tv Markets Now FOX Business January 16, 2013 1:00pm-3:00pm EST
tracy: good afternoon, i am tracy byrnes. lori: and i am lori rothman. here's one way washington can avoid the debt ceiling showdown, get rid of the debt ceiling altogether. tracy: and grounded, and other emergency landing for boeing's dreamliners. planned as the top two airlines stopped planes from flying altogether. lori: on a post-it note just isn't enough. employee who allegedly stole $400,000 worth of copy machine
toner and resold it on the black market. you have to hear it to believe it. tracy: top of the hour. nicole petallides on the floor of the new york stock exchange. we can't seem to find our footing. nicole: interestingly enough we are not too far off of the unchanged line but we are up six of the last eight trading weeks. hovering around five year highs. as you noted early on, talk a lot about boeing weighing on the dow jones industrials today play with one issue after another. the s&p 500 down one point at 1471. it is also earning season. how they are faring. they came out obviously
earnings-per-share eating earnings slightly miss. a new high for dell. and all those names are lower. continue to follow earnings here all week on fox business network. we have general electric and some are gay and american express and intel just to name a few. back to you. tracy: we will see you in 15 minutes. lori: proof the fiscal neck is on the turmoil for the rest of the world. world bank releasing sharply increased global growth. chief investment officer joining us now. david, welcome to you. you're not alone in her criticism of washington, so given where we are we have this fiscal deal, what's we do now to preserve the economic growth? >> they could do it, but will they do it?
we have a white house that wanted a new attack on republicans, the republican repn response, we are back again replaying it here. as long as we replay the theater, the markets are doing something else. the market is saying okay, this is the new way we will do it. we will go to the 11th hour and they will make a deal. one is they make that deal, we have continuing, although it is a slow economic recovery and rising market in asset prices, if one of these days they don't make that deal, we're in for a shock. lori: so you are just tired of it. he lowered her economic forecast forecaster must you agree with them lower in the world economic forecast? >> i think so, but the affluent in the united states doesn't have a lot of influence on the economy, but the tax hike on the working men and women, 120 million people, that 2%
payroll tax is a killer, and that is all consumption of some. people spend the mone money thet have it, they reach into savings. that was a mistake, it was bad policy. i took growth down in the u.s. by half a point. lori: and you are telling us the economy has all the potential to break out. how much o ahead when will this fiscal policy have? is there any way to recoup it? any offsetting factor? >> unless washington changes its behavior. which is not likely. then the answer is no. we have this gradual recovery. it looks all right over time, has good pieces to it, energy, housing, the banking sector actually may be getting better. lori: must be a mistake on our washington leaders, what if they can achieve a grand bargain, get entitlement reform and we can sustain this debt to gdp level for the time being we can get to
underlining measures. >> it would be a glorious outcome. lori: are you optimistic at all it will happen? >> i would like it to happen, but i managed portfolios, don't manage policies. lori: how are you managing these portfolios right now? interest rates will remain at historic lows. >> stretch at all, low interest rates for a long time, gradual recovery that has been bullish for stocks, fully invested, we just need you to be the secretary of the treasury. lori: me? >> yes. you can run the policies, could be terrific. lori: the only thing i have on jack lew is better penmanship. what kind of produc products aru interested in? >> when you can buy the highest grade tax-free bond that pays you 3% today, that is a bond that has a zero default history
for the last 100 years and you can buy u.s. treasury 30-year obligation that is comparative security and it pays to 3% interest for the next years, the tax code is eliminated. that is silly. a tax refund is the bargain because the taxable equivalent yield would be over five. now if they make a deal on the debt deal that eliminates tax-free bonds being attacked, the tax-free bonds being attacked at the white house, then it changes as the markets are pricing in a risk that may happen. which means it doesn't happen, tax-free bonds are cheap. lori: bigger picture, we saw huge inflow of into the equity market last week. the data was shocking to a lot of people, are you seeing a rotation out of bounds because the rates have been low for so long? >> we had a massive inflow into bonds. early data would show there is a shift, but potential for a shift
to stocks given the relative yields and the potential i think it's quite good, very large, i like it. lori: thank you for sharing your outlook on things. good to see you. >> thanks. tracy: i love how he said in glorious outcome, that invokes like jesus coming down to make it happen or something. lori: and i could be the next treasury secretary. tracy: and you do have nice penmanship. president obama signing 23 actions in the last hour urging out the time to act on gun violence in america. peter barnes at the white house with the latest. peter: that is right, 23 days after the shootings in your town and surrounding himself with children on the stage at the eisenhower auditorium across white house, the president announced his package of gun reform proposals. he is urging congress to restore the fan on assault weapons. he wants it to also restore the limit on magazines to 10 shots
the guns used in the new town tragedy and 30 rounds. he also wants congress to approve universal background checks for gun purchases and those would include purchases at gun shows. and the president signing or directing rather 32, 23 executive actions and memorandums. the president acknowledging that this will be difficult to get through congress, but said he will put the full weight of his office behind these proposals. >> no piece of legislation that will prevent every tragedy, every act of evil, if there is even one thing that we can do to reduce this violence, if there is even one life that can be saved, then we have an obligation to try. peter: in a statement, house speaker john boehner said he
will refer the president's proposal to the appropriate committees for review and said he will consider any legislation that the senate passes and sends to the house. tracy, back to you. tracy: peter barnes, we will be talking about this for a while. thank you, sir. and we want to bring you up-to-date on the latest updates out of algae do. -- julia. not qaeda group claiming to have taken hostages at a gas plant. the group is saying the raid was retaliation progeria for using the airspace for attacks. they're working with the british government's, but at this hour bp says the field is still occupied by armed men. bp activated emergency response system and contacting relatives of the people on the site. this is having an impact on the price of crude oil? let's check in with fox business contributor phil flynn of the price futures group.
what is the story there? phil: prices are up, but because this is a gas plant early reports we got that could've been oil facility thatt that off with the largest concern for the marketplace right now is the safety of the oxygen, from a much larger perspective the safety of this plant. we know al qaeda in the past has threatened to use oil facilities as a bomb or an explosion. so that is an ongoing concern. so not only do you have to worry about the people, you have to worry about the entire area. like they're i they are in conta bomb. today oil prices are really focusing on what we saw in the oil inventory report, a surprise move on crude oil of almost 1 million barrels. how did that happen? two series right now. the shutdown of a pipeline in anticipation of expanding its capacity to get more oil out of oklahoma slowed oil to that area and probably seeing the impact of less production.
you put it all together, lower supplies getting oil back above 94. back to you. tracy: phil flynn, thank you. lori: don't call it a comeback just yet, but apple shares are moving charging higher. sliding for three straight days. tracy: from bad to worse for boeing. another incident in japan. time to ground the dreamliner? and they look at medals as we head to break. not a huge move, but down nonetheless. silver and kopper following suit. we will be right back.
charles: smith & wesson exploded to the upside. even as the president was throwing down the gauntlet. the really interesting thing because obviously you would think ultimately of everything the president wants to go through should hurt gunmakers, although for instance if you think 40% of gun sales are done through private transactions, if that deficit may be the sales to move to retailers or licensed its readers that already do these sort of things. lori: is it frontloaded though? everybody rushing to the stars s before the announcement today. charles: that has been the trend. as an investor you have to worry about maybe a year from now the stocks, a tough comparison because you can't have every single month a record, people doing background checks. one thing that was interesting in the earnings report i thought was remarkable for the first nine months of last year gone background checks were 32%.
distribution of 60%. they are running way ahead of background checks and this kind of shows you absolut tremendous demand out there for this. tracy: is it global distribution or just gunmakers? if it is global because before the united states last few weeks. charles: i think this is mostly a domestic story, but by having said that you look at a stock today. the high is a 52-week high of 60, so the stock already took a pretty good hit on this debate, and now it is starting to catch up a bit. if the street believes that investors believe, when it is all said and done, it probably will not change the business. as smith & wesson, a year from now these companies will have a tough time because you can't match what is going on now. lori: you to take out from
election day until today's announcement because that is an anomaly. right? once the president was reelected until today everybody was buying stuff. charles: a lot of people felt from the very beginning that the president was against the second amendment. he said today that he is not, but still hasn't stopped a lot of people from believing ultimately the gun rights could be taken from them. lori: that is huge. trolls: the fact they cannot keep this up. it is like apple at $700. great story, but can you keep it going forever? i think that is what some of the shorts are looking at. lori: charles, always a pleasure. it is 15 minutes after the hour, we have a check on the market. nicole petallides on the floor of the new york stock exchange. you're watching fast food companies today. nicole: i am coming to you.
now, chipotle give a look at their numbers and they're talking about slower sales, slower foot traffic and the fact they base food cost more than they had anticipated. they spent a lot of marketing and promotions, all of this comes to one phrase, their numbers will not be as good as people expect and so the stock is down 5.7%. also looking at wendy's which came out with numbers and beat the street, so their profits are soaring. that is good news for wendy's and overall. most of these games are down over 52 weeks but jack in the boxes up. back to you. lori: what happened with chipotle so hot for so long. tracy: and catering just in time for the super bowl. what do i know? how about this, this is a pr nightmare for the dreamliner. emergency landing for the boeing 77 in japan and now to japanese
>> it is 22 minutes past the hour. this is your fox news minute. president obama is calling for sweeping new gun-control policies and is stopping gun violence. he announced a comprehensive plan for banning assault weapons, limiting ammunition magazines to 10 rounds and requiring criminal background checks for all gun sales. interior secretary ken salazar is the latest cabinet member to lead the obama administration. he searched through the president's first tremendous push for renewable energy and industrywide ban on drilling following the 2010 bp gulf oil spill. he will leave the margin return to colorado. $51 billion hurricane center disaster relief act is now moving on to the senate. the senat will pass the house my
with democratic support. 179 republicans and just one democrat voted against that bill. that is your fox news minute. dr. lori and tracy. lori: thank you very much. this earnings season tech has been an unusual position. as we approached results from some of the tech giants, what companies can actually see a little sign? a little turnaround, little sunshine from sandra smith today in preview of today's trade. >> remember last year almost every company technology was leaving higher? this is what we have to look forward to hearing from the tech giants this quarter. fourth-quarter earnings down 1.1% for the big tech companies. while the average s&p 500 company posting growth of nearly 2%. so earnings from tech giants could be a major lag on the
stock market. i pulled up texas instruments which a lot of investors have enjoyed nice games. on of the top chip companies warning that fourth-quarter may not may not have been so great. this stock in the past six months up to 60%. warning of the fourth-quarter results. cisco systems, hewlett-packard, qualcomm, very weak pc market right now where people are converting over to the tablet and smart phones. the pc market is supposed to be hit. but intel is the first big name to report, it reports on thursday. this stock on the decline. it is cheap, the pe ratio at $0.45 per share, and also, anybody who likes dividend is, the dow component, the yield right now 4.4%. might be one to pick up on the cheap when it reports on thursday. we will see, back to you guys.
tracy: thank you, sandra. let's talk about boeing. the hits keep on coming for boeing. another emergency landing for an airline dreamliner. this time in japan, of course. boeing cut from a downgrade by goldman sachs. you're looking at shares today down another $2.70. or 3.5%. dan springer in seattle for latest developments in this saga. >> the stock was down from the beginning of the day but that's really stabilized and has been a measured response nationwide among investors and among the airlines. in fact, there are several 787th in the air right now. not all of them have grounded their flights, but the latest in western japan. a warning light came on and then there was smoke in the cockpit. passengers could smell it in the
cabin, prompting an emergency landing which went smoothly. there were no injuries but it appears to be yet another electrical problem, perhaps lithium-ion battery that sits just below and behind the cockpit. it was the first airline to buy the 787 and fly them. afterward the chairman apologized to customers and grounded all 17 of their dreamliners for further inspections. japan airlines followed with their seven planes. united airlines have been a safety check on all six of their dreamliners and they are all in service at this hour. several in the air right now. following a battery fire on a 787 parked at boston logan airport last week. that was a better used for auxiliary power, it prompted the faa to announce a comprehensive review of the dreamliners' entire political system from design to manufacturing and up through assembly. the big problem for boeing is what this is doing for the reputation of the first all-new
plane in 20 years and how much it is going to cost to get it right. it is already predicted the plane won't turn a profit for another five to eight years. before perspective it is important to note there has not been a crash and no fatalities, infects 2012 was the safest year in aviation history worldwide. it has not been a flying death in the u.s. in nearly four years. while there is concern among the airlines with these issues, there is no panic, american airlines just bought 42 dreamliners this week and plan on buying up to 75. lori: all right, dan springer. the latest after years of delays and billions of dollars in cost for the 787, but it is important to know boeing is the largest airline maker ahead of airbus. tracy: but they will not make money on it for four to six years. lori: that is the latest, we will keep you posted on any new developments. tracy: maybe the financial
stocks can pull us out of this malaise. blockbuster earnings from the biggest tanks. jpmorgan slashed. the ceo getting half of what he made just a year ago. keep in mind he still makes more than most of us will in our lifetime. lori: not too worried about jamie dimon, that is for sure. a man charged with stealing $400,000 in copy toner. and they loo look at some of ths and losers in an otherwise downmarket. the dow 30 component stocks mostly lower today although there are several positive performers. we are back after this. [ woman ] if you have the audacity to believe
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just like you. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. lori: let's get you updated
on stocks as we do every 15 minutes. nicole is on the floor of the new york stock exchange monitoring is going on in traders minds. nicole? >> i want to take a close look at automakers in particular. both names hit highs recently. here is a look at gm and ford today. both are getting hit. you see general motors and that's the one really with the headlines. it is down 4 1/2% at 29.2. ford motor lower, down 1% at 14.17. when we look at these two names here i can tell you those over the last six months are each up over 50%. as i have been noting they hit 52-week highs. the headline general motors is issuing a profit outlook for the year that falls short of the analyst expectations. so with that, that is why you're seeing some heavy selling there. they're saying profit would rise modestly this year and that the margins this year will be unchanged because of higher costs that are associated with some of the
vehicle launches that they execute cute. and higher advertising costs and other expenses that they face. as a result you're seeing general motors down today, down nearly 5% and ford also down along with it. back to you. lori: nicole, before we let you go we're fortunate to have a little extra time. what is going on with traders? president has been vocal on all things dealing with gun control today. are they keen on the president? >> they're obviously, are they keying in or are they keen? are they keen, no. are they keying in, yes. i answered both questions. for gun control there is lot of chatter pertaining to that. the debt ceiling remains front and center and weighs on the markets and on the minds of traders every day. as far as major market averages they continued to stay near the unchange lines. the nasdaq is being helped heavily by apple bouncing back. these are types of things that they keep focusing on. lori: you are a pro. thank you, nicole petallides.
tracy: if they were so keen on it you would think the market would be in the toilet? lori: i met keen, meaning are they making decisions based on what they're hearing from our leaders. >> i'm not necessarily sure. we're down 29 points. lori: maybe they don't know what to make of it. tracy: there is that. maybe our next guest does. we have blowout earnings from wall street's biggest banks, goldman sachs and jpmorgan. shares of both companies soared both actually hitting new 52-week highs today. ubs director of equity research is here with more. positive earnings. you expect the rest of the banking system to report postively as well? >> yeah. i mean i would say usually these entities work as herds, right? not as though one is a huge outlyer and the others are not. one thing i think is really interesting we saw with both jp and goldman the comp leverage within the investment bank. the comp accruals were meaningfully more than most folks expected, myself
certainly included. that led too much better-than-expected result thanks to that operating leverage. so i think we can count on that for tomorrow when we have got citi b-of-a and friday when we got morgan stanley. tracy: jpmorgan's production revenue down i guess more than you guys were expecting but at the same time both are reducing their loan losses. this has to bode well going forward, right? less bank defaults. excuse me, housing mortgage defaults. >> right. usually with the production revenue that is just the origination that they go and sell off to fannie and freddie, right? tracy: right. >> they're actually not taking a whole ton of credit exposure there. but you're right in the loan book the reserve releases do continue and what is interesting is previously been mostly with credit card. jpmorgan increasing confidence in the housing market and continued decent economic growth is allowing them to draw down more reserves in their mortgage book. the point on mortgage production i think though is interesting.
while volumes have continued to be strong we're seeing the yields start to compress. tracy: right. >> what the banks are able to actually print on that business is starting to deteriorate a bit. tracy: right. which i guess is not a great sign. at the same time, goldman sachs in your note you noted a big rebound especially in their own trading activity. that is kind of counterintuitive based on what the president is trying to do, isn't it? >> they're investing in lending book which is really more of a merchant banking operation. it is not really a volcker or, you know, prop trading type of operation. so they will take, it's a lot of lending businesses and some investing that at the do on a emerging banks business. not necessarily the same sort of thing as like a hedge fund within these entities. tracy: what i think, you know, so brilliant about these banks they will find away to make money regardless of rules that come out of washington. before i let you go though, you have both stocks up.
goldman sachs up 42% over the last six months. jpmorgan up 32%. is it too late to get into them now? >> well, to me, goldman sachs seems about fairly valued right now. when you think about potential return on tangible equity, it will probably be about 10 to 11% next year. the stock is currently right at about a one, to 1.1 times tangible multiple. to me that is about fairly valued. however jpmorgan, you know, you're looking at somewhere between a 13 and 14% return on tangible. it is only trading 1.2 times. i prefer jpmorgan here. tracy: jpmorgan over goldman sachs. hey, thanks so much for being with us. >> thank you. tracy: that was good stuff. lori: if you do say so yourself. tracy: i'm saying he was very informative. the banks are going to make money regardless what washington does. lori: jamie dimon, no matter what his bonus situation is like, won't make any difference. tracy: you have to know there was going to be a slap on the hand somehow. lori: from the 6 billion in
trading losses last year. tracy: for jamie it is a big slap but i think expected. all right, we've been talking about this all day now, the president rolling out his new plans for gun control but is his aim off the mark? no surprise, lou dobbs will weigh in on that next. lori: we've been talking and talking and talking about record low rates. there you go. they're cruising lower again after a little bit of a shake-up and backup earlier this week. the 10-year, back up to 1.81%. we're back after this
>> i'm sharl casone with your fox business brief. consumer prices remained unchanged in december as lower gasoline offset food and higher rent. retail prices rose 1.7% last year which is down from the 3% rise in 2011. the u.s. fiscal crisis is still the biggest single individual risk facing investors, according to a new survey of fund managers published by bank of america merrill lynch. the european debt crisis came in second and a hard landing for the chinese economy was third on that list. dunkin' brands set its sights on the golden coast again the doughnuts and coffee chain is going to be opening up shops in southern california in 2015, returning to the state after more than a decade. dunkin is looking for more opening in venues like
lori: earlier today the president calling for a new assault weapons ban and 10 round limit on magazines. this is all part of a comprehensive plan to curb gun violence including some steps he would take without congressional action. lou dobbs is here to weigh in. what were your thoughts listening to the president earlier? >> it was galvanizing, first of all he is exploiting deaths of 20 children to drive a political agenda which is to constrain the second amendment. he had children up as props. went on to suggest somehow that the national liberal media that supports him, maligned their motivation were creating fear, the national liberal media for ratings, for circulation
purposes. an extraordinary political act. one we look at the market as indicator the market is very clear. they took all of this in stride. dismissed it and moved onto the issues that matter most to americans, namely the economy, deficit and yes, even the debt ceiling. tracy: did he miss the boat though? i mean -- >> he missed --. tracy: you have an evil streak in you, you're going to do bad things. >> if you have an evil streak. if you're also mentally ill because the last four of these mass shootings, tragically have all involved mentally ill individuals. their actions, their actions are solely responsible for what transpired. nothing this president, interestingly, putting out 23, memoranda, second i have is -- executive actions calling on congress three basic things on gun control, none of them approach the issue he said this was all about, that is protecting our children.
there was not one proposal or in sum all of his proposals today, that rose to the level of security and safety offered by the nra proposal to put armed guards at every school in the country. i mean that's, that is breathtaking. and how many in the national liberal media will talk note of that fact? lori: what is interesting to me, what i've been thinking about over these last couple weeks especially since newtown and mother of a kindergartner in school not more than an hour or so away, how there is desensitizing, sorry, violent videogames, fine. parenting, and this transition from playing games to reality. and i think that is where the mental illness, not to get into the whole gun control debate but i wanted to hear more. if the president will take this executive action i want to hear more from him about what we'll do about that in providing resources and help
to go to. >> our job is always to be skeptical of power, particularly presidential power and the way it is employed. in this instance, lori, you're right. he referred to videogames, but for videogames suggested only a study. no action of any kind. no proposal of any kind. lori: not videogames in a vacuum, sorry to interrupt you. the transition from videogames and maybe where this is mental illness comes in and maybe bad parenting. >> mental illness itself to me is, center, absolutely at the front of that discussion. videogames are one thing. and it is instructive to see what happened today, if i may because the president refered to video games and wants to study that. but in terms of constraining and affecting the gun rights of millions and millions of americans and fundamental constitutional power of the second amendment, he didn't hesitate to act. and that tells you something very profound and very loudly.
he also, in silence, made another important point. he didn't mention hollywood and movies, and the violence. lori: considering they are one of his biggest donors still. >> puts belie to the whole prop tone of the thing t was propaganda. it was agitation and directed at a specific purpose and in my judgment that purpose is straightforward. that is to constrain the second amendment rights of all americans. not protect children. the nra has made that proposal. lori: i'm sure you will carry the theme on to your show this evening. >> absolutely. lori: 7:00 p.m. tonight. one of your guest of many, texas attorney general greg abbott to talk about the president's 23 new executive orders on guns. >> thank you. tracy: quarter till. time for stocks as we do every 15 minutes, nicole petallides on the floor of the new york stock exchange. facebook after this mystery
graph announcement. by the way who came up with this name, right? what this is this graph search thing? >> i don't disagree with that, because graph search meant almost nothing to me until i read through and actually saw that, that facebook actually refers to its growing content data and membership as the social graph. so to them, and these insiders, graph search means something. so now it has to mean something to all of us. basically gives all the folks the ability to search between people an places and things and common interests and such. i can tell you yelp has been down all week. stearn ag is very positive on the whole thing. stearn agee and cantor fitzgerald. they think this is a great opportunity. back to you. tracy: shibani, forgive me, it is a big ol' dating system. lori: apple setting its sights on china. the ways iphone maker plans to make inroads there. tracy: lake levels in
michigan are low. this translates to higher prices on store shelves across the nation. we'll talk more about that. we'll talk more about that and let's look at some winners and losers on the nasdaq. we'll be right back. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪
lori: more bearish calls on apple today but the stock is resisting. shibani joshi tells us why. >> yeah, would think the stock is down considering how pessimistic people have been on apple shares. shares are not down today but down over the last three months or so, down 20%. but bucking the trend a couple things that could have weighed on the stock but are not. first downgrade by pacific crest which downgraded the
stock to sector perform, saying quote, we believe that the higher end of the smartphone tablet markets are becoming saturated. basicallyally all iphones, tablets they sold have been put out in the market. other bearish factor, company is seeing big executive departure. vice president of retail, jerry mcdoug gal resigned today. there are a couple reasons we think he resigned. not necessarily bad indications internally but he may have been overlooked for a promotion. that is why he is leaving. not necessarily because of other internal problems that could have weighed on the stock but it is not. lori: we spoke how ceo of apple tim cook says how important china is. now we're seeing an effort to boost sales there. >> this is interesting. you and i talked about why china is so important. they're doing really interesting things that could trickle over into other markets. we talk about how expensive apple products are at a premium versus other company as products. they're allowing chinese
customers to pay installments over two years because the average iphone is like six weeks salary for an average chinese worker. instead you can spread it out over a couple years. now they're able to get sort of the middle, middle of the road customer as opposed to a high-end customer. you have to get a special credit card with a chinese bank and probably interest associated with it. tracy: i think that is pretty brilliant. part of the reason many people buy the galaxy and samsung galaxy and other phones is the cost. >> this is one way of getting around it. we don't have any reason to believe it may come here. they're testing it in really important market. if it works well it could sort of counterbalance all of the criticisms we've been talking about the last few months that apple products are just too expensive. they're for high-end customers. this allows people in different demographics to buy them. we'll see. lori: we'll see for sure. shibani, thank you.
tracy: i think it is good idea. i would go on installment plan, and keep my money in my own pocket. admit. you probably snuck a paper clip or two from work. i'm addicted to binder clips. every bag in my house has binder clips. lori: i know what i get you for christmas. tracy: or legal will call me any minute. a woman who worked in prominent law firm has been indutied by a state grand jury for stealing wait for it, $376,000 in copy machine toner. lori: a lot of instaed fingers. tracy: according to the district attorney's office for two years the worker ordered more copy toner cartridges that the firm needed and turned around and sold them on the black market of discounted price of 10 to $15 each. the retail value of stolen toner was valued at $280 for
a cartridge. holy heck. lori: that is big black market. that is markdown. tracy: rodriguez was caught during an undercover sting operation in mid-december and confessed following his arrest. give you value of stolen goods. copy toner is $80 an ounce. unleaded gas comes out to 26 cents an ounce. alaskan salmon caviar is $4.25 an ounce. dom perignon, $6.40 an ounce. tracy: there was a need for tony. i'm telling you. we might be onto something. maybe this is how we save for college. all right, still to come how is turbotax adjusting to all the fiscal cliff changes in the tax code? we ask vp coming up. he will have the tips for this return this year and
tracy: i'm still here. i'm tracy byrnes. ashley: hello, i'm ashley webster. good afternoon, everyone. the london whale swallow $10 million out of jamie dimon's pockets. quite an image, isn't it? jpmorgan slices his bonus despite turning a record profit. tracy: everyone is playing a baby violin for him. turbotax vp gives us tips for navigating your return and protecting yourself online. ashley: good advice. new controversial for the nearly $10 billion energy drink industry after a spike in emergency room visits. fox news's dr. manny will tell us whether energy drinks are safe. do you drink the energy drinks? tracy: i do on occasion but
one, not 14. ashley: five an hour is not good for you. tracy: i don't know much but i know that. but first, we have some breaking news from the federal reserve. peters barnes at the white house to give us details. we've been talking about a lot of stuff today. what have you got for us? >> tracy this is the latest fed beige book survey of economic conditions and says quote, economic activity has expanded since the last report in november with all 12 fed districts characterizing the pace of growth as modest or moderate. here is good news from the report, activity in new york and philadelphia it says, rebounded from immediate impacts of hurricane sandy. this is the economic survey that fed policymakers will use at their next fomc meeting on january 29th and 30th. it is informnal survey of economic conditions from the 12 fed districts. the key takeaway here is on labor market conditions, which and the report says, labor market conditions
remained mostly unchanged with some high hiring by employers delayed because of concerns over the fiscal cliff. now, as you know the fed is very focused on trying to get job creation going, get the unemployment rate down, keeping all this stimulus and qe forever going, until the unemployment rate gets down to 6 1/2%. so, nothing in this report suggest that is the fed will be backing off at its meeting at the end of the month. tracy and ashley. tracy: qe infinity. peter barnes, thank you very much. moderate, modest, those are all nice feel good words. ashley: by today's standards, qe infinity. sounds like a new lexus. market came down 24 points, and guess what, it is down 24 points. let's go to nicole petallides on the floor of the nyse. nicole? >> i was watching the same exact thing whether or not the market would move at all for these headlines that peter just delivered and
it's true. the market remains down just about 24 points at this moment. 21 of those points are from boeing. boeing having another tough day with yet another issue. you do see that the dow is lower. however, the tech-heavy nasdaq is doing well, thanks to apple which sup one-third of 1%. s&p 500, squeezing out a gain. big turn to the positive. look at names that reported. goldman sachs, jpmorgan, both beating street. goldman sachs here at new highs. it is up $5.62 at 141.21. dow component jpmorgan beating the street with quarterly numbers but revenue a little shy up half a percent. financials doing well today. back to you. ashley: they are indeed. nicole, thank you. we'll be back in 15 minutes. tracy: the dance over extending the debt ceiling in washington is on as lawmakers on both sides of the file fight over issues like deficit spending and things we've been talking about for years now. rich edson is in washington with more. any progress, rich? >> no.
with about a month or so. ashley: rich, thank you. >> back to you. look we've got about a month left before the government reaches the debt ceiling and the two sides are as far apart as they ever been. democrats say congress routinely increases debt ceiling. it allows the federal government to pay for spending it already approved. they say deficit reduction is different argument and they're now proposing eliminating the debt ceiling. >> we must not permit an artificial debt ceiling to throw the country into default and our economy into chaos and depression which is exactly what the republicans are threatening to do. it is time to abolish the debt ceiling and our levels of taxation and spending will be set as they always have been by congressional action. >> republicans argue washington has linked several increase in the debt ceiling to deficit reduction deals. it serves as reminder how much the government has borrowed. senate minority leader mitch
mcconnell writes, over the past three decades in fact u.s. presidents and lawmakers from both parties routinely used the debt limit debate to reform government spending. washington democrats under pressure from their favored interest groups continue to adhere to an outdated ideology that says every penny of revenue washington ever got its hands on is sacrosanct. house republicans are enroute to williamsburg, virginia for their retreat. they will consider the options for the upcoming debt ceiling fight. short term increase with modest spending cuts to a 4-year increase including overhaul of the tax code and entitlement programs. back to you. tracy: sound ambitious. rich edson, glad you could stick around and talk to us. we're 29 days away from the debt ceiling d-day. ashley: we are. tracy: will be valentine's day actually. ashley: not pretty though. as you just said, tracy, less than a month away from hitting the debt ceiling. while several ideas have been floated to address it our next guest says it is time to skip the gimmicks to
reach a long-term solution. wouldn't that be nice. tracy: imagine. ashley: maya mcginn necessary, committee for responsible budget and head of the campaign to fix the debt. maya, democrats came out with a new plan to eliminate the federal debt ceiling. tim geithner thinks we should eliminate it. ben bernanke thinks we should eliminate it. moody's a while ago why are we using a debt ceiling because we're one of the few countries left in the world that does. we have a debt ceiling but look at the debt problem we're in. what good is it? >> well, i think as it stands right now the debt ceiling is one of the only reminders that's there to push action. if we take a step back, think about how we should actually deal with this, which is there is a huge fiscal problem. we all know that. congress, instead of fighting over the debt ceiling and fingerpointing on the general issues, should be working to fix that problem. we know that is going to take, involve looking at all the different areas of the budget and really making the tough choices about how you bring the debt so it is no
the growing faster than the economy. congress seems to use every opportunity to pick a partisan fight. should we use the debt ceiling. should we not use the debt ceiling and to punt on these issues. if one members of congress are back here working and two, they were working on fixing problems we know exist. our deficits are too large. we're borrowing too much. they could actually put in place a plan that would gradually deal with these problems. you lift the debt ceiling because you have resolved what is standing in the way. must be a smarter way to approach this. tracy: i get what you're saying. you need some sort of litmus and some sort of bar. but at the same time the markets moved on from this. if they were that concerned we would be down more than 20 points today. we still have a pretty darn good credit rating even though moody's keeps threatening to drop it. they threatened before. if we were in such dire straits, i think you would be feeling it in other places and really aside from us blow harding about it on
the news all the time. i'm not sure anybody cares. >> well, that is a great point. markets are reading a lot of different tea leaves and have a lot of different concerns. the first point i would make, keep in mind the u.s. is still a better economy than so many of the economies around the world. and so we benefit from that. we remain the a safe haven at the moment, until we aren't anymore. the question is, when will that happen. the second point is, markets have many immediate threats to be worried about. recently we had, are we going over the fiscal cliff or are we not. now the question whether the sequester will hit, which would be too much deficit reduction in too many parts of the budget too quickly. will we have a government shutdown because funding will end? and the debt ceiling there are a lot of action-forcing moments markets are worried about. the bigger issue is our deficits and debt. the fact that is more like thing from in the boiling water. it gradually undermines your economy's ability to perform, it hurts economic growth and
takes away the stability that allows us to generate growth through investment, job creation, all the things we need to get the economy going. markets will not like to respond to that on any one day. it will hinder our economic performance. for now already hurting our standard of living and going to more in the future. that is a harder concern to see moment by moment but, it is the biggest in the long run. ashley: it is indeed. maya. thank you so much. we didn't have time to get into entitlement reform and reforming the tax code, two huge issues i know you're very hot on but remains to be seen. based on what we've seen so far in washington it will be a big, tall order. maya, thank you. tracy: coming up, speaking of the tax code, delayed tax season, well, starts two weeks from today. turbotax vice president bob meaghan is here with the biggest tips for your return. ashley: boeing's dreamliner nightmare won't go away. the the stock is tumbling. we'll look how oil is
performing, moving on up a little bit. up about 59 cents at 93.88 a barrel. we'll be right back. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing.
tracy: the dow is down 33 points but charles is back. he will tell us who you to make some money. we're talking about the gun stocks in the last hour. man, they're on fire, charles. >> this he really are. you have two things. obviously sort of social impact, of this debate. i think the guy who runs the money for new york state said he will not invest in these kind of stocks anymore. probably they will make a few sinless, if you will. by the same token there is no denying business is absolutely amazing for them right now. and the big question as an investor is, okay, you have these stocks that have pulled back since the debate began. they're up big since the president spoke, i think in part to some sort of realization a lot of things he would like to get through
probably won't go through. if you think about it, i thought about it, say 40% of the gun sales are done privately without any background checks and that becomes part of the law, that actually will probably help these guys to a certain degree. certainly help someone like cabelas, a retailer and already does background checks. tracy: i think it will backfire on the president. people are at home, i think i should buy a gun. people probably now about it before. >> why? ashley: just have one just in case? tracy: i think you will have people --. ashley: who is biggest seller of guns? wal-mart? >> could be wal-mart. one of the better retail plays is cabela. not a lot on my service. ruger is up like 4 1/2% since the president started speaking. smith & wesson, a name we all know, sort of a household name. but the other part of this as an investor from a longer period of time. forget about near term. i think you can get a trade. say you want to buy and hole the stock next couple years,
these comparisons will be tough. to your point, tracy, people normally wouldn't have thought about this, have the sense of your again system background checks are through the roof. membership for nra has gone nuts. this whole thing has been amazing amazing thing for everyone associated with selling guns. comparisons a year from now --. ashley: will be a little false. >> will be tough. real hard to beat what is happening right now. these stocks are oversold. there is huge short positions on both of them. could see another 10 to 15% move on them to the upside if someone is looking to be a trader. tracy: charles payne. it will keep going. >> sure is. ashley: almost a quarter past the hour as we do every 15 minutes let's check the markets. nicole petallides on the floor of the nyse. you're looking at a couple of big losers. >> big losers. i always feel badly for shareholders long these great companies but at the same time there are days that are tough ones. boeing has actually had a tough week or some today the stock is down nearly 4%.
today was latest of several issues they have had, a brake issues and fuel leak and electrical issue. now today we did have nippon airlines, japanese airlines, they're actually grounding the fleet all together. so it is weighing on the dow jones industrial average. over 20 negative down points from boeing alone. >> costs were higher than they expected for marketing and food sales. customer traffic has been slowing to a certain extent. getting hit hard, chipolte is down 5%. it recouped some earlier losses in the day. back to you. ashley: thank you, nicole. we'll be back in 15 minutes. tracy: on deck, more americans are filing their tax returns online. so how can you protect yourself from fraud. turbotax's bog meighan is here next. ashley: how is the dollar moving with the dow drifting lower? guess what, all of these
currencies down against the dollar. euro, pound, canadian dollar and mexican peso. in other words, the dollar is up. we'll be right back. ♪ [ slap! ] [ slap! slap! slap! slap! ] ow! ow! [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium-rich tums starts working so fast you'll forget you had heartburn. ♪ tum tum tum tum tums tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platformrom charles schwab... tdd#: 1-800-345-25 gives me tools that help mfind opportunities more easily.
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fox news minute. al qaeda linked militant group is claiming responsibility for the raid on a bp gas field in algeria. senior u.s. intelligence officer confirming three americans are among the 41 hostages there. the al qaeda group says the attack is in retaliation for allowing france to use algerian airspace. french troops have been launching airstrikes on radical islamists in neighboring mali for 6 days. $51 billion hurricane sandy relief act is going to the senate. the bill passed 241 to-180. 41 pubs voted for the bill. interior secretary ken salazar is the latest cabinet bem her -- member to leave the administration. he pushed for nationwide plan on offshore drilling following the bp oil spill. that is the fox news minute. ashley. ashley: heather, thank you very much.
we appreciate it. this earnings season tech is in an unusual position, dragging down corporate america instead of boosting it. as we approach results from some of the tech giants which companies could shine through? sandra smith smith has preview in today's trade. sandra? >> complacent can be your worst enemy. look what is expected to happen with fourth quarter earnings with the big tech giants. thomson reuters according to analysts earnings are supposed to be down more than a full percent and s&p five00 companies are expected to post earnings of 2%. tech expected toe be a major drag on fourth quarter earnings. watch out for chip-makers. they're supposed to be one of the worst performing groups within the tech sector. intel kicks things off. it will report on thursday and mind that big slide we've seen in the stock over the past several months. also texas instruments is one of the companies that has come out and warned ahead of its results. applied materials, this one made a major come back over
the past six months, up 16%. it recently warned about weakness in the fourth quarter. remember the pc market has been weak globally. cisco system, hewlett-packard, if you own any of these companies, these these companies warned ahead of reporting results. if you're looking for a company that shined, i have to pull up apple. we've been talking about apple a lot lately, guys. did i bring it up. here is the precipitous decline in apple shares. a lot of analyst talking about value in apple shares. getting a nice $21 boost today. guess what, guys? fourth quarter profits at apple expected to be down 3.8%. way underperform the broader market. they have only missed their estimates four times in the past 10 years. that is four quarters in the past 10 years. so this this will be one to watch. i leave you with this, ashley and tracy, get fancy with you for a second. where goes apple goes the nasdaq. right now apple has been a major drag on that nasdaq. i think everybody would like to see a turnaround there. back to you guys. ashley: no doubt. sandra, thank you very much.
ebay reporting later today. watch "after the bell" for full coverage for full results that is 4:00 p.m. eastern. so keep it right here on fox business. tracy: it is everyone's favorite time of the year. no, not everyone's. just mine. tax season. there is plenty to navigate this year. we have a delayed opening. increase in e-filing. we have a ton of stuff to talk about. you can do it on your phone. thankfully bob meighan with turbotax is here and he is here every year. one thing people need to take comfort in knowing, all the garbage we've been talking about with increases in tax rates and doesn't truly affect their tax return this year? >> that's correct. 2012 is pretty much the same as 2011 in spite of all the pub lusty about the fiscal cliff. tracy: i know. >> most of those changes affect 2013 and beyond. tracy: so, because they punted, our congressional leaders, they extended all
the extenders, all the tax breaks for teachers, things like. the amt patch was put in. for the most part, as you said after all that, everything is kind of status quo? >> with the exception that the irs is announced that they're opening their doors january 30th, instead of january 22nd. so that delay means that people's refunds will be slightly delayed. but the thing that i'm telling everyone and the most important thing is, file now. we're open for business. others are open for business but by filing now you're first in line to get your refund when the irs does open their doors. so we're accepting returns. as soon as the irs opens their doors we'll fight like mad to get your return in there. tracy: first in, first out for anyone that took accounting. if you got your w-2 early, often times they don't come until the end of january, you say the second you get it, file it and get it in? >> absolutely. in addition to filing early, file electronically, you
will get in line before everyone else, particularly those manually filing or sending it by mail and select direct deposit. most people filing in january and february are getting a refund. selecting direct deposit. refund goes directly into the bank account and have it a few days earlier. tracy: generally within two weeks. you're right. those of us that owe money wait until the last bitter second to write the check. there's been a lot of talk about identity theft and fraud and are you worried about especially online? people putting their information online, does that worry you? >> we take fraud very seriously and work closely with the irs. but it is an irs issue for them to put in the right procedures and processes to insure fraud gets eliminated at front end. there are common sense practices, people can do to safeguard their identity. for example, safeguard your social security number. tracy: right. >> don't give it out unless absolutely needed. you get a lot of statements in the mail when you're done
with them, throw them out. sled them. people will dumpster dive -- shred them. be careful this. check your credit report frequently. there are many free credit reports you can get. check them periodically. last, if you are affected by fraud in any respect, the irs has a special division dedicated to helping you get that resolved. tracy: quickly before i let you go, talk about your mobile apps and what people can do on the go. >> it is amaze, tracy. people are skeptical when you say you can do a return on iphone or tablet. tracy: right. >> very possible given the technology in the phone. ability to scan the w-2 in. have all the information transfer to the form. if computes. with five to 10 minutes you can file your return. >> i've seen this. >> amazing. >> second year you're doing this now? >> this is our third year. tracy: for people just have a w-2 just really cool. >> 45 million americans have
a very simple return where they could use that. tracy: you will come back and we'll talk about 2013. we're not worrying about that as far as tax prep goes. bob meighan, turbotax vice president. shares of institute, the parent company of turbotax hitting an all-time high today, despite nasdaq's decline. good stuff. ashley: i've seen the commercials. take a picture. tracy: for a college kid with a job or anybody like that, get it done. ashley: the future. coming up the london whale cost jpmorgan $6 billion. now it is costing jamie dimon 10 million out of his own pocket. liz macdonald on the story next. plus who does a better job paying off credit card debt, older or younger americans? hmmm. gerri willis has the surprising results of a new study just ahead. tracy: i would like to hear that. first let's take a look at some of the day's winners and losers on the s&p 500 as we head out to break.
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and that makes a difference in my breathing. today, we're ready for whatever swims our way. ask your doctor aut symbicort. i got my first prescription free. call or click tolearn more. [ male announcer ] if you can't afrd your medication, astrazeneca may be able to help. >> taking a look at the dow 34 you. the dow off about 22 points. thanbank of america higher. tracy: look at boeing. dennis: nicole petallides standing by. nicole: i'm here with ben willis, and we were chatting about everything from what we were seeing out of washington. you wanted to focus on another sector that is not front and center today. >> it has been for hedge funds back when they were falling apart, but the housing industry. the mortgage origination
numbers, goldman sachs saying the sector they want to focus their attention on. facebook talking was seeing strength. well everybody wants to talk about apple for what is going on in washington, there's a lot going on in the housing market. nicole: we have seen the stocks run-up over the 52 weeks, what do the traders think about that? >> the traders want to be cautious. they say take a look at the housing stock and see if there is something there you understand. nicole: back to you. dennis: thank you very much. some sort of emergency. tracy: i am on for like an hour and a half. earnings season in full swing and we heard from a slew of major bank this morning. jpmorgan chase feeling the headlines despite favorable earnings, cutting jamie dimon
salary by over half. all because of $6 billion london whale's trading fiasco. liz macdonald has more on the bottom line. still makes more money than i will ever see in my lifetime. >> for me. and the headlines out now is the london whale's swallowed more than half of jimmy diamonds pay. we knew this was coming after the federal reserve and the officer of the controller for the currency basically slapped the bank with enforcement actions and ordered the bank to take action. the other news headlines coming out of jpmorgan chase is not just that it had a third straight year of profit hosting a nice profit, but two internal reports came out about the london whale strayed which resulted in $6.2 billion in losses at the bank last year.
still half a dozen regular toryy probes going on at the bank but here are the headlines out of the two internal probes. the board of directors kept in the dark because of the office, the risk manager in the investment office. and also they report back into the board were tailored, excise, and they were edited in the board was not given the full detail of the riskiness of the trades. jamie dimon's reputation already dented. he is saying he fully accepts the board's move to cut his pay by more than half. goldman sachs earnings surged dramatically firing on all funders across the board. their net income basically almost tripled to $2.83 billion the company that handily beat expectations. they posted a $5.60 versus
expectations of $3.54. goldman sachs shown the way how to do investment banking in a not so great climate. tracy: thank you. we had an equity analyst on the 1:00 hour and he said he had a buy on jpmorgan. ashley: interesting. oil closing up $0.96 moving closer to that $95 per barrel level. a gain of 1%. you might associate credit card debt with the responsible twentysomethings, but not actually true. gerri willis is here to explain who is racking up those bills. >> their average debt according to a new survey under 50, 6200. this isn't the whole range people at the specific subset.
the thing that is really disturbing is they are not buying high-end bottles. they are buying the basics. dental work, you name it. these folks struggling to make ends meet. said they were suffering from a jobs lost. they also paid the debt off less quickly than younger people. there are several things going on. income is stagnant especially for middle income people. older workers particularly stung by the recession and had a hard time getting jobs again. you can say the twentysomething people have nothing to do with this but at the end of the day we're talking about mom and dad. helping out the kids. ashley: they are not having the bills. tracy: they have a lot more student loan debt. they kind of have the weight of the world on their shoulders.
tracy: you have to worry about that because these are the people who should be saving for their retirement. a lot of them are not and should be in their prime earning years. so this is disturbing. tracy: these children that are taken these parents when they have no money in retirement. >> that is what you have done for. tracy: i could have taken a year with each of them. ashley: you could be up at the shady pines retirement home before you know it. tracy: put me in six avenue and run me over before you put me in a nursing home. speaker you would have fun, you would be going on outings and organizing people. ashley: what do you have coming up tonight? >> guns, guns, guns. the debate of guns at the top of the show. just talking about how
underwhelming the press conference was. takindig into the details on th. ashley: all right. thank you very much. and don't miss the "the willis report" tonight right here on the fox business network. we have some breaking news for you. the "wall street journal" reporting hewlett-packard received expressions of interest for autonomy. sources are saying the interest mainly from other u.s. tech companies. of course interesting, we will stay on top of this. hewlett-packard stock up 3% right now. 17.05. tracy: coming up, our energy drinks safe? they're sending more people to the er. fox news dr. manny alvarez will weigh in on that's next. ashley: and as we do every day at that this time, the 10 and 3r treasuries. you have a look. we will be right back.
flight. the world bank is cutting its estimates for global economic growth this year because of the slow economic recovery in developed countries. also a lengthy political battle in the u.s. over raising the debt ceiling. losing confidence in the u.s. dollar and rattled financial markets. consumer prices remain unchanged in december lower gas costs offsetting expensive rent. retail prices rose 1.7%. down from the 3% rise in 2011. that is the latest from the fox business network giving you the power to prosper. . they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people w are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other,
which isn't rocket science. it's just common sense. from td ameritrade. tracy: the number of people going to the emergency room after taking energy drink has doubled in the past four years. according to a new government survey across the country. what does this mean for the nearly $10 billion industry
which is already under a ton of pressure by the fda? dr. manny heldreth joins us now now for his medical dollars report. >> what it means is i hope the fda wakes up and starts a thorough investigation because the numbers are 20,000 from 2011. they started looking at er related visits. we went from 10,000 to 20,000. and that is just the tip of the iceberg because it is predicated 235 hospitals or so that are reporting the data according to the fda. so the numbers are huge. target population 17-25. 17-25 puts people at risk because for a lot of these young people they may be taking other medications, a lot of kids adrenaline or adderall for instance making their heart rate faster. if you compound that with energy drinks of course you get a risk of heart attack.
the same thing for people that make these drinks with alcohol. are you listening? alcohol toxicity. the question has to be asked, do we need warning labels on these cans, do we need to limit the sales of these cans to minors, a lot of the marketing: this is an industry growing by 70% over the last five years. look at red bull, monster, those type of companies. sales up 17%. and they target specific young crowd events, sports, things of this sort. my kid is 17 and they had a red bull bar inside this compound. ashley: we're talking about quantity here. these kids, god bless them, are drinking too much of it. tracy: if you drank three cans of any of these drinks, three cans would equal about 17 or 15 cups of coffee.
there's a lot of caffeine for anybody. you can imagine when you have underlying medical problems if your takinyou're taking any kinf chronic medication. we have talked about energy drinks, this is like the third story of 2012. i hope now with these statistics the fda will say we should do a prospective study about the safety of these drinks, and i am all for business. but come on. ashley: older people drinking this, could really hurt their heart. speakers are hard to get a young middle aged men like myself drinking any of those things. i am more for the t. or wine. a little bit of scottish with moderation, of course. tracy: i suppose. i don't know.
ashley: a quarter until, stocks every 15 minutes, nicole petallides doesn't need any of these energy drinks. she is a live wire. more in the breaking news you just reported on hewlett-packard. nicole: this is a stock that actually traded lower at one point today but certainly moving near the height of the day. $17.27. so we're taking a look at this dow component, this is the news, hewlett-packard has received interest from potential suitors for a couple of things. remember that is the division f the tech giant that it acquired back in 2011 that had some accounting improprieties. and also looking at electronic data systems that there have been potential buyers expressing interest. a tech services company they purchased for nearly $14 billion. meg whitman is not in a selling mode for the most part to keep things integrated, but did say things no longer help with
objective may be on the table. this may be one of those cases. right now for%, what a move in today for hewlett-packard with the dow component. dow jones industrials not budging right now. back to you. ashley: not one bit. nicole, thank you very much. homeowners or home builders definitely feeling confident about the future. their stocks have been climbing. is there more upside ahead? that is next. tracy: a look at the winners and losers on the nasdaq heading out to break. apple as shibani joshi has been reporting, a nice turnaround. we will be right back.
ashley: homebuilder confidence held steady at a new seven-year high in january according to the latest national association of homebuilders survey, so what does this mean for the house recovery in the recent run-up in stocks? a senior analyst. thank you for joining us. believe it or not, homebuilder was one of the best performing sectors in 2012. we are seeing signs of a recovery, no doubt about it. what can we expect for this year? will we just kind of slowly build? >> we ar we're really optimistin the outlook for housing in 2013. three things we're really talking about, low interest rates number one, tighter
inventory levels number two, and a stable price environment. although the overall economy in the backdrop remains sluggish, we think housing is a bright spot. ashley: one of the critical issues we talk about is the availability of mortgages. do you think we will see a turnaround? we will not go to the mortgage for everyone policy of the olden days, but will we go back to what is considered somewhat normal standard, because they're pretty strict right now. >> that is a great question. it is uncertainty on the political front at washington, d.c., and the status of mortgage reform which is definitely an impediment toward the recovery. but our overall view is that it is so important to get housing back on track and heal the economy that it won't do a thing from a political standpoint to prevent greater accessibility of credit. we are not going back to the
good old days, that is something that will not happen. ashley: learned the lesson the hard way. for the home building sector, which stocks do you find particularly attractive right now? >> our best in class are looking for a smart risk adjusted return and a two to five years holding is lennar. one of the premier builders. if we are moving out looking for a riskier play, go to a turnaround story, definitely intensely focused on improving return on capital. if you want a west coast asset play to look for recovery, kb homes is a great stock for that. ashley: good names. lennar last earning report gave a tepid guidance for this year, why is that? >> people were kind of thrown off by yesterday's earnings numbers. it was a high-quality beat in our opinion but transforming itself from a traditional sticks and bricks tumbled into a diversified real estate company and announcing their entry to the multifamily industry.
multifamily rental apartments. we think it is a strong long-term move an in with confidence management will execute against its plan and continue creating shareholder value. ashley: they really cater to first-time buyers. is a big market of first-time buyers with the uncertainty and difficulty of getting financing? >> absolutely. there is tremendous pent-up demand. the reason we really prefer them is 75% of his company's sales derived from california and texas and actually very bullish on the california market and the texas market. inventory levels declined by more than 40% last year. high inventory supplies provide demand construct we need to see them outperform. ashley: thank you so much. and home prices also coming up as well. so that is good news.
tracy: so you heard of blowup toys, right? and then there are blowup mattresses, but how about a blowup stakeout? an inflatable module on the international space station beginning in 2015. the $18 million vessel is made by bigelow aerospace. made of materials similar to kevlar. the capsule ways 3000 pounds and is about 13 feet by 10 and a half feet. plenty of room to house more astronauts working at the space station. the bottom of the i dream of jeannie bottle. the pillows and round coaches. ashley: to me it looks like space travel on a budget. tracy: i want to know what they're doing in the blowup space thing.
ashley: all right, on that happy note, liz claman takes us through the last hour of tradi trading. a tech investor is a major facebook bull. continuing to raise margins even in a challenging rate environment. ceo president harry turner coming up next in a fox business exclusive. "countdown to the closing bell" is next rea. [ male announcer ] where do you turn for legal matters?
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