tv After the Bell FOX Business April 21, 2014 4:00pm-5:01pm EDT
look what it is doing. 9%. [closing bell ringing] david: if you were watching us on friday, we told you what would happen on jcpenney. it got a pop of 9%. liz: we go on this monday as the bells clang on wall street. we see that fifth day in a row of advancing stocks. by the way, 70% of the s&p 500, companies, david, that have reported have beaten estimates. green on the screen for the nasdaq up 26 points 2/3 of a percent. biggest gainer today. david: time for the front page headlines before we get into specific news of stocks. closely watched gauge of future economic activity rose in march, pointing to a pickup in growth in months ahead. so-called leading economic index, increasing .8%. liz: shares of pharmaceutical giant astrazeneca rising sharply today after a british newspaper reported that pfizer made an attempt to buy the whole company for more than $100 billion. both companies declining comment. david: sources say barclays is
planning to withdraw from large parts of the metals, agricultural and energy markets. this is part of a restructuring of its investment bank that is taking place this week. liz: nike may be quitting the wearable fitness gear market. see the thing on your screen? the company according to cnet is laying off people that make it, the hardware group. david: mobile payments startups square, launched by twitter, cofounder jack dorsey may be putting itself up for sale. "wall street journal" reporting google, apple, and ebay all discuss ad possible acquisition. liz: at&t says it will roll out its superfast internet service in as many as 100 additional cities and 25 metropolitan areas. one gigabyte per second feed. 100 times faster than what broadband customers usually get. they like that. "after the bell" starts right now.
david: breaking down today's market actioion, we have petete lang, lang capital president, who says we are in secular bear market. chris retzler, needham growth cofund manager, investors should watch for opportunities to put cash to work. lincoln ellis, green square capital from the pits of the cme where all the action is. hold on a second guys. we have netflix earnings. adam, go ahead. >> that's. they were reporting 83 cents. reporting 86 cents from revenue 2.7 billion. we ended q1 with 48 million global members and we had higher domestic net additions than in q1 2013. growing international success and a big hit with season 2, "house of cards." we'll jump jump into the numbers. total members, q1 2013. total members, 48.3 million.
trying to find the domestic number break youth here for you, david. here it is. total members, 2013 in the united states, 29.17 million. q1 of 2014, 35.67 million. we'll jump more into this get back to you. david: 35.67. it was going to add 2.25 million domestic members during its first quarter. that is what a lot of people were estimating it. looks they did, they just got it. >> 2014 for net additions to the domestic streaming, is really low. it is like only, .52 is what they're reporting there. david: we initially saw the up in members going down after-hours, but right now it is trading just about where it ended. in fact up a tick or two. it may be good news. let's go to lincoln ellis. first to you what happened with netflix. right now initially there was a pause by investors. right now it is trading up after-hours. >> yeah the numbers actually
seem to be relatively in line to slightly better. that is probably off the back of a successful launch the second season of "house of cards." you not only saw growth in domestic numbers but more importantly growth in the international numbers. i think that is were the key growth will come from, overseas and other markets and types of revenue streams you guys were talking about at end of last hour. ad sales and other types of income they can add to the bottom line. not only subscribers for the streaming service but other types of service, bundling those things together to continue to 5 tallize on market share. liz: let me just give you this. the total international streaming subscribers, 12.7 million. international is crucial. you know obviously domestic they own it, 35.7 million, but pretty interesting right now. get this. netflix opposes the merger bebetwtweeeen comcast and time r cable. this is breaking right now. the headline is that netflix,
quote, opposes that merger between those two giants. lincoln, that's fascinating to me. why do you think that is? they probably feel they will get shut out yet they just struck a deal with comcast? >> it has to do a lot with some of the aggregate other types of streaming platforms that have been out there, hulu in particular. both of those companies will have tank generallal relationships with other ties of platforms -- angential. to put up alternative to netflix, that is what they're trying to head off at the pass here. david: let's go to our market analysts i want to go you to first pete, pete lang. netflix is in one of those very interesting moments of development it could go one of two ways, depending on a lot of things. depending on regulations. depending on competitors, what amazon does in order to compete with it. would you wait for a white to
shake out or would you get in right now. >> i don't think so. you have to realize i represent a conservative, high net worth individuals for the most part. so, not really my clients cup of tea so to speak. having said that these are strong earnings. i think it is a good buy signal for the right investor. also one point of emphasis, their total subscriber is about 48 million. they're looking for 100 million. those are really strong growth numbers. liz: and now they're going to come out, this is another headline, guys, they will have to one to $2 price increase for new members. so david asman will not get hit with that because he is already a member, right? david: that is lot lower than it used to be. remember the problems they had when they had the price increase about a year-and-a-half ago, the stock dumped went down like a lead balloon but then came roaring back. i think $2, liz, price increase is really not that much. that is probably a good
indicator for markets. liz: let's bring chris into the discussion. whether netflix or other momentum plays do you stave away from those or keep your hand in this market as far as equities is concerned? >> we certainly think the equity market is a great place to be. the tailwind hasn't come out of fixed income where we would be more cautious and we think ultimately that money comes in. we try to avoid high multiple stocks. we think growth stocks repriced the last few weeks. we're getting into the heart of earnings season. it should give us better direction. the month of march was very difficult. there has been rotation to value that plays into our hand where we like value names. stocks trading at 14 times sales, now at 10 times, that is not in the value world yet. so we're finding great opportunities. we see a lost small cap nails that we've been putting money to work and we will be over the next few weeks. david: let me talk, chris, about one of your stock picks. it did extremely well today. super micro computers.
companies are refleshing their -- refreshing their computer systems partly to get in on the cloud. does super micro play into this? it was up over 6% today. >> super micro is great company, good management team and significant ownership in company and intel is ramming out new products in the fall we haven't seen delays n we think opportunity end of the summer and second half will be great for companies tied into enterprise spend and super micro's benefiting, we think, from ibm's sale to lenovo that has been tied up some customers have been cautious what they're purchasing. we think super micro has been a beneficiary for that. liz: peter, you're throwing caution into the wind and putting a lot of eggs with the energy basket certainly, halliburton up 3%. came in with better-than-expected numbers about. dominion resources. why the big play here when it comes to energy? >> if you think about it,
natural gas will be dominated by the united states. and that industry will be redefine and built. and who better not to invest in but the companies that are building that infrastructure? so, three really strong companies. great earnings. great capital appreciation potential. i my safe money bets are there. david: lincoln, we're very happy about the earnings that have come out as investors are, with regard to netflix. but i have to ask, about a tendency that we've been seeing which are these lower highs. today was a up day. and we had good numbers reporting after-hours, but lower highs and lower lows. that does s seend, tend to be a syndrome we're spilling into right now, right. >> yeah, that's right, david. i think the course of the conversation with chris and your other guest is really spot on. the air has beencoming out of these momentum names. first in the biotech space and
then high multiple space. that has to do what you and dick fisher and i talked about a couple weeks ago. when that happens it happens in a cascading fashion. the other peas of the puzzle when you continue to make lower highs, and lower lows, the commodity trading advisor, other kind of high frequency traders will come into these markets and push these markets a little bit lower. going back to these broader based thematics, like energy and other guest were talking about there is value and long term thematic play investors understand and willing to put money into and willing to ride out through the course of an investment cycle that is more interesting idea than finding even our favorite today, netflix at 115 times earnings or our friend at amazon which i don't think they have had earnings for couple years. you choose. david: i call the president of the dallas fed, richard fisher. you call him dick fisher. i didn't know you have a close basis with this guy.
>> we have the same similar hair thing happening. david: good stuff, guys. pete, chris, thank you very much. lincoln, we'll come back to you when the s&p futures close shortly. appreciate it. liz: netflix just reported earnings moments ago. they beat on the bottom line. met on revenue, shares, while they're jumping right nowings they have dropped about 23% since their march peak. do these results mean a buying opportunity or is this high-flyer's downfall set to continue? not today, that's for sure. david: also, what is insider trading? you might think they have an answer. they don't. a lot of prosecutors couldn't give you one. pending court case could shed some light exactly what that definition is, and make it harder for the government to prosecute but can insider trading really be defined? we're going to debate that. liz: tell us what you think. is there any way to make insider trading rules less ambiguous? tweet us, @fbnatb or one we put
up on the screen good enough for you. we love your answers later this hour. ♪ ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-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 upcoming 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.
in the pits of the cme. lincoln. >> david, a little bit aflac luster day obviously with europe closed for the continue ages of the easter holiday and numbers pits are looking forward to this week a couple of housing numbers. existing homes tomorrow. new homes on wednesday, along with pmi. of course the weekly jobless claims towards the very light session in terms of volume and in terms of interest. that should accelerate in terms of interest and volume as we head into the rest of the week. david: lincoln ellis, thank you very much. liz: netflix earnings came out moments ago. not so much the numbers but being said in that report. david: exactly. what is being said is affecting after-hours trading. nicole petallides a six 1/2% jump for netflix. >> pretty amazing this stock moving up not quite 20 bucks but we're seeing the upside as numbers beat the street. let's talk about what they're talking about streaming and
subscribers an comcast and the like. streaming members for the latest quarter, 47.84 million. that tops estimates of 46.69 million. they noted the stock is to the upside. also, we talked about the possible pricing changes. we may see that, one to two dollars to the upside. so we may see that for this particular company for the plan. we'll see whether or not they move that, with 7.99 a month. they talked about comcast. they're not too hot. they oppose the merger between comcast and time warner cable. we continue to see some of their numbers here growing as far as new members here. this is great news for netflix which is already up 110% over the last year. so far looking good. likely to see it moving to the upside tomorrow. david: looking good. those who are netflix subscribers like myself, nice comfortable period before there is price increase. even if there is an increase, i think they learned from the past
mistakes. it will not be sky-high like the word before. liz: they used generous time period. what is interesting about that we have no doubt that is very much behind the jump in the stock. last time they tried to institute a price hike it was a disaster. let's continue the discussion on netflix right now. david: joining on the phone raymond james analyst, aaron kessler. the jump is up $23. getting close to 7% jump after-hours. will it stay that way tomorrow? >> i think it will definitely be up tomorrow. always hard to judge based on after-hours movement. clearly results were strong. good growth on net adds verydomestic and international and strong on subscribers and bottom line pete as well. cost efficiencies on marketing side. not surprised to see the stock up. >> there has to be more than that number one, they say, we'll give the exact quote, netflix intend an 1 or $2 increase depending on the country this quarter for new members.
old members would hold on to the old level of pricing for a generous amount of type. is that what has the market so excited right now in the after-hours trade. >> yeah. actually did preview that last quarter. they talk about the timetable a little more this quarter. i wouldn't say that is new news. the fact that they will charge one to two starting q2 is new news but i wouldn't say that is driving up after-hours as much. david: talk about the comcast deal that netflix has. it is not a big deal. we're talking about $25 million, which in the grand scheme of things is a drop in the bucket. is that going to be the kind of deal extended forward? 20 think they could pay comcast a lot more than that could they not? >> they could. this is a tough situation here. comcast as well as other providers as well. we'll see what pricing works for cable companies longer term. obviously netflix backed net
neutrality. there is still a lot of confusion. should consumers pay more with higher cable bills and higher access rates or is netflix should be flit splitting the bill. that should be worked out. i still think it is still early. i don't think that will be a main driver for the stock though. liz: why was it important for the company to come out and verbally around explicit say we are opposed to the comcast time warner merger? >> yeah, i think, they view comcast as potential competitor as well. just providing access they believe comcast on demand service is potential competitor. with comcast combined they would view that as 60% market share. they view that as competitive threat. and negotiate more aggressively versus netflix. david: since we've been talking it is up 7.6% after-hours. this stock continues to drive up after-hours. let me talk about competition, amazon prime in particular. the fact that they will leave
subscribers, current subscribers in this generous time period without a price increase. when they do increase price it is will be minimal at best. that is really good, that makes it more difficult for amazon prime to compete with them, doesn't it? >> we think there is room for both. netflix pricing at 8.99 or 9.99 that is not very expensive. that is three cups of coffee per month. not that much money especially when we talk to people. it is not as if they're raising prices to $15 per month. one or two dollars should not affect most consumers. liz: this thing is unstoppable in the after-market. now it is up 8% in the after-market session. okay, we know these things moderate overnight as people drop in what the actual news is. look backwards and forwards. you look at year-to-date chart. what happened? lost a lot of air. seems like netflix needs yet another new show, sort of like
"house of cards," that will indicate to people that they have got the cool factor? >> yes. so i think, not surprised by that after-hours move as we said. year-to-date, leery higher beta stocks, more volatile stocks have come down 20 to 30% in internet sector. netflix is in that camp. we'll see if it gets back to the highs there. roughly 40, 45 times 2015 earnings right now. even though the stock has been down still not a cheap valuation by any extent. david: up 8% after-hours. guess what? the options market they said it would have a 8% post earnings pop. it was priced into the options market. those people know exactly what they're doing. aaron kessler, thank you very much. great stuff. raymond james internet analyst. >> thank you. david: the supreme court showdown that could change the way we watch television forever. next we'll go to washington to find out how a digital up s.t.a.r.t., an old media giant
xfinity watchathon week was the biggest week in television history. but just when you thought it was over... what now? with xfinity on demand you can always watch the latest episodes of tv's hottest shows. good news. like hannibal... chicago fire.... ...and bates motel. the day after they air. xfinity on demand. all the latest episodes. all included with your service. it's like hi-fiving your eyeballs. xfinity...the future of awesome. liz: time for a quick speed read of the day's other headlines, five stories one minute. first up, businesses are looking to boost tear spending. a survey by the national association of business economics show 61% of corporate economists say firms will likely increase capital spending in the next year.
there's a new survey out that find many americans are still skeptical of the stock market. according to bankrate.com, 73% of the americans are still hesitant to invest in stocks. yeah, we know that they missed out on the whole rally last year. 2/3 of new york city's airbnb rentals are illegal sublet's. new york attorney general eric schneiderman is on the warpath to subpoena the home rental marketplace to identify users illegally renting out apartments. gas prices climbing to a 13-month high according to "the lundberg survey," 13 months, yeah that high. gallon of regular gasoline rising to $3.59. kraft recalling 3,000 pounds of hotdogs, due to wrong packaging label this is important. i'm going beyond the buzzer. some packages contain cheese dogs. and though allergic to milk or
whey that could be a problem. david: insider trading cases are tough for prosecutors. they're tough to approve. tough to find out what exactly insider trading is. we may get clarity by two hedge fund managers getting trading information several times removed from tipster. they claim it is unfair to claim insider trading when he didn't know who the tipster was or profiting from that information. do our legal he eagles agree or disagree? joining us, fred burns and -- doug burns and fred tecce. thanks for joining us. will the cop convictions being upheld or not? >> they will. for the simple reason, the law requires prosecutor i don't have beyond a reasonable doubt the defendants, tippees in the law, got information knew or reason to believe came from someone that breached their fiduciary duty. they knew what they should have
not have gotten in the first place. being a prosecutor is not easy. if it were easy anybody could do it but ultimately the convictions stand. david: i'm not carrying water for these traders but they were downstream from the tipsters. the original trial judge said that that didn't matter. why does it not matter? i thought there had to be direct link? >> i've been almost the identical case, a tells b a b tells c and we call it the telephone gang because it goes down the chain. reality, fred and i agree agree on this one you have to things. one a breach of duty. a memo blows out of the window of law firm and pick it up and read it about secret information. nobody released it. that was accidental. number two the person who gets the tip has to receive benefit. that is little more what this case is about also. david: yeah, but again, if the guy receiving the information downstream didn't know that the guy made money, fred, you used to work with anthony scalia, the
justice anthony scalia. he is a real constitutionalist. there is question about whether or not inside every trading is something that is constitutionally mandated. that is, you can refer to the constitution as support the prosecution on this do you think it is? >> well, wait a minute. david, no one ever used my name and anthony scalia's name in the same sentence i will walk right past that. the answer it may or may not be. but right now it is. the supreme court ruled on this and it is illegal. dave, i don't care how far the down the line you are, if someone says to you, apple earnings come out next week and off by 85%, you know darn right well that is not information you're supposed to have in your possession. somewhere up the line somebody did something they weren't suppose to with it. david: doug is there by any information, by that extension if that gives prosecutors too much leeway? you're a former prosecutor. you've got skin in the game. when it comes to getting information, look, the reason hedge funds make so much money
not because they just read newspapers because they have investigators that go out and dig for information. this will hamstring a lot of those a lot of those firms. >> look reality, definition of incider trading, material non-public information not available to somebody else. where there's a breach, and where somebody benefits. reality is there are different steps along the way where you can defend it. it is not crystal clear what is legal, what isn't legal. >> but isn't that a problem? laws that are difficult to -- >> no, no. david: wait, let me keep doug here for a second. laws hard to define and bad for society an bad for business. businesses have to have clear definition what is a law is so they know if they're going beyond the bondi. this law is hard to define as we all agree. >> send me on whole another seminar, david. by the way, this may shock people, insider is trading is not most heinous crime on wall street.
economists say it shouldn't even illegal. anter any scalia, worked with fred, let him tell what he thinks. david: go ahead, fred. >> some economists doesn't think it will help the economy. until it is not on the books, 33 and 34 act are on the books. you may not think it is right and may think it is harmless crime and some levels it may well be, in this instance and go read the sac capital indictment. see what is bad. that is easy to read. david: doug, how does this affect sac capital? a lot of people are looking at steven cohen. they had topy a criminal fund, $1.8 billion. some are wondering if they're deeping the ball on steve cohen, if the case is up head, conviction upheld doesn't it make it more difficult for steve cohen to avoid some kind of prosecution here? >> no. >> go ahead. david: doug, go ahead. >> separate apples and oranges, tell you why.
mathew martoma had a specific 20-minute conversation with steve cohen. if martoma tripped, we -- flipped and said this some times, gave details what was said they could prove the case. david: quick, fred. >> martoma cool his jets in jail for a while. he may change his tune and ask for rule 35 to get his sentence reduction. david: same thing might happen to michael steinberg. thank you, guys. >> my pleasure. liz: with insider trading there is a winner around a looser. why some people believe it is totally unfair and illegal. david: it is illegal but very difficult to define no matter how you cut it. people are calling it a battle between david around goliath, supreme court shutdown, showdown between up start video company aereo and big media. but it is a lot more complex than that peter barnes in d.c. will tell us all about it. liz: supreme court. it may have bothered congressman and investors and victims but
if ...hey breathing's hard... know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, orn enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva.
david: high-stakes case of the high court between broadcasters and web-based service aereo. many are calling it the most important media case in years. liz: have to be, right? the outcome could change the way you watch and pay for television. peter barnes has all the details. every network in america is watching this one, peter. >> that's right, david and liz. broadcasters say this case is make-or-break fight for survival with billions in programing invests and revenues at stake and air yo is just a video pirate. aereo says this case is about technological innovation. it just created a new, modern day antenna for your digital device like your iphone that simply facilitates your viewing like like a vcr or a dvr. for as little as eight bucks a month, aereo captures over the air tv signals broadcasters
provide for free through digital tv antennas. it stores them in the servers and streams copies over to the internet to computers, smartphones and other devices on demand within seconds of live or later. now the programs are stored in the cloud. aereo does not pay anything to the tv networks that sued it, which and they include fox and the networks either licensed programs or create them themselves. so this is a basic copyright case. generally if a show is broadcast publicly widely and its creator is entitled to be paid something. if the performance, live or recorded, for later or nearly live, is for a private viewing by a lone customer or a small group, congress and courts have said that the creator is not entitled to a payment. now the high court has to decide exactly what aereo's service is. shows for one person, one at a or simultaneous broadcast to lots of people who can access
it. in other words, the public. now in a filing the broadcasters told the high court, quote, this case presents questions of copyright law that profoundly affect owe potentially endanger over the air broadcast television. aereo's ceo says, quote, if the broadcasters succeed, the consequences to american consumers and the cloud industry are chilling. david and liz. we'll be at the court tomorrow to listen to the arguments. liz: we do have breaking news now on something we find absolutely fascinating and you might too. bill ackman, of course the billionaire investor, who has taken long and short positions on everything from jcpenney to herbalife, is now trying to functionize, something very interesting here, he is teaming up with valiant pharmaceuticals international to try to buy wrinkle treatment botox-maker allergan. what is interesting here, ackman has a very large stake in allergan. so he has about a 10% stake in allergan according to people familiar with the matter.
it is worth about $4 billion. it represents his largest investment ever. the two companies, allergan and valiant, would be both mid-sized in pharmaceutical industry and capitalization is about $40 billion. offer of a premium from allergan would come above $115 a share. the price allergan started trading at before pershing square rapidly acquired its stake. today's shares closed up 6% at $142. what? we're at $140 at the moment for valiant. one more time, i'm sorry. you keep talking -- valiant is up 11% but we also had as we say, aller fan, the maker of botox and they have a lock on that business up 6%. so somebody, sure sound, david like the news was leaking out, doesn't it?
david: allergan is definitely getting best of it after-hours. we'll see if the numbers continue. there is the after-hours of allergan. up just as you say about 6% right now. we'll see if those numbers stick tomorrow. liz: okay. hedge funds, in the drivers's seat of the gold market roller coaster. driver's seat but are they crashing investors money? individual investors are not sure what could happen next as many hedge funds say, let's cry uncle and get out of gold. we come back and tell you what you need to know in order to keep up with the big boys. david: gm tries to shake off the recall nightmare. the auto maker makes a huge bet on the world's largest carmaker market. will it pay off in the long term and will consumers ignore the automaker's safety issues china? stay with us. ♪
predicting the future is a pretty difficult thing to do. but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done.
smoke? nah, i'm good. [ male announcer ] celebrate every win with nicoderm cq, the unique patch with time release smartcontrol technology that helps prevent the urge to smoke all day long. help prevent your cravings with nicoderm cq. that helps prevent the urge to smoke all day long. for what reality teaches you... firsthand.e. in the face of danger, and under the most demanding circumstances. experience builds character. experience builds confidence. and experience... has built this. the 2014 glk. the engineering, and the experience, of mercedes-benz. see your authorized dealer for exceptional offers through mercedes-benz financial services.
who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? liz: well this news dropped on the markets just about 2:00 p.m. eastern. ford's chief operating officer, mark fields could become ceo, sooner than expected. "the wall street journal" reported he will likely replace alan mulally this year. ford is expected to release first-quarter earnings later this week along with general motors which is coming out thursday. gm of course faced this firestorm from recalls but the big question is, how much do consumers really care about the recalls? joining us now, auto analyst and
vice president. jamie, get to the news of the day. reports are that chief operating officer mark fields will replace alan mulally later this year. mulally said he would stay until the end of 2014. does that still hold? >> look, i don't know that ford confirmed the speculation. liz: they have not. >> we have known for several years alan would be stepping aside at end of this year. that is not new news as it were. most thought mark was being groomed for the position. it will be significant sort of issue for ford to have to follow up, really great performance alan has last self years. mark has been right alongside alan. we do think it's a net positive, if anything. but still at this point unconfirmed. liz: ford basically followed a very smart playbook telegraphing
who should take over the company. some companies completely fumbled this, microsoft, although the endgame was pretty good. at the moment looks like the guy everybody thought would take it will. just a matter of timing. are ate es move on to general motors. sales look pretty good, up 4% the month of march. you talk to everyone like dealers who are a little bit conflicted, to actual consumers walking through auto shows that the recall is upsetting them and making them turn away from gm. why do you think that is? >> we looked at recall data 10, 20 years and we look at it monthly in great detail. the reality these tend to be much more concentrated around the recall announcements as it relates to coverage in the media dare i say. at this point there is no indication that the media hype as it were carries through in terms of market share impacts. we looked at toyota and last year the jeep cherokee recall which i understand as of yet is
not resolved. jeep grand cherokee sales are up 50% year-over-year. i think this will be more short term in nature if any impact as relates to market share. to our pint r pointer we haven't seen it and remains optimistic. liz: recalls happen. why they were delayed and that is not going away. look at the big news the chinese auto show is happening. clearly people look for a story when they pushed out the alan mulally thoughts. talk about the investment in china. gm plans to invest 12 approximately through 2017. now tesla has announced it will begin production there in at least three to four years. that is on hyper speed. is china the holy grail for these car manufacturers at this point? >> it is the biggest car market in the world and has been for the last couple years. i think it will continue to grow. as far as we understand, we were
at the new york auto show last week and industry conference we ended related to the auto show, indicates that the demand while slowing to maybe mid single digit growth rates still remains very robust. there are supply side issues as relates to regional or provincial sponsorships of oems. maybe some consolidation on the supply side but from a demand side of the equation you can't not be in china, not great english there. i think reality gm does have a head start and we like, you know the gm story in part because of its acceleration in china. liz: jamie, we have to go but i would be remiss if i didn't before you go how gm's numbers will come in on thursday. >> we have 12 cents. there has been 11 cents. one-time charges. there are currency devaluation issues in venezuela we're taking into account. might be everything and the kitchen sink in the first quarter we believe. hard to peg where things are on
first quarter etf. can this acceleration we saw in march in the u.s. and stabilization we've seen in the first quarter in europe continue throughout the year as a net benefit for the consolidated organization. liz: well you can't not watch fox business because we have all the earnings numbers. jamie, good to see you. >> good to see you as well. liz: this friday after the bell we'll speak with bob shank, ford motor company's chief financial officer. david, they come out with numbers. i'm sure ready for the questions. david: big-times for the auto companies. you wonder how they will make it through all the recalls. beware of rising beef prices. a steak could give you sticker shock next time you go to the grocery store. details why that price has grown so far so fast coming next e. the conditions in new york state are great for business. new york is rank #2 in the nation for new private sector job creation.
and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up.
humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today, like our 24/7 support and service,
because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy? liz: don't be surprised if you see fewer steaks served at barbecues this summer. meat prices are soaring to the highest level in nearly three decades. david: why is behind the recent run-up in prices? is there anything being done to curb costs to consumers? garrett tierney with the very latest on this. >> david and liz, this summer grilling season, there will be fewer steaks on the grill and
probably fewer barbecues all together. the nation's cattle, they have not been this low in 60 years. prices have not been this high, really ever. ground beef sup 11% from last year. here at one of the famous billy goat tavern restaurants in chicago, they buy more than 8,000 of meat a week for the restaurant. with that much meat, an extra dollar per pound adds up fast. for the most part, restaurants and grocery stores all across the country tried to absorb a lot of additional costs to keep prices down for customers. it reached a point where businesses are starting to have to pass along some of those costs and shoppers are having to adjust their plans. >> i look for specials. i look at the ads and go around and find specials on the meat. >> i try to buy the leanest thing i can get for my money so you don't have any waste. as well as cut back a little bit and eat more vegetables. >> a lot of people are i buying heavier and lower cost items and
freezing it than they would have in the past, knowing down the road it very well could be even more expensive. >> that's right. it looks like these high prices could be around for a while, at least two years is what they're saying as cattle producers work to replenish those herds. meantime beef substitutes, they may be cheaper but not by much. pork prices are up more than 12% more than a year ago. seafood prices are near record highs. even vegetables are more expensive. so, all across the board, people are going to be paying a lot more for their grocery bills over the next year or two, at least. so in the meantime, keep flipping those coupons and if you're looking to eat a little bit less, now is the time to reach that goal. dave and liz. liz: i take cocoas, mean chocolate. david: no coupons for gas at pump. that is another thing we haven't talked about, oil prices going up. liz: garrett tenney. david: are you out of work, or maybe just thinking about changing your career? next we'll tell you the best
when my son was born, i remember, you know, picking him up and holding him against me. it wasn't just about me anymore. i had to quit. [ male announcer ] along with support, chantix (varenicline) is proven o help people quit smoking. it reduces the urge to smoke. chantix didn't have nicotine in it, and that was important to me. [ male aouncer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal tughts or action while taking or after stopping chantix. if you notice any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which uld get worse while taking chantix. don't take chantix if you've had a seris allergic or skineaction to it. if you develop these, stop antix and see your doctor right away, as some coue life threatening. tell your docto if you have a history of heart or blood vessel problems, r if you develop new or worse symptoms. get medical help right away if you have mptoms of a heart attack or stroke. use caution when driving or opating machinery.
common side effectslude nausea, trouble sleeping and unusual dreams. i had to qt smoking to keep up with this guy. [ male announcer ] ask your doctor if chanti is right for you. david: "time" to go "off the desk." career cast released its annual rankings of the best jobs t looked at 200 careers. analyzed each one based on income, environment, outlook, stress. here are the positions that topped the list. the third best job in 2014, a statistician. don't laugh. don't laugh. with an average salary more than 75,000 bucks, the main perks included desirable work environment, poff outlook for the future. coming in second place, tenured university professors. they rake in 69,000 a year. the study cited low stress and outstanding work environment as benefits. finally the best job of the year? mathematician. the career scored well in all four categories and median
salary of1,000. liz: but you have to be smart enough. is there way to make insider rules less ambiguous. wayne said moral principle might help. david: it is time, "the willis report." gerri: hello, everybody, i'm gerri willis. right now on "the willis report," mortgage lenders loosen up. only so so credit? no problem. even a 3% down mortgage is becoming popular. also another big shift in health care. doctors not just watching your health. the cost of treatment becoming a bigger factor. and you better watch what you check in your luggage. one airline caught on camera for this baggage abuse. we're watching out for you on "the willis report." gerri: another good day for the marketed. stocks finishing higher the fifth day in a row. don't tell that to the average american because apparently they want none of it. a new survey