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tv   Countdown to the Closing Bell  FOX Business  July 24, 2013 3:00pm-4:00pm EDT

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♪ liz: facebook faces the earnings music. hasn't found its footing? we break it down ahead of the earnings report. what in the world is up with dell? another shareholder meeting postponed. can he beat that adversary karl icahn in this bidder battle? plus, these guys definitely have good reason to be in good spirit.
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they are adding to spirit airlines in a big way. "countdown to the closing bell" starts right now. ♪ liz: good afternoon, everybody. so glad you are joining us. first off, we have to talk about new home sales. they hit a five-year high in june. why do we start with that? home sales are crucial. very important. they do show that so far rising interest rates, rising mortgage rates are not a horrible drag on all of this. plus, look at who they have their pains on now.
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that would be maidenform. representing a 30% premium. right now, it shares jumping nearly 8.5%. a decent move their for a pretty iconic brand. those shares, through the roof. why we show you both of these, it is highly unusual for the inquirer to jump as much as pains did. let's get to criminal charges. they are expected to be filed as early as this week. if you have been watching "countdown to the closing bell," charlie gasparino has been on this story. as they seize embattled founder steve cohen is not expected to be charged personally, but any criminal charges against the firm itself could deal a huge
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blow to: and his fortune. half of the money is his. the other half, so much of it has been pulled out. we are watching that. check this out, the big change that pays for apple stock today. in the past for earnings reports, apple stocks have sold off. today, total opposite. apple sold way more iphones than it expected to. the stock loves it. right now, of about five and three quarters. is now the time to own it? did you miss the bottom? does that even matter? joining us now is jean monster. you have a really positive rating on this. you expect a pretty positive
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price target. >> they probably have missed the bottom. the product cycle get so fast and so rich over the next quarter. there is still a lot of room to grow in this stock. we are very optimistic. it is because of the product. the bad news is that the bottom is probably in place. the good news is, there still seems to be a lot of room left. i think that the june quarter really gave a lot of comfort that the fundamentals of the business are doing just fine. liz: they had people asking from all over whether or not apple stock has become a commodity. they are more, not necessarily revolutionary in their products, but evolutionary. what will be the next product?
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>> it is probably two things. the biggest one, we believe, will be the television. the size of the market is a bit debatable. it is not as big of a market as the phone market. it will not have as big of an impact as the financials. to a lesser extent, you will see apple do more in wearable tech knowledge he. google has google glass. apple has talked about the watch. it still fits into the category.
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liz: let's talk about the ipad quickly. what is going on? does the ipad midi not excite people? >> the numbers are ugly. i think that is part of the plan. second, it is a price sensitive market. we do have an average selling price in the four hundreds, a lot of people cannot afford that. apple needs to figure out what the balance is to really spike demand. liz: what other stock do you
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have out there that you really like right now? >> there is a company in china. they basically have the social side in light of the facebook earnings side. that is one that has been generally underappreciated. if you are looking at a long-term play, it is a good one to look at. liz: the height of the year has been $70. there is still an opportunity. thank you for joining us. >> thank you. liz: the price has jumped. gene munster. we want to get to the floor show. what was beyond apple? the dow is down. as we look at the low of the session, it begins to get people
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to wonder. >> as far as earnings go, i think president obama did not, his speech did not cause any great rally in the stock market. perhaps, maybe he is talking up this economy and it is not doing as well as we are getting numbers on. liz: as we look at the s&p, not hitting the record that people that we would hope to see -- do you expect a meaningful correction at some point in the next two months? >> i do. by the end of 2013, we will be up high single digits, low double digits. i think that there is a lot of headwinds over the next few
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days. you have the jobs number next week. economic data has to outperform in the face of potential tapering. it cannot just be slightly. it has to really outperform. we are talking to 50, 270, the hundred. >> people want to know what will happen. you expect that we will not see the superstar rally. let's talk specifically about what is grabbing your eye at the moment when it comes to energy. >> we had a three dollar range down here. we had a pretty big range. we pulled back and we settled just above 105. i am looking for technical numbers. you would think that we would rally a little bit.
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we were looking at $110 a barrel. it seems to me that we ran a little bit out of steam. i think the market can generally melt away like the summer is melting away. i think that is what we will see. i really think we have kind of run out of steam and we will start melting a little bit here. liz: i like the pink and the green. [ laughter ] liz: thanks to all of you. it is great to have all of you. thank you so much. this is a soap opera of epic proportions. dell relating its shareholder meeting for a second time now. sources say silverlake basically put down their hand and said they are not willing to increase the bid as much as 14 a share.
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>> guest to just point within the last five minutes. their deadline to accept the latest offer is extended to august 2. right now, those shareholders who did not vote, they are counted as no votes. dell is saying we will only give you 13.75 a share if you do not count those as no votes. there is simply no rational basis for shares that are not voted to count this vote against the merger agreement for
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purposes of the unaffiliated stockholder vote. they have extended the deadline. august 2. who is smiling at all of this? kyle icon. all would be swell at dell if michael and the board did well. the bottom line is this is not a done deal by any sense of the word. with time running out, maybe not for michael. liz: this is fascinating. are you seeing people walk out about building inches inches off the record commenting to you? >> the people behind those are just employees.
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you do not have the shareholders and the analysts. liz: adam shapiro is right there to get the story. they have extended the deadline to make all of the decisions. again, now it is 13.75. watch out on this one. closing bell ringing in 45 minutes. you just heard jean munster recommend china's version of twitter. top business schools rushing to open mba branches in china. we have a special masters of business series. plus, up in the air. these may annoy you, but you are still flying it. one airline stock has been soaring more than 100% year to
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liz: the royal families. our, of course, flying high. george alexander lewis? u.s. airlines have joined in the party. "the real reason for celebration is not the baby, but a price drop." turning and airline stock into a real opportunity. your stock is up 103% year to date. what are you doing to have generated that?
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>> thank you so much. it is great to be with you. we are focused on running this airline like a business. the way we do that is we make decisions and try to do things that will increase thanks for the airline. we choose the way we model our own business. we create the lowest fares for our customers. liz: sometimes, let's first talk about the royal price drop. $19.90. seriously? >> yes. it applies to a number of our markets.
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if you are willing to behave in ways that sell us money, that is the beauty of our model. liz: do you like to ski resorts? >> we fly to denver. people should think of them as options. when you go to buy a car, do you think of it as a fee to get the bigger engine or that is just what you pay to get the bigger engine? they are not really feasible and you can choose not to pay them. liz: i am with you. we are not a consumer channel where we are complaining about the fact that you charge for a
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blanket. i have talked to people. now i have to pay a hundred dollars to check a bag? >> what that carry-on fee does it results in people bringing fewer bags on board. it makes the flight more efficient. we do not want to do the transaction at the gate. we do not want anyone to pay that $100 fee.
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liz: your fleet is made up of airbus is. you have a bunch on order. some troubles with some boeing jets. does that mean you will never delve into boeing? >> most of our fleet is growing with the 20. we are only flying -- it is a fleet thrown around the world. very reliable sleep. very easy to finance. we loved the airplane. liz: we have 30 seconds. you had some job fairs where you were hiring flight attendants. are you still hiring? >> yes. flight attendants, pilots,
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mechanics, administrators. we are growing. we are a great job administrator. we think the economy should love spirit. liz: i love it. it is a great story. spirit airlines ceo and president. thank you. >> thank you, liz. liz: be sure to tune into "countdown to the closing bell" tomorrow. alaska airlines ceo and president. airlines turning into real businesses. something we have not seen in a long time. the concert venue many of you have not heard of. it is already earning top votes. perhaps, this is the most
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successful one. we will tell you which one and where. we are talking to the esteemed deed of the university of chicago. find out why it is making such a big bet on china. stay tuned. mba. we are talking about them right here on fox business. ♪
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look for the experience and mmitment to go the distance with you. call now to request your free decision guide. this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supement plan that's right for you. liz: e*trade, urban outfitters, morgan stanley, some of the countries most famous ceos. we are bringing in a guest to find out what group is doing right as we continue are masters of business very we are talking
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about what is going on with business schools out there. he went to stanford. while you didn't get a ba from stanford, how i stand for different from where you are teaching now? >> stanford is an outstanding program. but it is an electively small one compared to chicago. we also have an evening and weekend programming three executive programs. one in chicago, one in europe in london, one in asia, which is in
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singapore and then resulting in us looking at hong kong. liz: let's talk about that. let's talk about hong kong and why you would make that move. the program in singapore. let's talk about that. >> is it is an executive mba program. managers in their mid-to-late 30s with about a dozen years or more work experience. and we believe the significant talent in that demographic in hong kong and mainland and china and in taiwan and in korea, and in japan etc. and this move is intended to capitalize on this entry and
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even larger fractions of future leaders. liz: dean, know that 70.6% go on to graduate school in investment banking. that seems to be exciting to your graduates. >> india. the fraction has come down over the last five or six years. i believe part of it is cyclical and waited to the crisis. part of it is also structural and i believe that the aspirations of her students today are much larger and other sectors have grown in the last five years and the example is the technology sector is 10% and result in jobs in the technology sector. liz: let's talk about this. we have spoken about danford
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over at dartmouth. both of them are above $90,000 a year. we are talking allin. that is tuition and housing and textbooks. extraordinarily expensive. make the pitch to someone says, is it really worth it to have that mba on the resume. >> absolutely. there is no doubt in my mind. and i will give you two explanations for it. first you don't measure this by just the very first year after you graduate. we measured this in terms of increased income over the rest of your life. you also measure it at the kind of opportunities that will open up for you. on that dimension there is no doubt in my mind that a top program like this will pay itself back many times over. and in chicago we believe in
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markets, of course, and the market response for us validates this. he wanted we want good to see you, thank you so much for telling the story of the university of chicago school of business. you guys are going heavy in asia, it's great to hear the story. masters of business series continues tomorrow. we are talking to the dean of berkeley. ridgelines. we will find out why his students are opting way more to go into energy and clean technology. the closing bell will ring in about 27 minutes. honey, i shrunk the city. will detroit get downsized? explore some of the radical ideas that could be in play for the motor city, which needs radical change. my mantra?
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liz: let's check with nicole petallides. we are loving these stocks today. reporter: that's right, ford is revving up. it is definitely a winner right here. shares of 2.5% today. they have record profits in asia doing well in south america. we know that they have pickup trucks that are a huge top seller and as i noted, record profits abroad. ford is actually outpacing general mourners this year in 2013, doing better than general motors is up, almost 30%.
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they are the ones who did not want to bail out. they manage to get through and not file for bankruptcy. ford plans on hiring many workers. it is across-the-board. liz: thank you very much. as fox business was first reported, we have breaking news on early bailout talks for the city of detroit. >> before i take my victory lap, would you want me like me to do some work here? [applause] >> listen, this is very early-stage talks. we will talk about this in a little bit. have you got? land is sold.
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the state takes over land. it is sold to private equity. inside the boardroom, and there is a boardroom, the sky is the city manager appointed by the governor. he's looking at post-bankruptcy and we understand that they are looking to divide this. it's 139 square miles. it is a huge place when rice. lots of middle-class and huge portions of the city is vacant. liz: yes, i have heard that. >> what we are hearing from officials close to this bankruptcy, that they are looking at radically downsizing the city. this is very early. but they are talking about it. when you downsized, the state takes over some stuff. and at then at some point, having private industry step in
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and take over that land and start rebuilding it. private equity might be the way that they go on this. we should talk about private equity being involved in this and they are actually buying some of the bonds pennies on the dollar. there is wall street that is involved in this. and there is a theory here. it is a crime that is basically isolated to the places where there are people. large parts of this are abandoned. and if you do eminent domain, then you can build a new city and it is an early stage. it is involving the city manager is appointed by the state this is what is going inside of us and this will be as we come out
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of this, it is just taking shape now. liz: is their opportunity? >> this will be something in fox business will put slide down now. i'm telling you, that is what they are looking out for the future. a way to radically downsize this. and that is the problem. they don't have enough money to police the entire city. >> 139 square miles. >> that is a number that i got here. >> i think i heard as he put manhattan, chicago, maybe you might boston together. but if you put a bunch of these pieces and cities near manhattan, this is a huge piece of land. liz: they have professional sports teams. the red wings, the lions. >> it's really bad there. it is defaulted into bankruptcy.
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but there is a way out that they are talking about. one way that detroit survives is that the smaller. liz: that his real business that comes in. >> the real detroit will be smaller. you and i have been talking about this. we have been telling you this for days. they got the time to write about it, they talk about it imminently. this is current because they believed that the federal officials in the justice department, i'm not saying that they believe it. it is a criminal enterprise and they want to put it out of business. the likelihood of indictment is very high. it may be a settlement, but it will be very onerous settlement. liz: but not specifically? >> right. i think at some point if you
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want to set up, my book sets it up. liz: charlie gasparino. so they've yet to stories. what a difference that 10 months makes. the berkeley center, the home of the brooklyn nets has the highest versus entertainment in the nation for concerts and family shows in just the last six months of the year. it sold nearly $40 million worth of tickets according to billboard. a really sweet victory for the man who developed this. bruce ratner was here and i spoke with him on countdown to the closing bell. now he is trying to extend to the nassau coliseum. we will see if he gets that again. the closing bell ringing in 15 minutes. counting down to the earnings report. it is coming right after the bell. how this company lost its cool
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liz: pulling up facebook here, not a bad content and live here. we are moments away from the second quarter earnings report. some big moves this quarter, including instagram we have michael with us. you have an outperforming price target of 12 months.
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>> the stock is consistently disappointed and i think it is because the management talks about what they spend money on and how they are going to generate revenue. so yes, i think that they will be on the revenue lines by five or $10 million. and they have spending under control. liz: you have an attitude that is completely antithetical. especially when we talk about this. what is going on about facebook? >> i think that facebook is really careful and he is very careful not to over advertised
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advertise or imitate the user and make the experience that. and i think that that is really what is keeping us go faster so i think that internationally, we'll start to see more contributions. liz: more than 730 million mobile users. what would really disappoint you if they come in outlook for mobile.
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he said that it doesn't matter very what really matters is that we access this and review our pages so that we can advertise it. if you are viewing it on mobile, you are viewing it more frequently throughout the day and they have more opportunity to advertise your. liz: instagram. 22 million viewers, today they have 130 million. there is instagram video. are they even close to unleashing the power of monetization making money off instagram? >> i think video streams is the way they are going to do that. every time you watch youtube video you get an advertisement is of your friend or other kids
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are of your spouse and that means that you will tolerate that 52nd or 102nd line. i don't think they'll do it this year because again they are being careful. but you're going to that next year. liz: is mark zuckerberg the man who really should be running this country. can he do it? >> you know, running the company is one thing and interfacing with shareholders is another. yet zero experience doing now. we have seen mark step aside and bring somebody in who is more of a professional. so i think that probably behooves zuckerberg to bring in somebody who has more street cry. but it is his company and his call sue and google did it, yahoo! did it. michael, good to see you. we will see what happens. we will be looking for the web securities and we thank you so much. the closing bell, just about 6.5
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minutes away from the top of the hour. the nasdaq just turned negative moments ago. but we have the nasdaq winners for you when we come back. for you when we come back. so much to see.y home forhe big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can actuay use, you never miss the fun. beard growing contest and go! ♪ win! wt's in your wallet?
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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor...
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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ liz: it's just touch-and-go. the nasdaq, i'm looking right now, barely flat at the moment. a touch to the downside here. nonetheless we're going to look, oh, now turned up. nasdaq is a winner. you see all technology, by the way the nasdaq has a lost banks and a lot of energy companies but right now it is living up to its name of the tech-heavy nasdaq. appile, baidu, a chinese internet stock, check point software seeing a nice gain of 2 and a third points. citric systems and f5 networks up nearly 2%. not bad for those winners.
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we're waiting on facebook. facebook is coming out with earnings today. as we wait we go right now to david asman to get ready for "after the bell." david: we have a lot going on after the bell. it is not only facebook but qualcomm. i want to talk about that with nicole petallides at the new york stock exchange. qualcomm usually get as little boost from apple, which is way up today after earnings. instead they're getting pulled down a little by broadcom. explain. >> right. what we're seeing exactly that. broadcom is down 15% today, taking qualcomm along with it. qualcomm down 1%. on the other hand as you noted apple has been a stellar performer. it is higher by 5%. that is good news for the number of iphone sales we saw which was stellar. 31.2 million iphones sold in the last quarter. it was impressive. tracy: we're waiting on facebook earnings.
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>> today we're seeing it slightly higher. we saw it tank and we'll see what happens. david: all kind of analysts, by the way on facebook just waiting to jump in with analysis what will happen. >> right. lou: let's talk about what really spooked market. eventually the market managed to calm down a bit. that is treasury rates. treasury rates jumping tremendously. the 10-year rate, at one point was, what, at 2., 2. -- >> 6. david: 2.58. inversever. relationship. art r art cashin, notes the inverse relationship amounts you start to see yields jumping up. they really jumped up. 2.6%. what you see markets do have the inverse relationship. the shares sell off. the bulls get spooked. liz: the bulls ran away from the
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dow jones industrials. [closing bell ringing] at a loss of just 26 points. you compare it earlier to when the dow was down 17. some of the loss comes due to caterpillar which is down about 2% after its earnings. that were disappointing. david: the phrase, as you look at nasdaq here. it is paring of losses. we saw the markets get really spooked by the 10-year rates, jumped tremendously about 5% jump in the rates. that spooked the markets but towards the end of the day the markets became less spooked and looked at stocks they really liked like apple for example, despite what is happening to caterpillar and despite what is happening to qualcomm, they jumped. once again it's a seller's market but barely so. the dow jones down 26 points. the s&p was down six. the nasdaq managed to post a gain ever so slight and russell 2000 hit the biggest. almost a percentage point down. liz: here are the front page

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