Skip to main content

tv   Markets Now  FOX Business  January 14, 2014 1:00pm-3:01pm EST

1:00 pm
a capitalist uw. lori: more conflict of interest on wall street, charlie gasparino with the exclusion detail on an analyst's upgrade raising eyebrows the first to the markets, what a turnaround for this time yesterday, stocks bouncing back from the sell-off, the stock exchange and nicole petallides, we are near the highs of the day. nicole: everybody was surprised yesterday, jobs report friday, was a tough one. and the sell-off yesterday, dow jones industrials, 185 points and gaining back some of that up 84 points at the moment, a gain of 1/2% and traders were surprised by the move yesterday on the heels of the jobs report a day later, the truth is we know this has run up so far, so fast in 2013, 2014 was a tough one so far. and the dow up 1.5%, and that doesn't mean it won't turnaround but a tough start today,
1:01 pm
different picture. all ten sectors are winning, intel leading the way on the dow jones industrial average, multiple upgrade including jpmorgan, putting a price target of $29 on intel and this is because they think the pc market will hold on. and the technology leading the way but drug stocks, retailers, oil services, a lot of green arrows today. back to you. lori: thank you. dennis: a warning for cash strapped state after three years of research the state budget crisis task force issues a final report that warned state and local government finances remain in the journey of fixes despite tax revenue, peter barnes live from the capital with more on his first on fox business interview with a co-author of that report. peter: new york state lt. governor dick ravage who along with former fed chairman paul volcker have been looking at this issue for the last three
1:02 pm
years, first financial crisis which ravaged the state and local budgets, collapse in tax revenues as you know her lot of states in cities, they are out with their final report today, their analysis, but also recommendations including local authorities should do multi-year financial planning, they should set up a rainy day reserve funds, better account for borrowed funds in their budgets. and brought this to d.c. to announce because they want to make sure whenever the federal government is doing such as changing medicare or raising eligibility or medicare, the burdens don't get shifted over to the states and local governments, they want to see more transparency and disclosure in state and local government finances. talk to dick ravitch about this moment ago. here is what he said.
1:03 pm
>> the public interest is best served by having more transparency, states and cities using crude forms of budgeting so that politicians can't kick the can down the road, pretend they balance the budget by d furring writing a check to the next fiscal year. >> they will try to spread the word of the report back to states and local governments as well. get them to the budget authority is, members of the budget committees and the administration for consideration going forward. dennis: thanks very much, peter barnes. lori: a senior fellow at the manhattan institute specializes in public employee unions and economic development. i was speaking with you in the green room and you said to you the most important thing about this report is mention of the
1:04 pm
suggestion to revisit the tower amendment and i will let you pick and here. why do they bury it? >> i don't know if they bury it. it is extremely controversial but here is the issue. they go through in this report a long list of some of the things they densities' do basically to hide their budget problems things many of us have been criticizing for years and that leads to this idea that in the municipal-bond market, there is no ability of the sec to actually regulate municipal issuers. lori: the way they initiated them. >> the tower amendment says you cannot directly require states and cities that borrow money to do this, this, this the way you require of corporations a what the sec is left with doing is backdoor regulating which is very ineffective. lori: what is the incentive for the sec to regulate municipal-bond issuers because the default level is very low? >> the default level is very mobile we have seen a couple big
1:05 pm
defaults in recent years and also seen the sec using anti-fraud statutes go after some cities and states for directly misleading people. what is going on is states and cities have been through the procedures they're using misleading taxpayers and if they are issuing the debt potentially misleading investors and basically what paul volcker and dick ravitch are saying is maybe we ought to think about ending that exemption which doesn't allow the sec direct enforcement of municipal-bonds. cheryl: happens to significant bankruptcy and state tax collections are improving so overall things are better but we are not at pre recession levels and why is that. >> it is a slow recovery. the states are all in response to this report saying things like we have surpluses but most are counting surpluses by not counting the debt which is what
1:06 pm
this report is about. california talking about surplus but their reports are saying we need $4 billion a year more in pensions, they are not putting $4 billion more tax revenue towards pensions. this is the same across the country so only if you exclude the debt which these counting procedures do, leave you do that do we have surpluses around the country? >> that leads to my question about your analysis on the suggestion they make in terms of getting rid of the cash based budget you are referring to in favor of this a girl base budget will that make a difference? >> it is symptomatic of what is going on, it is not modern finance, it is from the nineteenth century. convenient for them because what it specifically does is does not take into account long-term obligations and we know now one of the biggest problems we face which came upon these cities and states rather rapidly is long-term obligations because they have been using a kind of accounting that didn't
1:07 pm
accurately reflect those obligations. lori: we went to the sarbanes oxley. >> it is of very good word because in the federalist system the federal government can't just say you have to do this to states, they can ask for some transparency but one of the places where they do have some sway is municipal-bonds because this is a big debate but essentially the municipal-bond market is at a market where they are selling things to people. if they are misleading people using the kind of technique they are violating securities fraud regulation and that is a wedge the federal government does have. one mack you are a go to guy on community matters. thanks. don't forget you can follow our coverage of the pension crisis at foxbusiness.com/pen in911. dennis: elsewhere on capitol hill congress reaching a deal on a spending bill, $1 trillion
1:08 pm
measure for discretionary spending, we will keep the government funded through september at has bipartisan support, some of the provisions include reversing a cost-of-living increase for disabled veterans and providing aid to egypt. the house is set to vote on this legislation on wednesday. time warner cable definitely in play, not just a matter of price and charter can occasions going public with its $47 billion bid for time warner cable after weeks of behind closed doors. the charter, half the size of tw c offers $132.50 per share, barely above warner's closing price yesterday the stocks of 40% since june because they have taken over rumors that time warner cable and new ceo rejecting that offer as quote negroes we inadequate. $160 is a fair price, shares of both companies, rising on the news and if you look at 2013 time warner cable of 40% in the full year, charter of 75%.
1:09 pm
lori: planning to get inside your home. joline kent joins us with more. >> reporter: google announced it is buying $3.7 billion pending regulatory approval and the deal is already raising questions about how much data google will gather at home. it collects data like your idea address and e-mail address from -- protect its smoke and carbon dioxide detector, their privacy policy put constraints on how the information is used. we use this information to improve the product and services including information and recommendations about energy use but those other keywords you should be watching for. information and recommendations. as it stands this gives google a lot of leeway on what it can potentially gather. currently it only needs customer approval when it shares data with a third party and when do a complete its acquisition will be no longer subject to
1:10 pm
limitations. matt rogers insisted in a post recently yesterday saying nothing will change. he says our privacy policy limits the use of customer information to provide and improved products and services we always taken privacy seriously and this will not change. an interview with fox business last october, he has ambitions to build more products that will ostensibly also gather more data. >> you could actually expand this, put a camera in, a bird's eye view of in your mobile device. is that coming down the pike? >> there are tons of things we could do over time. still a small company, we wanted to target the smoke, 40 million units a year in the u.s. alone, in the of fullness of time i would love to add more to it but we will stick with what it is today. webmac take a look at google at stock up 1.75% today on the
1:11 pm
news. lori: thank you. dennis: breaking news, federal judge preliminarily rejected a $755 million settlement for nfl concussion claims saying it may not be enough to cover injured players. the settlement is designed to cover 20,000 men over a period of 65 years but u.s. district judge anita brody said it may not be enough to cover brain injuries diagnosed in the future. shoppers' spending more on clothing in december not much else, final reading on retail for 2013 lackluster. 2014 coming up. lori: jpmorgan see a warning credit card theft and data breaches are not going away, banks and retailers need to ring big sales ther. numbers tough on the street, back at the nyse as the stock goes higher. [ me announcer ] this is the story
1:12 pm
of the dusty basement at 06 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall f roble avenue. ♪ this magic momt it is the story of where every great idea begins. and of those o believed they had the power to do more. dell is honored to be part of some of the world'great stories. that began much the same w ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ ♪ this magic moment does it end after you've expanded your business? after your company's gone public? and the capit's been invested?
1:13 pm
or wn your compan's bought another? is it over after you' given back? you never stop achieving. that's y, at barclays, our ambition is to always realize yours. [ male announcer ] wt kind of energy is so abundant, it can help provide the power for all th natural gas. ♪ me than ever before, america's electricity is generated by it. exnmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives here ♪
1:14 pm
lori: we are following the latest developments on the target data breach. now congress is getting involved. democratic senators claire mccaskill and jay rockefeller are looking for answers from target's ceo on the hack attack.
1:15 pm
the move calls for a call for congressional inquiry from democrats in the house. target shares taking the news in stride, barely changing ever so lightly higher on the day. dennis: retail sales had a slight uptick in december with a better than expected 0.2% in november versus the street's call of just .1. the biggest results were revised downward from the previous month. marie discontrol joins us and has expert analysis on latest data. when you see expectations of 0.1% increase and ends upcoming in at 0.i think it is twice than expected. is it really that big after difference. >> it is not that big of a difference. in reality when november's were taken down it is not a big difference. dennis: you're lower egg the gain. autos up, the best since
1:16 pm
february. >> that is good. retailer was really offering so many bargains it was hard to keep shoppers out of the store. dennis: even though they're selling stuff at lower price that is overall dollar figure did go up and selling extra stuff to bring those -- why is it, food, clothing online sales farewell but electronics retailers, department stores, pet stores, had sales declines? >> people move around their dollar where they get the greatest value. you were getting great values in apparel and accessories. food you're always buying. tough look at calendar effects since the last year. so there is a lot of noise in the numbers but at the end of the day, when the nrf looked at holiday sales for november and december they came in just .1 of a point shorter than their expectations. they came in at 3.% gain instead of 3.9. dennis: right. i want to ask you. heading into the holidays i saw a lot of crepe hanging and forecasting it would be a very
1:17 pm
down christmas but 3.8% is actually darn good, isn't it? >> certainly is better than we thought going into the holiday. dennis: yeah. >> and again, the retailers i think were very nervous, holding inventory and really marked things down. i don't think their earnings are necessarily going to be great but they made their sales numbers. dennis: yes. >> look at what has happened in the last few weeks. we've had negative reports on january and after christmas. dennis: right. some of that could be, we were so spent from all that christmas spending. >> right. dennis: what do you think could be done to further boost retail sales in the economy? i know consumer spending is like 70% of the economy. >> right. so i've been spending the last few days at the nrf, it is their 103rd annual conference and what we're hearing basically retailers are in the commodity business and the only way to differentiate is have better service and unique and curated products. so if you have something nobody
1:18 pm
else has, then you can hold your price. if everybody is selling what you're selling you're competing with amazon and walmart. dennis: treat me well and give me a glass of champagne when i buy an expensive suit and maybe i get off the sofa and amazon.com? >> there you go. dennis: thanks, marie driscoll. lori: have you done that? dennis: which? lori: taken advantage of champagne. dennis: yes, i have. saks fifth avenue. lori: planes, ttains, automobiles, some of those are on the move. nicole petallides is on the floor of the new york stock exchange covering all the action for us. >> that's right, two names that are worth watching here, transports by the way are doing great today too. first we're looking at boeing. boeing has had a tough day. we saw a intraday drop, a significant chart. that is a great chart that really shows you, that's a two-day chart and shows you how mid-morning at one point it fell off, right? we were at 140.70 at highest point on boeing. it fell three bucks at japan
1:19 pm
tokyo's airport there was issue with smoke coming from a battery. they have been working on that. the incident seems to be under wraps and being fixed and the like but obviously enough to put them under pressure. then you have tesla motors which now is moving higher. it is up about 14 bucks. there is no recall. in fact there is good news. global sales and services are set to double in 2014. so good news for tesla up 10%. back to you. lori: nicole, thank you so much. dennis: and broken silence. lead underwriter goldman sachs's upgrade of twitter calling into question analyst conflicts although you see that a lot. our charlie gasparino will be here with exclusive new details. lori: check this out. nike prepping for the super bowl with a brand new cleat for athletes but part of this shoe is made by 3-d printers. (vo) you are a business pro.
1:20 pm
seeker of the sublime. you can separate runway diculousness... from fashionhat flies off the shelves. and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national isanked highest in car rental customer satisfaction by j.d. power. (natalie) ooooh, i like your style. (vo) so do we, business pro. so do we. go national. go like pro. one of the miller twins has a hearing problem. and she's fed up with the daily hassle of her old hearing aid. so she got a lyric in r life and everything changed. which one? you'll never know because the lyric is in her ear. 100% invisible. you can't see it, and it's the only device at works round the clock with zero daily hassle.
1:21 pm
no batteries to change. no taking off and putting on everyday. in their report, a leading newspaper said "lyric appears to have overcome many of the problems associated with traditional hearing aids" sound good? call 1 800 350 3292 now for your risk free 30 day trial. this is the lyric. it teeny... it's soft... lyric fits comfortably at the sweet spot right next to your ear drum for truly natural sound quality. in fact, 95% of lyric users prefer lyric sound quality to their old hearing aid. it sounds like the hearing that i remember hearing when i was young. and finally i was able to hear what people had to say and i hadn't realize i'd lost that much in those years... the quality and clarity of sound is unlike anything i've experienced. now the miller twin with lyric can hear and do most everything her sister does twty-four seven. so which twin hears clearly now? both of us! call 1 800 350 3292 right now
1:22 pm
for your risk free 30 day trial and experience hearing with zero daily hassle for yourself. lyric is effortless. it gives me complete freedom. once they're placed in my ear, i never think about my hearing loss again. showering is not a problem. traveling is not a problem. thethey're 24/7,ree, there's no maintenance, there's nothing to d there's just absolutely no reason not to try it. 100% invisible hearing is wonderful. finding one that works 24/7 with no daily hassle is just too good to pass up. so call now and ask about your risk free 30 day trial. get a lyric in your life.
1:23 pm
>> at 23 minutes past the hour i'm arthel neville with your fox news minute a scary situation at a school in new mexico. police confirming to fox news three people have been injured in a shooting at a middle school in roswell. no word if the injured are
1:24 pm
students. the incident occurred around 8:00 a.m. new mexico time. excuse me. officials say the suspect is in custody. france's president says he is going through quote, painful moments in his -- something in my throat. i might have to toss it back to you guys. pardon me. lori: yeah, arthel, hang in there. feel better. arthel neville for us once again. breaking news. dallas fed president richard fisher speaking now he is glad the fed tapered but first that, first cut should have actually been larger. he also says he would be comfortable with a market correction which need not derail an economic recovery. fisher will be a voting member this year on the fomc. so we a lot of a little on the dow, not so much. dennis: thanks for that. time to make a little money. charles payne looking at one of the major players in the
1:25 pm
cybersecurity business. >> i want to digress a little bit. i like what he just said. dennis: yeah. >> i love what he just said. dennis: that is correction -- >> corrections, the idea that the market is supposed to go straight up and never correct, i love it! it has been two years without a correction. dennis: but when a fed guy says that it makes traders so jittery because he said? lori: too little, too late, some might argue we saw consolidation in last few trading sessions. >> correction, 10% or better. over 800 days since we had that i think it is great he is conditioning the market. one day you have a hissy fit, and then it is fine. palo alto networks, big story of 2014 so far. these guys are a great player in this space. last time they reported, revenues up 49% for a record. recurring subscriptions up 79%. that was a record. they added 1,000 new customers. this is what i love that you guys know it, making market share gains, taking market share
1:26 pm
in the hottest space, enterprise software. differed revenues were up 74%. that's a record. they have 74 million in cash. huge for a company this young. their margins are expanding like crazy. only thing anyone can argue with these guys through traditional valuation metrics it is expensive. it has 80 pe that kind of thing. i say you know what? forget about it. when it makes it through 61 on closing basis hich is a to believe top i think it wit be absolutely off to the races. dennis: what is their market cap? i wonder why cisco hasn't tried to buy them. >> cisco in the space. glad you bought it up. i would like to buy these guys absolutely. dennis: thanks so much, charles. lori: tomorrow's business today, nike teamed up with olympic gold medalist michael johnson to have a new football cleat made with printed 3-d parts. it is designed to reduce amount of slipping before a runner begins sprinting this such date to nike's first 3-d cleat during
1:27 pm
the 2013 nfl combine. the new cleat will maybe its debut at super bowl xlviii on february 7th. dennis: like my keds will make me run faster. stocks back in the green one day after suffering their biggest decline in months and we can thank for the gains to come. still to come, matt mccormick and jpmorgan and wells fargo better-than-expected results. >> paradise found but capitalists only need apply. the effort to turn a tiny island off detroit into a free market utopia. ♪ [ male announcer ] e new new york is open.
1:28 pm
open to innovation. open to ambition. open to boldids. that's why n york has a new plan --
1:29 pm
dozens of tax ee zones all across the state. move here, expa here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start tax-free business at startup-ny.com. who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade.
1:30 pm
1:31 pm
lori: got it? dennis: green day on wall street. stocks, not the rock band. let's head to the floor of the new york stock exchange and our own star nicole petallides. we're at highs of the day. >> we are indeed but still holding on to good gains. up about 80 points at 16,337. we showed headlines from fed head fisher. we're watching that. he continues to believe in tapering regardless whether or not the market pulse back or not. we're taking you over here to jpmorgan to take a look. we'll watch jpmorgan and wells fargo. here is jpmorgan at 57.80. it is up about.of 1%. fourth quarter earnings dropped 7.3%. we're keeping eye on wells fargo, u.s. mortgage lender, the largest of the bunch. we saw with wells fargo, they posted better than expected 10% rise in net income. we've sign both of these stocks between negative and positive territory. banking index is holding on to a gain today. back to you. dennis: thanks very much, nicole. lori: let's pick up with more on
1:32 pm
big bank earnings. for that we bring in matt mccormick, principle and portfolio manager to weigh in. matt, always great to see you. start with your take on jpmorgan. the fourth quarter print beat wall street estimates but overall down 7.3% from year ago quarter. the big problem of course, the headline risk associated with billions and billions of dollars in legal settlements although ceo jamie dimon suggest that is the worst is behind them now. do you agree with him and hey can move past isn't. >> i hope so, lori. they seemingly get fined every week. once that potential negative is removed from them i think it is very positive for them and shareholders and particularly jamie dimon. i think my takeaway from jpmorgan's release it, was very noisy quarter. a lot of moving parts and one-time charges, my big takeaway was 1.2 billion in loan-loss reserves, roughly 21 cents they had to do to essentially beat. i think that ising hat will be a challenge from them going
1:33 pm
forward. the other takeaway which is a similar situation with wells fargo, was the weakness in the mortgage area, roughly, down 42% quarter over quarter and a weak outlook. they also had weakness in the trading particularly fixed income and equities. they have positive investment banking. i think people were, they like the beat. think that is why the stock is up but i still think there are lingering concerns about their outlook. lori: so the weak link if you will, sort of the common thread is weakness in the mortgage business. with jpmorgan you also have fixed income capital market weakness as well. what strategy with the mix of business do you want to see going forward? let's start with jpmorgan and tell me about wells fargo because it's a different business setup. >> sure, sure. they have to focus on expenses. they have to focus on, less legal expenses. that is something obviously clearly something that is to a certain extent self-inflicted. i think they have to look at ways to cut costs and deal with rising interest rate
1:34 pm
environment. i would continue to focus on investment banking. that's a strength. i would try to build up fixed income and equity trading. that sound easy to do but they have to work on it. they have to basically block and tackle. the big elephant in the room is rising interest rates and mortgages which will be a substantial headwind to the stock. lori: because of all this you say you're still neutral on shares of jpmorgan, though jamie dimon continues to be a positive. tell me more about your outlook for the banking stocks. >> you know, i think when you look at banking stocks as a whole, in looking at the money center banks like jpmorgan, they have had a huge run, lori. jpmorgan is up 150% since january of 2012. the s&p is up only 53%. i think there's potential for a pullback in these names as people realize that the mortgage market will be very, very difficult. but however, i would take another strong look at them if there's a pullback and give it a fresh take. lori: the banking complex we showed viewers up across the board, a lot of green arrows.
1:35 pm
is this a good tone to set, is it correct tone to set for financials to report here. >> they're similar, in the same zip code but much more different, lori. when you look at bac, bank of america, they had a really strong wealth management couple quarters the last time. i think that could be a positive. i get more concerned about the mortgage exposure. wells fargo had a very difficult situation. i like some of the areas where people can have a combo. i think banks as a whole are okay. i would look more at regional banks. wells fargo, same issue. they had roughly 37% climb in mortgages. the worst mortgage outlook since fourth quarter 2008, lori. that is something that is ominous, especially when you think they are a mortgage machine. lori: yeah, that is bread and butter for wells fargo, right? >> that's right. they are a mortgage machine. that's right. okay. lori: i'm sorry, to be short with you, matt. thanks so much. you're always such a great sport and great info for us. matt mack come max.
1:36 pm
dennis: -- mack come mack. dennis: this is being billed the greatest car auction the barrett jackson auction starts today in scottsdale, arizona. some of the world's most rarest and exotic cars going up for bid. a limited edition 1967 corvette. adam shapiro is on the scene with exclusive interview with barrett jackson ceo craig jackson on fox biz. tune in 9:00 p.m. eastern for a special coverage of that auction including a wrap up of today's sales. lori: it tends to raise eyebrows when it comes from an analyst at very same firm that was the stock's lead underwriter. charlie gasparino is here with exclusive details on goldman sachs's upgrade of twitter. dennis: netflix flesh off its first golden globe win moving on from "house of cards" and pinning its hopes on this guy. marco. lori: polo. dennis: details next. ♪
1:37 pm
welcome back. how is everything? the's nothing like being your own boss! and my customers are reay liking your flat rate shipping. fedex one rat really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introdung fedex one rate. simple, flat rate shipping with the reliability of fedex. [ telephone rings ] [ shirley ] edwa jon. this is shirley eaking. how may i help you? oh hey, neill, h areou? how was the trip? [ male announcer ] with nearly 7 million investors... [ shirle] he's right here. hold on one sec. [ mannouncer ] ...you'd expect us to have a highly skilled call center. kevin, neill holley's on line one. ok, great. [ male announcer ] and we do. it's how edward jones makes sense of investing.
1:38 pm
♪ >> good afternoon, everyone, i'm sandra smith with your fox business brief. shares of netflix falling sharply, then rebounding after a federal appeals court struck down the fcc's net neutrality rules. it means broadband providers can raise fees for content providers
1:39 pm
like netflix for faster internet speeds. challenger, gray & christmas reporting retail hiring grew to a better than expected 801,000 jobs but cautioned that struggling retailers may not just let seasonal workers go but also some permanent full-time workers. small business sentiment rose slightly last month. the national federation of independent business optimism index increased to 93.9 in december, up from november's 92.5 reading. business owners expect increased sales ahead. that is the latest from fox business network, giving you the power to prosper.
1:40 pm
lori: goldman sachs sent shares of twitter soaring yesterday when it lifted its price target more than 40% to $65 a share but should investors be a little skeptical by the move from the big investment bank. here is charlie gasparino. >> i'm not saying there is any
1:41 pm
illegal about this but when you see the lead underwriter on ipo lifting shares, particularly now when everybody is negative on the stock i think you have to say wait a minute here. goldman has no comment. we ran this buy them. in 2003 there was huge research settlement. firms had to divide research from investment banks. a lot of firms have done it. the question is has goldman done it. they won't answer this. of all the top comanagers, jpmorgan, morgan stanley, goldman sachs, goldman sachs is the only, the only firm to have a buy rating on this, not only buy rating, they blow away everybody else in terms of their price target at $65 a share. they rose their price target yesterday at 40%. would say this to investors this is controversial stock now, twitter. a lot of people think it is right for a fall. can tell you my producer julie did a pretty interesting story, can't wake for the lockup period when shares go outstanding to start shorting things and borrow
1:42 pm
the shares and actually short it. this is something i think, when you goldman sachs does something like this, yes it is a great firm. it is also a firm been known to play these games in the past. investors have to worry. they have to look at this rating as one of the more conflicted ratings in the business, meaning they got paid $26 million in ipo fees and they got the most money and now when twitter needs it the most, there has been selling pressure, they came out with a hail mary pass and it actually did work a little bit. the shares went up i think something like 4%. they settled back down. i tell you, investor out there, be wary, this is among the most conflicted stock ratings. shows, sec rules promulgated in 2003 by the securities & exchange commission and eliot spitzer when he was a new york attorney general, they were supposed to erect all the barriers they are not working if you can get away with this. lori: look at the fundamentals of this stock. goldman sachs pays analysts hefty bucks, right to actually make educated calls on the
1:43 pm
behalf of stock prices. i'm defending goldman sachs a little bit. 65 from 58. that is 40% upgrade. >> that is pretty big, when you think, listen, one of the things, if you noticed facebook, follow facebook's history. facebook is doing fairly well. the investors were inittally skeptical. it had to prove itself, that it could make money on mobile applications right? it did that. the it proved itself. twitter is money losing company. facebook is not a money-losing company. they have to prove themselves. i think general consensus on the street is that, they haven't yet proved themselves. now, you know goldman came out and said something totally different. they believe this is, the stock's going to run up. we should point out, just from a fundamental standpoint if the lockups end in may -- lori: that will be telling. >> that is 400 million shares on the market. i mean, you know, you got to think it will go down a little bit from that. i will tell you something else,
1:44 pm
goldman sachs yesterday as they upgraded their ipo client, this was fiercely fought out between them and morgan stanley, they won, as they upgraded their ipo client and basically said it is $65 price target they came out and called for a 10% correction in the rest of the market. i would say this investors. i can't predict future. i don't tell people to buy stock but i can tell you this call smells to no end. i can't tell you if they violated spitzer rules. they're easy to violate but this call smells. this is conflict of interest written all over it. lori: social media stocks are all the rage right now. blown up valuations across the board. whether you're profitable or not. >> what does that mean? means it could go down. lori: well, or, could be a lot of fuel under the fire of social section, darlings of wall street, glamour stocks. choose your phrase. but who will know when the bubble bursts if it does at all? >> i was interviewed at a person, publication when i was working at "wall street journal" and i used to write all these
1:45 pm
negative stories about these stocks, you know what, we don't like negative stories because you know what? investors want positive stuff. they want business to be aspirational. they want finance to be aspirational. they want to believe they can make a lot of money in the stock market. which you can make some money. but you know, the day of reckoning always comes, as much as you want to put lipstick on the pig, it comes. and i'll tell you -- lori: look at gap-ups. pandora. >> you want to buy into that? lori: well, that is personal question, sir. charlie gasparino. always a fun discussion. >> by the way that statement was made to me before the market blew up. just before. lori: our journeyman reporter, charlie gasparino. dennis: time for stocks now. the dow moments ago just up over 100 points. settled back down to 91 because they knew we were about to say that. mark newton, gray wolf execution partners on floor of the new york stock exchange. mark, will we get back to the january effect. >> that is interesting, dennis.
1:46 pm
take it back to tuesday, alive and well. the market regained almost all of yesterday's losses. the nasdaq is set to record new closing highs for the year. not only nasdaq comps it but ndx they are right back near the highs. dow is not able to get back. one thing to point out, treasury yields seem to have very positive correlation with the s&p and as well as the euro yen cross. those are couple things to watch for investors going forward. over the last few years they have had above .04 correlation. we sold off last two weeks and started to stabilize and bounce. dennis: all right. >> technology is showing increasing signs of strengths. we moved to new high es veries is s&p. semiconductor stocks are behind that. this is big move in the sector, one of the biggest moves in the s&p. dennis: thank you. mark. fearless prediction time.
1:47 pm
the dow is now at 16,350. can we hit 11,000 without a correction or do we go down 10% correction before we climb to 17 and over? >> still pays to be bullish on the market. it is tough. you can't make anything out of one-day move. would be different on a weekly basis. we're still critical levels intraday. if we hold and move above 16,004 a 50 my thinking we get back to new highs -- 16,450. dennis: liking that. thanks, mark newton. >> thanks. lori: i thought he would punt on your question but he went there, good work. netflix, famed explorer marco polo announcing that the tale of exploration and clashing empires will premier exclusively for netflix members this year. developed by premium channel starz, it will be moved to the instant streaming service avnet flicks was able to achieve large success for the political thriller house of cards and
1:48 pm
female prisoner story, "orange is the new black." dennis: they will have to update marco's look. he needs to look more like a handsome guy than that bearded guy. "house of cards" and west wink and i think they're rippin "game of thrones" and doing a period piece and sex it up. lori: "game of thrones" is spilling over with violence and sex. dennis: marco polo might have been a lot racier than we think. a plan to save detroit. lori: the former chair of michigan's claim before commerce brings up a plan to turn the state's belle isle into a capitalist utopia. ♪ so ally bank really has no hidden fees on savings accounts? that's right, no hidd fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!!
1:49 pm
um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally. is your tv powered by coal? natural gas? nuclear? or renewables like solar... and wind? let's find out. this is where america's electricity comes from. a diversity of energy sources helps ensure the electricity we need is reliable. take the energy quiz. energy lives here.
1:50 pm
1:51 pm
1:52 pm
lori: could a thousand acre island off of detroit be the new hong kong? our next guest says it could be even better and he has a plan. dennis: rodney lockwood, principal at lockwood development has radical proposal to create a capitalist paradise in the motor city. good to have a story about building detroit instead of trying to wreck it or fix it. how much of your approach requires an actual island? how special is it because of island? could you do this in any 10-block neighborhood. >> the island advantage there is we can, we can put it, say, secure state where people can be attracted from all over the world to come with their entrepreneurial ideas and their capital but the idea for detroit has really gotten beyond the island now and we have several other iterations and have a plan for the entire city of detroit. lori: right. when we spoke to you about a year or so ago, rodney, you were
1:53 pm
basically pitching this plan to buy belle isle for one billion dollars. pj o'rourke put out a piece in the "wall street journal", saying detroit should follow the model of hong kong. that's ambitious. what do you think? >> well, the pga contacted me a month ago or in december, heard about the belle isle book. came into town. we spent an entire day touring with my bar owner friend larry and toured pj around the detroit, the good, the bad, the ugly. after we got done, pj said, you know, we need to use the hong kong model to fix detroit. pj apparently lived in hong kong for a while, very familiar with it. something i didn't know, back in 1949 hong kong was a slum, disaster. since that point in time has become the number one free economy in the world. dennis: now, how much money have you raised so far for this bold idea and how much will you need and how hard has it been because of detroit's troubles?
1:54 pm
>> well the, the money raised is in the process right now and i'm not, i'm not free to share with you the specifics of that. the, the concept that is we've expanded for detroit is to, for detroit to contribute its own assets into a public/private partnership. we will compliment that with an ipo to raise additional fresh capital, and through this capital infusion and contribution of assets, come up with a new governance structure for the city whereby, resembles hong kong and its governance structure and value of detroit-owned assets will greatly increase. the idea we want to come up with a plan to pay off creditors of detroit in the bankruptcy 100 cents to the dollar over time, rather than taking a haircut right now at 15 cents on the dollar. lori: that is absolute, some have called it pie-in-the-sky
1:55 pm
goal. why do you think it is realistic? >> well it is realistic because, it's actually been tried before as far as, as far as turning cities around. of the north of here in the city of pontiac used to have 500 employees and it was bankrupt. emergency manager is now reduced its operating budget down to half of what it was before and using only 20 employees. what we need to do is to have an efficient, efficient limited response of government in detroit combined with the contribution of assets will cause the whole value of the enterprise to increase fantastically, over as perhaps, 10 to 20 year period. lori: rod lockwood we'll check in with you a couple of months to see how the plans are coming along. thank you for now. >> thank you. dennis: borrowing from gary owens of laugh-in. i love that story. great stuff. hope of capitalism to fix
1:56 pm
something. google wants to eavesdrop on your energy usage buying energy maker nest having more personal date from you. do you have more to fear from google than you do the nsa? your tweets and our guests as tracy byrnes and ashley webster take you through the next hour es greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor out pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people wi artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke.
1:57 pm
ask your doctor if you need to stop pradaxa bere surgery or a medical or dental procedure. adaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a art valve replaced. seek immediate medical care for unexlike unusual bruising.ng, pradaxa may increase your bleeding risk if you're 75r older, have a bleeding conditione or stomach ulcer,k take aspirin, nsaids, or blood thinners. ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa.
1:58 pm
over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ thisagic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did
1:59 pm
in a little dorm room -- 2713. ♪ this magic moment ♪ ashley: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. dow up 85 points after its biggest drop in two months. our all-star panel is here ahead how to keep your 401(k) and your portfolio safe on this roller coaster ride of a market. ashley: google buying smart furnace maker nest. people wonder if you have more to fear from google than the nsa? your tweets and our expert guest in moments.
2:00 pm
>> in our tech minute, why apple shareholders are saying thank you to a chinese company for its big ol' stock jump today. ashley: why netflix shareholders are saying no thanks after a federal court ruling on net neutrality. tracy: how cool is this? the world's greatest car auction is live tonight, right here on the fox business network. so cool. adam shapiro, even cooler, coming up live in moments from the barrett jackson auto action. that and much more ahead on this speedy driving hour of "markets now." ashley: adam shapiro in hog heaven there among all the cars. we'll be hearing from him. tracy: i know. ashley: first top of the hour, time for these stocks. let's go straight to nicole petallides down at nyse. looks like we have retail to thank for getting us back in the green today. >> absolutely. what is interesting you got good retail sales numbers. that helped things along. the dow jones industrials up 87 points, erasing some of yesterday's losses where we were down nearly 180 points. reading through a jpmorgan
2:01 pm
mid-day note today. it is interesting. basically said for the same real non-reason we're rallying today versus the same sort of non-reason we sold off yesterday. sort of in this wait and see mode we're getting a lot of earnings but retail sales numbers helped things along. you have names like intel and microsoft leading way on dow jones industrials. nasdaq composite is is up 1 1/2% today. that is something we're watching today as well. for the year 2014 we're still negative for the moment. traders take pullbacks right in stride. they don't think it should be a big deal. on the contrary they know we have run up so far so fast. a lot of social media stocks are up, from yelp, facebook, and the like. back to you. tracy: thank you, nicole. see you in 15 minutes. a kickoff of bank earnings season, we bring you an all-star panel. marti mosby, guggenheim securities analyst and here in the fox business headquarters our very own charles payne and lizzie mack.
2:02 pm
marti, you have buy ratings on jpmorgan and wells fargo. jpmorgan is the biggest punching bag of them all. you say hopefully it is done and they're off to a good year. >> we're looking at core profitability generating a 15% return on tangible common he can quilt. with the overhang issues, you've seen the overall valuation be pressured. so they're not reflecting the profitability that they're already creating in the core business. they have generated the settlements. so we have those losses, we incurred all that noise. we say the majority of those issues are behind the company. as they look forward we'll see more core profitability, less focus on those issues as that happens, we should see some of that premium comb back into the stock price which we've already seen as a lot of these settlements have been resolved recently. ashley: charles, let me bring you in this on this. jpmorgan, jamie dimon is saying revenue growth will definitely take a hit as we go through the process of basically derisking
2:03 pm
our operation. i'm not not sure it is clear all the legal issues are behind them. there are still some major issues hanging over them. what do you say? >> there are still some major issues although think we separate that from the revenues. the derisking part i want to talk about. on their release they talked about their fortress balance sheet. this is more up emac's alley but i don't know what is on the balance sheet a ruling in 2009 reversed fortunes of banks almost went back to the make believe thing. other than that my issue on this why do we continue to bail these banks out? when they print these kind of numbers on quarterly basis why do they get so much help from the federal reserve? why when the you know what hits the fan they come first and main street comes second? tracy: i feel like forever you don't know the skeletons in the closet on these balance sheets. >> that's true. charles make as good point,
2:04 pm
jpmorgan's balance sheet is about the size of france, 2.3 trillion, tangible common equity, that is the fortress part, 149 billion. whatever. you make a good point and charles makes a good point it is really action of interest rates is kryptonite for markets especially hitting deposit model of wells fargo. you have to pay out money in deposits versus what they earn in lending. so the question is, whole stop the market, when will the fed get off story is really important for these guys as they face net margin pressure. in other words their net interest margins come down because of razor thin interest rate. that is the question. when will the rates start to go up? credit growth is not excessive according to goldman sachs. ashley: marty, let's bring you in on wells fargo if we can. this bank is tightly meshed in the mortgage business but there is more to it than than. core business was generally okay, expenses under control. of course the mortgage business is huge but overall they had
2:05 pm
record earnings in 2012, 2013. what do you think about wells fargo this year? >> well what we're seeing is the consistent growth that they have been able to report, continues to push forward. this is the 16th consecutive sequential growth in quarterly earnings. what we're looking for is for that to continue. as we did see some compression in net interest margin. you really need to dissect that into two buckets. one piece is that you had such extraordinary deposit growth that was parked on balance sheets at low interest rates on asset side. that had no impact on net interest income which increased about 1% this quarter. so income continuing to grow. margins is a metric reflective of interest rates. but growth they're creating in balance sleet and steepening of yield curve is beginning to show some progress there. tracy: lizzie, talk big picture on financials because for a while how go the financials how go the market. >> yeah.
2:06 pm
tracy: are we finally starting to see they will turn around and increase in interest rates will do them all some good? >> yeah i think that's the point. what we're seeing essentially, charles and i have been talking about this, the question is are we in a air pocket in the markets right now with the financials recovering because of the bailouts, or is it that really an interest rate story where they can't make money because interest rates are so historically low. net interest margin is trending 3.2% sincehe question is, are wn air pocket in the markets right now? when will the actions by the fed weigh palpably by markets? will the food do a deeper taper? have we already rung the bell at the top? charles can answer that, are we in a sweet zone right now that will turn negative? >> i don't know about that but i will tell you something. we've got more evidence that too big to fail got too bigger to fail. ashley: no kidding. >> jpmorgan, credit card volume was up 11% for the year. but for the united states, revolving credit was only up
2:07 pm
1.3% through november. so the big boys, you know, you had about 400 banks between 2009 and 2012 went out of business. they have consolidated some. they continue to take the lion's share. when times are good, these will be amazing plays but when times are bad, do we all get a chance to share in the pain? ashley: you want well-capitalized banks, it is good for economy, right? >> yeah. ashley: in theory they loan to small businesses. >> in theory, in theory. ashley: when is that happening? >> it is not happening yet. and -- >> that's why you don't see inflation. because reserves are parked in the fed. >> inflation ironically enough is bad word although in beginning a good word for everyone. we feel better when the house is worth more and account is worth more. >> economic activity. tracy: let marty jump in on this. what is your thought on all this? look, qe infinity, so not infinity anymore but still for a really long time. you will still get all the money ending up in the coffers of the big banks.
2:08 pm
what happens? >> well, what we're seeing is that the velocity of money is down for a lot of reasons. you have the demand issue as well as supply issues. it is on both side of the equation. we need economic growth to pick up which we're starting to see. loan growth at wells fargo was at a, if you look at a core amount, almost 10% sequentially at annualized basis. we're seeing money get put to work. banks would like to see rates go higher. as you're mentioning, waiting on short-term rates to recreate value of those deposits. but steepening of yield curve starts to help. we're seeing benefits of that. that should generate some economic interest in getting some of these low-cost loans before rates start to go up. tracy: yeah. we'll see. marty mosby, elizabeth macdonald, charles payne we have to do it again. ashley: so quickly we have so much to talk about. google or the nsa, who do you worry about? google bying smart thermostat
2:09 pm
maker nest and more of your personal data along with it. do you have more to fear from them than the nsa? tweet us. tracy: nfib chief economist bill dunkelberg says there are still holes in the numbers. he is coming up to explain. ashley: plus this will be cool or bold. in tech minute, super bowl first, a gizmo to show how coldplayers are when they face off at metlife stadium. that should be interesting. tracy: we need to find something better to do with his life. as we do this time of day look how oil is trading, up slightly. $92.40 a barrel. the dow is up 48 points. don't go anywhere.
2:10 pm
2:11 pm
2:12 pm
ashley: state and local government finances still in need of some major fixes. peter barnes live from capitol hill with a first on fox business interview. peter? >> well, hey, ashley, that's right. the state budget crisis task force led by former fed chairman paul volcker and the former lieutenant governor of new york state, dick ravitch, has been studying budgeting by state and
2:13 pm
local governments for the past three years post-the financial crisis which checked state and local budgets because of a decline in tax revenue, it is out today with its final report and a bun much of recommendations which are timely given the bankruptcies last year of detroit and san bernardino, california, and stockton, california, and recent financial troubles of puerto rico. some are due in part due to huge pension and health care benefits promised to public service employees and now these problems continue for state and local governments despite the improving economy, improving tax revenues and improving stock market, win has helped a lot of pension obligations. some of the task force's recommendations including multiyear financial plans for state and local governments, mandatory rainy day reserve funds for them, better contract accounting for borrowed funds and better cooperation and coordination between washington and state and local governments
2:14 pm
in setting federal and tax policy. >> total disconnect between the happens in state and local governments. every time that congress changes the tax law, reducing the value of tax exemption and municipal bonds, it costs states and cities more money. >> the task force also recommended stronger oversight and regulation of the muni bond market by the securities & exchange commission. ashley and tracy back to you. ashley: interesting stuff. peter barnes, thank you so much. >> you bet. tracy: all right, it is almost quarter past. we have to get a check on the markets. nicole petallides on floor of the new york stock exchange. watching gamestop. are they still buying videogames out there. >> that is part of the problem, tracy. we're watching gamestop to the downside. they did well with hardware and microsoft xbox 1 and playstation 4, the hardware doubled year-ovee-year. that is good news. it games for prior consoles and as well as stiff competition
2:15 pm
from mobile games which are actually cheaper. so that doesn't bode well for gamestop. it is down, i was going to say 18%. you know what? selling accelerated in last couple hours for gamestop. down almost 20% at the moment. the low today was 36.20. we're not too far off. however, however, this stock over the last 52 weeks is up nearly one%. it has had a great run. that being said you have several analysts cutting price target can. suntrust left their buy rating and put it at 60 bucks. credit suisse cut the target to $46 from 50. they have a neutral rating. back to you. tracy: thank you, nicole. they're reliant on games that come in, if there is no new hardware there is nothing to sell. talk about stormy skies, the weather -- directv pulls the weather channel from its lineup over subscriber fees. who will blink first? ashley: coolest cars we have ever seen and can be yours for a
2:16 pm
hefty price. adam shapiro is live from the barrett jackson auto action next. we'll be right back.
2:17 pm
2:18 pm
2:19 pm
>> 19 minutes past the hour i'm arthel neville with your fox news minute. the house approving its
2:20 pm
continuing resolution, averting another government shutdown. the stopgap bill keeps the government open through saturday. the measure is needed because congress failed to pass a 2014 budget bill by september 30th. an existing continuing resolution keeping the government operating expires on wednesday. egypt holding a key vote today on a new constitution. it is the first time egyptian voters have taken to the polls since the ousting of former president mohammed morsi this past summer. this as violence continues to erupt throughout the country. the egyptian army deploying some 160,000 troops to secure polling stations. a possible breakthrough in the madeleine mccann case. the little girl vanished in 2007 while on a family vacation in portugal. police are headed there to reportedly arrest three suspected burglars accused of robbing the resort war madelyn was last seen. those are the headlines.
2:21 pm
get you back to tracy. tracy: arthel neville, glad you're feeling better. >> i will get a hot toddy now. tracy: all good. we've been talking about this, the barrett jackson auto show underway in scottsdale, arizona, and with over one thousand cars up for auction the show is the largest yet. our very own adam shapiro is at the auction and speaking exclusively with the chairman and ceo, craig jackson. hey, adam. >> hey, tracy. how would you like to drive a 1955 mercedes sl, they sold one last year for $2 million that belonged to clark gable. it is used by the way. how about a 2008 bugatti? the person who makes all of this possible, ceo of barrett jackson, craig jackson. he is off to it now, memorabilia are coming up. these cars in particular will fetch over a million dollars. >> they will. this whole row, salon
2:22 pm
collection, multimillion-dollar cars go across on saturday. we start off with entry level cars because that is the safest place to get into collar collecting and understand what you want and also what you can afford to sort of learn about car collecting. >> we talked about that when you and i talked in the past when you get into the hobby. people look at it as an investment. barrett-jackson mini index which is blue chip index of all kinds of cars, camaros, ferraris, shows the return is better over long term than the s&p 500. what advice do you have for people that want to get in on this. >> buy the best car that you can. buy a well-documented car. buy a car that is very popular. we have a saying rare for a reason. because some cars are rare, when it was new.idn't want it a lot of cars are rare like the veron. limited production. you see right now, even with like ford gts. there were 165,000.
2:23 pm
paid 169 for mine. they're up to $400,000. so there is even newer cars that are collector cars. but getting into car collecting is about doing your homework, just like if you get into the stock market. do your homework but buy what you love. do it for the right reasons. do it because you want ad collector car and buy a car. we have a team of experts here and we vet the cars out. they're here. they will answer your questions. and help you get into car collecting safely. >> you've go 1430 plus cars on the auction block this year. you had 300,000 plus people last year. you will probably have over 325,000 this years. it keeps growing and growing. what is behind the momentum of this industry? >> well, people, america and the world, it's a love affair with collector cars. barrett jackson started this whole industry back in the early '70s. back then we were selling really prewar classics. but car collecting has gotten so much broader.
2:24 pm
muscle cars and hot rods were new back then. now they're collector cars. collector cars keep getting broader and broader and more worldwide. we sold cars last year to russia, the middle east. a lot of cars to europe. so it's a worldwide demand for cars nowadays. >> something else that barrett-jackson pioneered was no reserve auction guaranteeing cars would actually sell and move. with these really seven-figure cars you have reserves. >> yes. >> why have you gone in that direction, especially with the beautiful cars we're looking at right now? >> it is a bit of a safety net. the reserves are what we consider a safe reserve. the misnomer is that we'll take a car, no reserve. we h meeting of the mind with the owner. same with the reserve. but when you're dealing with multiple millions of dollars and one-off cars, some people don't want to risk it. we have to offer both but we truly believe in no reserve. people fly to come and buy a car. they want to know it is for sale. >> craig jackson.
2:25 pm
as we wrap up here and come back i will give you another shot of this 2008 bugatti. this belonged to simon cowell. we have celebrity cars. >> still belongs to him. >> hopefully will belong to somebody else that has seven figures to spend. tracy, this car, the tune of up is about $20,000. the tires on the car, 40,000 bucks. how would you like to cross the george washington bridge with that every day? back to you. >> that is a year of college, adam. that is only thing i have for that. holy toledo. >> 40 grand for the tires. tracy: holy toledo. >> he wants you to know the tires are brand new. tracy: who needs college. adam shapiro, thank you very much. you can catch full coverkochrage of the barrett-jackson auction tonight on fox business, 9:00 p.m. eastern. that is pretty cool. ashley: of course simon cowell could afford the tires. tomorrow's business today, we're talking about the business of weather, it is heating up you could say. the directv pulled the weather
2:26 pm
channel from its service claiming overrun with reality television programing and not exactly a good resource for actual weather news but the issue, really boils down to subscription fees. comcast-owned weather channel urged viewers to demand directv bring the channel back. directv says they are working on an agreement to do just that. shares of directv and comcast, both of those are up over 30% in just the last year. and both moving higher today. stormy weather. i like that. tracy: good. heating up. ashley: coming up in the next half hour of "markets now," also heating up here. google buying home tech company nest and that is raising questions about your privacy. do you have more to fear from google than you do from government snoops? your tweets and our expert guests next. tracy: small business owners are feeling little better about the economy. why isn't ffib economist bill dunkelberg not happy? we'll talk about that when he
2:27 pm
joins us coming out. ashley: charter putting out a bid or time warner cable. dennis kneale is with us to tell you why others might get in before the fat lady sings. tracy: we'll look at some losers on the s&p 500. charles payne on "varney" this morning talking about how this could still keep going. the dow is up 88 points. don't go anywhere. [ me announcer ] this is the story
2:28 pm
of the dusty basement at 06 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall f roblevenue. ♪ this magic momt it is the story of where every great idea begins. and of those o believed they had the power to do more. dell is honored to be part of some of the world'great stories.
2:29 pm
that began much the same w ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ [ telephone rings ] [ irley ] edwa jones. this is shirley eaking. how may i help you? oh hey, neill, how areou? how was the trip? [ male announcer ] with nearly 7 million investors... [ shirle] he's right he. hold on one sec. [ malennouncer ] ...you'd expect us to have [ shirle] he's right he. a highlykilled call center. kevin, neill holley's on line one. ok, great. [ male announcer ] and we do. it's how edward jones makes sense of investing. ♪ where does the united states get most of its energy? is it africa? the middle east? anada? or the u.s.? the answer is... the u.s. ♪
2:30 pm
st of america's energy comes from right here at home. take the energy quiz. energy lives here. there's nothing like being your own boss! and d my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ]aise? introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. tracy: 90 minutes till the clothes. take a look get your dow 30. we more green and red. a few losers today. my son has not purchased sneakers yet this week. billing and the other hand,
2:31 pm
down, and the red after maintenance workers discovered smoke. now, thankfully their realize that no passengers were on board double -- boeing has said is aware of the incident but has not said what might have caused it. nicole petallides on the floor of the new york stock exchange looking and a bunch of other stuff. >> reporter: we talk about technologies doing very well. intel leads the way. has been a winner on the dow jones industrial average. sigell of 2654. several analysts with positive comments. the market to my 92 points. dow has been moving higher. fifty-two weeks, up about 16%. one of the reasons why j.p. morgan raised their rating on intel and actually put at $29 price target on the company to mold of the reasons they did that is it because they think that the pc will outperform.
2:32 pm
considering everyone has been so worried, they feel a little more positive in 2014, and this is why they decided to raise intel and give it a higher price started about 45%. a winner on the dow jones industrial average. as they noted, many of that tax sectors. ashley: makes you very much. foxbusiness.com by a nest. the question is, do you have more to fear from google and the nsa. joining s with his take, probably. as always. thank you for joining us. i guess before we get into the privacy issue, is this a purchase that makes sense? is it that much of a surprise? >> google likes to go into areas that can capture an affirmation. that is the area therein.
2:33 pm
is not a real supply -- surprise there were one area they had trouble penetrating is in home. the traditional video staff for the mapping service and so they did not give it the way it's taught. to there will be able to capture the data. ashley: this company google venture capital had money in this, is so it's not that much of a surprise. what about apple. would it make sense for them to come in and bid on this. nest is the brainchild of one of the former executives, one of those people. so would it make sense for apple to get in this space? >> the problem would be retaining people, to a large extent have left apple.
2:34 pm
and then when you buy a company that contains a lot of the key staff that have left you to get to the other company, well, they kind of bill with their feet as to whether it vote -- whether they wanted to work. hard to hold. they already share the did not want to stay. it is not clear they would have gotten the value. cool will retain the value in the design staff. they're looking to get access to the home. they don't need to retain the design staff to inaccessible. it will slow down their advancement. ashley: not just about thermostats and smoke alarms. where are the applications going the you think? >> probably more in the security. that is one of the areas. that will provide them with the most jaded that they need to
2:35 pm
really profile of family, a profile that has been, a wife, the kids, what it is they do, where it is they do it, and give them that advertising data that is so valuable to the people that paid and. ashley: as we know, it brings up the issue of privacy. yes, we can know when someone is home and what they're doing, but i guess as someone was able to get it to the information in real time, they know when you are not home. >> and that has been one of the problems. you will has not been the most secure. was to have the cameras in place that a monitoring the inside of your home, suddenly getting access and using it for ways that are nefarious is relatively easy. now, if you own a camera in your home there's nothing you can do about it. the baby monitors and stuff. wa bu .
2:36 pm
alltha vance tes ofe hnology,t as wille an orofti te attud f tburar -- rwi comp ing uskou o ac: hesght. ashley: you still have that. tracy: at cool party check. ashley: weight. i know. tracy: and nice party check. the creator of beanie babies gets a break. we will fill you win. segmented by apple shareholders to sit thank you to the chinese company for a big stock job. ashley: as we do every y ttimof 3 up two basis points. the dow up 95 points. don't go anywhere. ♪ [ bell ringing, applause ]
2:37 pm
five tech stocks with more than a 10%... change in ter-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six uoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. you make a great team. it's been that way wisincthe day you met. app. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime thmoment'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 enoughor sexual activity. do not take alis if you take nitrates for chest pain, as this may causan unsafe drop in blood prsure. do not drink alcohol in excess with cialis.
2:38 pm
side effects may include heache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immiate medical hp for an erection lasting re than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic actions 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 30ablet free trial. >> reporter: and jo ling kent with your fox business brief. two years of probation. not paying about $5 million in taxes over 11 years. prosecutors were seeking a prison term. shares of netflix fell sharply but rebounded after a federal court struck down the net neutrality rule.
2:39 pm
the broadband providers can raise the fees they charge content providers for faster internet fees. the december hiring surge lifted all the employment to a 14-year high. retail hiring spree to a better than expected 18,000 jobs. retailers may not just let seasonal workers go but also some permanent full-time workers. the latest from the fox business network, giving you the power to prosper.
2:40 pm
♪ tracy: small-business optimism rose in december. that is up from 925 in november. back-to-back monthly improvements. next guest actually says this signals the economy is going forward and not heading in reverse. joining us now, chief economist for floridian.
2:41 pm
loving the background. may i say that i do not have a personal bone to pick with you. i am very happy if you are here. let's talk about, though, what is going on behind the scenes. we got this report that reported that there was an increase in jobs. adp usually follows small and medium-size companies. maybe there is correlation. you are seeing hiring. they're seeing a jump in their number. is it a stretch? >> i think everyone saw better numbers for december except the bureau of labor statistics. they only got 74,000. we were all kind of shocked. we got the best employment perform increase that we have seen since 2006. that is when the economy was still heading toward its peak. we think that you will see some revisions out there because our fundamental labor market indicators also state nice. the planning, the creation of new jobs going forward in job openings are hard to fill.
2:42 pm
the unemployment rate in state in the high sixes now instead of going over seven. so they should have had a better number. what is wrong with them? tracy: who does the math. one thing that i really like seeing its capital spending is the increase. that is really a we'll all been waiting for, isn't it? >> looking forward we see a nice increase in the percentage of firms that are going to make capital expenditures. a huge increase in the number that reported making capital expenditures in december that took a little bit to find out why. it is probably a section 179 expensive rules that changed. you could expense 500,000 until 1231. now is reverted to 25,000. 500,000 is more than the sales of most of the small businessese that much, but it is not a small business.
2:43 pm
that gave us a surge to take it advantage of the break which means you will probably see a little less of it in the first half of the year. tracy: a lot of these, there were for holidays. >> we had some pretty good hiring, the best hiring sector wonderfully is manufacturing and professional services retailing showing some strength which was good to see as well. the rest of the huge amount, i think you probably will not see many being shed in the months ahead. tracy: that is good to here. i read through the report, and one of the notes in the summary was that 38 percent reported few or no qualified applicants. it is not a skills issue, won a poor attitude, work habits, time is, appearance, everyone is not taking seriously. >> that's right. almost half of the firms reported hiring or trying to hire. and as you said, almost 40 percent, 80 percent of those
2:44 pm
looking trying to hire said that there were fewer or no qualified applicants. all of the disqualification has nothing to do with education or training or experience. has to do with these young people just -- they have a bad attitude. they don't dress correctly. you know, most kinds of things disqualify them. no they're looking for someone who they want to see meeting. so they can fix all of that overnight if they want to. there are certainly jobs there, as we can see. tracy: they need as sicilian mother like mead is smack in the head. - hope this is a sign of good things to come. ashley: and going to send tracy over. it is a quarter till. time for stocks as they do every
2:45 pm
15 minutes. that set down to the new york stock exchange were marked newton joins us now. >> is tough to pinpoint any of this. the movement in the nasdaq is more impressive the more you are seeing in the dow. set to hit new highs today, the nasdaq 100 the composite. one day of weakness and now that has been recouped right away. pretty incredible. such technology, i think, it has to be a treated to some of the move. some of the small-cap setting new highs in relative terms. that is important. a pretty good weakness of the last couple of days of only consumer discretionary is based on a lot of retailers and energy hitting new lows which is starting to stabilize the, but bottom line is that the snb has been following the senior treasury yields pretty much
2:46 pm
locked in step, lock and key. right now we have hit to adm announced all the way back up to 286. so that is important, the fact that treasury yields have stabilized to the downside. they did not believe the jobs number last week and it has started to bounce again. that is important. ashley: what are your expectations as we head into earnings season? >> my thinking is the markets can still move higher little bit if we can manage to hold these gains this will have been a one day move to the downside, and it is important to know that we have seen a lot of these, of different shakeouts. it is a spin a 1-day affair. until we see greater evidence of that and it is just a one day move and the markets are still resilient. ashley: thank you so much. appreciate it. it is now time for your "tech minute."
2:47 pm
ships one-and-a-half million iphone 5s devices to china mobile. destined for new buyers. those who have up reordered. making the most. since october the majority of the approaching capacity has indeed been devoted to make the demand. almost expect it will boost sales by an additional ten to 30 million. shares of apple up 6% in the last year. today of one and three-quarters percent. more apple news. done and done. reportedly done with his steve jobs myopic. the academy of more weird turn in his script based upon the walter isaacson is buy up to the biography. details are rather scarce. the movie would be structured as 330 minute naps play and real
2:48 pm
time in showing the jobs back. the difference ... unveiling. stay tuned as they say. you ready for simple. the super bowl is going high-tech. the super bowl will be played at met life stadium in new jersey. played in cold weather environment. fox sports system network will test out some other related gadgets. this weekend seahawks-9 bears game that includes an infrared camera that will show how player's body temperatures changed. i'm not kidding. another that will show the wind impact on the kicker and quarterback. fox sports will also have more cameras for what they are calling the definitive the ankle. the urologist predicting game de temps, balmy 35 degrees with a chance of snow showers, but because that football weather. tracy: amen head. i will be watching from the couch.
2:49 pm
all right. battle of the cable guide. trying to buy. why others will get in before the deal is done. ashley: a prescription to save you money. why drug stores may not be the best place to buy drugs. we will explain as we go to the break. take a look get some of the day's winners and losers.
2:50 pm
2:51 pm
2:52 pm
♪ tracy: we have to take a look at the dow right now up almost 102 points right now. flirting with, well, numbers we have not seen in at least the beginning of 2014.
2:53 pm
hopefully they say as january customer goes the year : the views is a good thing. ashley: after a. of down time, up nicely. the $37 billion buyout offer is grossly inadequate, not just inadequate. is there any hope that the number two and number four cable companies could still emerge and rattle the tv industry? for that lets turns to dennis kneale. >> reporter: if former sec commissioner he said some kind ofda ts neyoucould see therbiddsdn. is s aold id. th tcs r uptdy usuly he te acqd th sto falls. they have been up 3% just on this deal. charter you might want to pick on someone your own size. but the difference between these two. that understates the big difference. time warner has almost three
2:54 pm
t manubers. but in the measure that counts. stock up 75%. tw see up 40% driven largely by the interest. so what will happen? well, get ready for the rrbrics cuba. comcast could come in. they could join to bid and buyup. tw see could turn to a cox communications. turn to its long-running never cablevision. the one winner, john malone who bought a 27% stake in charter. he is the one driving this. tom rutledge is the charter ceo, one of the most respected cable as in the business, greater reparations. that made mr. lost half a million and subs. we could come in and fix it and
2:55 pm
run it better. here is one down side. let's get the massive debt. these guys combined with $60 billion. time warner has something like 23 billion, charter has 14. 23 billion is-here. from right now cash, $40 million. 60 billion ellis and reading something wrong. ashley: very quickly, betting money, what happens? >> time-warner is done. xbox entracy: you need a flow c. so many what ifs. >> i will have that ready for next time. ashley: i will hold to that. tracy: all right.
2:56 pm
coming upon a countdown to the closing bell some of the newest and most advanced games on the planet. the world's largest video game chain that sells them. will as the ceo about that as well as the next big thing. i would like to know that. the dow is hovering around 100 points higher. liz claman is up next. don't go anywhere. ♪ w is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. of their type 2 diabetes with non-insulin victoza®.
2:57 pm
for a while, i took a pill to lower my bld sugar, but it didn't get me to my goal. so i asked my doctor about victoza®. he said victoza® is different than pills. victoza® is proven to lower blood sugar and a1c. it's taken once-a-day, any time, and comes in a pen. and the needle is thin. victoza® is not for weight loss, but it may help you lose some weight. that may improve blood sugar in adultth typ2 diabetes when used with diet and exercise. itit is not recoended as the first medication to treat diabetes and should not be used in people with type 1 diabetes diabetic ketoacidosis. victoza® has not been studied with mealtime insulin. victoza® is not insulin. do not take victoza® if you have a personal or family history of medullary thyroid cancer, multiple endocrine neoplasisyndrome type 2, or if you are allergic to victoza® or any of its ingredients. symptoms of a serious allergic reaction may include:
2:58 pm
swelling of face, lips, tongue, or throat, fainting or dizziness, very rapid heartbeat, problems breathing or swallowing, severe rash or itching. tell your doctor if you get a lump or swelling in yr neck. serious side effects may happen in people who take victoza®, including inflammation of the pancreas (pancreatitis), which may be fatal. stop taking victoza® and call your doctor right away if you have signs of pancreatitis, such as severe pain at will not go away in your abdomen or from your abdomen to your ck, with or without vomiting tellour doctor about all the mee and if you have any medical conditions. taking victoza® with an may cause low blood sugar. the most common side effects are nausea, diarrhea, and headache. some side effects can lead to dehydration, which may cause kidney problems. if your pillsn't giving you the control you need ask your doctor about non-insulin victoza®. it's covered by most health plans.
2:59 pm
bank stocks kill in 2013 but would do earnings from jpmorgan and wells fargo said about this year's performance? what did you think of these names? game stop has been the first and last stop for a jury is buying new titles and consul's the retail giant released holiday sales numbers have a confusing story. how do some places have more, x box 1 really do and how will the
3:00 pm
ceo position the company for a winning future? of fox business exclusive. don't try and coke, the new message in colorado thanks to a law legalizing recreational marijuana. you will never guess who is footing the bill for these new warning and the ds . "countdown to the closing bell" starts right now. liz: the last hour of trading and the reversal, january won't we count today. dow jones industrials up about 100 points a second ago, now 91. consecutive sessions of losses and the nasdaq and s&p are higher. the s and p is enjoying its biggest gain since dec. eighteenth. we got a coople big technology stocks leading

126 Views

info Stream Only

Uploaded by TV Archive on