tv Markets Now FOX Business January 22, 2013 1:00pm-3:00pm EST
melissa: a very good afternoon. i am melissa francis. lori: and i am lori rothman. what to watch for after the bell. overhauling that sec. peter barnes goes one-on-one with the outgoing enforcement chief. melissa: forget the fan traffic. turns out traffic is the hazard. why he is changing course after speaking out. lori: let's get an update on the markets as we do every 15 minutes. specifically, on earnings for us. nicole: there is a lot moving and grooving here on wall street. when you take a look at what revolves around earnings, you
see some names on the move. for example, travelers best of the bunch. delta airlines continues to do very well. we are seeing delta up three quarter of a percent. verizon with a down arrow. however, giving their outlook on a conference call for 2013, they were certainly a winner. johnson & johnson, their full-year numbers are not too hot. a couple of things to know is, in the latest quarter they did do well with therapy for hepatitis b, as well as, psoriasis. that is something you will have to watch. lori: thank you. melissa: big tech giants will report today after the bell. sandra smith is here with what we can expect from ibm and
google. sandra: let's take a look at the dow right now. ibm will be the one to watch. ibm has a big impact. there is about a 11% weighting. we will be looking for ipo earnings. you are probably not too pleased with this selloff. a lot of people looking for a turnaround plan for ibm. ibm could really set the bar for what we expect right now. expecting $5.25 a share. 10% off of its earlier highs. this will be a stop to watch after the bell tonight. also, google. all eyes will be watching google. look at where it is sitting. look at this selloff. it is a year-to-date chart for
2013. this stock has seen a 10% selloff. right now analysts expect $10.52 a share from google. there is confusion expected tonight. the profits from that will not be in the earnings. can you really compare what analysts are looking for? a little preview there for you. to date tech giants that have experienced a selloff. everyone looking for them to set the standard. melissa: it sounds like -- it will be quite an afternoon. sandra, thanks so much. keep it right here on fox business at 4:00 p.m. eastern. lori: we want to bring you the
very latest on boeing's grounded dreamliner. it will have the battery problem fixed "soon." dan springer is in seattle with the latest. reporter: it shifts now to arizona. a team from the national transportation safety board is in oral valley, just outside of tucson. that is a company that made the battery charger for this 787 dreamliner. we are told that investigators will be doing tests on the battery chargers. it was a lithium ion battery which turns on bad engines that overheated. investigators that the battery had not been overcharged. obviously, something light to it overheating. japanese transportation officials are conducting their own investigation.
it appears unlikely at this point that they were part of a bad batch. the planes were assembled about a year apart. though boeing ceo sent a letter saying he had complete confidence in this plane and the company would do everything possible to fix these electrical problems and get back in the air. apparently, they are confident that this will not last long. a norwegian air shuttle has been told to expect delivery on schedule and april. maybe optimistic. a former boeing executive is criticizing the faa for the grounding. it was heavy-handed and way beyond what needs to be done to protect the public. we will send it back to you
guys. lori: the shares of boeing company are down one and one quarter of 1%. dan springer, thank you. melissa: golfer phil baker said backing off. suggesting he may even leave california. he is apologizing for making his personal feelings public and for anyone he has "upset or insulted." california state senator joins us from sacramento now. it seems like he would want to think about where he is living, right?
>> well, it is really sad to think that somebody who has spent their whole life in california, who is raising their life in california, being forced to make a decision because he is told that government will take over 60% of its income. is that fair for any californian to be faced with a decision like that? melissa: he also flirted with the idea of being part of a group that would bite into the padres. he is a hometown hero. somebody who means a lot to southern california. are you worried about your state in light of things like prosperity? >> we continue to see people leaving the state of california and there are better ways to raise revenue. one is by broadening our tax base by encouraging businesses to come to the state of california and expand here. that will solve our problems of increasing revenue. melissa: you talk about that the way you would encourage businesses to come would be to
lower their tax rate. so, you know, it is quite the opposite of raising it. do you think you could ever get that done in california's current climate? >> not in our current climate we are not going to get it done. we need to cut government regulations. we need to give businesses incentives to be here. that in turn would bring revenue. melissa: you know it does not work for me right now, i will have to make some changes. i ventured prosperity in that. races on income over $1 million. it used to be 10.3%. for him, that is $1.8 million. he made $60 million. that tax is making a big difference for him. nebraska governor has talked about eliminating the personal income tax and corporate income tax.
do you think that those kinds of states will starts stealing valuable income? >> we have the highest tax rate in the nation and the state of california. we just cannot sustain this level in order to keep people here in our state. melissa: he sort of backpedaled and apologized. >> i feel the frustration. i am a mom of four kids. i feel badly that he is apologizing, but i do feel his frustration. i certainly do understand his frustration. melissa: senator, thank you for coming on the show. we appreciate your time. >> thank you. lori: a surprise drop in
is it just too far off in the future? >> i think it is too far off in the future. a lot of traders believe that this pipeline should have been approved years ago. this really puts pressure on the obama. we are getting more drama and crude oil right now. crude oil hanging here even on the day. it really started to rock it over last half hour. we are now of $0.80 on the day.
heating oil started off strong. they backed off a little bit. now, maybe because people are starting to realize it is cold outside, there was one report of another terror incident in nigeria. they shot up and killed 15 people. that was the report. i do not know if that was the catalyst or if it was the cold weather. it was really a pretty flat day for most of the day. melissa: we are watching goldman sachs also lowering its outlooks on 2014. it is still pretty high up there. it looks like it will be an expensive future for us no matter how you place it. >> anytime goldman gets barris, people start to listen. it shows you the historic change in the market. getting the oil out to the world marketplace. i think it will lead to higher
prices. good news, get that the way oil moving. back to you. melissa: phil flynn of price futures group, thank you so much. >> bank you. lori: it is bitterly cold outside. we will check in on the weather a little bit later. for now, let's talk about technology. it has been almost a year to the day that apple overcame exxon's as the world's most valuable company. $416.4 billion. that edged out exxon by 3.5 billion. as you can see, that chart right there, the market cap is sliding while exxon is holding steady. appleshare prices plummeted about 30%. today, apple trading at just below $500 a share.
melissa: as we do every 15 minutes, let's check the markets. nicole petallides is on the floor of the new york stock exchange. she is looking at an etf for us. nicole: clearly, we have seen the home-building industry doing well. we have seen the stocks going up along with it. x hp is a symbol of this particular etf. it is hitting a 52 week high today. some of these have gone up exponentially over the existing weeks. it fell 1%, but do not forget, 2012 was the best year and five years. we will continue to get some more housing numbers later in the week. so far, so good for this particular group.
melissa: thank you so much. keep it right here as we dig into the existing home sale numbers. we have an interview with the professor of finance. lori: charlie gasparino with the latest info for us. melissa: take a look at how the dollar is faring today. weaker against the pound him again. we will be right back. ♪ twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio.
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♪ >> @21 minutes past the hour, i have your box is in it. u.s. cargo jets are hoping french troops in africa. they are transporting. the airlift began monday and is expected to run for a week. forces have retaken the town which have been held by rebels for weeks. prince harry is acknowledging killing taliban fighters during a 4.5 month appointment and
afghanistan. turnout is high in israel where voters are expected to reelect benjamin netanyahu. they could have fewer seats in parliament when the voting results are out tomorrow. those are your headlines. back to melissa and lori. melissa: thank you so much, patty ann brown. a new investor. charlie gasparino has the story. charlie: i think there is more than many investors. i think it detracts from the bigger story which is whether dell will actually become a private company. whether they can forbid shareholders to be a private company. i know bankers are leaking stories that it is coming out the end of the week.
they have to come up with a proposal. then they have to presented to shareholders. based on the feedback i am getting, shareholders are skeptical of the $13 share price. i cannot tell you where the point of no return is. if you sweeten it too much, it is not economical for dell, michael dell. it is too much money. they do not think they can get the money. where you take it private and five years time, you build value as a private entity. retool the company and then go public again. i can tell you this, if you talk to enough shareholders, people who know enough shareholders and bankers, when they are really leveling with you, they will tell you this is not a slamdunk.
despite the result being in there, it still needs shareholders and that is the biggest hurdle. lori: .it. got the hurdle. you do not think it is interesting that microsoft would flirt here. charlie: i do think that microsoft wants to do a joint venturer. that is what in the background. microsoft is in all sorts of different -- i am not a tech expert. i do not know how i got onto this story. melissa: it has you written all over it. gerri: i think it is interesting from a shareholder standpoint. i care more if morgan stanley getz marched. why this is interesting is why you should be watching the fox business network.
if you are a long-term investor in dell, you have full through turns and you get a lot of dividends. if you are a person that passed out, either pretty good over the years. long-term shareholders have not been rewarded by this company. the question is, will they be rewarded by a $13 share price? i tell you, a lot of people say no. melissa: shareholders shall get nervous and do often get nervous when you see the original founder of a company and wanting to take a company back. you wonder what kind of deal. charlie: $3 billion to microsoft which sits on gazillions of
cash. this does not look good for the average investor. lori: what would you be satisfied with? charlie: do not ask me. i have no idea. i do not know enough about the company. how long -- listen, look at the track record of the stock. it has not been doing very well. the question is, is $13 worth it? common sense wise, i say no. melissa: charlie gasparino, thank you. lori: he has led a crackdown of insider trading and that more than 150 cases tied to the financial crisis. melissa: before sec chief steps down, he is talking exclusively with peter barnes. an inside look at the sec is coming up next.
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 standing by. what do you have? >> i'm looking at research in motion the blackberry maker. there are so many headlines circulating around it. let's start with today's headlines which is that the ceo is telling a german publication that the company will look into alliances with other tech companies, strategic options they're looking at here. up 10 1/2% right now. stock is at a 52-week high. that is good news for the
shareholders. of course it has been a stellar performer this year alone year-to-date up 47%, in much anticipation of the blackberry 10. this coupled with gus at souja capital raised it to outperform from sector perform. up to $23 from 18 and change. here from 17 1/2 he thinks it will go up to 2 bucks. to put it in perspective that was a $7 stock in the beginning of 2011. everybody is waiting on the blackberry 10 at the end of the month. back to you. lori:. melissa: nicole, thanks so much. lori: robert khuzami, sure you know the name. entered the sec as the top cop after the agency missed the big bernie madoff. since taking over the sec charged 65 ceos and cfos. he leaves after four years of service but not before he sits down with this exclusive interview with our
peter barnes. over to you, peter. >> lori, rob khuzami is standing for this particular interview. thanks for joining fox business for this exit interview. you were brought in after the bernie madoff which the sec missed. four years later can the sec, will the sec catch the next bernie madoff? >> well i think the answer to that is a resounding yes. the agency has increased its expertise, its use of data, its specialized focus and a whole bunch of other new initiatives that make us better equipped to be a market watchdog and effective enforcement authority. >> there may be madoffs out there and allen stanford's out there that may slip through the cracks that your net may not catch, is that fair to say? >> there is always risk that there is wrongdoing going on that you don't catch as early as you would like to but we are much better positioned to do so today. we have private sector
experts across the agency who are steeped in the products and markets and transactions of wall street and financial transactions. we have specialized units who are focused on these areas. we reduced process. we have better techniques. all in all we are well-positioned going forward in the future. >> as you know since you announced your rest -- departure, not retiring from the practice of law, since you announced your departure earlier this month, critics have been coming out of the woodwork. coffey from and better markets. they say rob kuz sami under the enforcement division that you were not tough enough catching the bad guys. what do you say to that? >> that is not true. a number of folks who support our efforts and recognize what we accomplished significantly outnumber the critics. speaking to the critics we have charged over 150 individuals and entities and financial crisis cases. nearly 70 ceos, cfos, other
high-ranking corporate officers. we barred a large number of individuals. the financial crisis cases we've been the moist vigorous enforcement authority out there and it is a very, real record of accomplishment. >> but your critics again say you tended to file cases that, for example, focused on nondisclosure rather than fraud. that you went after firms, not individuals. when you went after individuals, they were the small fry, not the big folks and that you settled for much less than you could have and left some of these companies, some of these players with large profits. what about those? >> well, all pretty much inkreblts -- incorrect. i would say we charged nearly 90 individuals in these credit crisis cases, far more than any other authority. we litigated most of these, filed them unsettled. prepared to go to court and fight if we don't get the kind of resolution we demand. the amount of penalties have we gotten very significant, over $2.3 billion.
but let's also keep in mind that there are some legal limits on the amount of damage that is the sec can collect in its enforcement cases which is why we asked congress for some expanded authority. look, people are free to comment however they choose and we listened to all of it but i think if you look at the record, the record of accomplishment is there. >> wall street is it watching sac capital, steve cohen, one of the largest hedge fund managers out there, the company and he reportedly disclosed that the firm received a wells notice from the sec which means it could be sued for securities laws violations. is that true? >> i -- >> can you comment? >> i will not comment on any investigation but as you bring up insider trading i will note over 160 cases in the last three years. nearly $900 million in illegal gains or losses avoided we have charged. so another area we have been extremely vigorous and active.
>> how many insider trading cases are currently in the pipeline? are there dozens more you're looking into, is that fair to say? >> i don't want to put a number on it and remains a high priority and active area. >> what about in high speed trading, high frequency trading? the sec is concerned about that. are you looking into any potential securities law violations with high speed trading or high frequency trading? >> look, we're looking at a sort of number of actors and transactions in the market structure case. we brought cases against dark pools. we brought cases against exchanges including the new york stock exchange for failing to have compliance with the rules. it is important area for us, it is a high priority area for us. we have a specialized unit exclusively for these market activities. >> what are you going to do next. >> i haven't determined that yet. what i know i will be doing looking back at my four
years with a great sense of pride and a great deal of thanks so to the sec for all the work they have done? >> do you see yourself going back into private sector for example or potentially going to a law firm or wall street or review you all the offers right now. >> i'm reviewing the offers. >> all right. rob khuzami, enforcement for the sec for nearly the last four years. thanks for joining us on fox business and good luck to you. >> thanks so much. >> lori, melissa. back to you. lori: peter, good stuff, good follow-up questions. thank you so much. melissa: so does facebook make you jealous? new research scrolling your friends's vacation pictures and status updates is doing to you. lori: i will defriend you if you're tired of looking at wonderful things going on. kidding. of course. the housing recovery taking two steps forward and one step back. sales on previously-owned homes slipping last month. anthony sanders's warning ahead. ♪ .
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december and is this worse than expected read indicative of things to come? anthony sanders focuses on real estate as a professor the finance at george mason university and we are so pleased to welcome you back, anthony. great to see you. >> thanks, lori, does the data signal a step back for housing or is it just a hiccup in an otherwise firm, stable, yet slow housing recovery? >> at this point i would call it a hiccup. because i think in 2013 we're going to see a good year. bear in mind last year's housing prices until december were actually back at 1999-2000 levels which is sustainable. lori: 5.9% gain in 2012. do you think that will gain this year or as you said, sustain? >> i think it will improve a little. the problem it has taken us this long to get over the clinton administration disasterous national homeownership strategy. we're finally back to a settled point. i think it will go up. but again, credit is tight. i don't like for really a
lot of expansion. >> anthony, i have to confide in out, my producer said ask him what the worst-case scenario is? what is keeping anthony sanders up at night regardings housing? >> the fact that i every time i try to buy a house in virginia it keeps getting bought from underneath my feet. lori: why do you think that is happening? >> i think what happened after the first year came out and sequestration got ush it pushed down the road, the people are saying oh my gosh, they're not really doing this, are they? they might. i think a lot of people were waiting and waiting and waiting. that is why i think december was low. i think now that december is over and they see the congress of course isn't going to do anything about spending they're, they feel more relaxed and will start buying homes against. lori: so that is the motivate are to. i want another issue to cross with you, that is all this surrounding the discount rate which is the rate federal reserve charges
banks for banks to borrow money from the fed. what we're learning now from the fed documents released five years later that perhaps treasury secretary tim geithner was not exactly forthright about whether or not he did tip off some of those big banks that the fed may in turn, did ultimately end up lowering the discount rate. how does this impact the housing market? >> well, again, if you look at a chart of house prices, existing home sales or any housing metric against fed funds rate and any kind of discount rates you see it is actually a great chart. you can see housing prices are going along, they lowered the fed rate. housing prices are going up, they're going, quick, quick, raise them quick so we kill off the housing market. they raised them quickly and what happened? the housing market collapsed. we're like japan. we're easing, easing, and easing. japan's housing prices are still in a state of free fall just like spain and they're doing it. it is not clear how much we're going to be able to
get a big sustained recovery or housing bubble. i think like diana olick who is very concerned about there is not enough credit out there. fha has tightened. fannie and freddie are tight. unless the government through the gses and fha decide to expand credit, which they might do, we'll not see thatting beg of a housing recovery. lori: do you think any of the damage done whatever the treasury secretary's role was is behind us and we have transparency on interest rates and what is involved to get a mortgage and move past this and to your initial point, that we'll see a satisfactory recovery in housing? >> we should see a satisfactory recovery in housing. in terms of secretary geithner i read a fed president lacker's comments on that, very amusing. yeah i think that was just kind the out of bounds for geithner and should have been thrown a 15 yard penalty pass but are they going to stop that? lori: right, right.
>> would be surprised if they don't. lori: thank you so much. appreciate your knowledge. >> thanks, lori. melissa: so it is a quart heer to. as we do every 15 minutes, nicole petallides on the floor of the new york stock exchange with m&a action. nicole. >> that's right. look at dow component at&t making some moves here. you can see the stock is up more than half of 1%. that is nice one-week chart for you but now they're now moving ahead to acquire a wireless operation, atlantic telenet work, known as alltel. it resolves around georgia, idaho, other states, south carolina, north carolina and ohio. 4.6 million people are covered under alltel. this is $780 million deal in cash. it is expected to close in the second half of the year. of course pending fcc approval. so it is a big deal and a big move. there you have it. melissa: nicole, thanks so much. you may want to think again when you log on to facebook to keep up with your friends. a new study from germany is
revealing a third of the people visiting the site, feel miserable, jealous and lonely after signing off. according to the report the biggest triggers for facebook envy are vacation photos and birthday greetings. that is because users compare how many they get to how many their friends are getting the study may actually be a concern to the company because it adds to speculation that facebook could be reaching a saturation point because the most miserable users often cut back on their time spent on the site. lori: call that efficiency. just put up the pictures and everyone can see them. nobody can complain you didn't send pictures to everybody in the family. melissa: what is that great saying? if you're as happy as you look like you are on facebook you wouldn't be spending so much time there. lori: there is a lot to be said for that. melissa: a lot to be said for that. bags still fly free on southwest airlines but the list of other fees is growing. we'll tell you how much it will cost you coming up next. lori: been outside lately? freezing temperatures gripping the entire nation. cities as far south as
nashville and richmond may not make it above freezing all day today. the story is just ahead. ♪ . [ male announcer ] this is joe woods' first day of work. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.
janice in the fox weather center how long the sub-zero temperatures will last. >> this is old school cold, huh, ladies? i'm from canada. big puffy coats on. some places we're dealing with dangerous cold and dangerous wind chilled. air temperature combined with wind, what it feels like if you're not bundledded up and not protected. minus 23 in international falls. minus 18 in green bay. that is the windchill, the real feel temperature. that continues across the great lakes and northeast where it feels like 12 here in new york. a lot of new yorkers complaining today. minus eight what it feels like in buffalo and minus two in syracuse. windchill advisories, feels like anywhere between minus 30 and minus 50 below zero and where you see advisory, 10 to 20 below zero. it is dangerous. make sure you're indoors
most of the day. it can be quite dangerous with frostbite and hypotheerm yaw possible especially with the little ones. bundle up it will be cold next several days. ladies i want to point your attention to friday. friday we might have some plowable snow here in the new york city area. so good news for the kids, right? melissa: i know, my kids will be thrilled. they will be out there on their sled. you're always in such a great mood, janice. no matter what. lori: i can't handle the cold weather. melissa: get a load of this one. >> turtleneck, the thin-skinned calfornian. >> it is snuggle weather. melissa: there you go. janice, thanks so much. speaking of cold it is that time of year again the business word's elite descending on the tiny ski town off davos, switzerland for the world economic forum. the economy will be front and center as the group's founder has warned the world has not yet escaped the risk of economic collapse? do we ever.
we have davos covered all week long. you will not want to miss a minute with liz claman. she sits down with richard gelfond, imac ceo. that is right here on fox business. she has a slew of guests. all the all-stars. lori: want to take a trip to a warmer climate? southwest airlines announcing well, it might cost you a little more especially if you want to board early. a $40 fee guaranties passengers get to be one of the first 15 people in line to board. travelers who want to be first on the plane can purchase the option at the gate up to 45 minutes before boarding. but space is limited. only 15 of these early passes will be sold. southwest, the nation's most popular domestic airline already charges $10 for early bird check-in service but early bird service improves your spot in the boarding queue. doesn't guaranty a specific spot like the fee will and grab your you stuff. get out to vegas and get to the craps. melissa: have you flown southwest? so competitive. get there and -- very
stressful. lori: a little like cattle. but you get to the fun desnations. melissa: i guess only stressful for me because i'm too competitive. the problem could come back to me. never mind. let's not talk about it anymore. coming up tonight on "money", sportscaster jim gray will talk about phil mickelson's comments on taxes. he caught up with mickelson. he has insight who might flee california next. is this a trend? 5:00 p.m. here on fox business. you don't want to miss it. we have a lot of fun on "money". lori: i will get to be a part of it. we have a couple hours of the trading day. don't go anywhere on fox business. job creation got hardly mentioned in the president's inaugural speech. is washington doing enough to boost the segment of the economy? representative jan schakowsky and trey gowdy weigh in next with tracy and ashley. stick around.
>> so you and janice dean looking at the bright spot of the frigid weather and cold coming this week. i don't think i can handle it. it's closed!. >> not like we work outside. lori: i spend a lot of time walking to the train. standing on the platform. do i get any sympathy? melissa: lori's life is so rough. ashley: this is the first real cold we've had for, well, didn't get any cold last winter. lori: that is a great point. melissa: can't complain is the punch line. did you get that? tracy: at least there is no snow. ashley: yet. tracy: the "s" word. melissa: my kids want the snow. ashley: thank you, ladies. lori: they're so glad to get
rid of us. tracy: no more talk about bad weather. i'm tracy byrnes. ashley: i'm ashley webster. president obama on board with gop's short-term boost on the debt limit but when will lawmakers stop stalling and get working on the nation's fiscal future? representative jan schakowsky and trey gowdy are here in moments. tracy: the man in charge of enforcement of the sec, robert khuzami, responds to critics that he is not doing enough to stop financial crime. ashley: real estatecut ability john burns tells us one positive housing trend no one is talking about. he is here to explain. tracy: that is good. we need that. we need positive. top of the hour. time for stocks as we do every 15 minutes. we head down to nicole petallides down on the floor of new york stock exchange. nicole, we were red, we were green, we're up. but it is really all about earnings, isn't it? >> there are a lot of earnings we continue to
focus on. we're in the thick of the earnings season, the vix is moving back and forth and higher after hitting multiyear lows. dow jones industrials up one quarter of 1%. hitting five years highs. s&p, same gig. another five-year high for the s&p 500, the nasdaq many could posit pulling back. look at some of the names that reported their quarterly numbers including johnson & johnson. these are dow components. travelers, dupont and also verizon all coming out with their numbers. johnson & johnson fell short. they had issues with currency exchange rates. that also hut their numbers. but they had some gait sales with some therapies for psoriasis and hepatitis-c. that should bode well going forward. verizon gave a good outlook despite a tough quarter. when you look at insurance, travelers is up 2.7%. that is no small move. that is a very big move there. dupont, 1.7%. three winners and one loser there as far as dow earnings. after the bell we have more coming. back to you. tracy: thanks, nicole.
we'll see you in 15 minutes. ashley: all right. well, congress is back at work today, just one day after president obama was sworn in for a second term. the president in his inauguration speech called for both sides to work together. sounds good in theory but can they? with the very latest, rich edson, rich? >> inauguration day, dedicated to american democracy and yesterday a spirit of bipartisanship trumpeted by democrats and republicans. that lasted until about this morning. some corners last evening. democrats and republicans arguing over some of the details over president obama's speech. democrats saying it laid out a clear second term agenda for president obama. the republican national committee say it is a rallying cry for liberals. already we're seeing the same differences between democrats and republicans on jobs, on spending an entitlement spending. >> a simple proposition they would insist on cuttings to -- cuts to medicare, medicaid,
social security, in return for doing their job, paying their bills. that, was obviously something the president could not and would not support. >> in short democrats put off the hard stuff until now. and our problems have only gotten worse. but that was the first term. >> the house is getting set to vote on the republican debt ceiling proposal tomorrow. that delays the debt ceiling increase or increases the debt ceiling really until may 19th. it is contingent upon both houses of congress passing a budget or members of congress won't receive their paychecks, something the house votes on tomorrow. back to you. ashley: rich edson in d.c.. rich, thanks very much. tracy: well, president obama touched on many subjects in his inaugural address yesterday including immigration reforms, equal pay for women, and gay rights and climate change but there was one big, glaring omission. he failed to address the nation's current 7.8% unemployment rate. i'm not really sure how you
could miss that actually. a big question to the speechwriters with that one. but important milestones coming up in the protracted fiscal negotiations including big vote tomorrow on the house to temporarily extend the debt ceiling now. many americans are wondering what legislators plan to do about jobs. joining us from both sides of the aisle, republican congressman trey gowdy from south carolina and democratic congresswoman jan schakowsky from illinois. congresswoman, i will talk to you first. there was no mention of jobs. it was a very liberal speech, i guess a lot of people hoping president obama would come to the center going forward, and we didn't really hear that from him. >> well, actually i think that president obama's very much in the center of where the american people are at in order to protect social security and medicare and medicaid. to deal with climate change. think it is the republican party, if they don't like it, it is because they're so far
out of the, out of the center. these are very popular positions that he has espoused. tracy: you know, the center, representative gowdy, is really mad about taxes. taxes go up on the wealthy. we're hearing more and more our taxes are going up on the middle class. we don't really talk about lower income people at all but so much for sharing the wealth. i don't think that is center at all. >> yes. so much for a ballness laed approach. tracy: right. >> and i find it instructive that senator schumer, the ink is not dry o on the last marginal rate increase before he promises to seek more. for those of us who opposed the fiscal cliff deal it was for that very reason. you can't not tax your way out of our current deficit and debt. i was encouraged to hear that senator schumer and our colleagues in the senate are going to do something they are very unfamiliar with, which is actually to pass a budget. i will believe it when i see
it. he says they're going to do it. that is important because when you have to put pen to paper and list your priorities it makes it easier to have the debate. when you're debating against a phrase like balanced approach, that's a challenge. but when you're debating against specific numbers, it gets a little easier. tracy: representative schakowsky, let's talk about this budget. the house of course calling no budget, no pay. look, you want to talk about the center and the american people. we have all had to create budgets over the last couple of years and had no choice but to live by them. we don't have printing presses at home. this notion that we don't have a budget right now, a little disheartening. you think we'll get one out of all this. >> the house passed a budget, the ryan budget that would decimate many things that the middle class actually depends on. and i also want to say that already signed into law is $2.4 trillion worth of spending cuts. the republicans act as if that didn't happen and we're starting now from ground zero.
and the majority, the vast majority of americans say that asking the wealthiest americans to pay a bit more is exactly what they sympathy is a fairest way to deal with a deficit issue. tracy: i'm not sure, i'm not sure they will agree with that when these wealthy americans stop buying stuff because more money is being taken away from them. congressman -- >> come on. tracy: you know, i'm sorry, it is the way it works in this country and the other thing is -- >> no it is not. tracy: you're not going to collect the revenue you're looking for because wealthy americans are smart enough to figure out a way around it. congressman, gowdy, one of the things we haven't heard a word about, or at least not enough about is the entitlement spending. how are you going to address that? >> well, you do it by knocking back against the demagoguery i just heard with respect to paul ryan's budget. you know paul ryan had the courage to take on social security reform, medicaid reform and medicare reform. as my colleague just
repeated, one of their talking points, that it decimated this group or the other, it balanced in 40 years. i want your viewers to let that soak in. paul ryan's budget balances in 40, four, zero, years. yet my colleagues on the other side of the aisle say that is draconian and mean-spirited. social security is easy to fix. medicare is easy to fix but not when you trot out stale talking points and you vouchers that will destroy medicare as we know it. if you want a fair conversation about it which everyone concedes privately on entitledment reform. when someone has the courage of paul ryan and get demagogued and show ads of pushing a senior citizen off a cliff makes you less likely to do it. tracy: for those of us at home listening to all this the word bipartisanship has become a dirty word down in d.c. i hope you find time to find it again and work through these things. congressman gowdy,
congresswoman schakowsky, thank you both for being here. >> thank you. ashley: the debate goes on. we have breaking news for you there. there is word of a college campus shooting in houston, texas. police say multiple shots have been fired. of course we'll bring you the very latest as this develops. again a shooting on a college campus in houston, texas. boeing shares taking another hit amid new questions about what is really wrong with the dreamliner. tracy: plus, fox business exclusive with the ftc's -- sec's top enforcement chief when he is stepping down. he responds to critics that say the sec is not tough enough. as we look every day at this time, let's see how oil is trading. up a bit. $96.30 a barrel. we'll be right back.
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ashley: outgoing sec enforcement chief robert khuzami says the agency is well-positioned to handle the next bernie madoff as he prepares to step down from his role later this week. peter barnes spoke exclusively with i am moments ago at sec headquarters and as part of that story. peter? >> hey, ashley. one of the subjects i asked him about was insider trading and these reports from various news organizations and our own charlie gasparino that the government is looking into one of the biggest hedge fund managers and most successful hedge fund managers out there, steve cohen of sac capital. i asked him to confirm whether or not these, the sec is among the agencies looking into sac capital. here is what he said. >> over 160 cases in the last three years. nearly $900 million in illegal gains or losses avoided that we have charged. so another area where we have been extremely vigorous and active. >> how many insider trading
cases are currently in the pipeline? are there dozens more that you're looking into? is that fair to say? >> well, i don't want to put a number on it but remains a high priority and active area. >> thought we had the piece of the clip in there that in which he said he would not comment on any possible sec investigation into sac capital but we also asked him about whether the sec now will able to catch bernie madoffs of the future after his four years or so here at the sec. he said unequivocally, yes. ashley, back to you. ashley: let's hope he is right. peter barnes, thank you so much. appreciate it. >> you bet. tracy: all right. speaking of optimism, new developments in boeing's dreamliner nightmare. now two dreamliner buyers giving boeing a big vote of confidence. ceo of norwegian airlines says boeing is telling airlines it is confident it will fix the battery problem soon. what the heck else are they
going to say? international lease finance which is airliner's biggest buyer appreciated boeing keeping the company well-informed. so far japanese and american experts are actually coming up different theories. a big ol' split whether the is problem is with the battery itself or the battery's interaction with the jet's electrical core. boeing shares fell 1% on the news. ashley: obviously they're l there they're going to get to the bottom of it. the more it drags on the worse it is. they have to get it right. the big issue, people start canceling their orders for the dreamliner because there is the a bus a330. it is not as impressive but if you can't get the dreamliner what are you going to do. tracy: it is going on long enough we should know what is going on. ashley: two different theories. we'll get to the bottom of it sooner or later. nicole petallides is on the floor of the new york stock exchange. nicole, you're looking at
some of these tech movers. >> that's right. let's look at two key names including apple and google. let's start off with apple. apple still hovering around the $500 mark. it dropped below the 498 range. it is up $2.22. there is talk of three new smartphones this year. though we heard obviously they are cutting down on the supplies thee need from some the phones. the question is there demand for some of their products. now at 502 not 700 like it was in september. google coming out after 4:00. google has expressed some concern analysts haven't adjusted their numbers to reflect the sale of its motorola home business. it will be very interesting to see. it is pulling back ahead of it quarterly report. there it goes back to positive territory. just sitting on 704.56. maybe we'll see some steady growth in the online
advertising and mobile market as well. we'll steer clear until the 4:00. that's one to watch. ashley: going to be a big hour. nicole, thank you very much. keep it right here on fox business for the full coverage of after-the-bell earnings report. they include as nicole said, google, ibm, amd and texas instruments. it is at 4:00 p.m. eastern time beginning right here on fox business. don't miss it. there are lots of numbers. tracy: these aren't straightforward numbers by any stretch. google's numbers could get messy. real estate expert john burns is telling us one possible trend he is watching behind the headline numbers. >> let's look how the dollar is moving on a day where the dow is drifting higher. the dollar down against all these currencies. the currency currently trading higher against the dollar. the euro is flat at 1.33. we'll be right back. before copd...
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are being evacuated. we'll have more details when it becomes available. the u.s. is providing cargo planes for the fight against. the us air lift began monday and is expected to run for a week. french and mali forces have retaken the down of diabli which had been held by mali rebels for weeks. britain's prince harry is acknowledging killing taliban fighters during his 4 1/2 month deployment in afghanistan the prince of wales made the comments as he ended his tour of duty as a gunner and copilot in an apache attack helicopter. those are the headlines. back now to tracy and ashley. tracy: patti ann browne, thank you very much. poor kid has to admit that? why else would you sent him out there? to shake hands with them? ashley: i don't know. tracy: you may have been waiting not months but years for this news. the long embattled housing market officially on the mend says top housing data firms. liz macdonald is here with more of emac's bottom line.
really? ashley: we've been waiting years. >> years. housing prices are up nearly 6% versus a year ago. that is according to zillow. they looked at 366 housing markets across the country. here are the ones that are really jumping. here are the housing markets, if you're thinking hey, what about my market? what is going on in my area? look at those --. ashley: a lot out west. >> hottest one is phoenix. phoenix is up 22%. even in detroit you're seeing house price appreciation of 3%. miami going to see 5%. sacramento, san jose are really hot markets. so the is inland empire. get this, outside of los angeles, that is unusual. so what we're seeing is, house prices trending at 2004 levels. that is really unusual. and we're seeing dramatic house price appreciations in these markets you're looking at right now. the ones bringing up the rear, the ones lumbering along, look at this. minneapolis-st. paul, denver, columbus. some markets yet to bottom out. atlanta, chicago, cincinnati.
but i'll tell you something, zillow is saying nearly 90% of the these markets have bottomed out. they're in appreciation mode. the prices are ticking up. this comes on the heels of the nar saying that annualized existing home sales are up 9% versus 2011. ashley: looks like a relative recognize between the west and the east. the west got hammered in the housing collapse. >> that's a great point. >> the prices in phoenix, there are complete condo complexes that are ghost towns right now. to see prices come back are great but what are you pitting those numbers against because the bar is low? >> that's right. that is 6%, nearly 6% means, really at a bottom. ashley: yeah. >> so what the housing forecasters are saying you know what? expect 3:00% annual price appreciation average nationwide. that is about the 1990s levels that's what we saw. we still have 10.4 million mortgages in negative equity. meaning they're underwater. the mortgage is worth more than the house. you know what? hear is the deal with that. those homeowners have to sit
with the mortgages. they can't get out. those houses are not yet in the market. so that is why the inventory is really tight. inventory supply is at 2005 levels. so that is what is boosting, supercharging some house prices. watch out of the bubble territory in some of these markets. watch out for that too. tracy: liz macdonald. ashley: good stuff. tracy: quite bubbly yourself. ashley: we all love maps. more on housing now. sales of existing homes in december fell by 1% to an annual rate of 4.9 million units that is short of expectations but our next guest is not disappointed. he says there is a positive housing trend driving the recovery. joining us now, john burns, ceo of john burns real estate consulting. john, thank you for joining us. what is the headline being largely ignored that you're very excited about? >> well, the, what is driving it down the is number of distressed transactions is falling pretty rapidly. we think we're in a
five-year, 50% decline in distressed transactions but normal buyers are coming back. between 2010 and 2016 we'll see that grow maybe 80%. man flattish in december because of a fiscal cliff issues but we're in the midst of a real recovery here, no doubt about it. tracy: liz macdonald says inventory is really tight. restrictive mortgage underwriting is still out there as well. so i mean it will not be a walk in the park by any stretch. >> you know, it is a lot easier walk in the park than it was a year ago. it is not as hard to get a mortgage as a lot of people think it is. the qm rules finally got released earlier this month. that is spurring clarity to the banks. if you're underwritable and not asking 50% of your income go towards the mortgage or any of the ridiculous things going on. you can get a mortgage. just the paperwork is a little bit of a headache. ashley: john, we know the inventories are it tight right now but will that change as more homeowners who have not put their houses on the market because
they will not get as much as they want or as much as they paid for it, but as they see the prices rise they will be more encouraged to put the home on the market? is that a trend you expect to see? >> that is trend we're seeing. elizabeth mentioned there are 10.4 million mortgages underwater. we have a million and a half more people than a year ago who can sell their home and make a of the mr. on it. and, i don't know who is, i know a lot of economists are saying about 3% home price appreciation outlook. i'm far more optimistic. mortgage cost to income ratio this is near the cheapest time in the last 30 years. the economy is on the mend. there is the 4.4 months of supply on the market which is really low. my consulting staff out in the market are hearing stories of bidding wars. no the that home prices are going up 3%. you're dead on, it is much more stronger in the west than the east. tracy: that was my next point. it is very bifurcated right? as i pointed out earlier the west got hit way harder than we did on the east, i guess
miami not included. we're seeing those turn around real quickly. what about areas like new york, new jersey, connecticut? we're still seeing falling prices in our areas. >> yeah. i'm going to differentiate it a different way. the judicial foreclosure states versus the nonjudicial foreclosures states. california, arizona, they foreclosed on you. three years umm! coming back as buyer. new york, new jersey, and florida you're still living for free. we're seeing high months of supply in the market. there are a lot of homes on the market in the east and very few homes on the market in the west. on top of all that the big distressed investors have been shopping on the west and now they're moving into atlanta and carolinas. you mentioned minneapolis. ashley: right. >> that's where we're seeing them now. they will drive the recovery there too. ashley: nice to see the market is clearly bottoming and now we're starting that recovery. john burns, thanks so much for joining us. we appreciate it. >> my pleasure. tracy: we've got a slew of dow components posting quarterly results today and sandra smith has the trade
on earnings next. ashley: plus, you have heard of famous actors and businessmen fleeing from higher taxes. what about this guy? former president reportedly could happen. sarkozy. let's look at some of today's winners and losers. we'll be right back. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.
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hour. tracy: half past the hour, before the new york stock exchange, nicole petallides standing by. nicole: we were talking about the market, i asked if he thought the market was hitting this rally and resistance, but we still feel optimistic. >> i think that is a huge leap, right? even if we hit resistance, i think we will still be okay in a couple of days. i don't anticipate it won't have any volatility, but i think it'll be okay in the end. nicole: why are you slightly optimistic rather than pessimistic? >> there was a lot of stuff going wrong and still the market was resilient. i think you cannot fight the trend. nicole: so it is not as bad as it was, and we were so resilient then, so it must mean it is good.
>> washington has been a little bit more cooperative, growing up. tracy: we will take anything. thank you, nicole. ashley: dow heavyweights on the move after a busy earning morning. sanderson has details in today's "the trade." sandra: more "after the bell" tonight. earnings are the trade, investors are making their bet based on what happened in the fourth quarterr travelers and dupont clearly some of the biggest names in the dow. i want to jump in and show you johnson & johnson, this is one of the laggards in the dow right now. it has enjoyed some nice gains over the past year, 11%. it was all about the forecast from johnson & johnson putting out a forecast for 2013 that fell below analyst forecasts. taking a 1% hit in today's session.
travelers, this is one you have to pay attention to because at first glance profits were down 51% for the fourth quarter, they had millions in claims that cut into profit. of course the stock is getting a huge pop, travelers up 6%, excuse me, 9% so far this year, so travelers to.5% in the trading session. i want to jump into verizon. a record number of new wireless customers signed up, but because of the subsidies that cut into profits and didn't help the company. still trying to find their ground here in and out of positive territory. stocks struggling so far in 2013. earnings are everything right now. thank you guys. ashley: sandra, thank you so much. tracy: a new report has disappointing news about the holiday shopping season.
this is a worrisome indication of consumer confidence? joining us now, gerri willis. >> great to see you. it is done every quarter. here is what we have, 28% of them spent less than expected over the holiday, only 16% spend more than expected. look back at how you spend your money, seems to me we almost always spend more than we anticipate. consumers are very nervous about their financial security. unemployment is unchanged since the last obama administration with more long-term unemployment numbers from 2.724.8 million people who have been unemployed for 27 years or longer. number of folks on food stamps up dramatically 47.5 million.
overall the news for consumers here are not that good. ashley: it will not change the sensthissense of hang onto your. who knows when that will come. tracy: we need economic growth, so people can't have a suret se. tracy: you wonder if there is something. you wonder if we have had some kind of a breakthrough product, but we didn't see that. on the other hand consumer spending has been so pent up for so long, i expected this to be a giant season. gerri willis, what have you got going on tonight?
>> have a lot of good stories going on, including darrell issa to talk about his investigations, and executives are calling on people all over the world who spend a lot of money, maybe as much as $14 trillion on green energy. they don't want to spend it, they want us to spend it. tracy: i'm sure they took their corporate jet over. tonight here on the fox business network. ashley: speaking of battles, the world's biggest players in business and politics are gathering for the annual world economic forum, the global economy will undoubtedly be front and center, the group's founder warns that have not escaped the risk of economic
collapse. liz claman reporting for the next three days talking to the ceo in the 2:00 p.m. eastern hour. the report from that very exclusive ski resort high up in the alps. tracy: i might throw it out the window. ashley: disney's $40 million man, does robert iger deserve a raise? it is nice if you can get it. tracy: first, as we do everyday, and look at the 10 and 30-year treasuries heading out to break. we will be right back. coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep.
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dennis: he is one of the highest-paid suits in hollywood. some women say he is one of the best looking, but is disney chief really worth $40 million pay package? you bet he is. his pay rose as disney's stock price soared up 76%, net income of 8%, earnings per share rising%. 90% of his pay package is pegged to performance and shareholders have reaped the benefit. disney total shareholder return of putting investment event came in at 76% for the fiscal year at more than twice the 3% return in the s&p 500 and over three years the total returns just shy of 100%. double the s&p. now, here is what disney stock price surge looks like following fiscal 2012, a nice 76% rise, right? here's how that compares to the s&p 500 index. less than half as much,
recovered it it to generate 201r 2012. 30% rise still above the s&p. what makes them so good at his game? acquisitions are a key factor. steve jobs under pixar. the avengers and now santa george luke is fatal "star wars" franchise. and look at robert iger's full seven-year reign. shareholder returns up almost 140% and his tenure at the top compared to 36% return for the s&p. ashley: i don't care if somebody makes the big bucks, they have to deliver and clearly he is delivering. i will increase stock price to 140% over the next seven years, whatever it is.
dennis: 24% of his package is in stock. now we're getting upset when their paid loons with a rising stock. probably the best collection of single brand entertainment assets in the world. ashley: thank you so much. tracy: we will give up our paychecks to make our children happy, and he knows it. a quarter until, time for stocks as wit we do every 15 minutes, nicole petallides on the floor of the new york stock exchange. looking at some movers. nicole: i am indeed. research in motion up about 11% moving to new multi-year highs. the ceo talk about the fact they're exploring a couple of things could be open, the operating system, that could be one. a couple of other things they may sell off the hardware division, considering different options.
let's take a look at arena pharmaceuticals, concerns over their obesity drug, the officials have been informing issues on the drug. this one coming under pressure down nearly a dollar, about $0.10. back to you. ashley: president obama promising action on the environment. says that sounds like nothing more than a push for big government. next. tracy: former french president about to say goodbye to higher taxes? we will find out. but first, a look at today's winners and losers on the nasdaq as we head out to break. ♪
tracy: president obama came out swinging on climate change in the inaugural address yesterday. president obama: we will respond to the threat of climate change. knowing that the failure to do so would betray our children and future generations. some may still deny the overwhelming judgment of scien science, but none can avoid a te devastating impact of raging fires, crippling drought and more powerful storms. tracy: the world economic forum in switzerland, leaders called for a $14 trillion reading of the economy.
breaking it all down, judge andrew napolitano. 14 trillion? >> liz claman is covering these people so nicely for us. they would love nothing more than to get from western governments to agree to cough up 14 trillion in the next 10 years. a bulk of those from the united states. already in debt by 16.5 trillion. i don't know how they can do this without a congressional authorization here. i suppose u.s. can raise its dues and give the increase in dues that members paid over to this group to contain the hurricanes of spending money. here is my view, if you will. this is an example of the big government mentality run amok. they recognize no limit on government, not even natural limits on government.
they actually believe hurricane sandy was man-made and if they had their way 20 or 15 or 10 years ago it wouldn't have happened. there is no science to support that, i'm a lawyer and a legal scholar and television guy like the rest of us but that's just defies common sense. ashley: a multitude of other companies bringing companies that have all these government loans are taxpayer money that went down the drain. you blew that is unconstitutional. judge napolitano: talking about green companies receiving loan guarantee and went out of business and the feds had to pay off the loans, the fed meeting taxpayers or money borrowed from the chinese in the name of the taxpayers.
present heavens is congress is congress, republicans and democrats engage so much in the president, so much ability to give these loan guarantees to companies other presidents choosing that this is now coming home to roost. republicans gave his power to george h. w. bush and george w. bush, democrats gave the power to jimmy carter and bill clinton, barack obama has exercised this power in ways that has frustrated everybody. republicans didn't want to see federal taxpayer dollars going to these companies. it is lawful. is it constitutional? it is not authorized anywhere. tracy: we have to talk about the keystone pipeline. the governor says you know what, he can traverse my state. judge napolitano: this is very frustrating to the state department and the strong environmentalist that support the president because this is basically saying to the president we have the largest single piece to our state who
not only have no objection to it, we want it. we are ready, they're here to collect rents to have this stuff built in their backyard, let's go, mr. president. now he has to find another excuse to block it and this is greater pressure on him to decide the orthodox of the environmentalist unless people in texas and canada exchange a pipeline. tracy: judge andrew napolitano. thank you, sir. ashley: france rich and famous are fleeing the country to avoid paying higher taxes and they may be joined by former president. reportedly considering moving to london with an investment fund worth more than a billion dollars. the move would help robert iger and his wife skirt top tax rate of 75%. proposed by his proposer.
sarkozy under investigation for corruption to a relocation would be highly controversial. tracy: i'm sure that has no reason why he is moving. ashley: she wants to get back into buckingham palace, that is what it is about. or join mother russia. you cannot beat that. >> what is in the wind? come on. ashley: cheryl casone taking us through the last hour of trading with research in motion. saying that stocks should be a lot lower than it is right now. plus, she sees opportunity. "countdown to the closing bell" is next. at a dry cleaner, we replaced people with a machine. what?