tv Markets Now FOX Business September 24, 2013 1:00pm-3:01pm EDT
drama for being. lori: the continent finally looking like a decent bat. we will have some top picks for your money. adam: latebreaking details as eric schneiderman looks to crack down on those getting data split second before the rest of us. nicole petallides is on the new york stock exchange. nicole: you were hoping to see some green arrows. right now, we do have some gains. however, they are hardly
substantial. the nasdaq composite is up half of 1%. the swing is not even 100 points. we started off in the red and now we are in the green. we got in home prices that rose the fastest in seven years. this group is doing really well. kb homes up 7.7%. we saw double digit revenue growth for kb homes. back to you. lori: thank you, nicole. gaining 12.4% from a year ago. there are some concerns about the home price gains peaking.
adam: news alert for you, eric schneiderman seeking the help of washington, d.c. to help prevent high-frequency traders from getting information earlier than the rest. they paid thompson and reuters for that information. speaking at the bloomberg market, the attorney general had this to say. >> we are seeing something far more insidious than insider trading. small co-op of powerful groups inside the market are able to use soon to be public information combined with high-frequency trading.
adam: he says regulators face several challenges tracking and preventing these. he made very clear that he plans to take action against companies that are proven to be involved. lori: the chipmaker has reached a deal to buy tokyo electron. they will maintain dual listings. the deal is due to close in the middle to the second half of 24 team. more trouble on the way for jpmorgan chase. now, we are learning that they
are talking to california's attorney general. >> yes. last-minute talks. they are trying to delay the filing of a lawsuit. jpmorgan faces multiple probes. the california suit, let's take a look at what else they face with the mortgage settlements. new york is also looking to sue to get a settlement out of them. the u.s. department of justice also probing the mortgage back securities. they are still looking into suing over the mortgage bonds. we had broke this news, the talks between jpmorgan.
also, we can tell you at this hour that the global settlement, they would like it to stop the state probes. basically saying to themselves, listen, we have to think of our shareholders. they are worried about the shareholders. $66 billion is what the big banks have paid out so far since 2010. jpmorgan chase still not out of the woods. they just had another lawsuit suing the bank over allegedly, you know, causing to credit unions to collapse over mortgage loans.
lori: this could go on. >> they do not want to anger the government anymore. lori: thank you. adam: a bitter feud between the united auto workers union. with an estimated $11 billion on the line, they say they may be the next victim of the success. you say this ipl has to happen. isn't there a last-minute deal? >> what has to happen is the two companies have to come together. they have to become an entity. there is no way around that.
this has been going on for quite a while. we have been waiting on this for years. adam: you have the united auto workers retirement health fund with roughly 40-41% of the company. what we are negotiating here is fiats by al. they need to get as much as they can get. >> it is aggravated by the fact that over the course of the time, they have gone up the ladder. adam: let's talk about that. there are people thinking they would love to get in on a chrysler buyout. you need to be a player in
china. fiat has not been able to capitalize on that yet. >> it is late into the game. chrysler is strictly focus on north america still. number two, they have to expand their footprint in smaller vehicles. this is what fiat was supposed to bring to the table. adam: fiat is a mess in europe. if you look at chrysler alone, 70,000 employees today versus 50,000. if you look back at 2008, they had a $16 million loss. chrysler is doing really well. >> almost written off as going out of business back then. now, they are a strong player.
this. could we see a repeat of that kind of mistake? i think they know for their best interest they have to keep these players healthy and in the game. adam: thank you very much for joining us. >> thank you. lori: he does get choked up talking about cars. chrysler, just one of the many tooting the horn of detroit's bright future.
though gold reminding folks there is a value of 250 billion. an amazing opportunity happening in their great city. costs of the ad by the way $600,000. the stock upgrade that has investors jumping in this time, today. lori: charlie gasparino has details on had. adam: that continuing resolution . we are now just a few days away from a government shutdown. the latest from d.c. ♪
fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. so i can reach ally bank 24/7, but there ar24/7.branches? i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel tt in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally.
...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. adam: have five that are just crossing. the federal reserve is contacting news organizations.
>> this has to do with the security of market sensitive administration. specifically the statement from the market committee on federal policy when it meets eight times a year. we go into a room and we have to shut down our electronics. they studied the statement and the releases and make sure that we can accurately reported at the time of release. in this case, it was last week that the fed meeting. it was 2:00 o'clock. a research shop was looking at the trading patterns and some other derivatives and saw that within a millisecond or two or three, this information was
being released in chicago and traded on by high-frequency traders. now the fed says it is having conversations with news organizations to ensure that its procedures are completely understood here. in theory, that information is not supposed to leave the lock up to go outside, but, you know, if there are editors and bob and reporters are working on stories, it may get out. it is complicated and they are looking into it. adam: someone, somehow is getting information before the rest of the world.
the statements are getting out of the room. the fed is that untrained following up on all of this. adam: nicole petallides on the floor of the new york stock exchange. nicole: new highs today. since then it went below $20. they put a buy rating instead of a neutral. south china morning post talking about shanghai free-trade zone
that will allow you to access twitter and facebook. adam: thank you, nicole. lori: the battle over refining the government. enrollment for obamacare just a week away. it also happens to be the same day for congress trying to prevent a government shut down. i know you hate it when we ring that cautious valve. you are so bullish. here, we have another reason to be nervous. charles: we all remember what happened after the last one. it led to our aaa credit rating being lowered. you have two things. i sincerely believe that the gop will make a lot of noise.
i think they will focus their battle on the debt ceiling. the old guard would really like the focus on the debt ceiling. everyone watching the show pulled in tight. it is also the battle of sequestration. the debt ceiling becomes the battleground. your compromise is sequestration continues. the debt ceiling is raised. at least republicans can figure that the big fight. adam: what happens to our 401(k)s? charles: i think that there is shock to the system that may send it down initially.
the market did the exact opposite. people may find it pretty good that the federal government is not out there reaching for money. the idea is really, if you have a great stock or great stocks, taking market share, expanding overseas, you want to ride it out. check the earnings trends. double check your fundamentals. we are between 20 and 25% cash right now. i do want to have a little bit of cash. lori: charles, thank you, sir. adam: and all of branch to iran. the key part of the speech today to the united states. lori: quality over quantity.
and i. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if yr heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours.
if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop takg cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
general assembly today. if they can come to agreement, it can lead to better relations between the two countries. the roadblocks may prove to be too great, but i firmly believe the path must be tested. kenyan president says the death toll is now up to 72. he also said 11 of the assailants are in custody. burger king is now offering a lower calorie treat for those that just cannot give up their side of fries. a small order of satisfries clocks in at 270 calories. while the calorie count is less, a small order of satisfries will cost about $0.30 more. those are your news headlines. back to lori and adam.
lori: lauren green, satisfries, no thanks. i am doing the real thing. dennis kneale going one on one with disney ceo last hour. dennis: how do you make a giant like disney grow? we particularly looked at the film business. eight or nine years at pixar. that is because the good dinosaur is not so good. this is a matter of quality control. >> it is all about quality. if you feel like you have issues with making that kind of felt people expect, you wait and to make sure that you get it right.
when we delayed it, if we come out with a great film six months later, no one will remember it was delayed. dennis: he also hinted that for the first time, disney will make original programming for the likes of amazon, google. espn, he does not fear that à la carte split up. the increase but espn is higher than the entire audience of sports one. a stock price comparison. disney lad behind cbs, comcast, time warner and fox. when you look at 18 years and compare all of those stocks,
over 150% better than any of those other four. lori: he just did that share buyback. dennis: yes. all right. lori: a big bullish that. thank you. china plowing into the uk, literally. adam: we have a vote that european investment opportunities. lori: paul christopher back from a two-week trip abroad. which areas are finally starting to look like a descent that? ♪ [ indistinct shouting ]
from td ameritrade. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrft. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. adam: back to the floor of the new york stock exchange. nicole petallides is watching investments for us.
this time carnival, right? >> we're watching carnival cruise lines closely. it is the world's largest cruise ship operator. it has worked so hard over this last year to repair its image because of a series of mishaps, some obviously more detrimental than others. let's take a look at the stock, down 7.5%. $3453 a share, as earnings fell 30%. the other thing we should note also is the revenue numbers here and the revenue yields they have been seeing also slipped nearly 4% based on ticket sales and also just the money spent on boards. overall not a good quarter here for carnival. that is why you're seeing the big down arrow. back to you. lori: nicole, thanks. paul christopher, chief international strategist for wells fargo advisors led his research team on a two week trip through europe to search first-hand for investment opportunities. he joins us with his impressions of continent. thanks for joining news studio.
>> thank you very much. lori: you haven't even unpacked yet so we appreciate you coming in. what is significant that told you that recovery is indeed taking hold in europe? >> the interesting thing looks like europe's recovery will be pretty shallow and pretty short but businesses look past that to the improved global economic momentum, large cap companies that do business all around the world. that's where we have our attention. lori: let's go back to shallow and short. certainly here in the u.s. we've seen a shallow recovery for years. when you say short, could europe settle back into recession? we've got news out of greece once again there is the strike for second time in a week and certainly no stability there? >> right, greece remain as problem for eurozone. not tail risk or breakup risk it was last year. two reasons for the recovery being short. the central bank is too restrictive with the money supply. the second thing is the banks are simply not lending into the economy. lori: that is a problem. our central bank is extraordinarily accommodative.
will that benefit europe. >> to the extent growth happens in the united states we're looking for spillover in europe. that is the particularly the case. lori: tell us why you like large caps versus smaller non-multinationals correct? >> we met with a number of small cap companies but for our clients the most important way to play europe is fund and other ways that go by countriably country basis. what we like about europe is interconnectiveness. growth is good there. growth is good in the world. we'll do well. so dot polls. and germans too. we like europe as continent. lori: is there a play on angela merkel reak election in germany. >> not really. we think it will continue policies in germany towards the eurozone. we think germany has trouble dedomestically because right of center and left-of-center don't see much eye-to-eye. lori: sound like northern
economies of europe are your preference? >> everybody that. at the moment germany is our first pick. belgium figures in there but we look to add other northern european countries. >> currency exchange a lot of people quite bullish on the euro itself. but if you're looking at u.s. based multinational, that might actually benefit, that play as well, correct? >> right. we think the euro is a bit stretched here. we would look for the euro to decline back toward the 130 mark, maybe a little bit below. long-term view on the euro is for further weakness. that recovery doesn't look real strong. lori: tell me some other industry you would think perform in european economy or, what, actually, let's back up. let me ask you the question this way. what percentage of your portfolio should be based in international plays? >> well, it depend on your risk tolerance and depends on the time horizon but, if a normal, let's say a 40% position in equities overall had a 15% position in international plus emerging that would be fine for a lot of different investors.
lori: okay. and then what industries in europe would you prefer? >> manufacturing and large cap, especially those with a focus outside of europe, looking for sales in the u.s. and sales to asia. lori: all right. thank you so much. paul christopher, nice to meet you in person. >> thank you. >> other news out of europe. china is buying 5% of ukraine and they still have to get board approval. china sign ad deal to farm three million hecta-rs of ukrainian land, that is 50 years. roughly farmland the size of the entire state of massachusetts. 10% of ukraine's airable farmland will help feed china's expanding population. due to rapid industrialization, china eats one fifth of the world's food but home to a fraction of the world's farmland. while the deal with ukraine is biggest farmland investment yet, china since 2007 has been buying farmland in south america,
southeast asia and africa. lori: growing world population. hungry folks. adam: could buy american food too. wouldn't be so bad. jpmorgan woes are mounting. could it cost the general counsel his job? charlie gasparino with exclusive details ahead. lori: 10-year yield hitting fresh six-week lows dropping to 1.61% today. back after this. for his small business. can i get the smith contract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. -- 2.ea 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 [ male announcer ] now, taking care of things at home is just a tap away. ♪
introducing at&t digital life... ♪ ...personalized home security and automation... [ lock clicks ] ...that lets you be cloto home. that's so cool. [ male announcer ] get $100 in instant savings when you order digital life smart security. limited availability in select markets. ♪ limited availability in select markets. does it end after you've expanded your business?? after your company's gone public? and thcapital's been invested? or when your company's bought another? is it over after you've given back? you never stop achieving. that's why, at barclays, our ambition is to always realize yours.
>> i'm cheryl casone with your fox business brief. smithfield foods shareholders voted to sell the pork producer to shangwie international holdings for $34 per share. the deal would be largest takeover after u.s. company by a chinese firm. holiday travelers have three weeks to buy airline tickets before fares start taking off. comparison travel website kayak, after mid-october, shares for thanksgiving travel increase 17%. fares for christmas flights rose 51%. prices for new year's traveling jump 25% or they will at least. consumer confidence to a four-month low last month. the conference board found that americans grew less optimistic about the jobs outlook. 79.7 in september from 81.8 in august. they. that is latest from fox business. giving you the power to prosper.
adam: jpmorgan would love to get out of the financial headlines with people close to the firm say the nation's largest bank still has several months of legal problems to come. charlie gasparino is here with exclusive details. let's get to the question that everyone's whispering. could jamie dimon and company decide, forget washington, let's split this up and see if we can make a bigger profit that way? >> let's you know, it is easier to manage when it is smaller. i don't think so. here's the thing. jamie dimon is wedded to the universal banking model. i don't think the endgame for the feds is to break them up here. it is essentially embarass them. basically jamie dimon was a big, as you know, opponent of dodd-frank. he caught some of the law idiotic. and now he is paying for it. i'll tell you, i've been speaking to a lot of lawyers both involved in legal and regulatory matters involving banks, deal with washington all the time, they say it's low odds that the, that the endgame for the regulators is to break them
up. what they're trying to do is bring them to heel essentially. putting jamie dimon in his place is what you have now. but in the interim, this is how they're dealing with it. here is what we know. sources are telling the fox business network you would think that the general counsel, steve cutler, would be on the hot seat. he is not what we're hearing. remember this is the guy, i've known steve cutler for a long time. really good, i would say he a good enforcement attorney. led the enforcement division at sec. he is a good lawyer. he has been there since '93, find four. he has been there for a while. would you think he is on the hot seat. i understand he is not. he is well-respected by the board and dimon. despite the headlines, he is starting to get in the headlines there is no move to out of him. here is one issue that is problematic about this. they face six more months of intense regulatory pressure. i think a year total of regulatory pressure. lori: isn't there a statute of limitations on these things? you've been talking about for years. >> by the way that is a squishy
thing. it depends sometimes yes, sometimes no. it depends on the, the ill-gotten gains and when they first appeared, you know what i'm saying? so that's where we are right now. and here's the other problem for jpmorgan. when you talk to people in there do you know the scope of the regulatory problems? they say they do. they say they know what they're facing. for example this california suit they may or may not settle. we should point out, what we're hearing, u.s. attorney from california on mortgage cases. what they're saying jpmorgan believes they have a good case on that. they don't have to settle for the extortion nary claims this guy wants. they don't control the money aspect on a lot of these cases. particularly with the sec and particularly with the bank regulators. they think that is where it could get really tricky. nobody knows how many billions inside the bank they will have to pay to settle these cases because they don't have the control with the sec, with the fed and primary regulators. i should point out the guy in
california, the u.s. attorney for california i think this is 50/50 they settle this. i know there is report today they're back in settlement negotiations. maybe they will. they will only settle it if the guy comes down in the price tag. they think they have a good case here. it is sophisticated investors. adam: with mortgage related issues, legal issues, london whale thing is totally is separate and how much is organic to jpmorgan chase and wamu and bear stearns? >> some is wamu and bear stearns. the fact you have a big bank to point out and difficult to run. everybody knows dimon, knows guys that run it, mike cavanagh, steve cutler, the general counsel, these are guys not going around to looking to skirt the rules. that is kind of the scary thing. i remember when i covered bear stearns back, you know, before they blew up in 2008, bear stearns was a company that told its legal staff, tell us we're playing right up to the line. that's what they were doing. that is not generally the culture at jpmorgan.
i don't care what anybody says. i know those guys. they're not telling people, they're aggressive, they're risk-takers but not telling people, here's the line, go a millimeter before it. that is what is scary here. it kind of underscores i think, you know, i know jamie doesn't want to break the bank up, underscores how difficult is to run these things and maybe impossible to run these things. lori: is there a way for jamie dimon to wrap this all up neatly and move on? >> yeah. at some extraordinary price tag right now. they have concluded internally that if they were going to settle to a universal settlement with everybody it would cost, 20, maybe $30 billion. by the way that is a year's earnings. i think they made 22 billion last year. right now they see, they see some merit in trudging this out, you know, like every day, settle something. or, litigate it as in the case with california, they will, i think there's a good chance they will litigate that because they will win. they see merit in the long game. we have six months of this.
face it, do it, keep running the bank. we should point out shares of jpmorgan reached an all-time high this week. they're not off that much today despite the fact we got more news. they're down marginally. adam: down half, down almost 1%. >> talk to typical jpmorgan executive, okay, investors love us. our employees aren't bolting. we get good marks for customer service by jd powers or whatever. it is the press and regulators that are after us. important constituencies but we have other constituencies as well. >> thanks, charlie. >> let's get an update on the markets. mark newton joins us from the floor of the new york stock exchange. mark, good afternoon to you. rally certainly taking a pause the last couple days. is there anything that could reignite it in the future? >> little bit of a pause after three down days. we've given the pullback after the taper non-action by fed. the that carried the markets to record highs and we gave that
back. the market is ready to close greater than 4%, one of the best septembers we've had since july or january. financials are not participating in this move. they peaked out in july of this year and ever since rates started dropping we see now treasury yields at new six week lows. financial really dropped off substantially. they're in an important area to concentrate on, because they're the biggest weighting in the s&p. treasury yields hitting lows also important. and now we start to see commodities really drop off also last couple days sult of dollar starting to stablize a little bit of the those are things to focus on in days and weeks ahead. lori: the move in the treasurys is it at all due to concern of a government shutdown. >> more importantly we don't have meaningful data between now and the october fed meeting everybody knows bernanke put on the accelerator and gas pedal and we'll not see tapering anytime soon. rates pulled back because of
that. government shutdown, tough to know whether that will happen. it will be in the spotlight next couple days. we'll see what happens with regards to that. lori: good stuff. mark thanks a lot. adam: they save their customers a lot of money but do credit unions get an unfair tax advantage? the american bankers association says yep. its executive vice president james ballantine joins us on the bat toll end the competitors tax break. lori: let's break down the nasdaq for you, some winners on tech-heavy index. applied materials a big winner after the deal. we're back after this. ♪ [ woman ] if you have the audacity to believe ur financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors
who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. folks have suffered from frequent heartburn. butetting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. zero heartburn.
year tax break the -- $2 billion a year tax break credit unions enjoy. and there a lot on the line for community banks. james ballentine from the american bankers association joins to us talk about that. there is an effort underway to remove tax exemption for credit unions which historically goes back to 1934. actually you can trace it back to the state level since 1917. why remove it? why are bankers concerned about removing the tax break? >> they're concerned about this for number of reasons. when you speak about 1934 you speak about era where credit unions were created for two purposes, to serve a tight 19 group of folks and serve people of modest means. credit unions have grown far beyond that mission. in fact it is very difficult to see what their mission is right now and why the tax exemption is still needed. adam: credit unions actually, with only what, 6% of the nation's deposits in credit
union accounts, they do offer their clients cheaper interest rates than banks and just, i know part of the discussion is also about tax exemptions. there was a study by the st. louis federal reserve bank which they said several thousand small and medium-sized banks are organized for tax purposes as subchapter-s corporations and similarly exempt from federal income taxes. what is the problem? >> there is quite a difference between the subchapter-s banks which are 2000 of those and having full tax exemption which 6900 or 7,000 credit unions enjoy. so that is the problem. they are trying to compare what really is not apples and apples. sort of apples and watermelons because if you have 2,000 subs banks that have certain tax considerations to have a full exemption for credit unions seems far beyond what is needed in this time frame. when we speak about the $2 billion they enjoy, that $2 billion could go towards many things. the federal deficit.
it could go towards helping a number of sources. adam: mr. ballentine, why not, focus the attention on the nation's largest banks which essentially control 90% of the deposits? why not, i can't believe why i'm not to say it, why not tax them more as opposed to remove a tax exemption from the credit unions? because essentially the argument that credit unions get an advantage from the tax break, according to the federal reserve, this is a quote, the evidence does not yield any sharp conclusions. >> well the evidence does yield conclusions and evidence is really working directly against community banks. community banks and credit unions offer the saks same services. one has a tax exemption the other one doesn't. it is not fair for credit unions, which, are similarly sized to many community banks around the country to receive this advantage and community banks do not. this is not a big bank and credit union issue. this is a really community bank issue. those are the direct competitors we're talking about here. adam: james ballentine, thanks very much for joining us. >> thank you.
lori: oh, no, this could be the year the grinch stole christmas. jobs retailers are expected to hire 50,000 fewer workers for seasonal jobs this year. seasonal hiring last year was at a 12-year high. new report from challenger, gray & christmas because millions of americans are still unemployed, consumers remain uneasy. holiday hiring typically starts in october with black friday, the day after thanksgiving being the official kickoff for the holiday season. retailers have to deal with this lump coal. six fewers days of shopping this year compared to last. i think black friday will be become obsolete. they're moving deals earlier and earlier into the season. >> let's hope analyst predictions are all wrong. a lot of people income isn't really important during the holiday shopping season. lori: absolutely. adam: september so far bucking the reputation backed for stocks but could the fiscal battles ahead change that? bmo chief strategist jack ablin says it's possible. he talks strategy next with
tracy byrnes and ashley webster on "markets now." nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets,
posts and stories into real-time business insights that help nascar win with our fans. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side.
as across the country. say's david blitz says one part of housing recovery appears to have peaked. we'll let you know what that is coming up. tracy: courtroom battle pitting irs against independent tax preparers and irs wants to enforce more regulation, but tax pros say it could put them out of business. we'll take a closer look at that ahead. ashley: first top of the hour, time for a look at stocks.
let's go straight to nicole petallides down at new york stock exchange. nicole, stocks edging ever so higher now? >> right, so we'll see whether or not we snap the most recent losing streak. we've been tell selling off on the dow and s&p three straight days in a row however you see a change in arrows. this morning we started off with red arrows, nasdaq best of the bunch up more than one half of 1%. dow jones industrials up 18 at 15,418. i see the retail index, drug index, bank index all with up rare rose as well as transports up today. -- arrows. vix is up we're watching that closely. home prices to the up side fastest clip in years but they underperformed what the analysts were hoping foreand consumer confidence dipped more than expected in the latest month. let's take a look at facebook. what is interesting, a couple reports on facebook. citi upgraded to buy rating with a $55 price target. the other pertaining to china
shanghai. there were reports talking about the fact there will be a free trade zone in shanghai and there are sites saying that twitter and facebook, facebook will be available there. that is a really big deal considering facebook has been blocked in china since 2009. so with the upgrade in this news changes, shanghai, you do see the stock popping, 3.8% right now at 48.97. the high of the day was 49.66. getting closer to 50 bucks. guys, back to you. ashley: chinese government will keep close eye on face if that is the case. nicole, thank you very much. commodities struggling to gain momentum today. crude hovering near $1023 lars a barrel and on track for -- $103 a barrel as supply in the middle east and north africa has investors worried but it is easing pain at the pump for motorists. the average price for a gallon of regular gas has dropped 5
cents and sits at $3.46 per gallon. gold is down $3 an ounce and heading for the third straight day of declines and investors worry whether the federal reserve will begin to taper the stimulus program. gold is not the only metal losing luster today. silver and copper both falling. copper down more than 1%. silver also down about a half a percent. >> well, major averages are reversing their early losses. ashley, we're up about 17 points right now and our next guest says the possibility of a government shutdown as investors worried. joining us bmo private bank chief investment officer jack ablin is here. jack, i'm glad you're here. my favorite word of the day is history -- histrionics of washington could prompt you to move assets overseas. there is histrionics in my house every morning when my daughter says there is nothing to wear for school. you're thinking of actually
moving money overseas because it is that loony? >> it is crazy. if you look at the last time thd ceiling, stalemate which ended up in a government shutdown. you remember it did result in the s&p downgrade but it also resulted in a 16% decline in the s&p 500, and, in fact the quarter, it was the, the second quarter, i'm sorry, the third quarter, that the, you know, that these histrionics took place. it actually took 1% out of gdp. so generally speaking, you know, it may play well in the headlines and perhaps, you know, some of these temper tantrums will make some interesting sound bites but all in all, not great for the stock market, not great for the economy. tracy: so what does that mean? you're in kind of a waiting pattern right now? you seem to be sending stuff to the emerging markets.
that seems to be on your radar. >> it is. part of this is this temporary takeoff of taper probably in the face of this showdown, i don't think that, you know, if the fed is saying that it is weak economic data in september, there isn't going to be much economic data they will see in october. my guess is taper probably doesn't occur then either. so my sense the stimulus will be there full pedal to the metal on the monetary side. yes, we have this fiscal problem and the emerging markets are trading at a p-e ratio of less than 10 times. in spite of it all they will grow roughly double the rate of the developed world. i think perhaps maybe s&p take as little breather here as we again, start beating up each other and we start looking for other places and emerging markets are pretty cheap. tracy: how are you doing that? do you do that with an etf? are you buying individual companies in the emerging markets? >> no. generally we'll use an etf, although i will say for those
investors looking for emerging market exposure, active management through mutual fund is probably a better way to go. it would seem that the spread in returns between the various emerging market countries has diverged by so much, that now there is an opportunity for active managers to get in the middle there and outperform. we're seeing that a lot of active managers are outperforming the various benchmarks this year. tracy: back here at home consumer confidence slumps. it probably has a lot to do with what you're talking about. again uncertainty in d.c. you have this fabulous report though. and one of the things you pointed out was college costs. we made, we are replicated one of the charts you sent us on household income is not increasing nearly as fast as college tuition. this is something to that, weighs on the mind of people, parents in particular. college tuition keeps going up. how does that play when my wages are not going up? how are we ever going to turn this economy around back here at
home? >> good news here, tracy, is, i think we'll see some relief. in fact we're starting to see it with these online courses. you know, they're called moocs. they're now taking classes from the most prestigious universities in the country and starting this semester main line universities are actually offering degrees that you can use these mooc programs to train for. so i still, i believe, over the next 10 years, we're going to have a widespread access to what i call, a 10-kba. in other words, get your bachelor's degree under $10,000. that could over the next decade or so, take roughly half the private universities in this country and turn them into the public libraries of today. tracy: imagine. then there is a student loan debt issue as well weighing on the minds of people. that plays into consumer
confidence. before i let you go, what will this look like to you? will we turn this around or be in a bit of a slump? >> it is hard enough to predict the markets. it is virtually impossible to get into the minds of some of these guys on capitol hill. that is going to be tough. i will say, you know, i remember senator judd gregg once told me, never take a hostage that you don't intend to kill. i don't believe that the, these recalcitrant gop members are looking to kill our entire budget. we'll have to see how far they go before they cry uncle. tracy: somehow or another bipartisanship has not to be a dirty word after all. jack ablin, thank you very much, sir. >> thank you, tracy. ashley: all right. we have some breaking news for you. the trial of former sac capital advisors portfolio manager matthew martoma has been delayed. it was scheduled to start in november but a federal judge has delayed it until january 6th at the very earliest. attorneys requested that delay
because they say they have a conflict with another case. so a delay in that one. well, could it be more trouble on the way for jpmorgan chase? fox business broke the news that talks between the bank and the government over its mortgage bond have broken down. now federal prosecutors in california are expected to file suit but will the last minute negotiations keep the bank out of trouble? i'm sure they hope so. liz macdonald has the bottom line on this, the latest chapter. >> we have sources inside the bank, they are trying to push the delay of filing the suit by the california attorney general. that news we broke about three weeks ago between the federal government. this california attorney general move is part of that obama administration task force where he has new york attorney general eric schneiderman also suing jpmorgan chase. and what the california suit is about, violations of securities laws, that basically relate to the no doc, no-income loans andality-a and subprime, mortgage-backed securities. what is striking about the
california suit against jpmorgan chase, this is worth noting there's a criminal probe at the same time going on in the state. so we're talking to insiders at the bank. so the states are using criminal probes to get the bank, leverage the bank into settlement talks. so that is, an important headline. when you look at the breakdown what is happening with jpmorgan, just over the mortgage cases alone, let's look at it, you will see california is taking on jpmorgan chase over jpmorgan chase's own mortgage-backed bonds. new york is going after them over the bear stearns mortgage-backed bond. you see the u.s. department of justice going after jpmorgan chase over the bear stearns-backed bonds. you have pennsylvania over the wamu bonds. tell you something. talking to insiders at bank they're eventually feeling you know what? this feels unfair because we gave cover to the federal government in picking up bear stearns and washington mutual even though they got a big tax break to buy wamu. after eric schneiderman, new york attorney general filed suit against jpmorgan chase last
fall, jamie dimon spoke before a council of foreign relations meeting in washington, d.c. saying quote, this is not fair. this is not fair to us because we gave you guys cover picking up these very kiss tested, near bankrupt banks. i will tell you something. the fact that we have federal and state ags probing it is a big deal. because we also heard, we reported it at top of the hour at the 1:00 show, wide-ranging settlement. in other words the bank is in talks with the federal an state attorneys generals to have global mortgage bond settlement, the mortgage case settlement. the dollar figure we talked about, $20 billion. we're also hearing $22 billion a staggering sum. we reported that jpmorgan chase is net profits last year was in the order of 20 billion plus. so you know, i'll tell you something, since 2010, final point the big banks shelled out 66 billion bucks in litigation costs over financial collapse and they made 207 billion. so that is a big chunk out of
their profits. ashley: sure is. >> 66 billion in litigation out of 207 billion in profits. ashley: e mack, elizabeth macdonald. thanks so much. >> thanks. tracy: why you should become a law firm. still to come this hour, home prices haven't jumped this much since 2006. s&p's david blitzer weighs in whether that is good or bad for housing. ashley: time is running out to stop the government shut down. maya mcginnis says it is diverting them from more critical issues in the country. she is our special guest straight ahead. as we've been mentioning oil again is moving down. bringing down the average price after gallon of gas. that is good news. down below $103 today. we'll be right back. [ male announcer ] imagine this cute blob is metamucil.
see, the special psyllium fiber in metamucil actually gels. and that gelling hes to lower some cholesterol. metacil. 3 amazing benefits in 1 super fiber. bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? tracy: stocks looking to snap a three-day losing streak and we're covering all the action. sandra smith in the pits of cme. nicole petallides on floor of new york stock exchange. sandra, we'll start with you first. you are watching a key support level for the s&p 500. >> yeah. before we get to nicole on the
individual stocks it is worth takeing a look at the broader stock market, the s&p 500. bank of america chief technical research analyst steven suttmeier, he basically put out a note saying watch that 1700 level when it comes to the s&p 500. right now we're hovering just above there. we're at 1705. he says if we fail the 1700 level, if we see a series of closes below there, see the stock market in form of s&p drop another five 1/2%. that would make it 10% lower from the all-time high we saw the s&p make last week. he is saying this is for a series of problems. lower lows. lower participation in the market. and he is saying if we see a drop below 1700, it calls into question the validity of the recent run-up to record highs in the stock market which, got to tell you many traders down here have been questioning as well. the high that we hit was 1725, guys. we're about a percent 1/2 off of
that. steve suttmeier over at bank of america is basically saying, watch out, not a time to buy the dips in this market. he says we may have reached, and he may be going out on a him in saying this in a record-breaking market, we may have reach ad peak. something to keep in mind. watch the 1700 level. we're just above there. close below there would be first one since last monday. obviously from a technical perspective, pretty significant. back to you guys. tracy: he is not alone. i feel -- ashley: eventually you will be right. tracy: there is that. ashley: it has been a while since we've seen a head in the other direction. you're right. more than one analyst said that. let's get to the floor of the new york stock exchange. nicole, you're looking at some of the major movers today. >> some major movers on the s&p 500 determining which way the major index goes. let's start off with carmax used cars. the stock today moved to an all-time high, $52.47 a share. of course economic recovery has been a tough one, a slow one and
used cars, well it has been great for carmax. you can see the chart there. that is a nice fifth week chart. they came out and saw second quarter profits on the rise -- 52-week high. higher than they hoped for the largest used car retailer. red hat, lower growth than anticipating. lowering parts of numbers, not all of it for the full year and trimming top end of revenue guidance to be more specific. they do commercial linux operating systems. lower growth hit the stock. it is down 11.25%. that is a huge move to the downside for red hat. ashley: certainly is, nicole. we'll be back to you at the bottom of the hour. tracy: less than one week until a possible government shutdown. budget expert maya macguineas says passing a budget is critical to solving a bigger fiscal crisis and she is here next. ashley: we'll see how the dollar is moving now on this tuesday. take a look for you.
bottom line, stronger across the board. all the currencies overseas are moving down against dollar. u.k. pound still at 1.60. not that cheap. we'll be right back. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. [ male announcer ] at edward jones, nascar is about excitement. but tracking all the action and hearing everything from our marketing partners,
in his address to the u.n. general assembly today president obama said if the united states and iran can come to an agreement on iran's nuclear program, it could lead to better relations between the two countries. obama said he has directed secretary of state john kerry to negotiate with iranian officials saying roadblocks may prove to be too great but i firmly believe the diplomatic path must be tested. the kenyan president said the death toll in the four-day terror attack in a nairobi mall is up to 72. that includes 61 civilians, six security guards and five of the terrorists. 11 assailants are in custody. those are the news headlines. back to ashley and tracy of the. ashley: lauren green, thank you so much. we appreciate that. partisan posturing, that is what they do these days in d.c. and what our next guest calls negotiations in congress to avoid a government showdown and debt default which the first which is less than a week away. joining us, budget expert, maya
macguineas, president of the committee for a responsible federal budget. thanks for joining us. how does this play out this week? will we have back and forth and then at the last minute we get the government continuing to running with the obamacare defunding taken out. is that all that is going to happen? >> one thing i can tell you it will go down to the wire because these days is the only way we make any choices in washington, the very last minute. usually they are not very good ones. i think in all likelihood we'll go to the last minute. i think the guestgovernment won't shut down but i won't say that for sure. there is a real probability it will. defunding obamacare will not be part of the final bill. there is not enough support to keep that there. so when i look at this, i just think, what on earth is going on? we're attaching parts to bills that don't have a political chance of passing on one side. and on the other side is saying we're not even go to negotiate about these things and it's like a schoolyard squabble, right?
with both sides acting not like real leaders. we're not focusing on real issues of what are we going to3 do about this country's fiscal problems which are real and looming and we need to make changes as quickly as possible. ashley: listen, the house pass ad budget. the senate passed a budget but they could never come together on a compromise. is it lack of political leadership is the issue? >> lack of political leadership is a huge problem in this. as you pointed out, is it not astounding we're the biggest economy and country in the world running without a budget? everyone should stop to realize how irresponsible we run the country without a budget in place. yes, it is lack of leadership. yes it is disagreements on both sides and people unwilling to really compromise and make some tough choices. think what we've seen in this country is not years, really more than a decade now of budgeting so irresponsibly that nobody is really used to the fact that if you want to spend money you have to pay for it. we need to make our spending and revenues more closely aligned.
these will deal with real issues on health care costs, retirement, tax reform, that policymakers are all too eager to run away from and turn towards gimmicks and punt. if we keep governing this way the american economy, american households already are and will continue to pay a real price in terms of no real recovery, no real job growth, no sustained boom in this country until we get this debt under control. ashley: right. even when we get back the cr, the continuing resolution the bigger issue is raising the debt limit and failure to do that would have some pretty dire consequences, wouldn't it? >> yes. right around the corner loom as larger potential showdown. shutting down the government doesn't make sense. it doesn't save money. it is irresponsible. it pail r pales to the fact we don't talk about raising debt ceiling. is it we have to raise the debt ceiling covers bills we obligated ourselves to. how at same time to make changes to the budget. so we don't spend as much.
so we pay our bills and bring our debt under control. that is not at all meaning you can consider not lifting the debt ceiling if we were to do that, cost to the entire economy, cost to the entire global economy, would be astronomical. would be dangerous to be flirting with that we should think at the same time how to make changes and not hold the debt ceiling process hostage. ashley: you make a lot of sense. i don't know they're hearing you in congress. maya macguineas, committee for a responsible federal budget. thanks for joining us. >> thank you. tracy: oxymoron, responsible, federal budget. ashley: nice dream. tracy: arming the enemy. disney may be in talks to supply original shows to amazon and google, thereby helping them compete against netflix and competing with its own network. dennis kneale talks with disney chairman bog iger all about it next. >> look at some of the day's winners and losers. the dow is turn negative. we have winners on s&p 500.
it's just her way. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help
for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
tracy: 90 minutes to the close, to nicole petallides on the floor of the new york stock exchange. the dow can't make up its mind. >> reporter: we've had a pretty narrow range, the vixx, the fear index, is still to the downside. you have a lot of laggards including verizon, jpmorgan, microsoft, visa, ibm. as we noted, they are down, but not heavily, down, whatever, half a percent, 1%. you're not seeing huge moves, but they are down, nonetheless, half the dow components, too,
have down arrows. take a look at jones new york. right now jones group is up almost 5% at $16.45 a share. private equity firm kkr are aiming to buy the retailer. now, they own 9 west and also jones new york, so some very popular names. there's an auction going on by citigroup, and these two names are trying to wrap it up before the deadline. they haven't said how much, but it could fetch between $17-$18 a share, so as a result you're seeing this stock with up arrows, and it's a winner year to date. up nearly 50%. tracy: thanks, nicole. ashley: dennis kneale has been going one-on-one with disney's chairman bob iger, and a look at what he had to say regarding disney's plans to create original program. >> reporter: right. we talked to bob iger about what does it take to keep growing such a gargantuan country, and
for the first time disney may make original shows for online services, netflix but more so amazon and google. it's another thing to make original shows that will compete against your channels you have, but iger admits an announcement may be forth coming. >> we are a content creator. you should espn -- under espn, marvel, pixar, and in a world where technology is creating or enabling new platforms and customers to reach or access this content in so many new ways, there are all kinds of exciting new possibilities including creating programming directly to these new platforms. so i won't be surprised if sometime in the near future you didn't hear about disney making content specifically for one of the platforms that you cite. >> reporter: so watch for that possible announcement of a google or amazon deal for original shows. now, that's arming the enemy, basically, and the channel could
come back and hurt you, but he says he might as well do it to himself before everyone else does. one last word about disney stock, it's been a stellar performer, near all-time highs. yet when you compare it against several other big media giants, it is performing lower than the others in part because they fell far more in the meltdown than disney did, so they've come back up. but when you then look at eight years since iger became ceo, look at this chart we put together. disney stock in eight years up over 150%, vastly more than those oh entertainment companies. and, by the way, that is more than triple the rise in the s&p and the dow in the same eight-year period. ashley: something, right many. >> he sure is. he's working with a great collection of assets. tracy: we have the disney channel in our house all the time. >> it's a lifersaver. your kid can sit there slack-jawed. arc ash you've got to love it.
breaking news, crude extending losses for a fourth straight day, closing down 46 cents at $103.13 a barrel. tracy: the united nations general assembly p not the only big meeting happening here in new york city. the clinton global initiative is bringing the world's top political and business leaders together with or very own liz claman who happens to be right in the middle of it all. hey, liz. liz: tracy, fox business feels this is a very important event because it does bring together business leaders, right? and world leaders. come up with ideas to make solutions here live at the sheraton hotel in midtown manhattan. we have luminaries descending to talk about not just talk, though, actually they have to prove that they are doing different things to make positive changes in this world. what better name to have than hu tar kent, fox business coming up at the top of the hour, a live
one-on-one interview with ceo of coca-cola. it is one of the most widely held, world's largest beverage company. he has an initiative he's rolling out when it comes to global solutions for poverty-stricken nations. plus, of course, we will ask him how business is doing, so much more to talk about coming up one on one. and 4 p.m. eastern, you know, people who woke up this morning said they could not believe what a surprise it was to see the most gigantic deal in the semiconductor equipment space, yes, supplied materials is swallowing up tokyo electron. we have a fox business exclusive right here with mike splinter who is the chairman of applied materials on this behemoth, $9 billion deal, which will create the world's largest semiconductor equipment maker. it's all about mobile, you know that, right? back to you. tracy: good stuff, liz. ashley: thank you, liz. well, now the very latest on the federal reserve trying to get to the bottom of a possible early
leak of its fomc decision last week. peter barnes has more on this story. >> reporter: this issue's being raised by a chicago high frequency trading software company called man -- nanex, and it has charged that somehow embargoed information on the fed policy statement from last week may have been released early by news organizations that are in the lock-up including fox business, we should disclose. we get to go into this lock-up to look at the fed's statement about ten minutes before it's released so we can read it over, understand what the fed's trying to do and then promptly at 2:00 or the embargoed time, tsa when we release it -- that's when we release it. nanex has got this chart that it has put together and released to news organizations. you can see the yellow line at the top is when stock futures trading activity hit the tape at
just a little bit -- within milliseconds after 2:00 last wednesday, and that compares to the releases of other fed statements, the red line is from july, the july fed open market committee meeting and the blue line at the bottom is from the june. and be they, so nanex says this looks suspicious and that it is physically impossible given the speed of light for this information to have gotten out to chicago earlier than 2:00 unless news organizations, the wires services put it out there a little bit ahead of time. it says, nanex says in a statement: the market reaction to the fomc news on sent 18, 2013, came earlier than physically possible due to the speed of light is and was, therefore, unexpected by many market participants. the end result will be an increase in uncertainty which will lead to even larger decrease liquidity during the next fomc announcement, and it's
asking a lot of questions about how this embargoed material is handled by us and other news organizations. it comes down to an agreement that we all signed that says that, and i signed it as well, i understand that i may make no public use of this, of the documents distributed by the federal reserve board staff of the information contained therein including broadcasting posting on the internet or other dissemination until the time the federal reserve board has set for their public release. what's the definition of no public distribution? can a wire reporter share it with an editor or not? can they put it out there on a server so that when it's, the embargo time hits, the button is pressed -- computer, actually, sends it out exactly at that time. complicated stuff. the fed did say, put out a statement and said that it is holding conversations with news organizations. news organizations receiving embargoed information from the federal reserve agree in writing to make no public use of the
information until the time set for the release. we will be conducting follow-up conversations with news organizations to insure that our procedures are completely understood. the fed won't comment further than that on how it understands this is supposed to work, and i've reached out to the news organizations that the fed has contacted to get their comments as well. so we're trying to make -- [laughter] res there's good luck with that. >> reporter: but, you know, is somebody getting an advantage or not? [inaudible conversations] ashley: i think seven milliseconds. >> reporter: one, two, three, seven milliseconds -- ashley: it's like quicker than the blink of an eye. it takes 300 milliseconds to blink your eye. tracy: wow, okay. ashley: the computer world, it can trade on that information, and that's the whole point of this investigation. tracy: peter barnes, thank you very much. ashley: coming up, housing's
next move. rising mortgage rates seem to cool the recovery, but could the fed's no taper change that? s&p's david blitzer will be weighing in next. tracy: first, it's time to get a check on your 10 and 30-year treasuries, your 10-year down 2.65%, 30-year moving six basis points lower to 3.67%. we'll be right back. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪
>> with i'm melissa francis with your fox business with brief. new york's attorney general is calling on washington to crack down on high-speed traders who get early access to market-moving data and trade on it. eric. schneiderman says when high-speed traders get information early it creates something par for insidious than insider trading. consumer confidence slipped in september, that is a four-month low. the conference board found americans less optimistic about the jobs outlook. and coming up at 5 p.m. eastern on "money," spencer patton from field line investments. he says the fed has completely taken over the market at point, he is cautiously bullish, but why is that a good thing? that is the latest from the fox business network, giving you the power to prosper.
ashley: home prices in july posting their biggest year-over-year gain in more than seven years according to the latest s&p case-shiller index. here to break down the numbers, david blitzer, chairman of the s&p index committee which he helps compile this report, so who better to talk to to get to the bottom of all this? well, the initial numbers still very impressive, aren't they, david? but we are seeing a slowdown in house prices, appreciation from month to month as compared to year-over-year which is probably a good thing, right? >> we are definitely seeing some indications that it's going down, and next year at the this time i don't know we're going to be looking at another 12 plus percent gain. it is a good thing. we've been talking about the return of the housing bubble and a lot of things we really don't want. working back to a more normal market. we've seen indications of normality in different experiences across the country. prices getting back to
reasonable speed instead of breakneck will be good too. ashley: well, hopefully, it will get a lot more folks who were underwater in their mortgages back on plus side which is always good news. does that mean that we could see more inventory coming to market now that we're seeing the prices go up? >> i think we will see somewhat more inventory come out and for exactly the reason you mentioned. by all reports, a lot of people who feel stuck in their homes, they can't afford to sell it, they can't afford to move even if it's to move to a new job. so getting the prices a little bit higher will be a big plus. ashley: what impact has the rising mortgage rates had? has it had a big impact as some people will tell you and others will say, yes, they're higher, but they're still incredibly low. >> there are two stories that are very different. the housing story is about mortgages to purchase homes, and applications have slowed down over the last 12 months but not dramatically.
it's tightly tempering sales, probably tightly tempering price rises. the big story is mortgage applications for refinancing. when you refinance your home, the monthly paymenttgoes down, and you've got more money in your pocket. rates go up, there's some people who refinancing doesn't pay anymore. because the mortgage rate went up. they're not refinancing, and they don't have that extra money to spend. so i think the absence of that spending power is a bigger factor for the economy than a slight tempering of housing price gains. ashley: did the fed non-taper, at least for now, give a little shot in the arm to housing, or is it so uncertain that it doesn't really matter? >> well, i think it's really so uncertain. first of all, within 24 hours of not tapering, i see 13 stories they're going to do it in october. [laughter] i don't know if they're going to do it in october. they don't have a formal meeting in november, but that may not mean anything. so most people seem to think they'll do something by the end
of the year, and, you know, takes a while to gear up and buy a house. it's not like buying stocks, you do it in a moment. ashley: yeah. >> so if we're still sitting here in december and, oh, they didn't taper yet, then it'll have some impact. but my guess is we'll have something else to talk about by then. ashley: of course, you never know. david blitzer of s&p, thanks as always for joining us. >> my pressure. have a good day. ashley: you too. tracy: mark newton joins us from the new york stock exchange. markets can't seem to make up its mind today, positive or negative, what's going on? >> no, you're right, we're not able to hold these gains as you mentioned. financials have taken this market lower once again. we were talking about jpmorgan earlier with the legal woes, and we see both visa and jpmorgan are having a big weight on the dow which is now negative after three straight days. bottom line is you can't make a whole lot of this and, you know, it's probably likely that we see at least a little bit of a
bounce in the next couple days after what we've seen of late. tracy: nice and positive news, mark newton, thank you very much. >> my pleasure. ashley: they earn their living doing tax returns for other americans, and now the irs wants to regulate them even more. how independent tax preparers are fighting back, that's next. ♪ ♪ [ male announcer ] now, taking care of things at home is just a tap away. ♪ introducing at&t digital life... ♪ ...personalized home security and automation... [ lock clicks ] ...that lets you be cloto home. that's so cool. [ male announcer ] get $100 in instant savings when you order digital life smart security. limited availability in select markets. ♪ [ engine revs, tires squeal ] [ male announcer ] since we began, mercedes-benz has pioneered many breakthroughs. ♪
tracy: well, the irs facing off in cout against independent tax preparers who sued to stop new regulations. the irs wants hundreds of thousands of tax preparers to pay for continuing education. tax preparers say the irs has no power to add regulation and will only end up hurting their bottom line. our next guest was at the hearing, donald williamson runs
american university's tax center. donald, thank you for being with us. i worked for ernest and young, prepared tax returns. if i did not take continuing education classes, i would not know what was going on because the rules are constantly changing. >> well, that's right, tracy, the rules are constantly changing, and you do need to have a continuing professional education. the issue here is not whether tax return preparers should have such education, but whether the government can require them to have such education. tracy: but we do need some sort of standards somewhere, right? i mean, finra requires brokers to take certain exams and state license in order to work in their industry. i mean, the irs somewhat has the right to do this, don't they? >> well, haas the issue, does the irs have the right. and that was what was litigated this morning in the circuit court of appeals for for the district of columbia. the district court, in fact, found that the irs did not have such authority. and while we all -- i guess you,
too -- agree that we need professional education, the issue is basically whether the government is empowered to authorize such requirements. tracy: you know, as a certified public accountant, you have to maintain that certificate. there's something to be said about it's a little built of an an -- little bit of an honor to maintain your status because beu have to have some sort of knowledge in order to prepare a tax return as an independent. >> you're absolutely right. and i as a tax practitioner myself and having taught tax for close to 30 years at the american university agree that regulations should be imposed upon tax return preparers and that they should have continuing professional education requirements. again, the issue is whether the government is, in fact, empowered to require that. tracy: okay, that's fair. so where are we now with this? because you made a great point that the irs didn't really have much representation there today, surprisingly. they must think this is a layup for them. >> well, they had over 20
professionals, i don't know if they were all lawyers, but there were 20 folks from the internal revenue service and the be justice department that actually litigated this department in the well today arguing that case. the circuit court judges, i think, were pretty tough on the government, emphasizing that the statute that they were hanging their hat on that was enacted if 1884 to authorize representatives to apply for reimbursement of the use of horses that taxpayers may have used in the civil war did not extend to tax return preparers. and they had a really uphill battle with the jus -- judges. they were pretty tough on the government, and i can understand why. because it is a stretch. and while as a tax practitioner i fully support such regulation and hope it does come about, i just hope it comes about through proper mets, and those proper methods is called the congress that passes a law requiring such regulation which, in fact, i as a cpa, the congress passed a law
requiring -- tracy: right. i mean, it's hard enough to swallow, i guess, when the irs has collected more than $105 million in registration fees, i can see where they're coming from. at the same time, though, you can't just have anybody doing this and then you'll have lawsuits left and right because of it for independent preparers signing and preparing taxes incorrectly. it'll cause the irs more trouble than they already have. >> absolutely. and the purpose of the regulation is laudable, to get unscrupulous tax return preparers out of this business. and i want that as much as everyone else does. it's just can we do it properly and do we respect the separation of powers in this country. tracy: and if i'm not mistaken, you can write off those fees as work expenses. i mean, if these are good tax preparers, they would know this. it wouldn't be a big deal. donald williamson, thank you very much. take a deduction for it, everybody else does. ashley: no kidding. how about we'll finish on this interesting story. the childhood home of steve jobs
getting closer to becoming a protected historical site. the home, located in loss altos, california, this is the whole where steve wozniak and steve jobs built their very first apple computers in the mid 970s in the garage right there. the town's historical commission has been reviewing this home for nearly two years, the group worked on finalizing the draft for the property evaluation, and if the designation goes through, this rock star home will have to be preserved. there you go. tracy: craziness. ashley: history right there. tracy: i guess. coming up -- ashley: one of the most longest and generous dividend-streaks in the country, one of the most remember nice bl brands -- recognizable brands on planet earth. don't miss it.
nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans.
♪ liz: good afternoon, everybody. live from midtown manhattan, it is the last hour of trading. i am here at the sheraton hotel, it's the clinton global initiative where some of the world's most powerful political and business leaders are coming together talking about creating big ideas, big commitments to big world problem solutions. and in a moment, i'll be joined by one of them, muhtar kent, the chairman and ceo of arguably the world's most recognizable brand, coca-cola. coke, of course, spans every single corner of globe except north korea. okay, we'll give them that, and it's a stock that most americans have held at one point in their lives in their portfolios. muhtar kent coming up on what's happening at his company and why he is here and the commitment his company is picking. before we get to the markets, all three major indices a little mixed, dow jones moving lower, s&p trying t