tv Countdown to the Closing Bell With Liz Claman FOX Business May 28, 2014 3:00pm-4:01pm EDT
i hope you are making money today. we are so excited for you. jo ling: thank you very much, that is so sweet. melissa: "countdown" starts right now. liz: ceo central. two innovators sound off on the business. tom rogers not shy of talking smack on apple tv. quarterly revenue jumping 30% but how will he get the stock to follow? which puts the cushion in your running shoes and the beauty in your beauty product? the u.s. is extremely important to the company's growth and basf is including a massive investment. suddenly google driverless car chatter got very loud as google unveils that revenue car which has no steering wheel and no
pedals? as google tries to reinvent the auto industry, will ford, gm and chrysler be able to follow? we are watching your money as "countdown to the closing bell" starts right now. liz: good afternoon, everybody. i am liz claman. a very busy day jampacked with corporate news spiking but also slamming several stocks. the broader stock averages appear to be little changed. straddling the nasdaq, the russell and the s&p 500. we are still on the precipice of yet another record. s&p 500 could still close at the could still score the third record close in a row. 1911.91. we are clearly above that by two
points. that is the number to beat. the s&p has the straddling next line or much of day. casper's with hit in the record if they closed any higher than where they ended the session yesterday. look at them sheddin shutting a% right now. why? valiant has come back and sweetened its offer by nearly $4 billion to $49.4 billion. now while they're moving lower by two percentage, it is really getting hit here. who are the winners and losers? an odd move to see them lower given it is in play and the price just went up. making a spike of a move, beating down twitter after the wall street firm upgraded it from a neutral to a buy. shares are rising some 9%. twitter is becoming a bigger
part and revenues are likely to grow. here is my favorite line, the fastest in the sector. what sector? twitter is the only 140 character game that is in any kind of leadership position. trading at less than half of the december peak of nearly $75 apiece so tread carefully on this one. general electric ceo jeff in most going to the top in his quest to buy the power equipment division. in paris earlier today, courting favors everywhere. he met with the french president and pled the deal would create 1000 new jobs within three years and they could keep their personality. the french loves everything to be perfect. french traded shares rose nearly 2% on the news. another name in play here, siemens may make another big competitive bid.
we will see. the market mantra sell in may and go away. it doesn't seem to be applying this year. the market keeps breaking records, but some experts are saying you cannot afford to go away or turn your head away from the action, instead you need to stay put and take a stock staycation. kicking back, watching it on the screen. what is a better strategy and what is really going on with the market, in the house, and research president. great to see you both. it does seem the facts play out if you turn your head or bling for a moment you miss a record high were pretty dramatic low. >> that is true because the market has been a tight range. tomorrow we could have a down day that wouldn't be the biggest of the year, we could be down for the year.
that is how tight the market has been right now. liz: do you stay and watch your stocks or do you sell and simply turn away until september? >> i would probably sell in may. i have been very disappointed by the earnings growth. earnings growth summer between 3-5% over the last year depending on how you measure it. analysts expect in 78%, that means it will be five because they always overestimate that. >> he lives and breathes with a million different stocks, what do you think? do you keep moving them around? >> shift rather than sell. there are issues.
earnings growth is not as impressive. it is generally not that impressive. the other summer months on average, not that different than the rest of the year. rather than getting rid of equities given the fact cash is paying zero, very expensive, shifting to those parts of the market offering better relative value and cushion. looking at where there are not that many bargains. there are a couple of places. in the united states generally the larger companies, large cap and make a cap look much better than the small cap year to date outperforming. we also like typical companies better. like for example utility companies are expensive because people are paying a big premium to get the good night sleep. we like energy, old technology. better than the defensive sectors.
liz: where do you think there is opportunity, you leave it in cash? that seems counterintuitive with record after record. >> we will go out on a limb because 90% of the world will disagree with me, it will be in the bond market. the bond market had one of the best years it has ever had so far this year. we are up almost 14% on the full year to date. that will continue as we move forward. i am not exaggerating, 99% of economists in recent survey say they expect higher survey. everybody is short and they are being dragged into the market. liz: i would rather go into not necessarily energy, i don't know
why. they have great field and are making things people absolutely need. >> part of this is timing. if you're looking to get that last kick, it is possible yield could go lower, great momentum behind bonds. if you are going for the long-term, are you going to buy 2.44 on the yield with inflation around 2% and and non-preferential tax rate on that? energy is one part of the world where you see that. looking outside the united states. liz: i want people to see the etf. you don't have to figure out if
the leadership management is of any good quality. >> finding growth, we have to outside the united states to do that. >> if you go outside the united states, are we having problems with growth? i see disappointing numbers coming out of europe. the u.s. is probably the best growth story there is but outside the u.s. it progressively gets worse and worse and worse. he will not have that name. >> go back to jim's comment about looking at things everybody hates. slow growth for china is 7%. maybe 6%, they are lucky to do to an .5%. if they traded 20, 30, 40% discount to the u.s., lot of the
bad news is priced in. gerri: thank you very much he had research president i think with all the moves we have seen lately in the market you have to do the staycation, but if you don't want to do, we will do that for you. kick them out, that involves target. the advisory firm is calling on investors to vote out seven of the 10 directors for failing to manage risk and protect the retailer from a massive cyber security breach. is that really fair? i don't know. seven out of 10? shares of target are little changed on that news. shares are down about 20%. adam, will we see a huge shakeup at target? >> probably not. they actually advise places like
mutual funds. they blame the board of directors for last year's data breach. shareholders should fire everybody on the audit committee and corporate responsibility committee. seven of the 10 directors because they had the responsibility of protecting target customers. 40 million customers had their credit information compromise taking place from mid-november to mid december last year. the audit and corporatist possibility committees are tasked with risk assessment and management including risk of fraud and reputational risk. this is a quote, it appears the failure of the committee to afford a purpose management of these risks sets the stage for the data breach. shareholders should throw out from the audit committee roxanne austin, and others. from the corporate responsibility committee, they
say their failure set the stage for the data breach which has resulted in significant losses for the company and shareholders, some of the names they want fired may sound familiar. including former chief executive at the rocks and james johnson, once the head of ama. they went to leverage technology to enhance the guest experience online and in stores. target shareholder meeting will take place june 11. liz: i have a great guest experience every time i go and i always spend more than i want to. that is the kind of store you want from the corporate leaders. the closing bell ringing and 48 minutes. tivo has been great at making partners, but it has not broke the $40 mark since last year.
if the company poised for a breakout, possible takeover or something completely different? the ceo tom rogers with us live. and going against the u.s. when it comes to dealing with russia but it might be showing the u.s. some major love coming up. it may hinge on the shale gas bench. our exclusive guest, get ready, your state may be a big beneficiary.
liz: what company wouldn't love revenue growth of 30%? tivo allows consumers to record and watch their favorite tv shows at their leisure. got it. while everyone from apple to cisco is going after tivo and the tv experience realm, are they making a difference? the stock has been trading in a $12 range for years, but what will it take to break out and kind ever return to its highs? back when it became a verb, joining us now, tom rogers,
tivo ceo. it looks like your kind of getting back real energy in this company. all kinds of deals with foreign entities. what is going on? >> record financials, role and 50% terms of subs for the year on the cable operator front. i think people are beginning to understand how we are different from everybody else out there. liz: why is it taking so long? >> a lot of people thought this would be the realm of google and apple to transform all the subscribers the cable industry has out there. this pretty clear that industry for the time being has not wanted those players in. increase when we are being turned two. it has grown our subbase considerably. liz: i have a basic dvr from files and apple tv that somebody
gave me. i don't understand what apple tv is. it is little, tiny, small pit i am just wondering can you have the iphone moment at tivo, when can you compress the technology into a smaller, people like small and pretty, can you do that? i know the romeo is a lot smaller these days. >> a lot going on in that question. we do have the tivo many now. it is small, to use your word, "cute" to give a whole home experience. television has not yet had its iphone moment. the moment that says ah ha. this can do everything. in the case of the iphone it was music, e-mail, phon phone, camera. apple tv is what amazon is, roku
is. devices that give you one slice of the television viewing experience. what we are after and was nobody else does is give you the entirety of the viewing experience. all the traditional, video-on-demand, tv everywhere. all of the pieces of the equation wrapped into one. the way people understood music. get your music through one individual elegant player. liz: why is the stock not reflecting that narrative? everybody thinks it is the coolest thing, better than anything. "the new york times" called it a valentine story. by the way the stock is up 75% over the past five years. it is a better story. why cannot they harness that narrative? >> the investors have been looking to see if we will really
have the kind of distributions they can get excited about. we have begun to post it, we will post even more and that is something investors will latch onto. a few years ago we were losing about $100 million per year. this year we put text to make about $100 million per year. huge transformation there. the issue of tivo being a one trick pony with the dvr alone, your introduction, that is one piece of a much broader experience. as we put all those together and they see the distribution, financial progress, the street will get it. liz: they found that interesting. is there any way tivo would consider somehow doing its own content? or is that just not what you guys are interested in doing? >> that is not our focus.
we take everybody's content out there. the more content, the more chaos. netflix, amazon, youtube, spotify, television programming. the more chaos, the more there is to organize in an easy, simple form for the viewer. two, we measure other people's content performance. i don't how many people watch it, watch commercials and how many people actually buy a product. our piece of the equation is in the world of next-generation television where television is catching up with the laptop, the smart phone, the tablet getting the kind of experience across it people can say there is something going on here. liz: there has been so much as we finish up, lot of consolidation whether it is time warner or comcast, charter was in, cox is instead in doing something. some of the smaller ones.
you were one of the original authors of the cable act of 1984. is this good for the consumer? all of this consolidation? >> there is a huge policy question there. we think there will continue to be consolidation and as long as the consumer has more options and choice with respect to how they get the television set, there's nothing necessarily about consolidation which the consumer has to fear, but we are concerned whether or not it takes with that choice. stay tuned, that is a very, very important issue, television choice for consumers. liz: tom rogers is the ceo of tivo. this is a story developing by the minute. whether hank greenberg tough as nails will and his suit with the new york attorney general.
liz: we have breaking news in the battle be at the time i just saw you guys four seconds ago and asked if hank greenberg would settle be at breaking news on a battle between hank and new york attorney general. charlie just got off the phone with his people. charlie: i have zero intention to settle this case with the new york attorney general's office. this case was brought by eliot spitzer in 2005 forcing hank to resign as the head of aig. the case has now continued since 2005 involving alleged accounting irregularities when he was the ceo and chairman. there is no intention to settle did why are we reporting this?
fox business has learned there were talks between greenberg's office and new york attorney general about settling this case over the last year. two times it was serious negotiations about it. essentially break down over how much hank would pay. but it should be thrown out of the security business. he now runs asterisk companies. it is a big insurance company, private. he may want to go public. but he needs to remain in the u.s. securities business in order to qualify in london in the uk. regulators look down on companies where the ceo is thrown out. here's what we do know. in recent weeks hank greenberg
has had a democratic operative, the head of his p.r. he has outed his old head of p.r. schwartz sparred over the approach to this snyderman case. he is an attack dog, definitely going from an attack dog to a gentler approach. a guy with a softer hand. if you want to fight like hell, you hire him. if you want a softer touch, you go to steve. that is what has everybody talking. listen, in a battle like this, what are you going to do, play nice? this is what has people talking. going from arthur, and attack
dog. a lot of people are talking but a settlement. i was just informed by greenberg's office, there is no settlement, they want to go to trial. i will say this. he handles a lot of stuff for hank including his lawsuit against the federal government involving the legality of the aig bailout. that is a huge case. you don't get the impression is a big-time democrat really wants to bring this case on aig where schneiderman was kind of left with it. most of the case was thrown out. he dropped all the monetary damages. all he is looking for is to lead the securities business. you have a feeling he wants it to end. you get rid of the attack dog guy. that is why people are chatting this
how ma many times have you heard there is no intention to settle and a week later they settle? this is a fascinating story. this case is big in this sense. hank feels so wronged by new york state government on this. thrown out over marginal stuff. thank you so much. we have the closing bell ringing in 28 minutes cap it the s&p is within record-breaking territory. google wants to own your eyes with google glass, google grown and now they want to own the road by driving us into the future with a driverless car. the chatter has heated up about that. is it that far ahead of the
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straight record close. this is the intraday picture. anything you see above 1911.91. clearly we are above that right now. dow transports on a new record. oil actually shedding. the charts are not moving fast enough. oil down about $1.26. head of the holiday delayed report. which comes out tomorrow. missing to see if we do see a build your anything on the estimate. haters of the new york stock exchange cme group and the nymex. what are you expectin waiting ft number tomorrow? it could affect everything from energy companies to big industrials. >> the banks were looking for small build. we look at producers, they were looking for big builds and it looks as though they are right.
down 130. camit came out pretty good. the good news is the market came back about $0.40 off its lows coming back $1 versus the value of crude and gasoline can back to dollars versus the value of crude. the product showed a lot of strength. liz: here is crude oil down at the moment. i also find the activity in the pits of the cme interesting. we were talking at the top of the show. he says he really believes treasuries are an opportunity. they are the play, but they weren't last year. >> we have week yield, weight balance sheets. a lot of these traders don't know what is going on right now, that is why you see such light volume despite the downturn you just talked about.
all-time highs in the s&p market. these traders the plate to the uptake on the european news of germany weakening the ecb. we coul can see that carryover. liz: there is so much involvement by central banks these days. the volatility index below 12, the market is acting rather squarely but we're about to see another record high on the s&p. 20 minutes to go, do we see that record? >> very few stocks are participating in this move. a bit of improvement the last couple of days. we take a look at what is happening with yields today. i think yo historically we have seen a strong correlation following the bond yield. a little concern with the yield curve completely flat out again. suggesting potentially we are headed straight lower.
obviously the treasury market is wrong about the economy or it is different this time. liz: we may know more tomorrow get the first religion. >> it is funny. it is tough to pinpoint moves taste on the economy. all of these indices are hitting record high. dow jones transports, the german dax on 10,000 for the first time. fewer and fewer stocks are participating. it is a little bit of a warning sign but he still have not seen any price deterioration. liz: i have seen more say warning signs. new high after new high. a tough one to call. great notes this morning, i love to see it. great to see as well. every show, every television network, every news network talking about the auto future
and how it has somehow arrived simply because google showed it finally. the driverless car, could mean the end of chauffeuring kids themselves over time. automakers have been dabbling technology to make the task a little easier. member jeff flock showed us this? he showed the valet for you system, one of our producers. the thing is parking itself while we watched. look at the steering wheel. with google driverless car there is no steering wheel, no pedals. does that mean automakers have to roll up their sleeves and has detroit been caught offguard with mark jo ling kent here with more. i remember ford showing a self driving vehicle in the past.
>> google getting all this attention but really nissan, volvo, all the companies getting into the game, they have been at it for a while. the batmobile would drive itself around. very competitive space right now. so what we are really watching are the regulations and the features on this google car. each one on the screen, they each have different features. google going to the extreme with only 25 miles per hour. this is not a car coming to market anytime soon. liz: warren buffett, who is 83 years old and charlie munger, who is 90, both spoke about it in their recent shareholder meeting in nebraska like it was a reality. looking at it from the standpoint of auto insurance because they own geico. it could be really bad for
geico. they're acting like it is actually happening. >> if you look at elon musk, he is writing in a financial times the last few feet of the journey of a driverless car is a safety. the guarantees are not there yet. on current technology he is not fully behind it. i suspect we will be seeing it not on the highway or the freeway but more and more. liz: the stock is down about 60 plus at the moment. the closing bell happening in about 15 minutes. only a few months ago this of the chip giant is on track to supply processors for 40 million tablets this year. that was a very bold prediction, but now intel figuring out how to flush out the plans to meet that target and not disappoint.
fox business intel is on track to supply mobile chips for 40 million tablets this year. a partnership with a company calleda huge processor maker in. their goal is to give a market for tablets retailing as much as $75 each. kind of no-name generics, but they do this in companies like china for the price points have a little bit lower. so as a strike that deal intel and others can count each other's chips in tablets as numbers they have gained in market share. the stock is up 3 quarters of a percent to $26.92. every time you clean your house or change your baby's diaper your not picking what which chemicals went into your favorite products. kind of don't have to because one gigantic company is doing much of the thinking for you.
this is a world's largest chemicals company has the products in virtually every single thing you touch everyday. from the time you get ready in the morning and put on your moisturizer from your daily breakfast likely to have the nutritional ingredients in it to your cleaning ritual because they are in your cleaning supplies to the pills you take every day. how about the bathing suit you wear to work. spandex was made using these chemicals. they have steadily been winning the hearts of consumers and investors. take a look at the one-year chart. it is outpacing the s&p up more than 18% and now they are further spreading the wings in the u.s. with what could be the single largest investment in company history. curious to know more? so are we. joining us now, chairman and ceo.
this could be a gas plant that could be based here in the united states. >> it is a plant based on natural gas, yeah. it is about methane, and producing a key chemical building blocks with methane, which we then find in many products that use a nicely described. liz: we have a lot of natural gas, is that we picked the u.s.? >> number one the u.s. is the second biggest chemical market after china. it is the chemical market that has significant and competitive advantage when it comes to raw material and utility cost as a result of natural gas prices. i talk about the second biggest chemical market in the world, they invest where the customers
are. we have a large part of our customer base in the u.s., that is why would like to come here and invest here. liz: here 17,000 employees, how many more would be added to this plant? >> if you look at individual chemical plants, lot of automation in these plants don't edge huge numbers of jobs. significantly less than 1000. he had to think about it in a way that each job you create may chemical plant creates for your five down the value stream. plus you have to think about what kind of construction job it has. liz: i must say it must make sense to do it on the gulf coast. alabama, louisiana, where would you break ground if you had your way? >> it is clear we will invest in
the gulf coast. a high likelihood we invest in one of our existing sites, but we are still the process of evaluating and deciding on where we will go. liz: we are quickly going to run out of time, but you are a big industrial giant. our first reading of gdp, we're supposed to get the update tomorrow on gdp for first quarter, what kind of order flow are you seeing in the u.s. with mark >> pretty good start into the first four months we have seen volume growth in the order of magnitude of 5% in our business, orders coming in actually much better than .1% gdp growth indicates. liz: this is why we bring on people like this. the chairman and ceo, so the plant will happen. can i say you will break ground
became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. liz: david asman joins me. will we witness an s&p record? david: i don't know. looks like it will settle to the downside right now. we'll have to wait and see. liz: might be one for the transports. try four in row. let's go to nicole petallides on
floor of the new york stock exchange. these trannies keep on trucking. >> no doubt, liz and dave. another record for dow jones transportation average up 9%. southwest airlines, trucking such as ryder all hitting record highs. landstar systems would go into that. norfolk southern for example. david: there is another time stocks and bond go up together. when bonds go up their yields go down. the 10-year treasury yield is down seven basis points. >> this is pretty unbelievable. 2.43% for the 10-year. glad you brought it up, dave. that is something traders are focusing on talking about a safe haven for bond after all. ultimately what is everybody worried about? is it geopolitical? is it a frothy market? liz: there are worries about momentum stocks that did well last year but are struggling now. 3d systems printer company. >> there is concern that 3d
systems is growing slowly through acquisition. [closing bell ringing] david: should mention twitter is up over 10% today. big comeback for that stock. liz: bells ring on wall street. that is what an upgrade from nomura can do after a trial for twitter. see how the stocks finish of up. these numbers are still settling. you can't call it yet for the s&p. in a few minutes we might be able to. doesn't look like a record for the moment. for transports it may well be. we're watching closely. yes, that looks like a win. "after the bell" starts right now. david: take a closer look at today's market action. we have oliver porsche, gary goldberg financial services president. he said we have already seen the correction investors have been waiting for and expecting. we'll tell you exactly how. joel johnson, johnson brunettety