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tv   Markets Now  FOX Business  January 17, 2013 1:00pm-3:00pm EST

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plus get this document shredder free-- but only if you act right now. call the nber on your screen now! dennis: famous cartoon or in your head a dog and a keyboard typing thing on the internet no one knows you're a dog. the manti te'o scam says you cannot even be sure they are a woman. be careful out there. cheryl: we have a really good market day for lori and melissa. multiyear highs the s&p, ladies, and a lot of this is ebay. not even financial that we're talking about today, kind of a different story. lori: we will take anything. the dow at 13,600, about the best levels of the day. good afternoon. melissa: boeing dreamliners grounded around the world.
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can boeing convince customers to jumbo jet is safe to fly? lori: house republicans huddling in williamsburg at their annual retreat to squash internal fighting and hammer out a strategy to deal with the looming debt ceiling. melissa: chaos in algeria, the fate of dozens of hostages is unknown. some reportedly have escaped. fox news middle east analyst and lou dobbs will weigh in. first, time for stocks, let's check with the floor the new york stock exchange, nicole petallides is standing by. the dow just awful session highs, but not having a bad day. nicole: not bad at all. up about 90 points off of the highs of the day. was yesterday a fluke? we had five days of gains, gave back a little bit yesterday and back in the green again. look at the nasdaq up more than half a percent. the s&p 500, gains across the board. economic news for labour numbers
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and those were good, housing starts have been on the move as well, that was well above expectations. let's take a look at some of the homebuilders in particular, which have had a great run recently. tilden permits at multiyear highs. ben willis yesterday talking about optimism. there is a look at lennar. to give an idea of how well the homebuilders have run up, to put together a chart with our team. granted, the stock market has done just fine, but look at what's going on there. up 182%. versus the s&p gaining about 14%. some of these homebuilders have really taken off t read back to you. melissa: thank you so much. lori: we're seeing the rotation, the interest rate spiking up to date as we enjoy the equity market rally.
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interesting trend in the market. one of our top stories, boeing grounding all dreamliners planes in the u.s. halting flights on the 787 after a series of safety issues with boeing's plan. jeff flock has the very latest. more bad news for boeing, jeff. jeff: based in chicago, one of the airlines has been grounded worldwide here at o'hare. i met this national terminal, and aircraft operated by the polish airline. they grounded it last night. one of the 49 around the world. take a look at this, this is pretty extensive, lots of different airlines and a lot of places, many of them originating here in the u.s. united they stress well, they have seven dreamliners in operation, but their hub is used instead of chicago, so not out of here. breaking last hour, dennis and
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cheryl talking to a guest who says she has real concerns of the safety of those lithium-ion batteries on air. cheryl: are you confident this battery can be sustained in an aircraft? >> no, i'm not, which is why boeing had to get it right and the faa should have looked at this long before now. remember, the faa certified every component of this plane as it was being manufactured, and that is a particular problem. jeff: they also certified of course the batteries on the chevy volt which caused fires as well. this is not good news for the folks at boeing. airlines saying they're thinking about seeking compensation for the loss of the operation of this aircraft, the one that shut down in chicago. deputy chief saying we're analyzing our contract with boeing into perspective for filing for compensation. i cannot read it without glasses.
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it means we will file for compensation in due time. boeing, batteries. lori: appreciate that update, thanks. so now when the faa first announced the review of the dreamliners, my next guest says he expected the issue to pass quickly if boeing would bring more online. president of an aviation consulting firm. welcome back, mike. now that the faa is grown in the entire 77 fleets, problems perhaps especially with the lithium-ion batteries. is it worse than we initially thought? >> i think so. i better not go to las vegas. lori: your very self-deprecating. >> the faa knew about these issues. and now they are shocked to find lithium-ion batteries here. they share some of the
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responsibility as well as does boeing. this better get fixed soon or it is going to start to tell on boeing's bottom line. lori: it was interesting last week we spoke after the faa said we think the dreamliner is safe, we believe in this airliner but we will conduct this review. tens of thousands of flying hours already by the 787 dreamliners, so what is going on behind the scenes here? >> i think it is an abundance of caution. the faa got forced into doing this because the japanese grounded there is. two days ago united airlines came out and said the airplanes were safe. united knows what they're doing, if they say the airplane is safe, i would take their word for it but if the faa wanted to go ahead and make a case for fixing something that might have a problem in the future, i am fine with that too. but it will be a problem for boeing if it doesn't get fixed soon. lori: we understand the airline is manning cash back for their order.
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why wouldn't airlines be canceling their orders left and right at this point? >> other than this battery deal and a couple of other glitches, the airline has performed beautifully. the old airplane for example united could fly to tokyo and denver because of the performance. there's a lot of neat things about this airplane, so you will not find people canceling unless something comes out and says we found nature problems that will take two years to fix. short of that, i don't think so. lori: years of delays, billions of dollars of cost overage, what will it cost boeing in this latest chapter? >> this airplane could be a loss will in the future for boeing. look at what happened at lot last night. they had a welcoming party the media descended on. humiliation for those executiv executives. that is worth some money as well. it'll be one of those things costing boeing tens of millions, hundreds of millions of dollars. lori: for the airlines in
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particular, united only has six of the 787. probably not a huge disruption for them, but in japan, such a significant portion of their fleet is made up of 787's. this has to be a huge revenue drain for them. >> when you have 17 very expensive airplanes sitting, that means you're not flying to beijing or shanghai and you are not flying to l.a. or san francisco. costing a lot of money. here in the u.s. netted airlines has four of them flying. they have that many cancellations per day, we won't even notice it. but for japan airlines, this is severe. lori: let's talk a little history. he brought up the 740 sevens when it was first introduced something like 40 years ago had some hiccups as well. a classic airline now, it is flying, it is a standard aircraft equipment. what is the likelihood this turns out to be just a hiccup getting started for the 787 and
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it picks up from here, or is it a total bust? what is your take? >> i think it will be a hiccup. it may be a very big hiccup, but it will be a hiccup. the other example is coming out in the late 1950s. they put lockheed out of the airline business because of major problems. i don't think that'll be the case here. lori: the passenger business? >> right. lori: thank you so much, appreciate your time and your analysis. >> thank you. melissa: we want to bring you the latest on hostage situation unfolding in algeria right now. the algerian army is threatening to take control of the site. an american drones overhead, that is according to a u.s. official. the white house has now condemned this as a terrorist attack. bp removing all nonessential workers out of algeria. setting the price of crude, you can see, higher by 1.8%, $1.70.
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getting closer to triple digits. energy analysts said in a note to clients today the attack signals a downswing for political stability in algeria. i'm joined now by fox news middle east terrorism analyst. thank you so much for joining us. why do you think this oil facility or natural gas is flutie was targeted? >> this was a manufacture who is an offshoot of al qaeda but coordinates with al qaeda. this is a reaction to, this is a strike back at the french efforts, french african efforts and molly took it out of al qaeda. it is very interesting. it tells us al qaeda can respond in other countries, in this case algeria if they're attacking neighboring countries. why this site specifically? it is about gas and oil, that is the backbone of the economy and of course that is of great
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interest for the europeans who import from algeria. melissa: why attack in algeria for what is happening in molly? you can see they are neighbors, but why would this be the best way to make a statement, do you think? >> algeria has opened its airspace between friends in the north and the train into mali. it aided france in attacking al qaeda in mali. this is a lesson, a revenge against algeria to stop them from along the french across into mali. melissa: what is our role, what is the proper response for us? there are americans involved among the hostages, we have a drone overhead but it is limited given the algerian military is on-site. what can america do and what should we do? >> that is things we cannot talk about what the government will not talk about. obviously a special mission is being prepared that would emerge if they're executed, but let's be clear, the lead is the
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algerians. they are on the ground surrounding the flight. some hostages have been killed, others have been freed, but very delicate and difficult situation. the fact that we have a drone next to the algerians and sharing of intelligence is most of what we can do at this point in time. although possible negotiations with third parties in the middle east including islamist government. we are using everything we can to free the american hostages. melissa: what is the relationship like right now? >> it has been very good in the past several years. but we're also having problems among each other. but on the larger scale, algeria fights al qaeda with us. melissa: how do you see this playing out from here, how do you see it and? speak ospeaker this situation wd with a military operation
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because al qaeda is determined not to negotiate, and the hope is al qaeda will be destroyed and all the house this will be rescued unharmed. melissa: thank you so much. >> thank you for having me. melissa: we will bring the very latest on the situation in algeria as we learn more. you do not want to miss lou dobbs coming up with his take of the situation as well. lori: one tax stock or company helping you file your tax returns is hitting a 52-week high. is there more upside the head? melissa: and retirement age racing. they plan to increase the retirement age to 70. a look at metals as we head out to break. gold trading higher by half a percentage point. copper leading the way from a percentage point of view. we will be right back.
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melissa: as with every 15 minutes, let's check the market.
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nicole is watching. nicole: i am, indeed. this is a name that has headlines and number one performer in the s&p 500 today. stellar performance, up 9.5%. there is quite a bit going on with cbs. they're turning their north and south american outdoor advertising divisions, putting some billboard divisions up for sale. one analyst says a split could unload asset values between 5,000,000,006,000,000,000. here is a one-year chart that shows you how well they set up for the one-year period the tenure charge shows how we went through the crisis. recouped all those losses and still better than it was prior to that. however back in 2000, '99, 2000, but it dates back to about 2000. so certainly a great day for cbs.
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lori: thanks, nicole b. at melissa: time to make some money with charles payne. a stock that will turn texas into profit. i like that. charles: let me throw some numbers at you. 5000, the number of changes to the tax code in the past year. 4 million, the number of words in the tax code. 6.1 million is number of hours businesses and individuals cost to pay to fulfill the obligation. more than firemen and police combined for tax preparation. melissa: somebody will find a way to make a buck off of that idiocy. and you know how to do it. charles: h&r block. the people don't realize what has morphed into the last few years. it is a whole lot more than just
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taxes. they've entered brazil and other countries and they do all kinds of financial taxes. they now have a credit card. it is working. 2.9 million issued, the third-largest general user issuer of the reloadable debit cards. it is absolutely phenomenal. the stock is great, a major breakout. i don't see any resistance until 2025. lori: maybe people who think i can handle this myself will say this is the time to get help. charles: very few people who say they can do it themselves. either you are using help or a friend down the hall, professionals, software or a ouija board. thank you very much. lori: just ahead, g.o.p.
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strategy session. live from the retreat next. melissa: and a look at how the dollar is faring as the market is up 84. the dollar is weaker versus the euro, but stronger versus the pound and the yen. we will be right back. [ male announcer ] ok, here's the way the system works. let's say you pay your guy around 2% to manage your money. that's not much you think. except it's 2% every year. does that make a difference? search "cost of financial advisors" ouch. over time it really adds up. then go to e-trade and find out how much our advice costs. spoiler alert: it's low. really? yes, really. e-trade offers investment advice and guidance from dedicated, professional financial consultants. it's guidance on your terms, not ours.
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>> 23 minutes past the hour. this is your fox news minute. defense secretary saying only soldiers need armor piercing bullets or assault weapons. in response to u.s. soldiers question at a military base in italy. he responded who needs armor piercing bullets except you guys in battle? president clinton's chief of staff in the u.s. ban on assault weapons in the 1990s, that ban expired in 2004. some good housing news for you, former u.s. homes, fewer u.s. homes foreclosed in 2012 according to realistic track. that was down from 804,000 in 2011.
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17% reduction year-to-year. lance armstrong already lost all of his tour de france titles while now the international olympics committee is stripping the cyclist of his two bronze medal because of his admission to doping. that is the headlines of your fox news minute. back to melissa and lori. melissa: thank you. less than a month to go until the debt limit, the house republicans are devising their game plan for the fiscal fight. ahead, rich edson is live from the g.o.p. retreat in williamsburg, virginia, with the latest. >> they just wrapped their latest discussion on the next 90 days and all the deadlines and consequences of them coming up. there is the debt ceiling to have to deal with, there is government spending that expires in march and those automatic spending cuts, sequestration is supposed to hit the federal budget. and right now it appears a strategy that republicans are beginning to coalesce around,
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perhaps a short-term debt ceiling increase, pass that through the house with spending cuts, deal with the other elements of government spending and then set up a protracted argument or debate over the debt ceiling going forward. as republicans say, when it comes to their strategy, cutting spending is imperative. melissa: there's no celebration the fact we're a nation of $16 trillion in debt and you have someone in the white house that says to do the one thing that makes absolutely no sense whatsoever, and that is raise the debt ceiling with no change in the future? that is actually an absurd argument i don't think any householder in a state run well operates like that. >> house budget committee chairman spoke to reporters a short while ago saying this to work in the strategies on all this trying to identify the spending cuts that they want to include any increase in the debt ceiling. also says despite what some pessimist might say, house
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republicans still plan to pursue tax reform this year in the house. whew. melissa: it'll be interesting to see the hold up on anything real on the spending cuts side. thank you so much. lori: the anticipation builds. there seems little hope for social security and medicare reform on capitol hill. a group of u.s. have come up and created a plan including raising the age of eligibility for full retirement benefits from 66 to 70 with the way cost adjustments were measured. the plan calls for bumping age of eligibility from 65 to 70 and reducing the benefits available for wealthier participants. sounds good to me. i love working. melissa: it makes logical sense, we are living so much longer now and people are working longer, it is an old any longer. lori: and it doesn't give enough time to put away enough money for the extra decades if you'ree lucky enough to live.
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melissa: not seeing anything to what you're investing appetite? how about heading to deutsch land. why they think germany is the place to put your money. lori: let's take a look at who is up and who's down on the dow. mostly up today, 85-point gain in the index itself. we are back after this. ♪
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[ 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 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. melissa: time for stocks now. as we do every 15 minutes let's head to the floor of the new york stock exchange. nicole petallides is watching banks who reported earnings this morning. nicole. >> as we look at citigroup and bank of america you see
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some down arrows here. disappointing numbers. you remember when citigroup used to be a dow component. i can tell you bank of america is the worst performing percentage loser on the dow jones industrials after a great year in 2012 where it was the top performer on the dow. let's focus what is going on here. so the bank stocks are weak overall. all the bank stocks moved to the downside. even goldman sachs and jpmorgan which hit 52-week highs. when we talk about bank of america, earnings per share beat the street. revenue was a miss. not good news for emthis. mortgage related charges hurting bank of america's fourth quarter profits. so that was not good news there. when we talk about citigroup, the new ceo michael corbett, talking about they're not satisfied with their quarterly report either. hoping for better in the future quarters to come. but you see citigroup down to 40.99. back to you. melissa: nicole, thanks so much. lori: well the dow is rallying today with the s&p in fact hitting a five-year
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high today. let's get investment ideas with so many headwinds to the u.s. economy, the fiscal outlook, and all things going on around the world. kevin mahn, henyon and walsh, the president, is back with us. you have investment ideas. i want to get right to it. there is a lot of confusion. we've seen a lot of asset rotation especially with interest rates moving up significantly. bonds are selling off as people buy equities. there has been a lot of talk wondering if this is, whether or not this is a great rotation starting to happen as interest rates have been so low for so long already? >> i think it is, lori. i think if you look back to 2012 we saw a lot of mutual fund flows going into bond funds coming outs of mutual funds. we have the round two of fiscal cliff debate, sequestration is real possibility, or the potential we reach no compromise is real possible. you know is watching
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anxiously in the wings? lori: go on. >> rating agencies. if the rating agencies take on action, because of inability to compromise, you see treasuries sold off and that's why we're seeing a creep up in yields. lori: you're one the first people to say the creep up in yields and we saw back up as well. yields retreated but they're up today as stocks are rallying. you think that is attributable to the situation in washington and perhaps another downgrade to the u.s. debt? >> i think as we get closer and closer to those two deadlines you see flows coming out of bond fund into equity funds and real assets like gold. until we get past those two deadlines into the second quarter that is what the market will trade on. lori: hate to go off on a tangent, why do you think bond managers don't want to call that? we had bill o'donnell and other bond traders, they don't want to mention bond vigilantees. why not? >> to certain degree and they're eternal optimists.
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they think they will strike a compromise as they did with round one with regard to revenues. we don't have to raise debt ceiling if sequestration happens. as a result republicans had a bargaining chip. lori: talk about the investments. emerging markets you like china and asia. in our tease we said germany too. >> yes. lori: i don't know if germany is really emerging markets. we'll start with emerging markets and move on. >> 2012 to 2013, 2012 we were heavily allocated in the u.s. now we're looking back overseas again. i'm not suggesting a dark cloud over europe is gone right now but i do think there are great opportunities in northern europe and germany remains as the one gem in europe in terms of that economic prowess. lori: tell me about the emerging markets. these economies in many ways are outperforming the u.s. many say put emerging markets into retirement if you want to earn a decent yield at this point you have to mix it up with the emerging markets. not alternative investment it used to be.
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>> correct. the old bric trade from 2007 and pull out r and o, invest in brazil and china those are two countries to be in. europe and u.s. benefit from the growth. as europe economy improves and chinese economy improves the countries in northern europe improve as well. lori: i know you like the homebuilders as well. i imagine this is becoming a crowding trade. we're characterizing the home building and home industry in country improving slow but steady. >> i would suggest it is not a crowded trade for the very reason inventory of unsold homes increased by 33%. just close to five months. there is more room for the real estate recovery to improve. both domestically and internationally. consider home builders. consider reits. consider international reits. lori: kevin, thanks for joining us again. great to see you. >> my pleasure. melissa: oil stocks remain calm as the situation at the algerian plant heats up. we have the latest developments. lou dobbs is here to weigh in.
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lori: talking with kevin about this a few moments ago. look at pump in interest rates. 10-year yielding six basis points. equities and stock markets are on a tear. we're back after this. [ 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 ]'ll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ from td ameritrade. if your a man with low testosterone, you should know that axiron is here. the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18.
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axiron can tnsfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to >> i'm cheryl casone with your fox business brief. the bullish tone on wall street continues in afternoon trading following
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better than expected reports of the u.s. housing and jobs markets. right now take a look at the dow, up 93 points. 13,604. mortgage rates falling to near record lows again. according to freddie mac the average rate of a 30-year mortgage is now 3.38%, slightly above 3.31% reached in november. the lowest on record dating back to 1971. former boston red sox record curt schilling blood stained sock he wore during the 2004 world series, that is up for auction. the sports director at heritage auctions telling the associated press, online bidding will start february 4th. the sock was on loan to the national baseball hall of fame. it is at heritage's dallas headquarters. it is expected to bring in $100,000. really? that is the latest from the fox business network, giving you the power to prosper
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melissa: a fluid ongoing situation as the bp oil
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facility in algeria. the white house condemned this terrorist attack as algerian officials attempt to regain control. lou dobbs is here with his take on this developing situation. >> we're waiting right now as you know for a press conference, a news conference from the state department. at this hour now we're talking about over 36 hours since this incident began, we still don't know the names of the people who involved, the americans. we do have some confirmmation that other nationals were freed. we don't know the number. we do know that attacks have been sporadic by the algerian military against this gas facility which is in algeria which is in the eastern algeria. by the way, just a few hundred miles away from tripoli, next to the border with libya. in the that immense, rich oil and gas reserve,
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preserve across eastern algeria and western libya. so where we are right now? with an unknown number, three to seven americans held hostage. we still don't know the, their state. lori: we haven't had a hostage crisis like this in a generation. >> no. but we had an attempted hostage situation of course. that is precisely what the intelligence community believes happened in benghazi with those four americans who were killed by terrorists there. interestingly, you know, he despite the fact that norway is, you mentioned statoil and norwegian oil company, bp, obviously british. despite all of that there has been little communication with the governments of the facility there and the interesting relationship here. we talked a lot about energy independence on your show, mine and all others here at fox business. but this is an example of
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what is happening when you are not, what can happen when you are not energy independent. europe right now is a classic case of dependency on foreign energy. a third of their gas, this is a gas plant in algeria, they're looking at 14%, a 14% shortage right now in gas is up price. and of course that can escalate because algeria and libya are their primary remember source from africa for gas is up price. the other unfortunately for them of course is russia. melissa: seems to show you the strategy of al qaeda going forward. we're drawing parallels between this and what happened in benghazi. it shows you where we're going. >> it shows you too where they're going. melissa: yeah. >> this is despite everything that every piece of spin being put upon this incident. others, including benghazi. this is not an accident.
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this is a purposeful strategy that is being carried out. they know the ramifications if they attack that plant and shut it down. by the way, the sources such as they are and they are not terrific because the terrorists are talking with news outlets in mauritania, part of the mao greg in -- mao greg in northern after sfri can. this is a, al qaeda linked certainly as most of the groups are throughout northern africa this is deeply troubling for the united states, which has said this administration, over and over that they have got al qaeda under control. it is clear, it is clear they do not have them under control. melissa: right. >> but their strategy is becoming more sophisticated and striking where, particularly europe is most vulnerable and that is in their supply of energy.
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lori: al qaeda is more organized perhaps than we give them credit for. >> but organized in the sense it doesn't sort of conform to our state-bound perspective because there are related groups but they are disparate and autonomous groups working on the same agenda with same jihadist values. if you can raise it to the jihadism, it is terrorism, pure and rank as it is. melissa: yeah. and the map just keeps getting wider and wider. lou, thank you so much. you can see lou here every day at this time tackling these issues and also at 7:00 and 10:00 p.m. eastern tonight you can catch the sheriff of lynn county, oregon. he discusses his refusal to enforce the sweeping gun laws introduced by president obama yesterday. will others follow suit? >> this sheriff,. melissa: i love this story. >> he is being joined by a number of sheriffs across the country. refusing. he makes the.why should he
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be asked to support unconstitutionnal gun laws, which he deems to be unconstitutional when the justice department is insisting, homeland security he not immigration laws? he is making a very powerful point. melissa: interesting. lou dobbs look forward to that. thank you. >> good to be with you. lori: quarter after. check the markets with nicole. she of course at her post on the floor of new york stock exchange. what is going on with ebay, nicole. >> yeah we'll look closely at ebay. i can't neglect the fact that we're sitting at session highs for the dow jones industrials. we're up 97 points at these levels. 13,608. these are the highest levels of the day of the when you talk to some of the traders it continues to upside. i'm hearing numbers as 13,660 as the next stop for the major market averages. most of the dow components have up arrows. talk about ebay if particular coming out with their numbers. over 52 weeks, it has been a stellar performer, up 74%.
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came out with the quarterly numbers. good news for ebay. what they have done they have changed things around for customer service including things like free shipping, easier to return items and they say that mobile, mobile shopping has been explosive. with this rapid growth, going on, paypal, that bodes well. they're up 2.7%. their outlook is pretty much in line and stellar performer today and highest levels since 2004. lori: thank you, nicole. melissa: watch out verizon, facebook is coming after you with a new feature that could replace your home phone. shibani explains that coming up next. lori: a look at the nasdaq winners and losers. we're back after this. [ male announcer ] how do you trade?
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lori: facebook chief mark zuckerberg recently squashed rumors of a facebook smartphone but there are new signs the phone may already be here. shibani joshi has more. shibani. >> hi, lori, yes. he said a while back it wouldn't make strategic sense for the company to develop a hardware smartphone but he didn't say anything about software that could turn facebook into more of a voice enabled application and that is exactly what the social media company has done overnight and very quietly i must add. changing its new facebook messenger update. it is no the app, facebook app on your iphone or android. it is a facebook messenger app. it has been up loaded and updated to have a free call button. what you can do now is
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checking out what your friend are doing and can see if they're online and available. you hit the free call button and then you can call them up and talk to them using voice over ip or local wireless network, wi-fi. basically that is what the company unveiled last night, turning essentially every phone or iphone for now into a facebook phone. pretty brilliant there. lori: all kinds of announcements for from facebook. why aren't they consolidating? why didn't they do this when they announced graph search? >> we thought we would get the phone couple days ago. we got bait and switch. the smart graph search last week and getting new application of functionalty today. a couple of reasons, one it makes facebook more competitive with its competitors. google has a google chat program. microsoft has skype of course. and apple likes to control everything about the iphone including ways that iphone
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users connect with one another. so i think this is just one sort of more stealthy way of avoiding trouble and avoiding competition. it is smart. when you think about it is is youth, the younger generation have more limited voice plans, data plans and so if they're on facebook anyways and they don't have to switch over and can save on minutes and use facebook to connect and call their friends, they may stick with facebook and stay on the site a little bit longer. all about being sticky in the sense of facebook. lori: sticky stealth use, shibani, thank you. >> thanks. melissa: california's $2 billion citrus industry is trying to weather a coldsnap that has seen temperatures drop below the freezing mark for nearly a week causing farmers to shell out millions in profit protection. our next guest says one of them. john is a citrus farmer and he has 6,000 acres of citrus crops and he joins us from riverside, california. john, i know you have been losing a lot of sleep out there. you know, trying to save your crops. talk to me a little bit for us eaters as opposed to you
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growers, what is the damage like? i know you have an orange there you can show us. what is your you're protecting against? >> well, you know, oranges, when they freeze will, you can cut ice in the morning. but the segments will start breaking apart if they're frozen of the just a question of how, what percentage of these segments freeze. sometimes you get one or two. they will actually, could even heal. but at this point we don't know how bad, how bad it is going to be. we know we have some damage. we just don't know what degree the fruit will be damaged. melissa: if it does freeze, is that permanent damage or like you said there's a possibility that it heals and how do you sort of promote that? what can you do? >> well, you know, depends how cold it was and how the weather is afterwards. we have cool nights afterward and not the warm weather we're getting here today. it will be 7 degrees here
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today. they sometimes don't break down as and will, those cells that are damaged will actually fill in. melissa: i understand it is getting warm too quickly as well is a problem. it goes up to 70 degrees that could be a problem? >> that can be. if in fact we have damaged fruit. it is a serious problem. but at this point we think we have very --. melissa: go ahead and finish. we have a delay here and screwing everything up. >> okay. melissa: john, i'm so sorry. thanks so much. we appreciate your time. we had some troubles there with the delay. we apologize to you and to the audience but you could see what he was talking about there. lori: i have to say the orange looked pretty juicy. melissa: it looked delicious but i haven't had lunch yet. who knows best when investing your money? surprisingly an orange tabby cat orlando. according to a experiment by
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the british newspaper, guardian. orlando and a group of students were given $8,000 to invest in five companies on the footcy. you know exactly where this is going. they could trade stocks and after a year orlando finished with $7755. the professionals finished with $8270. the students were the least successful with $7732. and in case you want to give orlando's strategy a try, he chose stocks randomly flinging his favorite toy mouse onto a grid of numbers assigned to different companies, yep and he did the best out of all of them. lori: that is nothing. my miniature dachshound can balance my checkbook. melissa: we'll lead with that tomorrow. can you bring the dachshound in? lori: yes, absolutely. melissa: coming up tonight on "money", we have a two-part power panel to discuss the manti te'o story and possible reconciliation between tiger woods and his
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former wife, all more money? all about dollars. there is money involved. that is how we're hanging our hat on these stories and doinggthem in a show called mony. there is word she might agree to a $350 million anti-cheating payoff. they're saying he might agree to it. i think she is the one we're wondering if she will agree. very interesting. all coming up a 5:00 p.m. eastern on fox business. couldn't really revive his game and his brand. that's why we're doing the story. fascinating. lori: i hope sheep gets the prenup if that is true. couple hours here into the trading social before the closing bell rings. the dow is up more than 100 points. coming up can the united states become energy independent in the next 15 years? yes says one oil and nat-gas chief if the government stays out of the way. magnum hunter's gary evans joins tracy byrnes and ash
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ashley: good afternoon, everybody. the dow is up 110 points. i'm ashley webster. tracy: i'm tracy byrnes. five-year low for jobless claims sent the s&p 500 to five-year high. scott wren says the s&p is heading higher this year. he is here to tell us why. ashley: boeing doing damage control around the globe after its dream limer is grounded. former ntsb director peter goelz tells us which saved issue concerns him most about the massive jet. perhaps perhaps even bigger, will the dreamliner ever fly again? tracy: that is crazy. republicans hunker down and plan their next move on the fiscal mess. whiffle they use the debt limit deadline as leverage to cut spending? ashley: here we go again. tracy: i know. ashley: time for stocks. as we mentioned the dow is up trip till digit sits as
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we do every fifth teen minutes let's head down to nicole on the floor of the new york stock exchange. what is going on? >> we're at session highs we've been seeing at the last 10 minutes or some dollar is lower. oil and gold moving higher. the vix moving back. majority of the dow components are well into the green. market breadth is stellar. 230 million to the upside. 104 lower. so you really doll have broad based buying underway. when i talk to some of the traders i'm hearing numbers on the s&p and 1500 and dow at 13,660. bank of america is down 4.25% today. the biggest loser on the dow jones industrials. what came out with bank of americas, their revenue missed. they had issues with mortgages and such. fannie mae and, so this name, which was actually a best
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performer in 2012 has pulled back some and both bank of america and citigroup weighed on the financials to a certain extent today. back to you. ashley: nicole, thank you very much. tracy: we have to keep talking about this boeing issue. now the faa grounding all dreamliner planes in the u.s., this after a sears are of safety concerns. our very own jeff flock is at o'hare international airport in chicago with more. jeff, i guess you can argue when all done it will be the safest plane in the world to fly? >> just like the electric cars it is having its problems with the first ones. got some fresh pictures for you this hour and it is a picture of the lo, polish aircraft dreamliner. they operate two. one goes between chicago and warsaw. pictures on the backside of the aircraft. came in last night and pulled up to the gate an been there ever since. pilot says, i don't know when we'll leave. i don't think anybody who
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pilots 787s when they will next be in the air. if you look at route map, you can see that chicago to warsaw route, we've got a global map that gives you a sense of ones that originate or come into the u.s. 49 aircraft in total have been shut down and lot, by the way the polish airline, the first to say it will seek compensation from the folks at boeing for the loss of service. obviously a big aircraft. carries a lot of people. it is a very popular route from chicago. chicago is the biggest city for poles outside warsaw in the world. a lot of popular routes are being shut down. a lot of airlines scrambling to make other arrangements. we'll continue to watch it from the international terminal here at o'hare. tracy: jeff flock, thank you. stay warm. ashley: looks chilly out there. how big of a blow is the dreamliner grounding for boeing? with me is former nssb senior managing director and
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o'neill and associates, peter goelz. thanks for joining us. let's talk about the lithium-ion battery seems to be the problem. it is overheating. the dream liner uses four times as much battery power as a regular 787. this is not a little glitch. could this speak to a design problem that could be a much bigger fix? >> you would hope it would not because the plane has gone through a probably a quarter of a million hours of faa certification oversight. but i think the issue you zeroed in on it, is the use of these batteries. and they are tough customers. when they start to cook-off, it is virtually impossible to put them out. and the ntsb and the faa have both been greatly concerned, not only about the use of these batteries in aviation, even their transport. ashley: so is it a quick
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fix? if indeed it is determined that these batteries are knot suitable for the job, can you switch them out with another type of battery? or it is not that easy? >> no, that is a very difficult process to change these batteries out because what they provide is a great deal of power as you indicated. this thing uses four or five times as much electrical power as previous aircrafts and they change them, if you changed them out you would be dramatically increasing the weigh you would weight. reducing the electrical power available to the plane. it would be a very challenging process. i think everyone's looking forward to finding that the batteries involved perhaps had flaws in their manufacturing. but you know, the key point is, did the safety redundancies on this aircraft work as advertised? ashley: yeah. >> were the fumes vented? were the flames was the fire
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contained the way it was designed? if not, boy, boeing has got a big problem. ashley: they do. does the faa have a bit of a black eye as others have suggested because just last week they were talking about how much confidence they have in the plane. now they have taken this, what some would say draconian measure of just grounding the entire fleet? >> well, i'm sure secretary lahood who said, you know, just a few days ago, it is safe to fly. i would get on one is sorry he ever said that. ashley: yeah. >> because the agency did pull the plug unceremoniously on it. once they did, every other oversight agency in the% world who's got 747s under their jurisdiction pulled the plug as well. i think the faa is scrambling to play a little catch-up on this. ashley: boeing was hoping to ramp up its production to 10 a month by the end of the year, the longer this drags on would you be concerned that carriers would start looking for other options
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suches a the airbus? >> well, here's the challenge. and of course they will start to look for other options. but the dreamliner was such and is such a revolutionary concept. it gives you tremendous range. tremendous efficiency and tremendous passenger amenities. i think customers will hold on for a while. boy, if there is a significant problem with these batteries, i think there will be some slippage. ashley: yeah indeed. we'll continue to follow it. thank you so much, peter goelz. thanks for joining us. we appreciate it. >> thank you, i enjoyed it. ashley: very good. that is tough. boeing has to get a hold of this and quickly. every day it drags on it is a big issue. tracy: i know. well stocks though not having an issue today. best day this week. the dow is up 111 points right now. one big money strategist says, there is more money to be made. wells fargo's scott wren is coming up.
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ashley: plus nat-gas futures hitting a six-week high. the head of one oil and nat-gas firm, magnum hunters gary evans shares his outlook for prices and u.s. production ahead. first as we do every day at this time look how oil is trading. talking of oil, with the dow up 109 points, oil also moving higher, up more than a dollar at 95 pine 59 a peril. we'll be right back. -- $95.59. ♪
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and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. tracy: it is time to make some money charles payne. he has a stock you can juice profits from? >> we know jamba juice, right? i started watching this stock after my son fell in
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love with it. there is one at the move you very theater on route 17? ashley: we all know it. >> chars, how about we do it and take all the college money and put it in jamba juice? he said no. but he does like the juice. doesn't like it that much. tracy: my kids like it actually. >> the company turned around. it was a fun stock. it was a big stock for a while, doing very well. terrible mismanagement. 2008 they bought in a guy james white. he done a marvelous job, came in from gillette. because he had done so well expectations went up. in the last four quarters they missed expectations three times. that is why the stock is more or less sideways despite the fact margins are up sethly. costs are down. they are spreading around in the philippines. they're in korea. it is quasi-global play and they're in canada. it has been talked up recently as potential takeover candidate too. i know a while back howard
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schultz own ad big plug of this stock with his own money and starbucks money. it would be an easy fit if they want to do something. he is going more in healthy area. i don't know what kind of premium they would have to pay. i think the stock is room here at $2.90. huge resistance point and breakout there. people are starting to sort of kick the tires tires for a couple reasons. fundamentally and also a spec play. i jamba juice is one i like even though my ton wouldn't let me pour everything into it. tracy: smart kid. he learned from his dad. charles payne. >> thank you. ashley: queen elizabeth two, getting set to become a luxury hotel in asia. the grand ship has spent the past four years idle at a port in dubai after the state purchased it for $100 million at the height of the city's boom. it was supposed to be a hotel there as well. qe2's destination is unknown. speculation bound for china, a seaport such as shanghai or hong kong.
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queen elisabeth the 2nd launched ship back in 1967. since then it has made at least 26 around the world voi ans. there is some rumors it is going to china for scrap which could be so sad that some one paid 20 million for it to get the scrap. but hopefully that is not the truth and hopefully it will con to live on as a hotel in asia. tracy: a stagnant hotel parked at a dock? ashley: reconvert it will be floating luxury hotel which is what it was supposed to be in dubai. because of downward, we know what happened economy i'm flowedded in dubai as far as expansion so we'll see. tracy: sometimes things are wore more together than they are separate. ashley: there is that. tracy: 15 minutes after the hour. we have to check on the markets. nicole petallides on the floor of the new york stock exchange. >> dow is looking good. up 114 points for the dow jones industrials.
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s&p 500 getting close to the 1485 mark. i spoke of early this morning that traders were looking at as an area we could move to. that is exactly where we are. gold is up over 7 1/2 dollars. we have so many winners here on wall street but let's take a look at some names on the move. the first is blackrock. blackrock moving to three-year highs. up over 5%. certainly good news there. investors say, they say investors added $47 billion into the some long-term fund. the company also increased its share buyback program. those are a couple of points. also want to look at intel. intel will report today after the bell. it will certainly be one to watch. it is up almost 2% ahead of its quarterly report. and of course there is always talk about paul otellini and his role as ceo. back to you. tracy: yes there is, nicole. thank you very much. see you in 15 minutes. as nicole mentioned keep it here on fox business for full coverage of intel's results. we have cfo, stacey smith. he will join liz claman and
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david asman at 4:0 eastern time. do not miss it. ashley: we will not miss it. tracy: no. coming up oil hitting a four-month high the is triple digit oil just around the corner? say it isn't so. ashley: could be. look how the dollar is moving. euro up against the good ol' u.s. dollar but the.down below 1.60. 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.
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>> 20 minutes past the hour right now. hi, everybody, i'm jamie colby. this is your fox news minute and here's the latest on the hostage situation in algeria. the white house condemning the terrorist attack. inarmed american drone is operatings above the bp gas field there while the number of hostages isn't known americans still believed to be among them. defense secretary leon panetta saying only soldiers need armor-piercing bullets or assault weapons. that is in response to a u.s. soldier's question at military base in italy. panetta responding, who needs armor-piercing bullets except you guys in battle. he was with president clinton when the salt ban was signed in 1990s
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but it expanded in 2004. now the international olympic committee is stripping lance armstrong from the 2000 bronze medal from the sydney olympics because of his admission to blood doping. those are the latest headlines from the fox news channel. i'm jamie colby. back to ashley. ashley: jamie, thank you very much. oil hitting four-month highs today amid the algerian hostage standoff that goes on. sandra smith has the very latest in today's trade. >> that ashley that is the wti contract our benchmark here at home. look at the brent contract. $111 today. this is more of a european benchmark. we're talking about global oil prices here. they're up a full 1 1/2% today. jeff carey at goldman sachs says don't be surprised if we wake up this summer to see this price at $150 a barrel. what does that mean for our wti contract? he actually says he expect as substantial narrowing of the brent wti spread. here's the wti prices at
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just over $95 a barrel. they're approaching $100 now. which means, if he is predicting 150 in the brent contract, he expects this number to go up in the triple digits and narrow that gap between the two prices. year-to-date, hear is the spike we're looking at in oil prices. we're already up several% for the year there is lot of talk about entering that 110 to $110 range again. look what this is doing for oil stocks. in fact one of your biggest gainers in the dow is exxonmobil. the just at over $90 a share. another one to watch is chef ron. it is one of the big winners in the dow. some of the oil stocks are considered a buy by most analysts as oil prices continue to go higher. when you get into the triple digit range they back off. that could cut into profitability. refining oil into gasoline can be a problem. but right now it's a good thing. look at a snapshot of energy sector last couple hours of
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trading. lots of green, tracy and ashley. higher oil and gasoline prices translating to higher energy stocks prices in today's session. ashley: very good. heading towards triple digits. may be. tracy: someone is making money off my high gas bill. ashley: your gas gus letter? tracy: my little gas guzzler. s&p-500 hitting fresh five-year high on better-than-expected economic data. is it too late to get in on the action. our next guest does not think so at all. he says there is more room to the upside. joining us scott wren senior equity strategist with wells fargo. you're saying s&p, 1575. how do we get there? >> tracy, i tell you right now you have valuations working on our side. we have the federal reserve working on our side. we also have things that could actually make 1575 a little conservative, not a lot. let's say china bounces back a little better than we think or europe is less bad or even flattens out.
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that 1575. that is the top end of our 1525, 1575 range, that may be a little low but if valuations were higher, if i didn't feel like the fed was going to be supporting the market for a long time to come, we might have to question that. but right now i think things are improving fundamentally. i think the labor market will continue to improve slowly. i think confidence will continue to improve. so i think that is very doable number. tracy: it is fabricated right is what you're saying? as long as fed pumps money and controls inflation you have nowhere else to go but up? >> let's face it. if the fed hadn't pumped trillions and trillions of dollars along with the other central banks into the financial system the market would be not where it is right no. tracy: i guess you give them props for that. >> in a way. tracy: europe is backs on your radar screen. >> europe is on my radar screen. it really never left.
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any solution, that is the wrong word to use, solution, anything they tried to bandaid over there, i think that all it is a bandaid, their day of reckoning, spain at some point will probably ask for aid. wouldn't surprise me if the european central bank is in there aggressively buying bonds at some point. that's a mess over there but it is a bandaid. if you told me five years from now we're still going to be talking about the eurozone debt crisis i would believe every word of it. that is the main thing. that keeps me up at night. here really in the states, the structural unemployment, if you think about it, 40% of the people that are out of have been out for six months or longer. that is a big-time problem. that's structural. that worries me. tracy: there is, you know, consumer spending out the window. talk about some of your sectors. i found it really interesting you're underweight in financials and energy sector. sort of contrary to what we've been hearing lately. >> well i think, tracy, if you look at energy, usually
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energy is a late cycle performer. so there is some inflation. there is tighter supply. there's a lot of demand and that's really not what we have right now. i think energy, we're underweight energy. we've been underweight energy. i think we feel pretty comfortable about that. now financials on the other hand, clearly a great performer, the best performer last year. in hindsight i think we would have been loved to overweight financials. we're a little bit underweight. that is one of the ones along with industrials in my book, we're even weight industrials. we should probably look at advancing that a little bit too. so financials and industrials are the two that for us, we're watching them very closely. but i think financials obviously had a really good run. things will improve for them but we're not going to see the kind of run in financials we did this year that we did last year. tracy: they were so low. they too could only go up. i know you were overweight consumer discretionary. go ahead. >> in financials when you have a $5 stock go to 8 or
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$10. that is big move. we had a lot of those in financials. tracy: we most certainly did, just so everyone knows you're overweight consumer discretionary information technology and telecom. scott thanks for sharing your thoughts. >> thanks, tracy. happy new year. tracy: you too. all right. good stuff. he also said too that bonds look expensive. we continue to talk about the rotation out of bond, excuse me out of bond into. ashley: into equity, yeah. tracy: we're seeing it more and more. people talking about it, well, it's happening. ashley: the pivot point some people called it to see the money flowing back into equities. market up 118 point. all right. tracy: we'll be right back. although, we have it talk about dear abby. ashley: we'll talk about that in a minute. we'll be right back. before copd...
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♪ tracy: let's take a look at the dow 30. tom tebow, your big winner. bank of america, even though earnings beat, not everyone happy with the reported today. your big loser. and, of course, at&t hanging down there as well. that set down to the floor of the new york stock exchange where. [talking over each other] is standing by. >> reporter: that board read there is significant because it shows you not just the dow components, but also just the trend of today. there were four rows of green, one row of red. today is of broad based buying, many names that highs including some of the major averages. where do you think of today and where we go from here? >> this will be heaven save the last couple of weeks. a bullish sentiment and side of this marketplace. it's also good if you look at the unadjusted numbers.
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decent first-time claims numbers. the index was weak, but people seem to be ignoring some of the economic data at this point in time. this market is just trending higher. right now we are at a critical resistance level. 1484. in 1490. if you recall last week said 1490 so we still have some room to go here, but this is a bullish sentiment carrying through. @%acy: basically, holding these levels right here is key and then you go to 1490. >> that's right. also, on the dow would say if we stay above -- if we close at 13700 of the dow then that will confirm the dow transport signal that we have to cut the theory which is a good bullish sentiment. >> reporter: there you have it. tracy: great stuff. we will see you in 15 minutes. ashley: well, as the clock ticks down on the looming debt limit, house republicans holding a strategy meeting to prepare for the fiscal fight ahead.
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rich edson is live from the gop retreat in williamsburg viejo with the very latest. >> reporter: discussing the next 90 days to all of the particular deadlines they have to meet in washington. the debt ceiling, of course sometime next month there are also dealing with government funding running out in march and some other issues like the sequestered. republicans are floating a short-term debt ceiling increase with some modest cuts to deal with the automatic spending cuts that government funding levels and get back to an argument or discussion over the debt ceiling and spending levels once you reach the next few months. that is right now what they are discussing. they have not decided on that strategy. this is just the house republican strategy. it would then have to keep an over to the senate and agree with senate democrats and the white house. for republicans they say this is all about structural spending changes. >> i think it is very clear at this is not just the notion of
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paying back past dues for the united states but also making sure that the dead obama administration wants to continue to incur is restrained. >> reporter: republican leaders continue to meet with members discussing a number of different ways to deal with the debt ceiling, short-term mr. -- short term. also a longer-term extension of the ceiling that would involve larger cuts, structural changes to entitlements and tax reform, all of these issues are still kicking around with members. have not quite decided on a strategy yet, what is something they hope to develop here tomorrow along -- they continue their conversations tomorrow and then when they had back to washington. ashley, with some sort of plan. thank you very much. breaking news for you. a big day for oil closing up a dollar and $0.25 at 9549 per barrel hitting in their 4-month high yesterday on lower inventories reports. now we see a gain today of one
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and 1/3 percentage. tracy: breaking news. can't even say it. you have to do it. ashley: dear abby has died. he wrote the advice column and has died. she was 94. that yesterday after a long battle with alzheimer's disease. her column competed for decades with the endless columns of ann landers written by her twin sister. so the end of an institution. tracy: i remembered with ceremonial. every day we read the paper, her column. the comex run the other side. ashley: un so many others. tracy: average family circle. it was a thing. all right. welcome back to washington and their debacle. publicans working on their plan to tackle the -- debt debate. action needs to be taken to
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protect that. joining us now, former professor at university of maryland. thank you for being with us. i understand we have a fiscal problem, but not sure we have a financial one. the dow was up 116 points to markets up 5% year-to-date. it is kind of shortness of. >> it absolutely has. the market is learned. and. ashley: at the market learned? tracy: the market is dead at leland something. >> the market has learned. tracy: the market has learned apparently our technology is not. we're going to come back develop. we will figured out. tracy: he is probably their with important information. ashley: big banks reporting earnings. elizabeth macdonald is here with the latest on how this will
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affect your bottom line. tracy: as we do every day to ballistic a look at the ten and 30 year treasurys. up six basis points. the 30-year up as well. we'll be right back. ♪ [ male announcer ] this is karen anjeremiah. 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 who 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. omnipotent of opportunity. you know how to mix business... with business.
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>> reporter: here is your fox business brief. airbus has surrendered its crown as the world's largest plane maker to boeing saying it orders fell by 36% from a record breaking 2011. even still, the company blew past its target of borders, 650 units. united airlines is pushing through its second air hike this year and is only january 17th. the airline is raising its base domestic fares by as much as ten bucks each weight. jet blue also following suit raising tickets by as much as $5. according to reality tracks banks have repossessed it is 17% fewer homes last year than they did in 2011 to but generally states like florida and new york where the courts play a role in foreclosure and took longer to work through their cases, and that is fox business giving you the power to prosper.
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♪ tracy: breaking news on the hostage situation at a natural gas plant in algeria. adam shapiro at the news desk with the latest. temecula. these are interviews with fox news in which the chairman of the house foreign affairs committee have set that they believe the algeria hostage situation was actually premeditated. there was advanced planning for this attack which began before the french assault and molly which took place last week. you will recall that the terrorists who have ties to al qaeda say that they were reacting to the french assistance to the mali government of the the situation in that country. now we are learning from the chair of the house foreign affairs committee as well as house intelligence committee that they believe this was premeditated which would be very troubling giving the ties of these terrorists to al qaeda. also, but news is reporting that two of the american hostages have escaped from the algerian
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kidnappers, but one remains in custody. to americans appear to have escaped. this is not confirmed from the state department. hillary clinton has said at a press conference she will be speaking with algerian government officials later this afternoon. finally, on a very sad note, the prime minister from the united kingdom, mr. cameron, has said that it poses very bad news, what they're facing in the u.k., that several of the hostages are u.k. citizens and it appears that several of them may actually be dead. again, no definite confirmation from the u.s. state department as of yet. back to you. ashley: it goes on as we speak. thank you so much. another round of big bank earnings out today, but the numbers are not looking so good for bankamerica. elizabeth macdonald here with the details. what is not so good? >> reporter: it's the cost. five years after the housing mess we are still seeing and cleaning up the housing mess. so what wall street analysts are
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telling me is, they don't think that bank of america can justify the cost basis in the longer. we know that both are laying off bank of america laying off 30,000 as of the fall of 2011. they have valet of 17,000 of those workers in december. the new ceo, laying off 11,000 workers command he also warned wall street at the time that revenues will be hit by $300 million because of the cost adjustments. also legal costs and regulatory costs that are hitting their bottom line. it cut $0.16 out of bank of america's earnings per share. and also 1 billion in legal costs. but i tell you something, again and again, a tough time convincing wall street that they can rationalize their cost structure. too much fat marbled through the operations. still sitting on 171 billion in crisis era assets. the thing is, they are trading
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below the split adjusted basis. they split in may of 2011. they are at $40. at that time in 2011 there were trading at $4.50. so the ceo of the shareholder conference call. he was asked point blank, what is your goal here. his answer, i want to stop destroying shareholder capital because the stock is down. 92 percent versus six years ago. of course you have 45 billion in rescue funds. whether or not -- this is a big deal. they want to buy back stock. the federal reserve, rejecting it last year. they applied again. we don't of the dollar about yet tracy: if you get in the stock six months ago you almost doubled your money. bank of america 42%. people that are bought of fishing actually -- ashley: have done well. >> but, of course, market
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timing. could you call the bottom in either of those stocks. smart guys to as you point out, may have. the guess that i am talking to again and again, waiting to see these does deliver. because the investment banker, heading the ship. a lawyer heading the ship. now they have a real banker. maybe he can. tracy: a lot of people have been coming and saying it is time to get into financial store but you cannot still said the financials as a whole. we are still stock-picking. >> you're right. financial etf -- financial etf is up 9%. so listen, this is coming on the heels of goldman posted great earnings. now coming up tomorrow. i have to say time and again these to have regulatory pressures. both bank of america and city, and it is certainly hitting the bottom line. a lot of noise in the earnings a loan-loss reserve, the drawdown.
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and what is true earnings and what is not. tracy: their the anomaly. >> watching it, though. ashley: your best performing stock on the dow last year. maybe it tougher go this year. thank you so much. tracy: a quarter till. it is time for stocks, as we do every 15 minutes. we head down to nicole petallides on the floor of the new york stock exchange. pretty optimistic. >> he was. he basically talked about the buying and selling points on the s&p 500. he talked about the fact that we closed above these levels. next up is probably 1490, and at that point we will be overbought college means sell. what i am digging about when i think about the dow jones industrial at these levels, if we close at these levels, these are the highest levels for the dow since december 2007. anybody remember, we were about 14,000. sunrise to be able to deliver some good news.
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back to you. tracy: back in the day. a long time ago now. ashley: it is. tracy: we were all here. even little nicole on the floor. i tell you. ashley: coming up, arnold schwarzenegger famously said it almost 30 years ago, be back. well, tomorrow he is back and making his last stand. that's next. tracy: you have to hang it up, i think. first, let's take a look at some of today's winners and losers on the nasdaq. up over 3%. ruby red back.
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ashley: natural gas futures hitting a 6-week high after a report showing that inventory levels dropped by more than expected last week. what is ahead? joining me now, chairman and ceo . where are gas prices? historically low for a while. perhaps a colder winter could push those prices higher. what do you think? >> hopefully higher. our industry definitely needs higher prices. we have been suffering some pretty long drought with low price of the last blood years.
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exasperated by these tremendous plays that the u.s. has discovered. the months of january and february really dictate where gas prices will go for the ensuing years. so we have to have some cold weather in places like new york and chicago to really get these prices back up to around four which is where we need them. ashley: your company, five major shale projects in america. how productive are they? >> well, the shale place have made this country had to the possibility of becoming energy independent. we have always known the place existed. we just have the technology to dayton and development. the plays that our company is most active, predominantly for us. ours is liquid rich gas in west virginia. over and now i'll and up in north dakota and southern saskatchewan in canada as well.
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ashley: oil prices have risen close to $96 per barrel. where you see prices going from here? >> actually, i'm quite surprised to see prices as high as they are. one of the big factors that cause that is the difference between brent and wti drawing in. you are seeing people getting more bullish on the economy. that is positive. china and india continue to have a major first for oil. again, the united states is producing more will than we have . crossing the 50 percent barrier. so i am not really bullish on oil long term. we get plenty of it. much more bullish that hopefully natural gas will go up because the prices will allow the industry totally have higher prices because you have less drilling. ashley: in the wake of the bp
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oil spill we saw a slew of government regulations come down . since then, how difficult has it been to do business? are we seeing some of those regulations use of? >> companies, we have very few leases that are actually owned by the public with a government. so the difficulty has been on federal land where the government has been very slow. the difficult has been the kind of accident occurred. we really have any issues in getting the permits we want. there have been delays. new requirements, and new permitting needs that really have not affected us. believe those companies that operate with federal leases. ashley: already out of time. thank you so much for joining us. >> thank you. ashley: thank you.
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tracy: all right. well, it has been nine years since arnold schwarzenegger starred in a film. this weekend we find out whether fans still love him. we have the story. is hollywood ready for the return? >> reporter: well, hello. hollywood surely is ready for the return of arnold. what about movie fans? arnold schwarzenegger said it almost 30 years ago in the terminator, i'll be back. on friday he will be, bowling at the box office. still love, but 65 years old, almost ready for medicare and social security benefits. the lions gate has teamed him with a young sidekick johnny knoxville. stock doubled $18 in the past year. the betting is that the last stand could rake in maybe $15 million at the box office this weekend, maybe enough to
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win it. lions gate is especially good at turning small films into big surprises. its board last off -- last august with expandable to. the last stand, well, the important thing is this won't be his last stand. he is set for three more films in the coming year including the two in which lions gate pairs them with another action hero, sylvester stallone. comcast universal is looking at a sequel, to twins. the arnold and danny devito, the that grossed over $200,000,000.25 years ago. working title, triplets. maybe even a sequel to the film that started it all, conan the barbarian back in 1982. thirty-one years ago. mick jagger, your heart out. back to you. tracy: good stuff. ashley: pretty good, for 65. not dennis.
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