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tv   Markets Now  FOX Business  May 9, 2013 1:00pm-3:01pm EDT

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market now. i am lori rothman. ashley: i am ashley webster. stocks pulling off after five days of you record highs. americans applying for unemployment benefits dropping to the lowest level since 2008. lori: in europe, the jobs news not nearly as good. 27%. ashley: and exclusive interview with hewlett-packard ceo. what she said she needs to do to catch up with apple. lori: trial to control us even more. ashley: time for stocks now. let's head to the new york stock exchange.
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nicole: do not look now. look now, the dow and nasdaq with the aeros. that may snap its winning streak. five consecutive record all time closes. we have not seen that since 1998. a historic time here on wall street. new records day after day. we will see whether or not the dow closes in the green. it will be the 18th record close for the dow this year. we did get into jobless claims that were better than expected. they rolled out 114 of the
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charts. fifteen of them have been delivered to eight airlines. nice one year chart for boeing. lori: major averages hovering near the flat line. the s&p, well, it is only a few points off of a six record close. joining us now is raymond james chief executive. jeff, thank you for being here. >> can stay over for a lot longer than people think. the half life for people in this business is about 14 years. the market state overbought and it stayed over bob for a long time. my hunch is, unlike the past
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three years, i don't think that strategy plays this way. lori: how would you chase stocks? what is your place? >> i should say this, sectors and stocks can go higher and lower than people think. a lot of people have been hiding out in the consumer staples sectors. i would be cutting back on companies and those sectors. i would be fine into technology. i think technology is valued cheaper than utilities and consumer staples.
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i think technology is undervalued. lori: interesting. a lot of people have been steering clear of technology. we have an information technology. why do you like it? >> if you look at your handheld device, it becomes more and more apparent. that is where your computer is going. spca, favorably rated by our power analyst. they have had a good run. they are starting to throw off nice amount of cash flow. lori: there you go. let's switch gear and talk healthcare. you like a lot of names involved in the healthcare industry. let's start with rite aid and walgreens.
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>> walgreens made an acquisition over in europe that was ms. understood. we think, and we have it favorably rated, we think in 2015, fiscal 2015, that the combination will give walgreens north of five dollars a share of earnings power. friday and probably has a billion dollars of cash flow in 2015. lori: another stock that you liked that catches my attention is sex calm it is kind of depressing in a
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way. >> they do not want to prick their fingers. it has a terrific manager that has built the company and sold it before. we think it will be a decent gross story going forward. lori: thank you so much. we will see you soon. ashley: a sneaking position. lori: i called you lean and mean yesterday. ashley: federal prosecutors have arrested eight members of a global cyber ring in new york. they allegedly stole $45 billion from compromised bank accounts.
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>> a press conference has just ended. it took place twice over a period of six months. the first was a global, you may say, attack all prepaid debit cards. in total, $45 million has been stolen. what the criminals did is they stole prepaid credit card data from credit card processing companies and then use that data to compromise prepaid credit cards out of two banks in the middle east. then men and women across the globe, this involves 26 countries, would go to atms and withdrawal on the in just 24 hours. in new york, they were able to get $2.8 million. eight defendants have been charged although one of them is dead.
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one of them that their maker in april and it was murder. that is the details of what has happened. they were laundering this money through institutions in the united states. that money has been seized. ashley: wow. living large in other people's money. lori: hp may have a new woman. back in 2005, the former ceo left the firm and 65% of female leadership followed her out the door. elizabeth macdonald has an exclusive interview. liz: good to be with you, lori and ashley. we are really excited.
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it has been seven years since you have left hp. do you still follow it? >> i follow it as much as i follow any other coopany. i think hp needs a growth strategy. they need to remember what keeps them unique. they need great products. they need to invest in both r&d and marketing. sadly, those investments were cut back for far too long. if you are a technology company, you have to have great products. i am quite engaged in philanthropy right now. i chair and organization which is the largest online donation or a place in the world.
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liz: will you run for office again? >> never say never. we have moved back to virginia. i quite enjoyed it. liz: we just had a conversation with kathy black. what do you think about business executive and government? does it work all the time, most the time, what do you think? >> it certainly does not work all the time. i still believe this. politics should not be a way of life forever. it is not what our founding fathers intended.
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there are things that you learn in business that can be applied to government. for example, the ability to prioritize would be helpful in government. the ability to have short-term and long-term goals is good in government. every dollar spent should be spent wisely and well. i think we need more people with his experience in government. both political positions, as well as appointed positions. i think the trends are not encouraging right now. liz: in what way? >> i do not think there are enough people running for business. it is hard. most of the people are professional politicians. it does not mean that they are bad people or not good public servants, but if you have been doing the same thing for 20, 30, 40 years, your focus becomes winning office again and that is the bottom line.
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liz: the bottom line is getting reelected. >> i think that is why so many americans feel frustrated. liz: you are so terrific. i am so grateful that you sat down with us. come back and visit us again. >> of course. liz: i am going to toss it back to you guys. a really exciting day here. back to you, lori and ashley. lori: a wonderful job. what a fascinating conversation. ashley: cashing in on the predictive power of twitter. protecting business from another hash crash. lori: supporting your portfolio with art. we have some more affordable
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options. ashley: new signs out of china signaling perhaps a new apple iphone could be in the works. lori: gold coming down slightly. silver and copper following suit. we are back after this. ♪ she's still the one for you -
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ashley: let's get a check on these markets. nicole petallides. nicole: during earnings seasons, sometimes you get reports of big winners and losers. green mountain coffee roasters are soaring today. 26%. they raised their full-year outlook for earnings. they expanded their relationship with starbucks for five years.
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a new high therefore green mountain. we are also taking a look at tesla. they got some really positive comments. back to you. ashley: thank you, nicole. lori: making money with charles payne. charles: first of all, orbitz reported a number a little bit better than what wall street was looking for. i like that already. orbitz has been somewhat loser of the big name. by the way, this was a hated stock from day one. it was a company called travel ports and luck stone took them private and then they spun this part out. it has always been a little bit ugly for these guys. priceline took over kayak.
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6.9% of market share. this company is number three right now. kayak right now has a market cap at $1.6 billion. two times their market share with 50% less. to me, this is a company that is screaming to be taken over by one of its bigger rivals. there is a lot of consolidation. this has been significantly higher. i do like that they did much better this time around. hotels are up 20%. they still have no real international footprint, so to speak, and that is what is killing the stock. i was already in its coming in today. i think this stock is going a lot higher. lori: take you so much.
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ashley: by the way, a quick programming note for tomorrow. we are tracking the real estate. we also want to get your take on the housing market. tweet us your comments at fox business using the hash tag housing recovery. new concerns for carnival. oh, yes, or. two passengers go missing. the details coming up. these currencies moving lower or pretty much as is. the canadian dollar flat. we will be right back. ♪ ( woman ) hold on, this might get bumpy.
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♪ >> 20 minutes past the hour. hi, everybody. i am jamie colby. this is your fox news minute. the search is underway for a
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couple that is missing off of a cruise. police boat, helicopter and airplane are searching a 300 square mile part of the sea. house speaker john boehner is saying e-mails need to be released before and after of the benghazi attack. in cleveland, the accused kidnapper, ariel castro, arraigned on kidnapping and rape charges. three women that disappeared separately between 2002 and 2004 were held in his house until they were rescued last tuesday. i am jamie colby. back to lori and ashley. lori: thank you.
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do you twitter? ashley: i do, i'll probably not as much as i should. lori: i am getting a little more comfortable. how do you filter what junk or useful information could help you earn money? jeff: lori, you make a great point. you need to filter out the crap somehow. social market analytics dump you what they call an f score for all the activity.
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they began to see a tick up before the stock moved in its sentiment index. >> there is plenty of opportunity to get in and execute a trade here. jeff: show me the real-time tweets on this. they filter out, like i said, the crap. i hate to say it. that is out of there. another guy looks like a clown or a cartoon character, he is out. >> that is an indication of something you need to account for. we will give that a positive indication for barnes & noble. jeff: each of them has a value.
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they can compute out what the positive activity is. it is a fascinating way to look at things and a way to filter out some of the unhelpful 400 million tweets. lori: how can average, everyday investors take advantage of this? jeff: they can't just yet. eventually, they will come up with a platform for traders like you and i. right now, it is only hedge funds. lori: got it. okay. jeff flock, thanks. interesting stuff. ashley: thank you, jeff. staggering numbers out of europe. lori: back here at home, it is the cost of college that has a senator all fired up.
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ashley: take a look at who is up and who is down on the dow as we go to break. we will be right back. ♪ .. all stations come over to mission a for a final go.
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[ boris ] put 'em ony spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day. great businesses deserve unlimited rewards. read back the chicken's testimony, please. "buk, buk, bukka!" [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles on every purchase every day. told you i'd get half. what's in your walle lori: time for a quarterly market check. let's head back to the floor of the new york stock exchange with nicole petallides. we have sales this morning. >> that's right. certainly worth taking a look at some retailers at the moment. this is interesting because retail spending continued to grow modestly. a couple things to factor into the latest numbers. you have some tough weather across the country coupled with some very frugal customers. that is something worth noting. we saw names like tj maxx, right? this is the, tjx owns both tj maxx and marshall's and
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ross stores as well. this shows frugality of customers. overall april was a tough month for retail sales. costco, also limited brands missed expectations. as i noted tj maxx better and ross stores one of the winners as well and gap comes out after the close. we're watching retailers. back to you. lori: and we're up to date. thanks, nicole. ashley: greece unemployment hitting all-time high of 27% with 60.2% youth unemployment rate. earlier today greece's finance minister says the country's recession-racked economy will begin recovering next year. what are we missing? we have the managing partner of spotlight ideas. welcome, steven, from westminster there behind you. what exactly is this greek finance minister smoking in what does he see that we don't? >> this is extremely good question, ashley, because you look at the metrics.
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the gdp will contract 4 1/2% this year. that follows from a 6% contraction in 2012 and 6.5 in 2011. the country we know is on its third wave of bailouts. what he is hoping is that there might be some slowing of the contraction in the growth by the end of next year. and then maybe we get a j curve effect on unemployment i think starts to improve a little bit and is it allows greece to get to a point where they have a primary surplus. that means they can ask for more debt forgive nist from the ever so patient investment community. it really is just stringing the whole eurozone saga and story along once again. it is incomprehensible he can see green shoots of recovery amongst this recovery. lori: the ultimate optimism. let's look at the bigger picture. ecb did as expected and cut its interest rate but what else can mr. drawing gi do in this situation. >> what he could actually do
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is turn around to say to some of the other appointed heads who sit on the ecb governing board to zip it basically. last friday we had quickly the man from finland they were very much open to negative deposit rate to help money start circulating in the banking system. within half an hour the man from austria said no, the markets are reading far too much in that. we ended up on friday, midday the euro trading at higher rate than before we had the rate cut on thursday t has backed off a little bit this week but quite frankly we need to see less ponderous deliberation from the ecb and more definite action. that requires the political elite, either elected elite or people in brussels to turn around redraft the remit of the ecb. at the moment not like the fed or bank of england which has multiple levers. it just has one, inflation. we know inflation is not a problem for the ecb so why
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they dither and delay is beyond my comprehension and maybe somebody else could explain. lori: let's talk about germany before we run out of time. so much depends on what mrs. merkel has to say and germany's attitude to all of this. immigration to germany out of the eurozone hit a 17-year high. workers in other countries in the eurozone are saying forget this. we need a job or we'll find a job we probably need to get to germany. at what point does germany's patience runs out as this thing goes on and on and on? >> i think we have to remember the germans do export a vast amount of their goods and services into the eurozone. on a broad brush level they have a strong mandate to keep the eurozone flourishing. however what is worrying as the election comes up in september. the beginning of april, the party, alternative for deutschland. alternative for germany was formed. they were already polling 5%. come september they could qualify for seats in the parliament. now they are an anti-euro group. we've seen the
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anti-establishment parties gather strength in greece and in italy. so there is no doubt it could happen in germany. people are becoming frustrated all these euros have migrated south for the winter but seems to be perpetual winter. those euros are not coming back at current time. the germans who went through a lot of change of agenda 2010 when schroeder was chancellor to make themselves efficient and allow industry to be globally competitive. they're seeing that other companies didn't go through the adjustment we want the same pay raises and we want the same deals. unfortunately seems to be euro and the whole rate structure is geared to what germany wants and not really to assist the periphery. lori: as always great stuff. steven pope joining us from london. thank you so much, steven. >> thank you. lori: what does dither and dali mean? ashley: dither and dali means do nothing essentially. lori: that is what he is saying? going on in the ecb? ashley: they're doing nothing. dithering.
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lori: that's interesting. thank are ash. ashley: you're welcome. lori: senator elizabeth warren have students pay the same interest rate on student loans as the same rate as federal reserve. interesting comparison. >> there are plenty different student loan bills coming through congress right now because federally subsidized stafford loans the rates are set to double on july 1st. look what liz warren wants to do, senator from massachusetts. wants to allow students to borrow from the primary discount window. that is the overnight emergency lending that the fed does for banks. they put up collateral. .75% is the rate. federal stafford loan rates at 3.4%. they're set to double to 6.8%. plenty of talk about this proposal in washington from elizabeth warren and a number of folks here are split over the consequences. >> absolutely good idea to bring the interest rates down the kids have to pay. that i think is warren bill is showing hey, we're letting banks borrow money at less than 1% and middle class families will have to
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pay 6.8% to borrow money to send their kids to college. >> they're sort of grasping at straws for, we want to lower the rates and so we've got to come up with some rationale for it. if the rates are already below market, and so they're just looking around for somewhere where interest rates are lower and saying let's make it about that and not really about student loans. >> it appears likely in congress there is support for other proposals other than the warren proposals to bring down the student loan rates and avoid that 6.8% increase, or the increase to 6.8% on july 1st. back to you. lori: quickly, rich, it was last summer that congress as part of the transportation bill voted to extend the low rates on federally subsidized student loans. what is likelihood they do it again keep the rate at 3.4% instead of letting it double? >> it appears likely. republicans are talking about their proposal. white house has proposal. that could get done before july. lori: there is that. rich, thanks. ashley: bank of america and jpmorgan posted a perfect
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trading record in the first quarter. both banks made money every day in the first three months of this year. goldman sachs had two losing days while morgan stanley reported eight. but trading revenue at all four banks was lower versus the first quarter last year. there is fresh speculation that a new iphone is in the works. one of apple's suppliers, pegatron is boosting its workforce in china by 40% in the second half of the year. the company assembles iphones and ipads. this comes after several reports that apple is planning to launch a lower priced phone later this year. that is just feeding that speculation. we'll see. lori: impressive week so far for the markets. s&p 500 with its longest record winning streak since 1998. can stocks make it six days of gains in a row? back at the nyse with a view from the floor. ashley: plus a la carte cable. congress is working on a bill to up end the way you watch television. we'll have all the details next. i want to make things more secure.
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[ whirring ] [ dog barks ] i want to trt mo dogs. ♪ our biness eeds more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ >> i'm jo ling kent with your fox business brief. senate republicans are blocking president obama's nominee to head the environmental protection agency. all eight republicans on the committee skip ad scheduled vote on gina mccarthy's confirmation saying she didn't respond adequately to questions. at least two republicans were needed for the vote to proceed. more americans were able to hold on to their homes
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last month. according to realtytrac repossessions fell 20% in the month of march. nevada had the highest forelows chrur rate in the country. according freddie mac the average rate on a 30-year fixed loan is 3.42%. after hitting a record low last week the 15 year mortgage ticked higher to 2.61%. and that's the latest from the fox business network, giving you the power to prosper.
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ashley: ever wish you co-pay only for a couple of dozen of cable channels you actually watch instead of buying those bloated packages of hundreds of channels you don't watch at all? lori: come on, soap opera channel? ashley: that is only one you watch. a new law could enable you to do just that. dennis kneale is all over
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the story and joins us with more. dennis. >> u.s. senator john mccain on floor of the senate today introducing a dream bill for cable viewers. it would split up the cable dial to let viewers pay for individual channel on a la carte basis. you have to love it as a customer. but you might hate it as investor in cable and content companies. the bill is huge intrusion on business courtesy after pro-business pillar of republican party no less. it would drastically alter how the business would work. small channels could disappear. content choices would be vastly reducesed that would hurt hollywood as fewer outlets to purchase their wares. networks like espn profit cost soar. revenues could fall for both cable channels and cable civil operators. the mccain cable bill raise as key question, why should government interfere how we get our tv and dictate how companies do business? and once government steps in, who decides what price each channel can fetch?
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do the feds want to control prices too? why not let the cable biz and its customers work it out for themselves? now i know what the answer is? cable's virtually a monopoly. they don't do this until they're forced. let us look at music cd. we used buy evenly one song and not the whole cd. ashley: that is true. >> that didn't get broken up. that didn't require government action. that was apple and itunes and the free market. lori: you should say cable companies should act on their own? >> now with a warning from government here we'll come in and force you, charter communication as lesser cable player that owns systems ought to come in with a new pricing structure to shake up industry. cablevision systems already sued dish network i think it is or vice versa because of that same issue. one other note. for your cell phone we used not be able to carry our cell phone number everywhere no matter what carrier. that was forced by federal law because cell phone carriers, only two in every market, ten or 20 years ago,
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they wouldn't do it on their own. they wanted you to stay with them. that was good government intervention. so i'm saying yeah that might be the right thing. cable ought to get out in front of this. they --. ashley: been talked about for years. >> sure has. it is time okay? this will hurt the business. it could more than it will help it. ashley: dennis, good stuff. i don't think we've heard the last. you are passionate. >> great intersection of business and government. when i want them on two parallel roads. i don't want government getting interfering all the time. get out of your face. ashley: thanks, dennis kneale kneel. lori: let's check the markets. keith bliss is on the floor of the new york stock exchange. nothing is stopping enthusiasm for this market to go higher. what could possibly be a risk factor at this juncture? >> would it really matter? the market is never going down again, or so it would seem. resilience is just incredible as we watch day by day. the fundamental guys point thatd looking eps, price earnings ratio is right in line at
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14.2, 14.4 at current valuations. that is fine but i could easily point to a couple lori: there is always threat of geopolitical attack and we're talking about cyberthreats and other hack attacks. there are risks out there. very strong bull market.
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ashley: all right. big cleats to fill. the new man chosen to replace britain's most successful market manager ever. lori: this is fun and stunning to look at. take a close look from the work of famous artist john james audubon headed to auction. how much is it worth, how much could goat for? talk shun season here in new york city. we'll have a previous view for you here coming up. everybody has different investment objectives, ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's azy. 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 1-800shares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. we don't let frequent heartburn come between us and what we love.
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lori: nearly $119 million. that was the winning bid for edward monk's the scream, when it went up for auction at sotheby's this lime last year. our next guest says you don't need millions to make a good art investment. we have the owner of raider
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galleries. he joins us now as spring auction season kicks off in new york. welcome to you. people are just intimidated by the art scene. you have hear one billion dollars in precious paintings going up for auction this season, a lot of people say it ain't for me. i wish it was but i can't get there. you brought some works that may be a little bit more affordable. describe these audubons. >> you can buy an original aqua tint for less than $3,000. by the most famous bird artist ever lived. it is affordable. this work done in london between 1826 and 1888. buy the best. lori: what do you research, homework, how much do you have to do before showing up at the gallery which can be a little intimidating? >> great question. buying reference books. becoming a friend of libraries. becoming a friend from the new york public library. they have three come meet sets. new york historical society as a set. they have a exhibit at the
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new york historical society now. use the libraries and museum curators to get information, other auction houses and. lori: the uber-rich will use art, hold on like gold, it is safe haven. a firm asset a real thing with markets that can be volatile and uncertain although with the stock market that is argueable where the market is going. art is seen as al tern gnat investment class. how do you know you're paying the appropriate amount for art because it seems to appreciate? >> all the sophisticated art collectors use the internet and give auction records going back over 100 years or virtually any book, map or print you want to collect. generally audubons go up 400% every 10 years or 13% a year. that is pretty steady since i've been in business the last 43 years. lori: tell me specifically what you brought today. these are the owls. i believe they will start 150 to $175,000 at auction.
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>> correct. the last time one of this quality came up it made $187,000 at christie's in 2004. lori: why do you start with lower price than what it last auctioned for. >> we're still not quite over the depression of 2008. people are still conservative. times are good. stock market's up but a lot of people are still very confused about the new tax systems, the new rules that are in place for how you handle your finances. so, we're still trying to sell things for less than the 2008 prices. lori: what do you think it will ultimately go for, the owls? >> i would very happy if it sold for 150,000. lori: really? okay. this is pretty much a right on? you don't expect paddles going up left and right in strong bidding war? >> a lot of damage to people from the crash. lori: at this level? >> yes. lori: would you say a fair statement to say at higher levels, those are just because, it is a whole -pdifferent class of investors,, hedge fund guys and 100 people who can afford to pay $100 million for a piece. >> i would say i don't
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really understand those people. in some cases nations are bidding for these things. the national galleries of places like australia that has become newly rich from their resources are bidding for these things, for their countries arts collections. so it might not be hedge fund guys. it might be chinese. it might be indians. it could be the everybody in the middle east. very, very hard to understand that but i know for this area people who have, love traditional history, love the traditional things that say, the rockefellers collected 80 years ago, this is what was in their homes. back then and so it's very much sort of the kind of art that you would see in a ralph lauren store. lori: it is just beautiful. we're thankful for you bringing it into our studio. thanks very much. >> thanks. lori: ash? ashley: great stuff, lori. i hate to hate i told you so but maybe i have telepathic powers. yesterday alex ferguson retiring as manchester
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united after 30 years on the job. and i made my guess who will be replacement. the big question will be replacing alex at manu. lori: are you handicapping? ashley: i'm not a huge manu fan. i respect alex ferguson. david mois of edmonton for anyone who cares could be the favorite. would you believe manu signed david mois to a six-year contract. he will start july 1st. good luck following sir alex ferguson. you will see me here for another hour of fox business. tracy burns will join me. we have craft brew alliance, a company that grew from a simple love of beer. cheers. a. that is our small business, big ideas report coming up next. don't miss it.
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tracy: hey, i'm tracy byrnes. ashley: you are tracy byrnes. i'm ashley webster. the dow and s&p fighting for
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gains and new record highs again after jobless claims fell to the lowest level in five years. so where should you put your money right now? we'll talk to a strategist who is all about tech. tracy: yeah. and intercontinental is in the army now. the company has a 50-year lease to build hotels on u.s. army bases. we'll talk to the company about the deal with uncle sam. ashley: our special report, small business, big ideas. it started with a love of beer. why not. almost 30 years ago and now a publicly-traded company with over 180 million in annual sales. we'll talk to the ceo of the craft brew alliance. tracy: that is cool. our crew could take a lesson from that because they're all big beer lovers. ashley: a lot of profits for that company. the top of the hour and time tore stocks. let's go to the nicole petallides on the floor of the new york stock exchange. nicole. >> we're managing to clear out some gains here and intraday highs again. that certainly is the theme lately and continues today. today no different as the
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s&p 500 closes here at up arrows that would be another consecutive day of record gains. what we've had is record closes consecutively, five days in a row for the s&p 500. you haven't seen that since 1998. as far as what we're seeing on the dow jones industrials, pretty much split, right? 30 names in the dow. 15 seem to be in the red and 15 in the green. intel, disney best performers keeping the dow afloat. we're seeing banking index to the downside. at&t and mcdonald's are biggest percentage loser. weekly jobless claims were better than expected. we saw inflation in china. u.s. dollar is particularly strong which sort of keeps things be a bret -- abreast here. stronger dollar makes it a little tougher for markets to take off. commodities are pull back. that is the latest from the new york stock exchange. back to you. ashley: in i can coal, thank you very much. >> that was quite a wrap-up.
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as nicole mentioned we have markets edging higher after a string of record days. we need to see bigger growth in the economy and cost profits for stocks to keep going higher. joining us chad morganlander, stifel nicolaus. we've been hearing this forever, the economy has to turn around. companies have to start, better bottom lines, better top line in order for the market to keep going yet the market keeps going. >> right. you're absolutely right, tracy and one of the reasons why you're surfing this tremendous wave of liquidity courtesy of all the global central banks. for example, the bank of tokyo came in with a massive quantitative easing plan as well as you have the federal reserve that is extremely accommodative. but unfortunately what you have happening within the u.s. economy is a very tepid kind of growth trajectory where gdp is growing around 2%. so you really need to see a handoff between this liquidity-drawn rally to more of a economics and
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earnings driven rally to make it more of a healthy recovery. tracy: that is probably the only point where you could see main street and wall street having to come together, right? because in order for that to happen, we need jobs. we need people to have confidence in the economy and to go out and spend. right now we don't have that because we're so unsure what is happening in washington and quite frankly around the rest of the world. >> well, i think the key point that you just brought up was jobs. take for example, the jobs numbers. private jobs, right now we're currently around 114 million americans that are currently privately employed. well that number was 112 million, around 2001, 2000. so you have only created two million private sector jobs with a population growth of over 30 million over the last 13 years. tracy: right. and we've dumped so much money into this economy to create these jobs. those are really expensive jobs we, well, we didn't create. let's talk about the market now because it is going up. i can't tell you why.
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i don't know many people that can really justify why this market keeps going but it is. you have got to be in it. i know you like technology. what pieces of technology do you like? >> we're value investors, okay? and we're looking at technology as a point of being in the value side. so megacap technology names like ibm, or microsoft could perhaps be a good scenes of opportunity for individual investors portfolios. tracy: ibm you're saying basically struggling with their top-line growth which is why you're calling it a value play, right? so you see this company turning things around then? >> look, ibm is a play on the global economy as well as in the united states and it is a more conservative type of investment for the tech side. so you have a company that is trading around $205 per share. they should earn in 2013 around $17 in earnings. 2014, 18 to $19 after earnings. you're going to get probably
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around 2% dividend with dividend growth rate and trajectory of over 10%. so ibm is a more conservative way of playing acovery. tracy: and quickly, you are overweight investment grade corporate bonds and you're suggesting a duration of four to five years. that kind of seems long to me, no? >> well, you know, the average kind of duration for, duration of four to five years is actually an intermediate kind of maturity. tracy: right. >> so what we're advising investors to do is take their long-dated paper and perhaps go down to more of a four or five-year investment grade kind of portfolio. tracy: i see. >> and also to move up the quality spectrum. perhaps look at your high yield bonds and be a little bit more circumspect about that, those quality bonds and perhaps sell them as a replacement for more investment grade. tracy: bring that duration in a little bit. that makes sense. >> just a little bit. tracy: chad morganlander with stifel nicolaus. thank you for taking the time. >> tracy, thank you for
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having me. ashley: massive take down after global cybercrime ring. federal prosecutors charging eight people allegedly involved in a $45 million cyberattack against banks. adam shapiro has breaking details. >> ashley, let me ask you a question. i have an emerald card. i'm sorry, hello. ashley, i've got executive card here and i've got a delta card here and the key they both got magnetic strips on the back of them. would you believe me if i told you using these two cards i could withdraw $45 million from atms worldwide? ashley: i think you're going to tell me something else? >> the answer is yes, you can do that. that is how this was pulled off. what the criminals did essentially, and this is according to the u.s. attorney in the eastern district of new york, is on two worldwide cyber attacks, we have prepare ad full screen for you, global impact, it was $45 million stolen on two worldwide cyberattack days. what they did they went in and they stole prepaid debit
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card data from credit card processors. then they used any old plastic card with a magnetic strip. rent a car card or frequent flyer mile card or mta card, as long as it has a magnetic strip. they imprint the stolen data on the cards and rye move the withdrawal limits. what they call cashers worldwide go out to atms and withdraw money n here in new york between february 19th aad february 20th they took $2.8 million from roughly 750 different atms. eight people have been arrested. one of them is dead, murdered april 27th. in two hours alone they were able to do 750 different transactions withdrawing $450,000 with something as simple as one of these. ashley: that is frightening, remarkable and how many more out there doing the same thing. adam shapiro, thanks so much. >> you got it. tracy: good story. coming up we have nontraditional economic indicator that is pointing towards recovery.
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my guess it is liquid in a cup? ashley: it could be. should students pay the same rate as banks when they borrow from the government. we'll look at pros and cons of this new proposal. as we do every time this day, look how oil is trading. the dow is it still moving higher. oil trimming some of its gains it made yesterday, down slightly at 96.23 a barrel. we'll be right back.
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[ male anouncer ] at visa signure, every upgradedxperience comes from listening to our cardholders. visa signature. your idea of what a card should be. ashley: it is time to make money with charles payne. remember when the stock market used to be a harbinger of things to come way back when? tracy: horse and buggy days. ashley: we could be there again. there are so much skepticism we're missing the signs. is that right, charles? >> maybe to a certain degree. mortgage purchase applications are like a two-year high. here's the thing. we're not living up to what we can be as a nation. we know that this is the worst post-recession recovery by a zillion to one
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different metrics but we are maybe turning a corner. there was a time when the stock market played that role. when i first came on the street that was really like a given. listen, with the market going now portends to the economy six months to a year from now. i always believed in that hook, line and sinker. we hit all-time high one month before the great recession. golly, that was a little odd. there are different signs. i look at every single thing out. late last week, architect institute association came out, the american architects institute, goes back to like the 1850s and their billings are trending much higher, expanding. in fact we have it on the chart here. that is the best six-month period for billings and inquiries in the last four or five years. tracy: what does this mean? people want to design, build homes and buildings? >> right, right. so you've got a lot of that, fastest growing part of that is multifamily homes. listen, everyone is buying apartments and things like that but all the sectors,
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inches dutionnal, commercial real estate. you remember every year, all experts commercial real estate next shoe to drop. next shoe to drop. tracy: and it never did. >> we're starting to see that pick up a little bit. my thinking, out loud, if the market is reverting back to its old role as harbinger of things to come? that is something we at least can consider to think about. we get, oh, no, this is fed money printing. very simplistic, in my mind sort of simplistic answers, a lot of skepticism. most hated rally in history. by the way this is not a lot of jobs, 16,000 jobs. obviously the emphasis you build buildings that would house millions of workers. top 10 most common required skills. now autodesk, computer-aided design is given. microsoft office, adobe photoshop. this is interesting. detailed oriented self-starter around organizational skills. knit isn't that everybody? tracy: you would hope. you would hope. >> empire state survey, they
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find out a lot of people don't have the skills. ashley: don't have basics. >> that is amazing. >> that is sad. it really is. ashley: thank you very much. tracy: glass half-full, love it. quarter past. time to check on the markets. nicole petallides on the floor of the exchange where we go every 15 minutes. nicole, you have a newcomer to the nyse? what is going on? >> absolutely. we're liking a quintiles, letter q. ipo price is 40 bucks. priced at the high end of the range. actually did better than that. it is right now at 43.56. it was up over 10%. traded as high as 44.33. certainly received well. third largest ipo this year. it is the largest this week and this is a very busy week and to give you an idea of that, there are 11 u.s. listed ipos this week slated and quintiles being the largest. i should tell but the underwriters which include morgan stanley, jpmorgan, and also barclays. we're looking at these names here. at the same time they use the money here to, proceeds
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to repay some debt and this is the health care industry, pharmaceutical development services to be specifically but certainly there has been a high demand for this name today. health care has been received very nicely this year in 2013 as that index is up about 19% this year. so, keep an eye on quintiles. it has been a busy week for ipos and this one certainly is doing very well today. back to you. tracy: a cool ticker. i like that. just q. nicole, see you soon. ashley: all right. we're talking a lot about housing. some housing news for you. mortgage rates are still at historic lows with the 30-year fixed at 3.42%, just up slightly from last year but still mighty low. well, tomorrow, fox business will bring you a networkwide look at the business of real estate and we want to hear your best and worst real estate experiences. so send your tweets to fox business hashtag housing recovery. they may very well end up on our shows throughout the day. the best and worst of the
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experiences regarding real estate. should be interesting. tracy: i think i have all the bad ones. ashley: ah. tracy: still ahead. uncle sam wants better digs. can you blame them? u.s. army signing a 50 year lease with intercontinental hotels. we'll hear from the company next. ashley: first how is the dollar moving right now? somewhat of a stronger day for the dollar. nicole mentioned it earlier makes it a little tougher on the market. the dollar is up against all the currencies except for the peso. we'll be right back.
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>> 20 minutes past the hour right now. hi, everybody, i'm jamie colby. this is your fox news minute. house speaker john boehner is demanding the white house release state department e-mails that were sent days before and after the benghazi embassy attack. in yesterday's house oversight hearing witnesses were questioned about the administration's response to the september 11th, 2012 attack where four americans were killed. in cleveland accused kidnapper, ariel castro has been arraigned on kidnapping and rape charges. police are saying that three women who disappeared separately between 2002 and 2004 were held captive in his house until they were rescued tuesday. his bail is set at $8 million.
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two million for each count. in phoenix the jury that found jodi arias guilty of first-degree murder will be back in court to tell the judge whether they think she deserves to die. in an interview with fox affiliate ksaz, right after that verdict, arias said she would rather get death than serve life behind bars. those are some of your news headlines on the fox business network. i'm jamie colby. back to you, trace. tracy: thanks, jamie. intercontinental is signing up with the army. the hotel group has a 50 year lease to build hotels on u.s. army bases. joining us arthur holt, ihg army hotels head of operations. arthur, thanks so much for being with us. i find this story so intriguing, first i was unaware there are actually hotels on army bases. so first, can you just quickly explain who stays in these hotels? >> sure, absolutely. and tracy, thank you for having me on the show today. the majority of the folks that stay on these army
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installations are soldiers and their families who are going through training. and the army has a large commitment to training of its forces obviously. and, you know, there's hundreds of thousands of people that stay on army installations in hotels spread across 39 locations where we at ihg are now operating. >> right. so this is very different from the soldiers that stay in the barrack. these are people kind of here on a temporary basis. so now you already operate many of these hotels and you actually are looking to take over 18 more over the next eight years. tell us what you're doing to these hotels. >> sure. actually what we've done is this program is underwhat is called the privatization of army lodging program which is actually an army term where we have taken over as of may 1st an additional 18 posts, bringing our total inventory up to 12,000 rooms. over the course of the next eight years we are going to be branding hotels on all of
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these inat thatlations -- installations, hollywood express, candlewood suites, cambridge suites, three brands we have out of the nine great brands that ihg operates around the world. tracy: why do this other than that an obviously to help our fine military? intercontinental has lots of luxury hotels. you dumping this mon into luxury brands as opposed to here on army bases. >> absolutely. ihg is the operator, the brander and in conjunction with our partner on this, lend lease who is the real estate developer and owner, we did this in partnership with the u.s. army. clearly this is a program that's a good business model. it also reinvests money back in these hotels over the course of the entire 50-year lease. what ihg is really gets out of this is exposing millions of soldiers and families and government workers to branded hotels on military installations with you were not there before. we also get to expose
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hundreds of thousands of new customers to ihg to our loyalty program, which is called, ihg priority club rewards program which is going to be renamed the ihg rewards club. tracy: i know that you offer a cap, actually they get a discounted rate if they stay there, soldiers and their families, that's correct? >> that's correct. actually, this is a great example of how the public and private partnerships can really work effectively with the government. we set a cap of 75%. so not only dot folks staying on these army installations still get a discount off of what they would normally pay in an off-post environment against the per diem, we're capped at 75%. that allows the army to have more money reinvested back in these hotels over these 50 years. tracy: arthur, this is the rare occasion where private and government are working together really, really to do a wonderful thing. arthur holts intercontinental hotel group. thanks for sharing your story. >> thank you for having me. tracy: cool.
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ashley: very cool indeed. here's question for you. should students pay the same rates on loans as banks when they borrow from the government? that's a new proposal being floated on capitol hill. our rich edson hassthe details. rich? >> a number of student loan proposals on capitol hill. these as student loan interest rates are schedule to double from 3.6% to 6.8% in july. what senator warren wants students to be able to borrow from the fed discount% rate, emergency overnight loans when banks are in real trouble. that rate less than a percent, .75%. a federal stafford loan that is subsidized comes in at 3.4%. there is plenty of talk about warren's propositively own capitol hill and whether it is a good idea. >> in the disparity right now is 6.8%. that is what it will be on july 1, to go to, borrow money on a stafford loan. versus a bank that borrows it say, .75%. so somehow some way, we
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ought to be given some of the benefit of cheap credit that's available to the united states government to families, not just to banks. >> there is no free lunch here. you can talk about the fed discount window or whatever interest rate you want to talk about like the warren bill oes but you still got a cost. congressional budget office is likely to tell lawmakers that the warren bill would increase the federal deficit by about $50 billion a year. >> warren's office says next year alone the bill should raise $34 billion they say. of course the government would make more money if it didn't allow the new system, the one that would allow the discount rate borrowing over the current system. what proponents point out it should be allowed like anybody else, banks to go to the discount rate. it is easy credit and students should be paying that less of a rate though opponents of this say it's a much different circumstance. students take out their loans for a decade, possibly longer. they don't have collateral to put up like banks do. the house would voting on a
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bill tie federal rates we're talking about here for stafford loans to u.s. 10-year treasurys, 2.5%. that bill is expected this month. back to you. ashley: a lot of interesting points. rich edson on capitol hill. thanks so much. tracy: coming up, she was head of the centers for disease control and president of merck's vaccine unit. our very loan liz macdonald has an exclusive interview with dr. julie gerberding from the ford's women's summit. that is next. ( woman ) hold on, this mightet bumpy.
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introducing cash flow insight powered by pnc cfo. a suite of online tools that lets you turn insight into action. welcome to the new buffalo... where new york state is investing one billion dollars to attract and grow business... where companies like geico are investing in technology & finance. welcome to the state where cutting taxes for business... is our business. welcome to the new buffalo. welcome to the new buffalo. welcome to the new buffalo. new york state is throwing out the old rule book to give your business a new edge, the edge you can only get to grow or starte. your business, visit thenewny.com ♪ >> it's half past the hour, and, nicole, names hitting new highs today, nicole. >> right. on a day with the dow jones is
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intra-day records, names worth watching hitting highs like disney, for example, dow component disney, all-time high, mgm, dupont, and also books, a barnes & noble, love that ticker cymbal, love that this particular. 22.5 #% to the upside, this, on the news that microsoft may move forward acquiring the rest of the nook media digital assets they don't already own for a billion dollars. considering this play, it's a big deal here for the two companies, and barnes & noble jumped op the news. it's not only the media unit, but tech -- also college book business, that's worth noting as well. back to you. >> very good, nicole, thank you. >> okay, forbes holding women in business forum today, all gathering to tackle society's
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most difficult problems. our own liz, kind of the founder of forbes women in business, she's there, talking to the leader in the medical community. >> good to be with you. it was -- i don't sound like a horn tooter, but i created that. that's what the conference is about. we talked to julie, and she's been in the fore fluent of fighting anthrax attacks at the cdc, fighting ricin attacks, and bioterrorism now running merck vaccines, guys, and this is the second biggest vaccine business in the world. here's the inside story of the success of merck vaccine. >> we're very fortunate, first of all, to have a team of passionate people that care about public health, but we also got manufacturing back online so
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that we're dealing with our history of supply shortages and getting out there in the rest of the world and making our vaccine available to the people who need them the most. >> interesting. we talk about children's vaccines, but merck is a huge player in adult vaccines. what's got you excited there? >> most adults don't realize nay need vaccines. it's a lifetime health issue, and so we have great vaccines that protect adults against pneumonia, shingles, and, again, some of the other common problems that adults don't realize we have a vaccine for. >> so, basically, the unit pulls in 5.3 billion, and that's a good chunk of the annual sales, and one vaccine to talk about is guardasil. >> today is a big day because unicef agreed to purchase 2.4 million doses at 4.5 a dose. the lowest price.
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>> what's it for? >> helps prevent cervical cancer, path low ma infection, the major cause. through this, we get a wonderful vaccine to the girls who need it the most, those in africa, one of the highest risks for cervical cancer. >> big outbreak there; right? >> it's a problem because it's transmissible, but also when you have htv and hiv there's a higher chance to develop the full cancer. >> in the vaccine unit, what area do you want to strengthen? what part of the business do you want to get behind more and bowlingser more? >> there's so many people not benefiting from vaccine protection so our biggest opportunity is, really, in the new market. there are millions and millions of children and women in the world and china and india, we could save lives if we get them
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out there. >> tough breaking into china? >> china has a great deal of biotechnology capability. they have a strong and growing industry -- >> hard dealing with the government, though, to get in? >> a right for partnerships, challenging to get the right blend of the regulatory environment, the quality environment, and the trustworthy partnership. >> i could see that being a huge boom area for merck in terms of vaccine to china; right? >> obviously, the business orientation, but there's the health imperative, and the bleeped of the two makes it definitely a strong push in that direction. >> what else got you excited? >> one thing coming, hopefully soon, is better and stronger, hpv vaccine to cover nine strains of the virus. >> how many are there? >> well, many, many strains, but those that cause cancer with the nine, the vaccine, gets 9 o% of the exearns. >> you got a herd of people really scared of taking vaccines, and leery of it
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thinking they'll be sicker; right? >> so much mythology about vaccines, and exaggerated concerns about the safety. that's one of the hairest things. as someone in public health, we try to present a balanced point of view, and now working in the industry, of course, we're not the most credible resource because people are suspicious that we're just trying to market the vaccines, but, you know, there really are so many benefits to vaccine, and we have the highest safety standard for vaccines of any product because we know we give them to completely healthy people. >> really interesting stuff, tracy and ashley, and, so, later on today, we're also interviews donna karen in the four o'clock hour. it's been a jam-packed, really busy day here at the forbes women's summit. we had anne sweeny, and dr. julie is a powerful voice in the health field who will be -- she's looked up to even more
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down the road with the explosive growth of vaccines and business at merck. back to you guys. >> great stuff. >> great day. see you tomorrow, girl. >> thank you. thank you so much, thanks. ashley: started with the love of beer and grew into publicly traded company, talking to the ceo of craft brew alliance in the special report small business big ideas. tracy: as we do every day, look at how the 10- and 30-year treasuries are trading as we head out to break. dow trading up 15 points. we'll be right back. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us.
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give your business a new edge, the edge you can only t in new york state. to gw or start your business, visit thenewny.com ♪ >> this is your fox business brief. federal probation prosecutors ad eight members of global cyber crime ring in new york stealing $45 million from compromised bank accounts. the case prosecuted by those who spoke out earlier on the case today. >> this was, indeed, the largest theft of this type we have yet seen. this was a 21st century bank heist reaching through the internet to span the globe, but instead of guns and masks, this cyber crime organization used laptops and malware. >> nearly 100,000 borrowers will be receiving additional compensation for potential foreclosure errors. according to the federal reserve it's because the initial
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ashley: cheers, in today's small business, big ideas segment, started with a love of beer in the 1980 #s and has grown to a publicly traded company with 182 million in sales last yearment joining me now, terrylson, ceo w alliance there in beautiful portland, oregon. craft brew alliance was first formed when there was a emergencier between whitman brothers brewer, red hook brewery, and that was back in 2008, and joinedded by one in hawaii in 2010. is the merger in this business a fact of life, you combine your power and your marketing skills, is that kind of the thinking
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behind that? >> well, yes. it's somewhat unique in the craft industry. it's still fairly fragmented so most are independent, but for us, as we looked at how this industry is really evolving, we know, fundamentally, it's about variety and quality, and we believe putting a number of great craft beers together would provide that, and then, yes, solve the business issues of how you get to market and how you have the right sized organization to be able to sell especially if you are national. really had to do with kind of combineing the elements of what's necessary now to be successful. ashley: a difficult line to walk, isn't it? original beers are popular, not the massed produced big beers, but as you try to expand, there must be a danger that you become like the big beers. >> well, there really is, and it really has to do with the
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combination of making sure the brands are true to the heritage and that they're meaningful. at cba, we like talking about the sole of the craft brewer because that's our roots and the passion of the beer and bones of the big brewer because it is being very competitive and complicatedded in the market at this point so you really have to be able to kind of combine both assets to be successful. ashley: taking pictures now of the product that came out last year. you launched omission brewing company. what's special about this product? >> well, i think that's a great example of what can come from the kind of company we've built. we lookee at the fact that the gluten free segments for food and bev -- beverage grew substantially, a great opportunity there, and it's personal for me. i was diagnosed with clac
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disease 12 years ago, so this is the perfect example of us looking at a segment and do something very innovative, and what's innovative about omission is that we actually use traditional beer ingredients. we brew with barley and remove the gluten on the other side, so the end result is the consumer has a true craft beer flavor, one they can share with nongluten free beer drinkers, and it's gluten free, and, in fact, we've taken that to a different level where we do a testing of every batch. we put the batch and date on the bottle, and people can get online and actually look at the test scores that we have from testing interimly and externally to be sure it's gliewt p -- gluten free. ashley: impressive, wish you the best with that product and everything else. we are out of time, but thank you for joining us, ceo of craft brew alliance. >> thank you, appreciate it.
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ashley: our pleasure. tracy: going to have to taste one. ashley: i think so. ashley buis "american idol" ratings down big this season with a drastic shakeup in the works. dennis, i got to tell, i fell in love with nicky this season. >> you did? you like them freaky. the lynch pin of fox broadcasting in trouble, and now a hollywood trade, this funky website, thewrap.com, says all four judges will be fired next season as well as the show's executive producer. a spokesman for fox declined to comment, they are all own by news corp. it spawned myriad knockoffs like "the voice," "dancing with the stars," and "x-factor," but the ratings hurt with the judges get
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into cat fights. no wonder they bicker. american idol is down 23% in total views from a year ago, peaking at 30 million in season five, with a new low of 11 million last week, and, worse, idol is down more, 25% in the demographic group advertisers pay to reach. adults under age 50 #, and, yet, nbc "the voice" up up 1 # 1% and 8% in the demo. they picked up, and nobody yet has independently confirmed what the wrap says about mass firings, but the founder and editor, sharon waxman, says the story is solid saying fox is not denying it. this may be a fox leak to stop the sniping putting the focus back on contestants. if so will the hosts get together and behave or start scrapping worse now that they may have nothing to lose?
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tracy? tracy: i don't know, dennis, but i'll watch with my kids tonight. thanks very much. ashley: time for stocks as we do every 15 minutes. keith, well, we just turnedded negative, essentially flat now. the only thing that's going to make the market move lower appears is profit taking. >> a little of profit taking and short of any real dramatic exterm shock that we can't see now, of course, the world has hot spots all over the place, anything could happen to send the market lower, but given the status quo, the earnings picture is not great, but okay. the economic data's not great, but it's been okay, so, again, i always go back to what the central banks do, pump liquidity into the market place, finding itself in risk assets, and equities, highly unusual, and as long as we have that, that market should be frothy here, even if it's overbought. ashley: keith, thank you as always for joining us from the floor of the nyse.
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>> my pleasure. ashley-- tracy: drilling for products, how cost cutting measures impact drilling plans this year. ashley: today's winners and losers on the nasdaq going to the break. we'll be right back. ♪ you've known? we gave people a stick 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 much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ all stations come over to mithis is for real this time.. step seven point two one two. rify and lock.
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command is locked. five seconds. three, two, e. 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
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ashley: loredo patrol yum out with earnings, missing by a penny, net income declined, and the stock in the red, ceo is encouraged by the impact of the drillers' cost cutting efforts last year. joining us now, randy, thank you so much. just a quick summation of the first qqarter earnings, missing
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earnings by a penny, down on net income. what was the reason for that? >> well, good afternoon, sir, and thank you for having us. you know, the financials were right in line with the guidance. we missed by a fraction of a penny on the earnings per share. the net income was down because of the noncash impact of the hedging processes, but the important thing on the earnings call, we think, we were well within guidance, but our overall oil performance and efficiency all headed in the right direction. ashley: operating one the largest oil basins in the world, but is it getting more expensive to extract the oil, randy? >> well, the basin may be as large as of any of the discoveries made with the resource play and long reach horizontal well that we can now frack. it's becoming a capital intensive game, always has.
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the average cost of oil is going up, but the efficiency and the dollars per barrel have turned the corner, headed in the right direction. ashley: crude oil production represents 46% of the company's total production, and what about natural gas? >> on a revenue basis, natural gas and liquids are somewhere around 30% of our total revenue, and decreasing as we drill more in the permian. ashley: natural gas prices sticking with the story, ran up to, what, 440btus, recently? better than depressed. what's driving the nrkz in price? >> well, i think the increase was a function of a pretty cold spring. i think long term we need to realize that we have a huge supply of natural gas, and while there's going to be ups and downs, it is a volatile commodity, and it's going to be much more range bound than it has been historically. we can add supplies quickly at a
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higher price. ashley: what's the regulatory environment like for you, randy, operating in this industry? >> well, one of the reasons we like the bay sip in the permian is we are regulated for up to 75-plus years. the states have done a good job with the regulation. we know what the rules are. we know what we need to do, and it's worked out very well for both the environment, the public, the state, and the oil and gas companies in those areas. ashley: well, we wish you the very best. thank you so much for coming on and talking to us, randy, loredo petroleum oil chairman and ceo. we appreciate the time. >> thank you. tracy: this story for you issue ash. so a call to airlines is now going to cost you. the low cost carrier is going to -- had the audacity to do away with the 800-number to do with area codes, and the airline says the new numbers help keep
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costs and fares down. got to be kidding me. you may remember spirit was the first to charge for carry-on bags with a total now of 71 passenger fees, and i bet you the cookie's one of them. i think i hate the airline as much as you do. >> like the ryan air of united states, ryan air, the irish carrier charging everything, a low price on the ticket, and add on the fees. that's the airline that somewhat tongue-in-cheek wanted to charge passengers for the bathroom. if they could, they would. >> spirit is not far behind. all right. don't forget, tomorrow fox business has a network-wide look at the business of real estate. we want your best and worst rearls experiences. tweet to @foxbusiness, hash call real estate recovery. ashley: not all bad ones.
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breaking up, though, is hard to do, especially talking about the top two positions in the nation's most profitable bank. talking to the man behind the new study with good news for jamie dimon. stick around. ♪ blank
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♪ >> under pressure to split the chairman and ceo role. december piet the claim, he's having fun doing both, but companies better off with the jobs separate? a man with a new study whose the answer. we want to know what's trending on social media, but do you trust it for investment decisions? plus, hurricane season on the horizon. we talk to the lnce company how they are preparing to take cover from the storms. "countdown to the closing bell" starts right now. ♪
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liz: good afternoon, everybody, i'm liz claman, the lats hour of trading, straddling the fence, up and down today, but if the s&p 500 ends the day in the green, that's the sixth consecutive drey of record gains, not just gains, but record gains, the longest stretch since an eight session run that ended back in 1997. where were you in 1997? okay. adam is in cleveland. i was in boston. i'd left cleveland. oh, benny was in high school. this after -- ha! positive job news, a number of americans applying for first time unemployment benefits fell to 323 # ,000, a five year low, and that's good news, certainly, a bunch of high profile stocks taking that good news and taking flight today. first, groupon, the online daily deal company with signs of life after the bell.

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