices also up, heating oil up on the
session, so a lot of these energies are feeling the heat today as a result of a couple big pieces of news both on the economy as well as speculation that the ecb is going to change that interest rate to a rod low. a lot going on, lots of volume and volatility, by the way, anybody watching gold just noticing up 14 bucks on the session. back to you. >> thank you very much, sandra. dennis: this screams "get out of my face" employers may be able to require you to fork over social media passwords, a last minute amendment to the cyber intelligence act that would have banned the practice was blocked by the house, but the rest passed. senate could kill the bill and president obama threatens a veto. i'm torn. i know employers have a right to worry about what i say online, but on the other hand, i don't want them to demand. cheryl: my employer says i have to do breaking news now. breaking news in fox business,
the navy is canceling new york city's fleet week due to sequester in a statement that we just received from the directer of public affairs say, quote, unfortunately, no navy ships in new york this year for fleet week, no additional sailors or marines. we look forward to participating in future events. we appreciate the parks -- patience and understand during the unusual times. thank you what you do each and every day, hope to see you next year. cancellations in san diego, cancellations in california. dennis: so bogus and unnecessary. give me a break. it's government trying to make us feel sequester. in fact, i hope u.s. companies step up and fund fleet week to offset this cynical government manipulative move. cheryl: that's all for us. there's more coming up. the twitter flash crash, it's been about 24 hours since the tweet that rocked the financial