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tv   After the Bell  FOX Business  April 2, 2014 4:00pm-5:01pm EDT

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for more than cat engines. hit a new high. [closing bell ringing] david: let's focus on the new highs. liz: here comes the bell in seven seconds and indeed we see another record for the s&p 500. this would be the 8th of the year. david: not bad. liz: look right there. anything up even a tiny fraction would have been a record for s&p 500. dow jones not quite touching but for the moment we see it higher by 40 points. nasdaq up eight points. russell 2000 moving ahead by a third of a percent. david: before we talk about specifics of the market i want to get you through the front page headlines. u.s. companies increased pace of hiring. we're waiting for the big report on friday but adp report showed businesses added 149,000 jobs in march. a big up ward revision to the february number up to 178,000, from the previously reported gain of 139 how. >> gm ceo mary barra faces
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criticism on capitol hill some of the senators were furious tried to distance the automaker from the old gm and safety recalls. david: ralph nader has words on that coming up. banks need to be on the alert for cyber attacks attacking uh-oh, atm machines. one attack netted hackers $40 million using debit card accounts. liz: unit that is owned by renais electronics is refocuses on the core auto business. david: hulu, remember them? they reached a multiyear deal for nbc universal for past access to several tv shows including the mindy project and brooklyn 99. i don't remember that. liz: it's a fox show. that's why. intel is setting up a 100 million-dollar venture capital fund in china. the world's largest chipmaker
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trying to encourage chinese tech companies to put more intel chips inside their devices. "after the bell," on a record day for the s&p 500 starts right now david: let's get right to it, today's action we have michael musio, fbb portfolio managers still think the market has room to run. we have kimberly voss, here in new york. she will tell us why she is favoring value stocks. todd horowitz is in the pits of the cme. cash heavy as always, todd. once again, you are warning folks about all this. you say, you're fighting against the fed. now a lost traders would say, you can't fight against the fed, you have to move with the fed. how are you fighting against the fed, todd? >> hi, david, hi liz. actually i see the big sign from
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the "wizard of oz," dorothy surrender, surrender, todd, now. the fed is driving the market. i've been short or negative the market. i'm still negative certain stocks in certain sectors. we've seen rael weakness in the russell and nasdaq over past couple weeks. i think that is a little bit of a sign, the overall markets, can they go higher? sure. i won't get in front of them but i'm looking for individual issues to go ahead and short which i will continue to do so. i will not come in with new money into the big market. i don't see the big picture. i see lack of growth and see a lot of problems out there with jobs and with the economy that do not make me feel compelled to want to invest. liz: all those problems were in place, todd, a year ago and yet, kimberly -- >> 100%. liz: would you commit new money to this market? >> well, liz, we are committing new money to the market and we're doing that on a monthly basis. i really do think long-term i'm very optimistic about the u.s. markets and about the global markets as well.
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short-term we're cautious hi optimistic but i still think there is room to grow. ici.org numbers show there is $2.64 trillion in money markets, liz, earning what? 0.001%. the money has to go somewhere. today is example of that. david: michael, we'll get the jobs report on friday. take the fed out of the equation for a second. i know that sound radical. absent what the fed may or may not do because of friday's jobs number how important for businesses is friday's jobs number going to be? >> i think it is important for everybody, but for businesses you know, signs of more hiring across their own companies, their own industries will provide some additional business confidence which would help plow money back into the markets. david: what if it is less thanhundred thousand? which is what it is expected? >> well, i don't know that it has to hit the $200,000, or 200,000 threshold but, a return
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toward the trend of 200,000 would certainly be good. and it would be i think some kind of confirmation of what we saw earlier in the year may have been more weather-related than economic related. liz: but here comes the sun, kimberly, right? i'm looking at one nice day above 70 degrees. next thing you know people will be out and spending money. where would you put your clients money right now? get some names, show us the money. >> we're very value oriented so we like to tilt towards the value sectors which adds 3, 400 basis points to our clients portfolios. we're invested broadly, 15,000 different stocks, 44 different countries. we're completely invested liz all the time. however in our value portfolios we like exxon. it's great. it's a, got long-term growth. it has great price appreciation. 2.6% yield on it and with energy demands increasing 35% over next 25 years, exxon is very well-positioned to take
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advantage of that. david: todd, let's get pack to the fed for a second. we got away from it. i want to get back with you. you talk about confederate money because of money printing going on. you talk about the money in your bank account, if that's right and to a certain extent i buy that, if it is confederate money that disappeared in value, why not put it to use, put it to work investing in real companies? >> i don't have a problem with real companies and stocks that kim just mentioned, safe companies are fine. verizon, at&t, basic, that is where the money is flowing basic companies. but when i look at money i would rather put my money right now in gold and in silver here because the money is being devalued on a regular basis. we continue to push the bar to create more export and again i don't think this has a happy ending. i'm not saying it end today or tomorrow. it would be five years from now but the overall picture to me does not have a happy ending until we get the fed out and start to pay our bills and start to really blow up the economy
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and bring in more jobs which we're really not doing. we're not bringing in new jobs. i don't care what the is number is friday. 200,000. if it is good it was great or if it is bad they will say it is weather-related. bottom line we are not moving enough jobs. i go back to the days 500,000 new jobs and 700,000 new jobs on the print. we get 200,000. it is not exciting. >> you're not completely wrong. if you fight the tape, the tape seems to be going michael in a direction that is very bullish. i don't know how long it continues but you like consumer discretionary which is really an area where people have extra money their pocket, correct. >> that's right. all those macro things are definitely potential headwinds to the markets but, the micro level, if you look in consumer discretionary sector, you know, there are companies, we like it. jx companies which is tj maxx, marshals. kind of a niche player. they offer premium brand names
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at discount prices. they have high asset turnover. they are raising dividend at 20% clip last five years. they justed the dividend another 21% this year. we're looking for companies similar to kimberly, with similar business models and generate free cash flow and current r return that to shareholders. david: kimberly, e. m, has emerging markets ha china mobile, china construction, are you concerned about a china slowdown? >> i'm concerned about that. we buy entire core of emerging markets. that being said in the united states one other company i like is pfizer in the health care -- david: i understand. let me folk oust on emerging markets -- emerging markets right now, if you are buying eem, you are buying china and it has had some shrines of slowdown. >> it has. with these issues in china and emerging markets, the u.s. may have some issues in regard to the weather and so if you want a
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little bit more robust return from your investment then china, the emerging markets as a whole. then even some more stable economies like japan and, and europe are good ones to put into the portfolio just an an added value to your u.s. core holdings. liz: okay. i look at all of this, i say, all right, what's next, right? michael, in the end, what is the number one thing every investor should be doing right now for their portfolios? is there some type of teflon, some type of protecting or hedging measure they should have in there? >> they should be looking at their overall allocation. whether they do it quarterly or monthly or annually, making sure they have a little bit of everything. have some u.s. have some international. have some fixed income even at 2.8%, right? better than 1.4% which we saw not that long ago. have a good mix. if you're buying individual companies, focus on companies with strong balance sheets, good cash flow. and you know, a lot of, a lot of
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the day-to-day is noise. try to focus on the long term and think about buying the business. david: it is hard to argue with pepsico, i can tell you that. michael, thank you very much. kimberly, great to see you. todd horowitz, you're not done yet. we'll see you when the s&p futures close. thanks a lot. liz: cloud first, mobile first that is what microsoft's new ceo, satya nadella is telling developers about his vision for the tech giant. is he moving in the right direction or is it too little too late for microsoft to take market share from apple and even google? a former microsoft executive who was once nadella's boss is joining us to talk about it. david: people let their hair grow a little. he started movement that created the national highway transportation -- he started it all really. pushing across the board car safety regulations. now he says the gm scandal has all the elements of a criminal cover-up. you know who we're talking about, that guy, ralph nader, consumer advocate.
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what does he think about mary barra's testimony. did she make things worse or better for gm? liz: from what you heard during the testimony, we love to hear your opinion. listen it, may be an unfair accusation but it's a question, do you think gm from what you seen so far is guilty of criminal negligence? tweet us @fbnatb. your answers later this hour. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not?
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david: good news for urban outfitters. it is climbing higher today, closing up 4%. liz: let's head back to nicole petallides. she is on the floor of the new york stock exchange. nic? >> retailers did so well, zumiez, abercrombie & fitch and urban outfitters. let's focus on urban outfitters up 4%, up a buck 46. they came out and disclosed they expect the first quarter comp sales to grow there, to be down in the low single digits. that is not so great. however, slightly better than what the retail analysts had been expecting and thus you do see urban outfitters managed to do well. it was certainly a winner in the retail sector. as i mentioned some others are up 3, 4, 5%. great day for retail. david: thanks, nicole. liz: s&p futures closing. let's head back to todd horowitz from the pitts of c-m. -- cme. >> another record day and looks
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like it will close at absolute high of the day. watch the jobs number on friday and keep an eye on the nasdaq an russell. those are giving some warning signs. liz: friday the big day. david: todd, thank you. microsoft kicking off its three-day developer conference today. there wasn't a ticket available. ceo satya nadella facing tough questions from participants. some are asking why they should bother developing products for an aging brand. >> you want to build for windows because we're going to innovate with a challenger mind set. we're going to come at this by innovating in every dimension. liz: nadella also emphasized a shift in microsoft culture to one focused on mobile and cloud first. is all this enough? or is it too little too late? joining us nadella's former boss, former microsoft executive brad silver berg, co-founder of fuel capital. brad, listen, since he took over the stock is up 9%. that already is a win but can
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you turn this gigantic ship around quickly enough to really keep it competitive? >> hi, how are you today? i'm impressed with what sat i can't has been doing since he has been named ceo. in my mind 2014 is the most important year in the company's history and i really like what satya is doing. david: talk about exactly what he is doing. one thing i do, when i get to work is take my blackberry and just seamlessly work it into the work that do on my computer. microsoft wants a device unique to your computer that will make that transition even more seamless than what i already do, is that correct? >> they want to give you a seamless experience. regardless of what device you use. and i think that's the big change that satya is which together company. as you know last week they
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announced office for independednt pad. that was a long time in coming but it was a very important statement for satya to make. he said, basically, we're the users are, we want, we want to be there. whatever device they're using, whatever software they may have, they would be using, we want them to be using microsoft software to be most productive they can be. that is a huge change. liz: microsoft is amazing company. i love people that criticize it. if you took every element away from microsoft in this world, everybody would be frantic. with are is my outlook and where is everything i need microsoft for. so we get that we had bill george, former medtronic ceo and harvard business previous professor who looks at leadership. he is a big fan of satya's, but he said the board may very well be a problem because ballmer is still on the board, the man who he replaced. >> right. liz: i mean, how do you get the board out of the way so that you can then lead this company back to cool?
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>> i think that's a big challenge. it's a big question that they face. i think satya is a charismatic guy. people love working with satya. i think the board and steve and bill saw something very special in satya so that they named him ceo. and their job as a board is to do everything they can to help support satya, give him advice and counsel but allow him to do the job. and i think being off to a good start only helps satya's cause to have the board be supportive. david: let's talk about one of the leaders of one of the division that is will be important in this change and that is satya's hiring of nokia's chief steven elop to build the devices group. >> that's right. david: talk about the significance of that move? >> i think it is hugely important. steven is belle known to microsoft. he ran the office group for number about years. so he has good relationships with folks at microsoft and the devices component is a dekey
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part of the microsoft strategy going forward and having a good relationship with steven is super important. liz: nadella is a engineer's engineer as bill george mentioned. this remind me something happening at silicon valley at intel. they hired brian who is an engineer there forever and runs the supply change and engineers are finally valuable again, right? >> liz: what does he need to do to endear himself to the gaming part of the business, the binge part of this -- bing part of this business, there so so much to microsoft? >> satya having a very strong technical background has a very deep understanding of the technologies and technology force that is are shaping our industry and can get out in front and lead. he did that when he was in charge of the server and tools group. he did a remarkable job
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recognizing how the world had changed and transforming, pivoting microsoft to embrace some of these new technologies that microsoft had previously not been in favor of. and i think helped reinvigorate the azure group and cloud computing effort at microsoft and showed a level of leadership that had been missing at microsoft and really transformed the way microsoft could be viewed in the marketplace. and i think he will continue to do that with office as he has done with office for ipad. i think he will do that with other developers. david: yeah. >> i'm very excited about the progress that he has made but the challenges are hard. >> brad, i have a very technical question i saved for the end. don't take too long for this. >> okay. david: i'm wondering with the voice assistant for this new system they will have will sound like siri, do you know? >> i hope it does a lot better than siri. i think siri has a lot of great ideas. david: will it be a man or woman? man or woman? >> you probably can choose, i
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would imagine you can choose. david: i don't think you can choose on the iphone. brad silverberg thank you very much. for coming in. liz: maybe microsoft make as jump you choose a man. >> who knows. we'll see. >> the new earnings season is just around the corner and investors might want to brace for the impact as forecasters say it could get ugly out there although forecasters were kind of wrong the last time around. we'll find out which sectors and which companies could deliver perhaps the most disappointing results that would help you invest in a different way. david: this a live shot by the way, at lower manhattan where real estate prices are going through the roof. this is place no one wanted to live 20 years ago. right now it is so expensive. we'll tell you exactly how expensive. heading downtown to tell you what is behind the boom. the square footage value you're not going to previous. ♪ ♪
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david: time for a quick speed read of some of the day's other headlines, five stories, one minute. investors pulling a staggering $3.1 billion from pimco's total return fund last month. this marks the 11th consecutive month of outflows and reduces fund's total assets to only $232 billion. what's app hitting a record high of 64 billion messages sent and received within 24 hours. the cross platform messaging service that 20 billion messages were sent and 40 billion messages were received. t-mobile will stop selling blackberry phones after
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april 25th and u.s. blackberry owners who have t-mobile will still be able to use their phones but the contract between the two companies will not be renewed. chrysler is recalling 7,870,000 jeep gray grand cherokee and dodge durango suv due to a brake defect. 2011 through 2014 model years being affected. median fee increased to $30 last year up from 29 in 2012. [buzzer] that is today's "speed read." liz: david, it is a long time apartment owner in manhattan. he bought when it was much cheaper, right? david: yeah, i got a studio in 89 for $42,000. can't do that anymore. liz: manhattan skyline has gotten a lot pricier since those days. frankly a year ago the number of sales of ultraluxury apartments hit a seven-year high for the first quarter of the year with the average price per square foot, soaring to a record, per
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foot, guys, $1363. david: wow. wow. i think in detroit it is like $49. why is the market taking off like this? cheryl casone knows real estate very well. she is our main reporter on the subject. joining us from one of the hottest properties on the market with ceo douglas elliman. good to see you, cheryl. >> oh, david, by the way i think you own two manhattan apartments. david: i do. i do. >> yes, what is happening, what is happening guys, when it comes to new york city real estate? it is amazing. the apartment i'm standing in right now, 2.2million dollars by the way. nearly $2,000 per square foot to buy this luxury penthouse in the financial district. five years ago not a lot was happening down here. that is $2.28 million. would get awe 10-bedroom home in scottsdale, arizona and phoenix. back to new york and here is what is happening why prices are getting so inflated in new york. let me show you examples.
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low inventory in manhattan. that is happening. high demand, especially from foreign buyers and shift to larger units in luxury developments like this one. we're standing in this penthouse overlooking the sky line. you saw the view. kitchen like this one. wood plank floors, wide oak plank is very popular right now in the newer developments here in manhattan. a unit like this, besides the 9,000-dollars plus mortgage you will have $600 in maintenance fees. many are obviously looking for good investments. give you ways or reits that would help you buy, be a fractional owner in one of the luxury buildings. udr. buy equity residential, empire state realty, sl green. those are reits you can buy if you can't afford 2.2million dollars. somebody who i know who can afford a million dollar apartment, that is of course dottie herman. thank you for being here. >> i'm glad to be here. but i have to tell you
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something. >> yes, ma'am. >> even with the prices the way they are it is still 5.2% less than we were at our peak. >> all right. >> so it's still less than at our peak. >> but prices are 34% from last year here in manhattan. joyce pointing that out. >> well, if you look where they came from. you know what i'm saying? actually new york shows likes 6% andries of the country shows 30. it will continue to go up. >> the one thing, you also have a development arm at douglas elliman. you're ceo. one of the most powerful women in new york real estate. for those of our viewers who can't afford a $3 million penthouse apartment in new york city a lot of new developments are going up are investable developments? >> when you say investable, i would say most developments going up, most, are at least these price because the land is so expensive the developers can't build for too much less. >> all right. >> so however, again you know, you have to decide what is most important to you.
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so, a lot of types people move in together or they take a lower floor maybe. this is a penthouse. >> so you're telling me land in new york city is so darn expensive you have almost to get all of your money together and approximately it together? >> you have to decide, there are tradeoffs. so you give up some space, okay? to be in new york city. where people want to be here. >> dottie, you're opening up l.a. office. for example, in los angeles, is it near bubble levels in los angeles like here in new york city? >> no. rise in san francisco or l.a. but nowhere -- new york city did not get killed. they got bruised. >> bruised, as somebody that owns new york real estate i'm happy to here. dottie herman, thank you very much. david and liz, special to you, dave, scouting this out for you. i think it's a great deal, you would have to sell your other two properties. david: i'm happy where i am. appreciate you hunting for me, cheryl. liz: thanks, cheryl. david: today was day two of gm
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hearings on capitol hill. ralph nader on whether mary barra helped or hurt her case of the gm ace liability and whether a government task force should have known about all this. liz: a week after legal ruling that northwestern football players are indeed employees of the university and should get paid, several college football players were on capitol hill rallying for support.ill the ncs rising pressure? ok, here's the way the system works. let's say you pay your guy around 2 percent to manage your money. that's not much, you think except it's 2 rcent every year. does that make a difference? search "cost of financial advisors" ouch! over time it really adds up. then go to e*trade and find out how much our advice costs. over tispoiler alert.dds up. it's low. really? yes, really. e*trade offers investmen advice and guidance from dedicated professional financial consultants. it's guidance on your terms not ours that's how our system works. e*trade. less for us, more for you.
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>> the fact that there would be two identical parts and in other words, one is defective and one isn't and that you didn't change the part number, strikes me as deception and i think it goes beyond unacceptable. i believe this is criminal. david: that was senator kelly ayotte telling gm's ceo mary barra today that criminal deception may have been used to cover up defects in gm cobalts and other makes of the cars. after two days of hearings we're in a better position now to know whether there is substance to that charges. joining us now is ralph nader, consumer advocate and author of the upcoming book, "unstoppable" emerging left-right alliance to dismantle the corporate state. i can't wait to talk about that book, ralph. talk about mary barra, did she help or hurt the case that ge is guilty or not of criminal
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intent. >> well she avoided it adroitly. what she was doing in these two days, david, promising. promising to get to the bottom of the situation with an internal and external investigation at gm. she promised she would consider reopening the liability lawsuits by the families of people who were killed in these crashes. and she promised that she was going to change the internal culture of gm from a cost culture to a culture of care. that's a smart approach. but that doesn't really open up the issue which is one you just raised. was there criminal activity in covering up for 10 years this faulty ignition switch situation. david: right. >> the important thing to remember here is there is two types of criminal activity. there is willful criminal activity and willful negligence. i don't think there is any doubt
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that there is criminal negligence. david: let me push back. far be it from me to push harder than ralph nader. what they change the parts you're supposed to give it a different number. >> yes. david: and apparently they changed the part without giving a different number. that seems to imply intent, does it not? >> it implies cover-up and intent to cover your rear inside the giant gm bureaucracy, you're right. they misled the government. they gave the government false information. they didn't report it as they were required to, the defect. that is a title 18 criminal violation. i think the justice department is pursuing that. but, it is very important, i mean people are in their graves because of this we know the numbers are increasing. they could have been saved and you go down a highway and reckless and kill somebody by mistake you can go to jail. david: let me play a sound a
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sound bite from mary barra, she admitted some parts used in the vehicles did not meet specifications but used anyway. play that sound bite. >> as i mentioned before in the steel example, there will be types where there will be a material or a part, that doesn't meet the exact specifications but after analysis and looking at the performance, the safety, the doubt, the reliability, the functionality, it will be okay. david: what about that, ralph? the fact that something doesn't meet specifications yet you use it any way, is that accepted practice? >> well it raise as suspicion whether the specifications did their job or whether they dodged it and allowed mary barra to say what she said. the supplier for gm, the giant supplier, delphi, basically already stated publicly that these parts did not meet gm's own specifications. she is saying in fact that may be true but it still did the job
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even though it did meet the specifications. clearly more investigation is needed. david: yeah. all right. there is another question here, ralph. a question of what the auto task force knew or did not know did not know what was going on gm. if mary barra could be criticized not knowing details with ignition switch, and the auto task force. senator i have a wrote talked td about that let's play the that sound bite. >> i would like to know what information was provided to the task force and other officials in the administration as we as we provided taxpayer dollars to gm to address the bailout and the bankruptcy? david: ralph, isn't it important to know if the auto task force, people like steve rattner, for example, the car czar, knew about any of this. >> they never got close to this it was all about finance, bankruptcy, restoring the company, and getting the government 60% share out of out of the treasury department. david: should they have not
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known details what may have been holding the company back though? >> it may have been and that is what the congressional investigations and justice department investigations should get to the bottom of. obviously a lot more details. we hope out of the scandal and tragedy, we'll get quick recalls of these cars and fixing them and warning owners and paying the liability claims, but we get stronger legislation of the motor vehicle safety vehicle laws through congress, tougher penalties, better budgets for the government to have engineers to do the job and make sure this doesn't happen again. david: the book is, "unstoppabl" sometimes i agree with ralph but sometimes i don't. we have to have you on to talk about the book because we might find more agreements than disagreements. thank you for coming in, ralph nader. we appreciate it. >> thank you, david. liz: terrific to have him especially on this subject. investors might not be very bearish because markets continue to hit new highs, but corporate executives running companies we all own sure are pessimistic.
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pessimism on first-quarter earnings guidance is now near record levels. who is doling out the bad news and what will it mean as earnings season kicks off next week? david: investors are getting amed up as a collection of rare guitars from musicians like eric clapton, mick jagger, steven stills, they're hitting the auction block. the most expensive auction of guitars ever. we'll give you details coming up. ♪ ♪ [ male announcer ] when fixed income experts... ♪ ...work with equity experts... ♪ ...who work with regional experts... ♪ ...who work with portfolio management experts, that's when expertise happens.
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and their families is without equal. david: college football players are lobbying members of congress to allow college athletes to unionize. the ncaa is remaining silent about the students lobbying campaign. liz: fox business's adam shapiro are reporting both sides are playing for big bucks. adam. >> possibly billions of bucks in the future. former northwestern quarterback cain coulter and a former ucla player met earlier today with congressman george miller, jan schakowsky and senator dick durbin. they're calling it off es fence sieve move against the -- offensive move against the ncaa. national labor relations board ruled last week that the football players are employees and can found a union. they worry the ncaa will lobby congress to prohibit college athletes to organize.
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the college players union commissioned a study with drexel university's sports management department which found college football players lose 715,000 bucks over their four-year careers and college basketball players lose $1.5 million because they can't make money off of their college game. northwestern university has one week left to appeal the nlrb ruling but colter and huma are not waiting. congressman miller is the lead democrat on house labor education committee. schakowsky whose district includes northwestern is on their side. she issued a statement that football players have the right to organize at northwestern, and she hopes that will happen across the country. the nlrb ruling only applies to private universities, not public. the ncaa is not a party to the northwestern players dispute but they did issue a statement saying it disagrees with the notion that full scholarship student athletes are employees. we're still waiting for a statement from the ncaa regarding their lobbying tour.
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although the ncaa has previously called statements from the players unwanter -- unwarranted. back to you, david. david: adam, thank you very much. liz: the earings season kicks off with alcoa next week. listen to. 84% of the 111 s&p companies that released earnings outlooks so far already guided investors below wall street forecasts. why is there so much pessimism from corporate america? joining us now, the man who crunched numbers. john butter, fact set senior earnings analyst. let's get right to it. it is a pretty big percentage but we were worried last earnings season would not be good. it turned out to be better than expected. >> right, liz, if you look at numbers as you mentioned we're near record levels in terms of number of companies giving negative guidance. for the first quarter, 93 companies overall lowered expectations. if we finish at 93, that would be the second highest number of companies given negative
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guidance since 2006. two sectors that stand out we see records numbers of companies that give negative levels of guidance are consumer discretionary and industrial sector. those two sectors likely this earnings season will see a lot of companies talking about the negative impact of weather. liz: we showed that, it was weather around strong dollar which sometimes hurts u.s. companies with a global footprint and makes their products more expensive but the weather is truly something that is affecting this, correct? >> right. you know we've heard a lot of companies talk about weather in the past and we could have a situation, boy that cried wolf so to speak. seems like this quarter it's a legitimate issue. if you look at 18 companies that have reported so far, eight of those companies cited the negative impact of weather. we've seen that from retailers such as -- liz: darden. >> bed, bath & beyond. darden restaurants. liz: nordstrom. >> yep. on the industrial side we've certainly seen it from companies in the transportation space such as fedex.
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during fedex's conference call, weather was mentioned 41 times. seems like more of a legitimate issue this earnings season. liz: because our investor audience owns some of these companies we're putting them on the screen. you mentioned fedex. if we look at the actual sectors, industrials, consumer discretionary, is there anything actually looking good here, mr. butters? >> in terms of earnings growth there are a couple sectors expecting growth this quarter. the telecom sector is expecting growth of 24%. liz: telecom. >> utility is expecting growth of 7%, exactly. so those are two sectors expecting solid earnings growth this quarter. isn those two sectors often pay the highest dividends? >> exactly and you know if we look at the negative side of the equation the energy sector is expecting the lowest growth at 7 1/2% and industrial sector we talked about being impacted by weather and is at the second lowest growth of 2.5%, 2.5%
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decline. liz: don't say we didn't warn you. john is here to tell us it could be a rough-and-tumble earnings season. we'll cover it every step of the way. thanks so much for crunching the numbers for us. >> great. thank you for having us. david: liz, you're a very famous guitar player, aren't you? liz: yeah, i did take guitar. david: you were in a band once, by the way. 260 very rare guitars are going up for auction tonight and some are expected to draw seven figure bids. we'll give you an inside look at what some are calling the greatest collection of guitars ever!, to go to auction. liz: clapton. ♪ 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!!!
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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.
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david: guernsey's auction house is tuning up to sell very race pricey guitars. 265 instruments going on the auction block tonight and the collection boasts several once owned by some of the biggest names in rock 'n' roll. ♪ eric clapton and mick jagger both owned some of the guitars hitting the auction block at guernsey's. the collection value is estimated to be millions. >> the expectation is that there will be instrument that is will bring in the low thousands of dollars, 2, 3, 4, $5,000 on up
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to instruments in the 100s thousandsdollars and one or two may go beyond that and reach the seven-figure mark. david: one. instruments expected to reach the seven figure mark, the martin om-45 deluxe. the guitar was lightly built and martin's only model at the time featuring a bridge and pick guard with inlays. only 11 were ever made. >> they had made a conscious decision to put all the skills they had learned over that previous century, find the finest rarest woods and greatest inlays could you could do and make a very special instrument and they did that calling it the om 45 deluxe. the one that we have here is probably the most original and possibly in the nicest condition. david: other instruments dating back to the 19th century were made by iconic names, gibson, dredge and washburn. but what makes a guitar so
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special is not just the workmanship but it is also sound. strong in the fundamentals and richly detailed harmonics. >> each of these instruments has their own sound as they for the most part were all hand made. and like fine wine, no two are exactly alike. and so people do appreciate the unique sound that come from them. david: most of the instruments came from what aficionados say was the golden ear of guitar making. coupled with some of the famous fingers that strummed them, may make it the greatest guitar collection to go on auction. >> there are ordinary instruments and extraordinary instrument that is were hand made and risen above the rest and targeted by collectors for decade. this particular collection, one gentleman's collection is being viewed by experts far more knowledgeable than i as the finest collection of rare instruments ever to come up for sale. david: just beautiful pieces of art. the two-day auction starts tonight, 7:00 p.m. eastern.
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you can view the full collection on invaluable.com and bid online, by the way in real time during the live auction. liz: want the clapton one. we asked you on twitter and facebook if you think gm, strong question here, was guilty of criminal negligence. and you told us, no, not a chance. david: on the other hand, crusher on twitter told us gm is guilty of criminal mischief. liz: mike on facebook said, absolutely. david: divergence of opinion. liz: let's go "off the desk." a new lawnmower could turn cutting grass into an extreme sport. honda manufacturing a high-speed lawnmower called, mean mower. it can reach speeds of 100 miles per hour? but don't get too excited. only effective cutting grass at up to 15 miles an hour. david: i think that is unone thing. number one thing to watch tomorrow, the weekly jobless claims. economists will be paying very close attention to tomorrow's figures. that of course ahead of the friday's march jobs report. claims expected to climb by
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6,000 to 317,000. on friday we're expected to see increase of 200,000 new jobs. we'll see if that turns out to be true. liz: fox business will individual. "the willis report" is next. ut it and we're just not sure. (agent) i understand. (dad) we've never sold a house before. (agent) i'll walk you guys through every step. (dad) so if we sell, do you think we can swing it? (agent) i have the numbers right here and based on the comps that i've found, the timing is perfect. ...there's a lot of buyers for a house like yours. (dad) that's good to know. (mom) i'm so excited.
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beat thei10-year lipper avere. t. rowe price. inest with confidence. request a prospectus or summary prospectu with investment informion, risks, fees and expenses to read and considecarefully beforinvesting. gerri: hello, everybody, i'm gerri willis. right now on "the willis report," is google giving investor the shaft? we're taking on corporate control versus shareholder rights. also, the best advice you will ever hear about retirement. the daughter of charles schwab is here. renting versus owning. we're taking you to the places where it is cheaper to buy than rent. we're watching out for you, on "the willis report." gerri: google today pulling one of the more unusual technical manuevers the stock market has seen in a while. it is splitting its stock two for one. while that doesn't sound unusual, here's the twist.

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