tv Countdown to the Closing Bell With Liz Claman FOX Business September 3, 2014 3:00pm-4:01pm EDT
filled with special items from the chain. what is this? they got a year's worth of the famed coffee for free, oh, that's worth -- they got a year's worth of coffee. >> of course. they're all unemployed. melissa: that's all we have for you. i hope you making money today. "countdown" starts now. liz: another record day for stocks? confusing but exciting ceasefire talks regarding ukraine and russia boothsing the markets. also new numbers accelerate past estimates. again, chrysler has the winner, a stand standoutout performancey jeep. bob nardelli telling us exclusively what's powering this economy. and, yes, we'll ask ask nardelli was it a breach or wasn't it? home depot working with banks and law enforcement to figure out whether customer credit and debit card information was hacked. are we just sitting ducks for
hackers? we'll talk to one of the nation's top cybersecurity experts. and samsung beats apple to the punch, unveiling new gadgets including ultrahigh def frames and a virtual reality headset. coming on the heels of the embarrassing celebrity hack attack, does samsung suddenly have the firepower to outshine apple? countdown to the closing bell starts right now. ♪ ♪ liz: oh, well, look at that. we just lost all the gains that we had on all the major indexes. opening with that one. hi, everybody, i'm liz claman. it is the last hour of trade, and what happened? well, the fed's beige book, as it's called, came out just a short time ago. this is the fed's economic report card. but for a second straight time, the beige book said that economic activity expanded in all 12 federal districts. nothing wrong with that. nothing wrong with this either,
consumer spending grew in most of those districts. so did demand for things like loans. so what's wrong here? well, we'll get to the traders in just a minute to find out why the reversal. we'll have much more on the fed's beige book in just a moment, we're going to take you live to washington to look into that, but there's no denying that americans like one thing. that video over my shoulder, yes. jeep, u.s. auto sales out today showed the jeep brand jumped 49% in sales last month, helping chrysler to a 20 percent gain overall the if from a year ago. we remind you, an italian is now running this company. pretty cool. now, let's get to gm, sales did fall about 1.2%, but it's one very bright spot with an 18% sungar in truck sales -- surge in truck sales. ford, just a little bit of a flat picture here. the sales were flat. did see a nice bump of sales in its fusion, mid-sized sedan, but
remember, we're waiting to see the brand new f-150 coming out soon, that will probably shift things around in the coming months where more people who are waiting on the truck style will start buying it. here's how the stocks are trading, gm down about 30 cents, ford motor company down 10 cents. in just a moment right here exclusively, former chrysler chairman and ceo bob nardelli about the health of the auto industry. wait until you hear the tone he's striking right now, and it really speaks to the health of the economy and the consumer out there. it's a fox business exclusive. and a big unveil for samsung appears to have sent some apple investors looking for the exits. kind of running. well, let's call it a jog, a canter to the exits. today samsung revealing that thing. it's a new galaxy note edge smartphone. it's got a very unique side display. look at that phone to there, that smartwatch? it's got the curved screen.
a virtual reality headset could gear we are. apple has its own gadget event scheduled for next tuesday, but samsung stealing a bit of the thunder here, and look what it's also stealing from apple. you see the previous session hitting a 52-week high, that was yesterday, today dropping or 4% to $98.98. if they finish be down more than 2.6%, it would be the sharpest decline innseven months. so all you have to see is see that hold. that's what you'll see for apple for the moment. the fed's so-called beige book, such a boring name, but it has the ability to move the markets. what it does is looks at economic conditions throughout the u.s., and it paints a relatively positive picture of the u.s. economy. let's get to peter barnes who we put it on you, peter, to read this thing. give us the details. we can't figure out if the fed and the beige book has anything to do with why we reversed on the markets today. >> reporter: well, liz, there wasn't much in the latest beige book that appears to tee up any
major change in policy such as keeping interest rates lower for longer. is to maybe that's what investors focused on after it came out. the report says, quote, economic activity has expanded since the previous beige book report. however, one of the fed districts point today a distinct shift in the overall pace of growth which most districts described as modest or moderate. now, this is the summary of economic activity that the fed will use at its next major policy meeting in two weeks. fed chair janet yellen and others focused on boosting job creation. and on that subject the beige book says, quote, labor market conditions as measured by hiring trends were reported to be relatively unchanged from generally modest rates in most districts. on the consumer, the report says most districts reported some growth in consumer spending at a pace characterized as raging from slight to mod rai -- ranging from slight to moderate. so kind of a gold i locks became
book, liz, not too hot, not too cold. liz: you know what? the higher the session for the dow was a gain of 84 points, we're now down 1, so what are you going to do? peter, thank you very much for reading the beige book for us. let's get to u.s. stocks on early pop from optimism that -- this is confusing -- could there be a ceasefire in the ukraine conflict? tech stocks gran to weigh on the market -- began to weigh on the market, of all things. let's get to the floor show. keith bliss, you've had a couple things to look at from that floor. now, for all of our viewers, explain what it was like to hear that there may be a ceasefire be, then maybe not, then the beige book, and now we have red on the screen. why? >> i'm like you, liz. when i first heard the news this morning, i thought toist, that's -- myself, that's interesting putin's agreed to a ceasefire. it's the type of market where
you'll get headlines that will whip back and forth. the beige book, from what peter is saying, it is the goldty locks beige book. i think if we had heard that we were dragging a little bit economically across some sectors, we probably would have rallied a little bit. the beige book in and of itself is not the big catalyst to push us one way or the other. one thing i would comment is everybody's talking about how september's the weakest month of the year, but in the last ten years it's only been down in 2008 and 2011 when we were at the height of the european banking crisis. so we're in, actually, a very seasonally positive pattern since we've been up and throughout the summer. i would look for the market to continue to rally up despite these blips we may get from one session to the next. liz: so, scott ballard, are we climbing higher moment by moment? >> it is still going to to grind higher. you know, liz, you look at the news today, and it's not really the beige book.
i totally agree with that. it's more the uncertainty, and the market doesn't like uncertainty. liz: right. >> and it's more the uncertainty globally. what is going on in russia? we don't know, and if there is a ceasefire, that doesn't mean that in three, five or seven days, you know, that may get upset and things may go back to where they were. and then you look at apple. apple is down today, you saw the samsung product that just came out, you just had on there, but many people are throwing apple out the window right now almost like it's a pontoon boat in a big ocean. and this, to me, going into the announcement next week is a buying opportunity. tip clue yo see -- typically you see buy the rumor, sell the news. this one could be different. it's because of this new chip, the new mobile payment device that they already have deals in place with american express, visa, mastercard. that, to me, could be the kicker for apple. liz: i'll take that one. buying opportunity here. jeff, we suddenly saw oil and gasoline and everything else get
more expensive today, and then the dollar began to weaken after a great day yesterday. >> i'll tell you, this is two of the most confusing days i've had -- [laughter] i've seen in about 34 years of trading here. yesterday was a brutal day on the downside. the market looked like it was going to level off and hold on each level on the way down, absolutely took every long out of the game. today in reverse, we have retraced it. the key reversal of really what you have today and, again, most of the professionals were selling this market about midway through the highs. we've now gone through that and retraced the entire day of yesterday. you can try to put the geopolitical news in, but in actuality it's been contrary to what happened. yesterday when you woke up, you thought the market was going to be higher. it crapped out. this morning when you heard about the sort of an accord that was taking place, you would have thought we'd go lower, today we just roared. i have to look at it from a technical basis here, and we just had a key reversal here,
and we have inventory report tonight and tomorrow -- liz: yeah. >> -- and maybe we can figure out where we're going from here. liz: we'll have those numbers tomorrow and be all over those. 34 years, jeff, i wow. that was 190. the ma madonna years. >> i was 10 years old then. [laughter] liz: keith, don't get on me. good to see all of you, great to see you. closing bell ring anything 50 minutes. chrysler was the big standout in auto sales last month. not v work, not nissan, chrysler rising 20% in august from one year ago powered by that thing. very strong jeep cherokee sales. fox business has been telling you for months that the people on wall street to the cool people on the west coast, they are driving in the midwest as well. what can detroit learn from chrysler now? we'll ask former chrysler chairman and ceo bob nardelli is in a fox business exclusive. oh, and by the way, former chairman and ceo of home depot.
perfect booking today. he'll weigh in on what he thinks might have happened over at home depot if there is a hack attack, but also the economy. he's got that in mind. bob's with us coming up. former ge guy too. and samsung tries to spoil apple's product party by having its own event today, launching the smartwatch. we're going to show you some of the new curves, yes, curves, in high-def gadgets and tell you why some people think apple's shares are reacting so negatively. ♪ ♪
♪ liz: i don't know, for as long as i could remember, i wanted my first car to be a jeep. and then i had to wait until i could afford it myself because my dad said, no way. but jeep is really looking good. the auto industry has been a bright spot overall in the u.s. economy helped by low interest rates, cheap credit but better cars. august another strong month for the automakers suggesting an annual sales rate of about 17.2 million vehicles, but as we head into the fall, many people are questioning how long the good times might continue. might there be a plateau?
joining me now, bob nardelli, chrysler chairman and ceo, the founder of xlr8, an investment advisory firm. when you see how well chrysler is doing, you used to run this company. a lot of this happens to be stuff that you put into place and is now coming to fruition. >> yeah. liz: is it sort of saying my kid grew up and is doing well? >> well, first of all, i do swell with pride, and i was so lucky to be there with such a great team, and, again, so passionate and committed. and i couldn't be happier for chrysler and detroit. you know, i spoke with ron gettelfinger yesterday, the retired president of uaw, and ron was very courageous and helpful as we went through that terrible process in 2008 and 2009. look, the industry's back at 17 million. i mean, it's just fantastic. and to your point, liz, i mean, it is such a stimulant for the overall economy and gdp.
it's about 10 to 1. so it's one of the best industries for supporting jobs in this country. i couldn't be happier. liz: i couldn't believe that people wanted to let them go under. they wanted to bail out the banks but not the one manufacturing bastion we had in this country? that's in the rearview mirror, and i'm thrilled about it. let's start with chrysler since that is what you know, having run the company. jeep, wow. i was in connecticut, i saw a million jeeps. you go to california, people are driving that new jeep cherokee. it does have a little bit of an italian flair, but when you see that number, up 49%, a record august ever? >> let me say this, mike manly, who was there with me, is running the jeep division right now, and mike is just doing a fantastic job. p you know, he was driving the international sales. we did almost 400 changes when
we first went in there. we took the plastic out, put the leather in, put the wood back, and all of the, you know, the fashion, the forward, the aspirational designs, again, i couldn't with be happier for that team. liz: but there's another car that you've looked at there. >> yes. liz: tell us which one grabs your attention where you say, watch out, this is going to propel chrysler even further. >> let's look at the ram, okay? motor trend truck of the year for two years. tom lasorda, my partner at chrysler, came up with the tool box and the size of the cargo in the back. and, again, so it's up over 19% year-over-year, growing tremendously in that category. you mentioned earlier on your show about the ford, the f-150. down a little bit, but that's probably because -- liz: people are waiting. >> well, they're anticipating the aluminum frame, so that's not uncommon when you have a big platform change, to lose a little volume, liz, during the transition. liz: bob, let's broaden the
discussion here about doing business in america. now you have auto companies, volkswagen, they want to build plants here. this is the brand new world economic forum report that just came out. it was embargoed until today, but i was looking at it. peter kenny, one of our guests on this show, has written all about this too. the west's global competitiveness report basically ranks countries. here are the top five. we're not number one, but you know what? we're number three. we actually moved up in global competitiveness when it comes to doing business. we'll followed by finland, germany. there are people who want to know, yeah, but, liz, what about the bottom of the barrel? a lot of african countries, greece advanced ten spots to number 81. but what's it like to do business this the u.s.? >> well, right now, i think it's mixed. i happened to be -- i talked to a cfo today of one of the fortune 50 companies, and they're focused on what they can control. i think u.s. corporations have done a phenomenal job of driving
productivity, taking cost out in a world that has tremendous geopolitical unrest and a lot of uncertainty on policy. you know, he was talking about -- and i agree -- over the next couple of months everybody's going to be focused on the elections and trying to determine which way that will go to determine strategic directions and reinvestment. so i think, again, it's hats off to corporate america who found a way to digging deep, drive hard through this slump, this downturn. and, again, if we can get the gdp up, liz, above 2, 2.5 where i think it'll probably come in this year -- liz: it's at 4.2 right now for the quarter. >> for the quarter. but, again, we've got to get this thing up and sustainable. that's what will create jobs. you can't create jobs in a gdp that is slow and low, kind of. liz: very unusual to have bob sitting here because it's unusual to be the ceo of any major company, but to be the ceo of two major companies. you also ran home depot. >> yes.
liz: facing a possible hacking situation that could be as bad if not worths than target. >> yeah. liz: this is tough. when you were there, how many years ago was that? >> i was there in 2000 through 2006. liz: you know, 2000 the iphone wasn't out. >> no. liz: now it makes you wonder all these apps allowing people or hackers getting more sophisticated. i'm not blaming apple, i'm simply saying people are doing too much out there perhaps. >> yeah. liz: what do companies need to do that they're not doing right now that you would have done at home depot? >> well, you know, hindsight is always 20/20. liz: of course. >> and, first of all, when you think about the multiple expansion home depot has gotten over the last several years, they've done a phenomenal job -- liz: 2200 stores? >> 2200 stores. when i started there, we had a thousand, when i left, we had over two thousand. again, when you think about a billion and a half to 1.6 billion transactions a year,
liz, you are very vulnerable to that kind of hacking that might go on. so it's unfortunate because home depot, along with the housing industry, was really helping drive this economy. so i hope that they can get through this thing quickly, resolve it and don't have the same impact that target had, for example. you know, you just have to have a ton of firewalls. i mean, we had one day center. it was in the basement of our headquarters in atlanta. [laughter] liz: so you can go down there and check can. >> yeah, but again, we were very vulnerable. and thanks to the board and a lot of support, we created another facility way outside, different electrical grid, bunkered. those are the things you have to think about. you have to be, you have to anticipate. you have to be way in front of these kinds of issues in today's market. liz: and spend some money constantly. >> and spend some money. liz: bob, great to have you. he's looking at chrysler like, my baby. it's doing so well.
thank you so much. >> thank you. it's always a pleasure. liz: bob nardelli, former home depot and chrysler chairman. that's a very unique animal sitting right there. thank you, bob. closing bell, we're 38 minutes away. we told you yesterday how the new york stock exchange is working to cut costs, that means cut a lot of those floor traders maybe? now charlie gasparino has another fox business exclusive on the potential sale by the exchange that could change the face of stock trading forever. if you own a single share of stock, you need to know about this. and as home depot -- yeah, we're continuing that discussion -- investigates a possible massive hack attack, we found out how investors should factor cybersecurity and the risk of attack into their stock picks. one of the nation's top cybersecurity experts is our exclusive guest. got to see how well protected these companies are before you commit money. ♪ ♪
hi michael! looking good! trying to keep up with you! i told my producer karen that i take metamucil because it helps me feel fuller between meals. it's just one small change that can help lead to good things. now she's breaking up with the vending machine. nope. i call that the meta effect. [ female announcer ] 4-in-1 multi-health metamucil now clinically proven to help you feel less hungry between meals. and promotes heart health. experience the meta effect with our new multi-health wellness line and see how one small change can lead to good things. liz: is cost cutting at the new york stock exchange a precursor to
selling the entire floor and the equities business in and who are the possible buyers? charlie gasparino, really? >> listen, i just want to caution that i've been talking to bankers in the last couple days, analysts, people who cover this. a lot of people think at some point be, jeff sprecher from i.c.e. which bought the new york stock exchange is, you know, not enamored with that equities part of the business. he wanted the futures, parts of derivatives stuff that the new york stock exchange did. let's face it, he's not crazy about the business right now of transactions, you know? not a lot of -- liz: i'd like the reclaimed wood on the floor. >> okay. we'll see how much money they can get for that. [laughter] what a lot of people are are talking about is when will he sell this thing? here's something that's interesting, or if he's going to sell it. i spoke a couple of times with people at the nasdaq. they think at some point he's
going to unload it. now, they're a competitor. i did not get this from sprecher himself, but people at the nasdaq think he's going to unload it, and possibly charging reporters, you know, 25 cents to walk on the floor is a sort of runup to, you know, a sale. you cost cut, you get down -- you get it down to a manageable size, you raise some revenues, and then you sell the thing. at least that's what people are talking about. now, who might buy it? there's one place that could buy it, and that would like to buy it and that's nasdaq. what is preventing that from happening? obviously, the antitrust concerns although i will tell you that people that are involved in this space, that are involved in legal antitrust issues involving various countries will tell you under a different justice department, if it wasn't the obama juts disdepartment which was pretty much against this stuff, given the fact there's increased competition now with dark pools and different exchanges, maybe other different listing venues,
that this is -- that they could, you could see at some point an okay given to the merger of the new york stock exchange and nasdaq. liz: well, there's the stock. i'm just showing you right now, but it is also on the lower right-hand part of our screen. >> what's going on? liz: it's dropping. >> oh, really? interesting. good. or bad. [laughter] i don't know, sorry. bad, bad, bad. liz: when he opens his mouth, he can move a stock. >> bad, bad, bad, bad, bad! liz: very bad. >> listen, there's no doubt that you start, like, cutting. he took -- listen, when we first broke the story, what's his wife's name? she's the flak. kelly. liz: kelly, yeah. >> kelly leffler called me up and tried to tell me not to do the story because we reported literally a year a august of 2013, that he's telling, that specker was telling people he wanted to take 30% out of the cost, really cut things down. too many duplicate functions. and she tried to throw cold water although it was, again,
that conversation i have with you where i told you how the pr people act at i.c.e.. liz: right. you say, so is it tuesday? they say, you know what? it's the day after monday. >> no, they say it's wednesday with. after 30 sects. is your name kelly? one second. let me ask jeff. jeff, can i answer this question? yes, it's kelly. that's the type of response we get from the new york stock exchange these days. hey, listen, i used to butt heads with duncan and all his people constantly. they used to run it. i never had this sort of stuff. and i don't want like the fact that they tried to talk me out of that story. now, good thing i didn't listen to 'em. i broke it on your show. liz: yes. >> and we turned out to be right because they went to -- when they wanted to finally fess up to this, they got a puff piece out of the wall street journal. but, you know, we're not here to give puff pieces. we're truth if power here, and i will just tell you this. when i talk to people now, what they're talking about is this is a preliminary move to possibly
sell it at some point, sell the floor. i will say one other thing, and i'll tell you, it just drive me nuts, this whole notion of charging reporters to, like, you know, walk on the floor of the stock exchange, you know? paying a cover charge like you're going to see a band before and after at white plains. [laughter] i want to just say something here. i, you know, it sounds so absurd, doesn't it? liz: yeah. >> that they're doing this. who needs to be down there? i'm going to be honest with you, all the information you can find -- liz: right, online. >> they're thugs when they have let'sed companies to us. -- listed companies to us. who needs 'em? what would my mother say to kelly and jeff and all them? my mother would say, tell them this -- liz: i'll tell you who needs them -- [laughter] another business network who actually reports from the floor -- >> but they don't report. it's like a pr engine for those guys. anyway, that's my opinion, does not represent the opinion of fox
business or liz claman or anybody at this station. it's my opinion, or benny over here -- no, it's my opinion, or my producer, julie. doesn't represent anybody's opinion but my own. liz: nasdaq down barely, not even half a percent. charlie, thank you very much. chosing bell is ringing in 27 minutes. another fox business exclusive w. the republican leader who could very well take control of the u.s. senate after the midterm elections, and home depot's stock lower again today. this as the home improvement giant investigates whether hackers stole the perm information of -- personal information of millions and millions of you. we have george kurtz, what large scale cyber breaches mean for investors and whether that should be at the top of your list before you decide to buy a stock. it's a fox business exclusive. ♪ we've never sold a house before.
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from now on, no one's taking your seat away. what's in your wallet? ♪ ♪ liz: with only two weeks left before lawmakers leave washington to then campaign full time, the house and the senate are gearing up for a sprint that could determine whether their parties win big in the midterm elections. fox business' rich edson, live in louisville, kentucky, with an exclusive interview with senate minority leader mitch mcconnell. rich? >> reporter: who may with the next majority leader if all goes well for republicans, liz. we talked about a number of topics, the comments the head -- the president made this morning. mitch mcconnell saying right now isis is not manageable. we also talked about that perhaps we'll have another government shutdown this fall. mcconnell basically says that congress will pass a clean
government spending bill that will fund the government through december with no drama attached. talked about another type of drama, that surrounding a possible debt ceiling increase. >> that's always sommthing you talk about. occasionally, we've done that. but what i'd rather see is the president of the united states who's supposed to be our leader saying, hey, let's get together and see what we can do to solve a problem rather than having to be pulled into a discussion. because you had a government shutdown situation or because you had a debt ceiling increase. in other words, i'd like to see him step up to the plate and call us down there and say here's the problem, our tax rate is too high. we all agree on that. thus, why don't we try to figure out how to fix it? >> reporter: liz, congress returns next week. we won't have to deal with the debt ceiling in washington probably until next year, but all those other issues mcdoable teeing up ii what disturb mcconnell teeing up.
liz: there seem to be so many, more than at any other time in a long time, rich, thank you. thank you very much, rich edson. home depot recently reported spectacular earnings, beating on both the top and bottom lines, but now, you know, the good with the bad, right? the retailer investigating a potential massive hack attack against its more than 2,200 stores. 2200 in the u.s. alone. will this overshadow the retailer's red hot earnings report x should you, the investor, be wary of other high earning companies that could with targeted -- be targeted by hackers? should you be looking at how secure a company is before you put it in your portfolio? joining me now in a fox business exclusive, george kurtz, cloudr. 2200 stores, we just had bob nardelli, who used to run home depot, tell us that home depot does 1.6 billion transactions every singling year. it's -- single year. it's amazing it didn't happen earlier, but that's small
comfort to people who may be victims here. >> absolutely. if you look at these sort of attacks and the amount of transactions that take place, it's staggering the amount of money that actually flows through their point of sale systems. and like anything else in the world, you know, bad guys are focused on where the money's at, and retail has certainly been a hot topic as of late, and it's been a hot topic traditionally because retailers have underinvested in effective security systems given the compression of margins that they've seen over the last number of years. liz: i don't know if you heard bob earlier, he was on to talk about chrysler because he ran that company too, but he said, liz, we had one server in a basement until somebody woke up and said we've got to diversify, we've got to secure this thing. it cost a lot of money, but we did it. and that certainly got them through from 2000 til now. but, again, these companies, you're saying, respect investing? -- aren't investing? so if i'm an investor and i am looking to maybe add any company to my portfolio, how do i look at cybersecurity on the list of
things that i want? because there's cash flow, oh, do you like the ceo, do you like the earnings per share? do you think they have good prospects going forward? where should cybersecurity be on that list? >> well, i certainly think it's an important element, and like any investment particularly in the public market, the investor is entitled to understand the risks associated with invest anything that company. whether it's future forecast of sales or manufacturing risks or what have you. and i think cybersecurity is one of those risks that is certainly at the top of the list. and unfortunately, it has not been as transparent to get that information as it should have. liz: how do you find it out then if it's not out there, if it's not in their annual report? >> well, i think really this is an area that should be a focus for investors and also for board members. there needs to be more transparency in the dollars that are invested in security. and it's one thing to say that we built firewalls and we added data centers and all of that stuff. it's another thing to actually disclose the amount of
investment dollars that went into security. that will give you a clear cut understanding whether the company is paying lip service to invest anything security or they're actually doing it. liz: i'm hearing you saying shareholders need to start asking, and i think they absolutely should. look no further than the poster child of this issue, and that's target. target, it was december 19th. so we're coming up closer to a year on this, had 40 million credit cards stolen and then put out on these nefarious web sites. and you look at this stock, it cannot -- it's trying to recover. it's still having trouble, but ceos are losing their jobs over this issue aren't they, george? should they? >> well, absolutely. they are losing their job. it's an unfortunate situation. it is hard to get security right, and the bad guys are becoming more sophisticated. but i think when you look at what we're seeing here, it's one thing to invest in security and spend some money, it's another thing to just clean up the breach, and i i think target spent 148 million or so. it's really the crisis in confidence in the brand. and at the retail level whether
you're buying a hammer at home depot or some other store, basically the same hammer, it's the brand experience, what the brand represents and the confidence the consumer has when they actually go in and shop at that particular location. they want to feel safe, and they want to have a good experience. liz: george, thank you. and i think we all need to take george's advice. if you're at these shareholder meetings, demand to know, what kind of cybersecurity do you have? what kind of servers do you have? thank you so much. >> thank you. liz: george kurtz. closing bell, we're about 15 minutes away before we hear it. we do have a little bit of a struggle here with the markets although some green on the screen. while the markets close at the top of the hour, we are always on call for you. go to foxbusiness.com/oncall. sign up for claman on call. we will deliver the biggest headlines of the day directly to your smartphone. it's free, it's late breaking, makes you a smarter investor. ♪ ♪
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liz: the curve. yes, samsung today showing off not the blackberry curve, but a curved smartphone, a virtual reality headset, right? and the latest version of its smartphone tablet hybrid. but also the samsung gear, that watch. can these new devices upstage rival apple which has its own big product launch next tuesday? adam shapiro was right there. sometimes these companies don't get a launch event right. how did samsung do? did they make it all hollywood? >> reporter: well, it wasn't all glittery and hollywood, they did bring in adam levine and maroon five. the critics are already saying this is revolutionary, and i'm talking about the edge. this has a 35.7 -- 5.7-inch
screen, it's bigger than the ones you can get in the cross between the phone and the tablet device, but it's got an edge, a curved glass screen where you can use that curve much like a tool bar, and it makes it much more vehement. they say evolutionary, not revolutionary. but then take a look at the 3-d device. this is the virtual 3-d, they call it the gear vr. they promise a 360-degree virtual reality experience. i tried it on. it's like looking through binoculars. yes, it is a virtual reality experience, but i did not experience 360-degree perception because it's like looking through a binoculars and seeing the lens. sales at samsung, what, down about 3.9% total, iphones -- total smartphone sales, they need to reverse that. back to you, liz. liz: okay. i just want you to know one thing, that thing looks worse than google glass, so forget it. [laughter] liz: until it gives me some amazing experience, i'll do it.
>> reporter: expect retirees on the east side shopping over at gracie's market. liz: yes. exactly, with the big, gigantic blue blockers. adam shapiro. we are just getting word that facebook has an outage. facebook is down, according to tech crunch, and the details are very, very sketchy at the moment. i don't think if -- i don't know if we can put the stock up, but the stock is having trouble at least as they're dealing with this outage. hold on, it is down about 1% at the moment, and as soon as we get more details on this, we will make sure we will get it to you. but facebook started the day pretty darn well. outagings are spotty at the moment, but once again, you're all panicking now and going on your facebook pages. don't do that. listen to my next guest because he is super smart. many of you investors are being tempted to seek safe havens in assets like u.s. treasuries
because you think there's a correction coming or what happens when interest rates tighten? also global tensions and uncertain economic forecasts. but our next guest says the biggest threat to equity markets is yet to come because how do you, the investor, play snit guess what is now the new safe? joining us in a first box business exclusive is dell tech international group chief investment officer, and you say risk is the new safe when it comes to investing. what do you mean by that? >> there's two ways to look at it, liz, and thanks for having me on. firstly, to save safe haven assets such as fixed income, looking at areas where investors over the last few years have flocked towards that safe haven, it isn't as safe as people think number one because valuations are very expensive on them, number two because the reality is interest rates will be moving up over the next 6-12 months. second part of the equation, risky assets such as equities look very attractive in an environment where global growth
is improving. so we want to start to move to and stay in, for those investors already there, into the riskier -- liz: i have never heard this before, risky is the new safe. where do i find risk that will keep my portfolio safe? and safe we use loosely here, but -- >> in terms of where we think the best opportunities are, the single best opportunity over the next few years is taking advantage of u.s. productivity growth. u.s. productivity growth right now is close to 60-year lows. but we think if you can take advantage of u.s. product it growth, playing it through -- playing it true rising investment share of gdp which specifically means investing in u.s. technology hardware, that will take advantage of the fact that companies are going to invest capital expenditure into -- liz: okay, you say hardware because tech is such a broad, broad operation here. there's internet, there's technology, there's social media that some people consider tech. so you're saying hardware specifically, semiconductors? semiconductor equipment? can you narrow it even a bit
more? >> so narrowing it down into really looking across the tech universe. you can break it down into software and services, semiconductors and equipment, and what we're talking about is those two final sections, semiconductors and equipment and tech hardware and equipment. if you look at social media and some of those names, they probably take away from productivity, in some workplaces they do. but what we're looking at is tech hardware, looking at the microsofts which take advantage of the replacement cycle, the apples which take advantage of the new technology hardware cycle, also some of the semiconductor names as well. liz: we know that interest rates are eventually going to move higher. they will tighten. what poses a bigger risk to investors, would it be global tensions or interest rate tightening? >> look, right now a lot of people like to focus on geopolitical risk. the reality is geopolitical risk is omnipresent in markets. liz: always. >> and it's very difficult to predict when those tensions will flare up. we think the biggest risk to markets is volatility and rising interest rates, so it's the
volatility that we'll be experiencing other the next 6-12 months that has the potential to spill over into equity market volatility. liz: here's why you're listening to him, $5 billion in assets under management. thank you so much. dell tech international group cio. closing bell, we're five minutes away, and coming up on "after the bell," russian president vladimir putin's peace plan for ukraine and hints of a possible u.s. rate hike are causing some traders to dump their bonds, their safe havens. we'll give you some alternative plays, straight ahead. you want to make money, don't you? then stay with us. ♪ if you ware a denture, take the simple test.
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where the dow lost, we were up more than 70 points at one point. david: the dow lost a lot. of course the big drag on the nasdaq. you know what that is? liz: apple. let's get right to nicole petallides on the floor of the new york stock exchange to talk about just that. apple losing about, this is a little stunning, 22 billion in market cap as the stack falls today. is this samsung effect, maybe? >> we did talk about samsung, competitor indeed today. also a downgrade from pacific crest basically it said it is time to take profits in apple. meantime earlier this week, we saw 103 hitting all-time record highs ahead of iphone 6. you're seeing steepest drop since january. david: if you're long on oil, it's a good day for you. may not be a good day for the pumps eventually. oil is coming back, having some effect on stocks. >> it lost 3% yesterday. it helped energy stocks today. those are some leaders. oil up 2 1/2% today. liz: we've been waiting to hear where tesla would choose to put
its gigaat this. -- gigafactory. nevada gets the job. [closing bell ringing]. they will boil in parts of the city, but who cares. david: jobs, jobs. good for the state. liz: bells ring on wall street and bringing tesla and every other name with thee. here is how the dow jones with a gain of 11 points. s&p, russell, seeing red on the screen. not the 30 third record for the s&p. not today. down 1 1/2%. "after the bell" starting right now. david: let's get right to it. we have a full crowd today. we have john merrill who says continued low interest rate environment will make stocks more valuable than they already have seen. another john, trainer, of people's united bank, thinks the markets remain strong through the end