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tv   After the Bell  FOX Business  December 3, 2014 4:00pm-5:01pm EST

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david: by the way on the flipside there are some losers. amazon moving to the downside as one example but generally this is a good day in the markets. liz: look at gang of bny mellon there. david: big gang. >> bells ring on wall street. closing out two record highs. and lifetime intraday highs as well. look at stocks finishing to the upside. we pick out the winners here, dow jones industrials up, 80 points, 90 points away from dow 18,000? could we see that soon at least before the end of the year? s&p hitting all-time record, 2074, up seven points. russell coming along for the ride up nearly a full percentage point. let's get ready on this record day. "after the bell" begins right in a second david: breaking down today's
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record action we have maxim money mark matson. he will tell us why you shouldn't focus on u.s. large caps right now. warren financial randy warren will help investors prepare what he says will be a volatile fit fifth. todd horowitz, if it is wednesday it got to be todd and a bull day because of course todd is a bear. todd, here we go again. what do you say? >> well you know i'm here, david, i'm here for my 35th record high. it is a wonderful feeling. i'm not worried. i'm about ready to wave my white flag. i say, what, me worry? david: alfred e. neuman. >> there you go. the bottom line the market is going up. it is the fourth quarter. typically bullish. i'm still bearish. i'm looking opportunities to sell the market. fed beige book came out today. they said everything is not as expected but if everything is good as they say what is preventing them raising their rates. liz: other nations, todd, other nations problems.
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but that doesn't mean that you can't be bullish about the u.s. stock market. >> i'm billionish the u.s., i'm bullish america but i'm not bullish the stock market. i think the market is way overdone here. we'll look back in history see when the biggest bubbles we ever built, all built on paper and no real production. liz: yeah, okay. he fought the tape. he is losing on that one. we love you still. get to somebody who has been bullish here. that is mark matson. do you continue to be? we're all waiting, if we held our breath we would be dead right now waiting todd to be right. that's okay, todd, we love you. do you a get a sense maybe todd is partially right that is well-overdone in the upside. >> trying to predict the future short term is always loser's game. day like this it helps investors gain hope in equities. i always want investors to focus on, s&p and dow at all-time high. they have to focus on microcap
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stocks and also on international stocks. we all know we should rebalance portfolio. buy the thing that is down but our intention and emotion make that very hard to do. so my lesson to investors right now is, we only have 10% of our money in the s&p, large stocks. you have to look at those micro caps. you have to be internationally diversified. force yourself to buy the thing that's done, not chase the thing that is up. david: i want to go to randy. but i have to throw in a defense line for todd because todd still makes a lot of money. he makes money holding on to good solid stocks you know you can hold on to for a lifetime, preparing for the day when the market falls. that is what he is doing. randy, consumer stocks, a lot of people are wondering now particularly in light of what happened over the thanksgiving holidays and dispointing retail numbers whether that is the place to go but you like buffalo wild wings and underarmor. you're right in the center of consumer stocks. does it concern you what happened over the thanksgiving break? >> no, actually what happened over thanksgiving break was that
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opec decided they weren't going to cut production. david: hold on. randy, randy hold on. i'm talking about the miss on retail numbers. a lot of retail establishments did not do so well over thanksgiving. and yet you're going for retail stocks. why? >> no, i think you have got to pick good ones first of all. not just any retail stock or not just an entire sector. that's why we identified buffalo wide and underarmor, trying to pick out really best stocks we can find in the space. stocks that will do well and have done well and have a bright future ahead of them. the fundamentals are backing those stocks up. liz: those are interesting names. underarmor has definitely been a real winner i think. so that's a very nice name to pick. back to todd and back into this question in a way. where will be the first place you start buying when you feel the market is appropriately priced? >> i think we need correction
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probably in the neighborhood of 15, 20% before i would really look. i'm an investor betting long term in the market. but as a trader i'm buying best trade so i can get short. going into the market to get long as trader, we would need 15 to 20% a real long correction. we need fear an volatility which is absent. russell told us there is lot of trouble going on here. basically going on all year. i would like to see a 15, 20% correction i look to get long here, just as i did in oil and gold. david: mark, what has surprised you most about investing and trading in this quarter? >> well the thing that really surprises me about this year in general how fast people forget about the rules of investing. they're really simple. own equities long term, diversify and rebalance
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portfolio to buy segments down. don't bet against the market long term. if you want to know how destructive that is, ask peter schiff. you have to own equities long-term. don't gamble, forecast and predict in the short run. got to own equities 20 or 30 years. market timing increases risk, not decreases it. if you're betting against the market -- liz: what are you picking now? >> i gave you some examples of papa john's and krispy kreme. david: red robin. >> yeah, i gave you, it is a little taste of some i micro cap stocks we own in the portfolio. we own them because they're not great companies individually but they're examples of small u.s. companies, based on research by you mean fama who run the nobel prize. small company stocks have 3 to 4% higher expected return than growth stocks. david: you're afraiding -- avoiding hedge funds, why? >> hedge funds are loser's bet. if you look at last year they're
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only up one, one 1/2%. if you go back to 2007, looking at hedge funds as a category, they're up less than 1%. i mean it is devastating. also stay away from gold. don't speculate with. that you have got to stay away from long bonds. huge risk in that right now. liz: randy, what would you avoid right now? >> i think what investors need to think about for 2015 is volatility is going to be returning. we're going to see more corrections of that nature where it is 10 to 15% and people need to start thinking about predictable volatility. how do i approach a predictably volatile environment? and volatility has been a bad word for investors because it always means losing money. but when you have a strategy, we put in place a strategy that basically trades volatility options to try to offset losses in the market. so we're expecting volatility, we're expecting market pullbacks. but we benefit from the market pullbacks a number of different ways. buying bottoms.
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trading volatility options, to try to offset losses in the equity side. david: todd, let me ask you what are you holding on to long term? you are a long term investor. you're not all in cash or anything at the moment. so what do you think will stand up to this downturn that you see coming? >> i think stocks, like at&t will hold up. stocks like verizon. a lot of the stocks, i'm looking for stocks that pay dividends. as liz pointed out many. i want to hold stocks that will come count -- compound. i don't want to get into stocks with high-risk, high beta. dividend-paying stocks. i'm in some of the small reits that pay big dividends. stuff that will continue to grow i don't look at, don't open up my statements any month. i don't look at my statement five years. it doesn't matter. long-term hold. we use strategies over time. david: you save yourself a lot of grief when you do that. mark matson, randy ward and todd
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horowitz. good to see y'all. liz: japanese airbag supplier takata under fire again as it testified before a house panel. david: with the company refusing to expand its recall nationwide as the government wants it to, does the national highway traffic safety administration, nhtsa, does it have the authority to order them to do it? rich edson with the very latest. rich. >> the courts may have to decide that one. takata say there is insufficient evidence to cause a recall. investigators are exploring recall and fine. japanese automaker honda announced at hearing that they would expand the recall from hot, humid areas to across the country. government regulators are pressing at takata to do the sa. >> we can no long letter support a regional recall. our policy is clear, recalls must be nationwide unless, the manufacturers can demonstrate that they are regional. with the new data, it is clear they can no longer demonstrate
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that the region that was used before was appropriate for driver's side airbags. >> in these defective airbags the bag releases with such force it launches metal projectiles into passengers and drivers reportedly responsible for five deaths. nearly a dozen auto companies recalled cars from model years from two thou to 2011. takata is making 300,000 replacement kits a month, increasing 450,000 a month in january to cover 10 million recalled vehicles. government investigators are continue investigation into the company and demanding from takata more information hand testing. liz: rich, breaking news. just as you were doing your report, chrysler announced it will would expand its recall of any car with takata airbags in it to seven states and five u.s. territories. david: interesting how they're standing up in the face of nhtsa orders. we'll see how that turns out. apparently there is some crying uncle on some part of the car
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companies. liz: adp reporting that the right sector added 208,000 jobs last month. what we're going to do with this number, instead of just throwing it out at all we'll pull it apart and show you where the jobs are getting created, what employers are looking for and what it means for friday's big labor department job report for the month of november. >> plus as a good preview to the jobs numbers, martin feldstein, one of the top economists in the world says, there is a huge financial risk out there that is going to hit us hard once the fed starts raising rates. he will tell us what that is. don't want to miss it coming up. liz: will $100 a barrel oil be back soon? are you kidding? we're at 67, what do you have to worry about? we'll talk about that. it may be coming back. is ceo jeff bezos in denial about amazon's profit problems? no viewers, no problems for cable stock. all that and much more with your panel straight ahead. ♪
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david: aeropostale is falling after reporting third quarter results just moments ago. liz: let's head back to nicole petallides on the floor of the new york stock exchange to get details. >> forecast is pushing this stock to the downside. let's go over the numbers. they came in with adjusted third quarter loss of 45 cents. that was right along with the estimates were 45 cents. that was in line. aeropostale reported revenue better than expected, 452.9 million, versus estimates of 447.2 million. so that revenue number was good. they did see sales fall 11%, same-store sales fell 11%. estimates were for it to fall 11.4 cents. slightly better there. but the big picture is the outlook. the outlook for fourth quarter loss is 37 cents to 44 cents. estimates were calling for a loss of 30 and change. so this is, the outlook is a little bit weaker than what was expected overall.
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it has been a loser this year, down 65% for 2014. so shareholders of aeropostale are quite disappointed. abercrombie, to give you some perspective down 12% this year. liz, dave, back to you. david: fickle market those teenagers. nicole, appreciate it. liz: the adp report comes out right every month before the government jobs report. here is what we saw from adp. gain of 208,000 private sector jobs created. it is sixth month in seven showing gains of more than 200,000 jobs. david: with the holiday season straight ahead of us could we see this over 200,000 number drop in the new year? or will it maintain its level? while the numbers are positive is there anything lagging in the job market? we bring in adp research institute's vice president. good to see you. thank you for coming in. kind of a good news, bad news. great news we're over 200,000 again. i think sixth month in a row, but, but it missed estimates. so i'm more interested in what kind of jobs?
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of those 200,000 plus that we have, are there too many part-time jobs? are there lower paying jobs or higher paying jobs or what? >> so labor market is steadily improving. we've been seeing 200,000 jobs per month steadily now. early in the recovery most of the jobs were coming from the low-paid jobs. these are like leisure, who ispy tallet, retail jobs. -- hospitality. all industry are adding new jobs. david: that is good news, great. liz: you do boots on the ground type research. you have spoken to 350,000 businesses about the adp and about the jobs reports. what are you hearing from them? are they feeling more optimistic? >> first of all our data is actual data. it is not a survey. we really have real data and actual data. what we count is the people who are in the payroll.
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what is happening, this is more from the government data, that we are seeing that there are job openings but the filling rates, the hiring rate is not keeping up with the job openings. looks like there is a talent gap out there. >> well now, you know obviously the fed is very interested and of course wall street is interested in what the fed thinks about these numbers. the fed is still concerned that those part-time jobs, underemployment rate is too high. i think it is over 11% right now. is is it in your mind, is the economy getting better enough so perhaps the fed could start thinking a little more seriously about raising rates sooner? >> so during the recession, definitely there was increase in part-time jobs. we know that from the government data. david: but from what you said sounds like things are getting better pretty rapidly? >> now we see the full-time jobs are adding to the overall numbers. so if this is 200,000 job
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numbers on steady level it is enough to create not only employ the not only employ the underemployed workers but also accommodating the population growth. >> that is a positive note we're striking. we'll take it. >> it is good momentum. david: good to see you. thank you very much for coming in. appreciate it. >> we love to hear from you. do you think the jobs market is finally showing real signs of recovery? what are you expecting to see from friday's big jobs report for the month of november? send us a message on facebook or tweet us at us @fbnatb. david: so the economy may be picking up but one of the top economists in the world says we're not out of the woods yet. he is concerned about a new threat that could come from the fed finally raises rates. martin feldstein, harvard university professor of economics joining news a moment. >> putin placed in a corner as russia faces recession and a collapsing ruble. seems the dollar is mightier than the russian sword.
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how will we profit from their fall? could there be a russian revolution of sorts coming? david: cbs could go dark tomorrow for many americans all over the country. one of the nation's top broadcast networks. will you be one of those who don't see what they want to see tomorrow? details coming up. ♪ ♪ (holiday music is playing)
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for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ liz: russia is admitting something. it is warning its economy will fall into recession next year as western sanctions and lower oil prices take a severe toll. will we eventually see a russian revolution of sorts? will people stand for weaker currency and mess of an economy? how will russia's economic problems impact the u.s.? we bring in our all-star panel. fox business's cheryl casone. michael pinto, pinto portfolio strategies founder. michael, putin is in a squeeze right now. they will have contraction in q1, they admitted that.
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the ruble has collapsed but you will to today, woopty doo. do you think people at some point people will stand up and launch a new russian revolution? >> not at all. if you look for revolution, why not look to japan. their gdp hasn't grown in 20 years and their yen is collapsing. our gdp contracted 3% in 2009. there was no talk of revolution. i find it hard to believe less than 1% contraction in russian gdp in 2015 will cause a revolution. liz: let me add this then, hillary. inflation is skyrocketing. you're looking at a country that depends on oil prices being at least higher than we are right now. so there is some major issues here. >> that's right. oil needs to be $90 a barrel or more than that but putin, he has such a tight control on the country, the real problem in what is so sad, we could see what we've had 50 years ago, 100 years ago, mass starvation and people will really struggle because he is isn't going to let go. he will blame it on oil and
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everyone else. liz: the bolsheviks, here they come, cheryl. that is overstatement. i'm wondering at some point who has the guts to stand up? that is why he rules with an iron fist. >> he rules with iron fist are several middle eastern leaders are no longer alive or in jail. that is what could happen. this is age of social media. people with computers and handheld, they see what freedom of expression means. if putin is ruling with iron fist hand in russia, they will get sick of that especially if oil goes to 60 bucks and i think it will. if they're hungry, you forget it, there will be a revolution. i think putin could be in trouble, liz. liz: hillary, is there a play here with stocks? >> the play really is make sure you hedge yourself if the price of oil continues to drop. i like dug, it goes up this etf when the price of oil drops. doubles its strength when price of oil drops. you want to watch out the price of oil could then to infall.
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liz: d, u, g. we got it. maybe russia's money problems are solved in next year, prominent investor boon pickens has prediction that oil will rebound to $100 per barrel in the next year. i don't know, cheryl. i mean it is at 67 right now. we have a lot of supply. >> nothing against t. boone pickens. he is wonderful plan man and great guest on fox business. i have to completely disagree with him. maybe is self-serving but he didn't do so well with wind energy and made bad bets in texas. he knows he will get attention. he knows he will get a press release on this he is getting it right now. i disagree. two more years we'll be at 60, $70 a barrel in my opinion. >> what i'm seeing, liz, demand is firming up. that was the good news for october and november. supply is completely overwhelming. supply from canada, usa.
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liz: u.s.? we're close to energy independent now. >> that's right. liz: michael, are we overstating this or is boone right? >> i agree with cheryl or hillary. it is not just a supply story. look around the world. global growth is slowing. why is copper prices, copper prices are falling? why are bond yields plummeting across the planet? so if you take all these things in aggregate, it points to slowing demand. liz: i hope we're filling the strategic petroleum reserve at really low prices. forget about the government. what is the play, michael? do you stay away from energy names or do you go with refiners. >> this is the play. this is the play. for whatever reason the people that control the banking institutions in this country, they look at strength of dollar, what do they do? they sell commodities. if the dollar continues to rise, you want to short the yen, vis-a-vis the dollar, buy ycs.
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liz: ycs. the yen is at seven-year low against the u.s. dollar,. >> according to abe and irono, they want to go to a dollar. sit back and collect money. >> one of the ways to play oil prices going down and what happened with commodities, go with companies that really benefit from lower fuel costs. i really like virgin america. it recently ad ipo. it take as year for companies to start following and big institutions to invest. za is great way to invest in fact commodity prices are dropping an consumer feels better. >> investment story is in louisiana, not really in texas. t. boone needs to cross border in louisiana see all the projects planned for energy production in that state. it is on and i think he is wrong. liz: all right. >> we all agree. >> coming up, jeff bezos, is he wrong or is he right? he says do not sweat the billions in failed amazon
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experiment money. should investors believe bezos and pile into the stock? as pay tv loses bundles of subscribers who are the big winners? dave, this one may surprise you. david: it may. i'm hoping they're right on oil. i hope it stays low. meanwhile a stronger economy and markets hitting all-time highs. reince for optimism, right? not so fast. one top economist is warning after new threat to growth. martin feldstein, harvard university professor of economics is here in a moment. new developments on the hack attack on sony pictures. sony says they know who is behind the attack. could it be north korea? we have details. aol, ceo tim armstrong sharing his strategy on future acquisition. we got it all covered. ♪ e want to know how hard it can be... ...to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema.
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david: cps is home to some of the most popular shows on television like "big bang theory" and "ncis." the company says its channels could be taken off air forsome dish network customers due to a contract dispute. the move would impact viewers in 16 major markets across the country including los angeles, new york, chicago and boston. cbs says viewers may also lose showtime and cbs sports network. the two companies have been negotiating for six months with no agreement yet.
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liz: people go through withdrawal of "homeland." amazon ceo jeff bezos assuring investors not to worry about lack of profit at amazon. is he in denial? we have mike point toy and hilary kramer. this is inknow straight tiff company, mike pinto. why not believe him? >> i think 2015 is the year that investors are sick and tired of wall street shenanigans. these investors want to see three things. they want to see capital goods expenditures, real revenue growth on the top line and earnings per share growth. they don't want to see companies make eps number by buying back stock and they don't want to see companies like amazon spending it to generate $1 in revenue. they have had it. liz: you saw the p-e ratio price to earnings, 354 for forward earnings? amazon has done that. jeff bezos knows he is feeling pressure.
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he says, please do not worry. i spend a lot of time thinking about my financial all day long. don't worry. >> sure. liz: >> i have to say certainly from a stock investment perspective are there other stocks better deals out there for you? sure. but at the end. day look what we saw on cyber monday. the trend is in amazon's favor when it comes to consumer behavior. we saw smartphones, tablets, that is the way people are shopping. amazon owns that still to do this day. walmart had a record cyber monday for christ's sakes. i tend to give him the benefit of the doubt on this one. liz: give benefit of the doubt to alibaba. we're moving on. no viewers, no problem? even as television viewing slipped 4% last quarter and people are at least cutting cable cord, can the cable stocks still make money? this is a fascinating topic, hillary. because people were counting out the cable companies, cord-cutting. they were smart. they also put in broadband for internet and people are streaming more.
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>> that's right. so they have this, this three-way package but, fundamentally, content is king, liz. that is always what is going to win in the end. liz: so you would go with content creators? >> content creators is ultimately the way to go. in terms of streaming video, it is a small part. i know it is growing but live tv will never stop being number one medium. radio never disappeared t complimented supply minted new ways. liz: michael, do you agree with hillary? would you stay away from comcast and cable operators and go with the 21st century foxes or cbss? >> tell you one thing, stay away from netflix until it hits $100 per share. i like live tv for sports. other than that people don't have the time to watch traditional television. >> of course i work in the industry. take that for what it is worth. i have to say i was surprised we didn't see more after slip in television viewership. as popular streaming is, seems we're finding ways to compliment each other when it comes to
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television versus streaming. it is not one or the other. liz and i both work for 21st century fox but i'm betting on cable creators and that is us. that are people making content. that is what i believe in. liz: content is certainly valuable. i'm just thinking, now amazon and netflix are in the content business. they have gotten smart too. so do you go the opposite way than michael is? >> it really depends on each individual company and the valuation there. i mean amazon has its, amazon is moving in that direction. netflix, michael is absolutely right, is totally overvalued. we have to wait for consolidation. when the market shakes up, we can't go up forever. >> michael, last word, do you see anymore big mergers? time warner, 21st century fox one didn't work out? >> tell you what, i would rather talk about when the yen collapses than, i really don't he no. i don't know who will merge with him. liz: short the yen play? >> when martin feldstein is comes on, he is right when
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interest rates rise, watch out below. liz: what was that? >> ycs. yellow, charlie, sam. liz: ycs. i love it. thank you, gang. cheryl casone, michael pinto, hilary kramer. david? david: new details emerged about the hacking attack from sony. we'll tell you who they say was behind the attack. also as we just heard the adp report showing that the jobs market is improving at a pretty good pace. so how does the fed justify the rates still at zero? we'll ask marty feldstein, former chairman of the council of economic advisors. he is next. ♪s ed give you 37-thousand to replace it. "depreciation" they claim. "how can my car depreciate before it's first oil change?" you ask. maybe the better question is, why do you have that insurance company?
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liz: sony is still battling to restore parts of its network after suffering from a massive cyberattack. david: sources are saying the company is now preparing to name the source of the attack. adam shapiro has the very latest from the newsroom. adam? >> this is again with recode which broke the story that sony had been attacked by hackers. now they're going to say it was north korea as had been expected. we have video of a movie that will be released by sony pictures and paramount studios on christmas day, the movie, "the interview." it is fictional account a comedy
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about two reporters hired by the cia to assassinate kim jong-un, the glorious leader over there in north korea. this attack did take place. they're blaming north koreans. in a memo that sony put out, this is memo from the studio's chief executive michael layton and the movie chief, they told 6500 employees whose computer data was taken and seriously, and this is quote from memo. we unfortunately have to ask you to assume that information about you in the possession of the company might be in their possession. the possession of the hackers. now in addition to that, there were the five movies that the hackers made, accessible for people to illegally download. you heard about brad pitt's film, already been released, "fury," with 800,000 illegal downloads but that film, "annie" how in a few weeks, sony trying to get back on top of this.
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pointing blame at north korea. david: adam shapiro, thank you very much. >> very busy day on fox business. huge names in the business world and even ad ven truss ones. here are highlights starting with aol ceo tim armstrong on future acquisition. >> my favorite quarterback always says, tom brady, who is your favorite receiver, the open man or the open person. our strategy has to be make sure we operationally run, invest r&d, m&a if it is needed. so we have to be open. >> 20,000 on the dow industrials in 2015. >> absolutely. >> why? >> because i think the economy is coming to, is, market is finally reflecting why it is going up. it is not because, just because rates are low. we have an economy that is improving. and we're seeing it in the numbers. gdp, the best gdp numbers we've had in 10 years. it is industrial-led economist. i'm not a economist. i like what i see. >> i'm definitely a wildlife guy but i'm not so much like we have
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to save the rainforest just because. it is an important system. we're talking about ecosystem services. we're talking about global economy. >> you get swallowed by a snake in order to highlight the resources available in the amazon? let me make a prediction. that show will rate. >> only varney will get somebody who will allow themselves to be eaten alive by a snake. only stuart varney. catch all of today's interviews on foxbusiness.com. meanwhile the jobs market is improving. we just heard from ad p&g dp grew more than 3% in the third quarter. so why, why hasn't the fed raised rates? a lot of savers are getting hurt by these zero interest rates. we'll be asking famed economist marty fed stein -- feldstein, harvard economics professor. we're bringing back hilary kramer to tell us the number one thing to watch that could shock the market. no question about that. but your erectile dysfunction -
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>> liz: time for number one thing to watch. hilary kramer. we know friday is the jobs report. what are you looking at right now? >> i'm looking tomorrow morning, mario draghi, the president of the ecb will give a statement. we're all expecting that he will hint at more quantitative easing and if we don't hear that the market could come back down because we're all expecting to hear that there is going to be support to the european market.
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liz: he will go all-in on qe, isn't he? >> we really hope so. that is of course we are watching and we also want to see -- david: hillary, do we certainly hope so? how effective have all the qe plans been around the world? look at japan, it hasn't helped. look all the countries that implemented this policy to try to weaken their currency. ultimately it is good for the stock market but the economies don't really improve. >> all it does it create a lot of debt on balance sheets of countries but at the same time, the market wants to hear -- david: market loves it. >> they love to hear the support out there. so if europe gives us what we need to hear, then we'll see, i'm looking for technical strength of next step. let's look for some more 52-week highs. we saw 3m today and lowe's and advanced auto parts. if we have that kind of breadth you will see the market really take off again. david: there is u.s. growth compared to eurozone. by the way, if he doesn't do that, doesn't do qe, we could see weakening of the dollar and that could change fortunes quite
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a bit as well. >> that could happen. if that happens there will be a lot of unwine anding. a lot of -- unwinding amount lot of hedge fund are related to currency and rates. the market in its own way are fragile, even though we're excited about new highs on s&p and dow it is exciting. we have to watch the fragileness and some complacency about the market beginning to rise. liz: hillary came, thank you very much. david: one quick note, venezuela is near and dear to your heart. we were talking with the panel on russia is hurting. we could see venezuela's changes because of oil. >> venezuela's government will come down. it is wonderful opportunity for a country magnificent in many ways to the kind of grandeur it should be. david: many venz vennance agree with you. venezuelans. liz: we've been asking you if the jobs market is showing real signs of recovery.
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dennis on facebook said compared job report numbers to past performances. today's adp number you will find was not very good. david: we're looking at adp number. we're interested how that affects the fed decision on rates. meanwhile the fed's beige book came out today essentially was saying what the adp report was saying. the economy is not as bad as a lot of people thought. and some of the underemployment figures we've been concerned about, that the fed is focusing on, underemployment, when you add it all together is over 11%. some of those figures might work out in a good way. liz: the immigration picture has been very touchy who will be taking newer jobs. of course you know the president just announced he was going ahead solo with an immigration plan. rich edson has breaking news on the news that broke in the last hour which was that a whole handful of states are now filing suits against the administration.
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>> 11 states, david and liz. this is a suit specifically filed against the obama administration on its executive order on immigration. this is playing out in a host of venues across the country. this is in the court system on a day where the house of representatives will consider an objection to the president's system, the president's executive order. we're looking at republicans in the house of representatives and in the senate trying to figure out exactly how to confront the administration over this. they're talking about a two-step government funding approach. government spending authority, much of it, runs out december 11th. that is next week. congress has to figure out a way to fund the government. so what republicans devised doing in the house, this is what they're going to start considering tomorrow, funding the rest of the federal government through the rest of the fiscal year, through next september. then funding only the department of homeland security through the beginning of next year. that would allow the new republican-controlled congress to take over, figure out how they want to confront this. this is very difficult issue for republicans. they're not quite sure how they will respond to the obama administration over this.
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again, republicans will control congress next year. they will control the house and senate. they still don't control the white house. this is very much legal issue with republicans and these states contending what the administration has done and is doing is illegal. and the administration saying no, this has been done before. this skull fag within the barriers and lines of the law. so this is playing out in a number of different venues. we have congress tomorrow. these states now. certainly will be an issue going into 2016. liz: liz, you brought up government shutdown, is a mistake that republicans will make again? that did not help tea party side of the government? is that what you're hearing as far as chatter inside of the beltway here? >> appears like lesson learned, david and liz. we're looking at republican leadership uniformly saying we do not want a government shut down. we want to lodge our protest with the administration against this executive order on immigration. they promised the government will be funded. still they have to get to.
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that you can always imagine what they will do, if they still can't find a way to get the two-step approach through congress and through house and senate tomorrow, they will put a bill on floor, funds government rest of the year and get democrats to pass it and government will be funded. >> question on tax extender bill may be voted on shortly. "wall street journal" had a editorial saying this thing should die. this is kind of tax policy we do not need in this country. all special deals instead of lowering overall rates across the board. that is what we need, not special deals for special customers that involves about $40 billion. go ahead. >> depreciation and hollywood film-makers. david: exactly. >> expanded tax credit and research and development. you can argue whether or not those are worth it. they couldn't even extend, david and liz, they were looking making a handful of these permanent so they wouldn't have to do this every few years. the president killed that deal. couldn't get that done. possibly looking attacks reform
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next year. there are awful, after full lot of headwinds getting that done. david: rich edson, thank you. by the way, i want to look out the window. we're awaiting lighting of christmas tree at rockefeller center. not only are we awaiting that, marty feldstein is in a car awaiting that. unfortunately he got stuck in traffic because of all, look at this. this is shot of sixth avenue, right outside of our window. somewhere amongst those cars is marty feldstein. of if you can hear us we appreciate you trying, buddy. he tried as hard as he could to get here. he got stuck. happens once a year. it's a mess in new york. unfortunately we don't have marti fed steen. fortunately hilary kramer agreed to stay on. i will ask her the first question i was going to ask marty feldstein, numbers looking better, particularly under employment the fed is focusing on now, how can they continue this zero interest rate policy which is hurting so many people? middle class savers are being
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killed by this. wall street loves it. but the middle class is getting hurt by these policies. >> middle class is certainly getting hurt. they're using equity markets as a bond surrogate. eventually the fed has to raise rates. the last time we really saw fed speak i was thinking 2016, set of set of because they keep going back, so this works. so they continue with this. the problem we have $18 trillion on the balance sheet. once that, once tightening starts to happen. that gets loosened up, we could see terrible ramification notice market. david: by the way one of the things marti was going to talk about, there are risky loans, people took out loans thinking zero interest rates would last forever will be stuck holding a big bad. >> that's right, david. i'm looking carefully at the junk bond market. those are riskier bond that are not aaa issued by companies. a lot of them are growth stories. so in september those junk bond started dropping in price.
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we're watching them again because this could really cause a lot of problems to managers of money. there for underlying investors. liz: let's not bury the lead. we have records on dow and s&p you got to witness it here. david: "the willis report" is next. >> hello, everyone, i'm gerri willis. we begin tonight with new outrage over those deadly exploding airbags linked to five deaths and dozens of injuries. the japanese manufacture you are takata is refusing to initiate a nationwide recall, putting onus on automakers. instead takata simply had this response when one of its officials was grilled on capitol hill today. >> we are deeply sorry about each case where takata's airbag had not performed as designed. gerri: republican congressman lee terry of nebraska is the subcommittee chairman who led today's hearing.

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