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tv   Markets Now  FOX Business  January 31, 2013 1:00pm-3:00pm EST

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dennis: we have talked about dow 14,000, but the dow is now at down 18-point despite the bad news out there. we will get to it sooner rather than later. cheryl: unless he gets some blockbuster jobs number, which could happen, but i am thinking monday. we shall see. melissa and lori, have a lot going on, take it away. melissa: we will be tuned in, that is for sure. lori: the market pulling back a bit as the number of americans seeking unemployment aid rose sharply last week. the first-time jobless benefits
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seekers. the focus squarely on tomorrow very critical january jobs report. melissa: speaking of jobs, problem solved? president obama breaking up his jobs council after two years and a whopping total of four meetings. that is a lot of work. lori: the world's biggest drug makers with the competition from generics keeping them on the hamster wheel. there is good reason to be optimistic on the big pharma stocks. they will tell us why. melissa: and a possible conflict between israel and iraq. lori: an update on the market and this thursday afternoon. 15 minutes since we last heard from it: the new york stock exchange. last trading day of the month. off about 16 points. nicole: this has been a really stellar january. don't forget since 1950, 83% of
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the time as goes january, so goes the year. the major averages gaining him a big way and the s&p 500. we will see that holds for the year. the one index squeezing out a gain. from positive territory into ago. the dollar has weakened, helping equities along as well. oil and gold are both on the downside. i wanted to take a look at a name on the move, ups. take a look at it, down 2.1%. we talked about the ceo talk about uncertainties for the economy going forward and fiscal uncertainty more importantly noted until washington can get it right it might be difficult for businesses to function properly and grow, and he actually made it very obvious when he last spoke.
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a look at the one-year chart down 2.1%. lori: thank you. melissa: stocks struggling after a flurry of jobless claims. december personal income grew by the largest amount in eight years, held by dividend payouts as everybody tries to avoid higher tax rates on those. the latest reading on manufacturing came in the best level in nine months. that is positive. following the gdp report. that is not good. what does it say about the recovery? it is confusing. joining me now. we go through the list, it is basically all bad except the chicago pmi number. what is your take? >> my view is the latest data suggests this remains the olympus economic recovery since
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the second world war and we ought to be happy the u.s. economy grows by 2% once again in 2013. this is an economy growth wise that is simply moving sideways. melissa: sideways even is optimistic. it could go backwards. the fed charted the recovery in terms of gdp growth saying this is the worst recovery we have ever had, basically. >> that is exactly right. we cannot forget the latest rally by equities owes much more to the expectation of the continuation of very low bond yields than it does to expectations of stronger earnings growth. in fact, if we strip away the financials from the s&p 500 companies that have already reported, earnings from continuing operations are up by no more than 4% year-over-year.
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melissa: let's test that theory. it is true it seems like right now the movement in stocks is totally divorcing what is happening with the economy. it has to do with what the fed is doing. it is driving people into stocks because it is the only place you can get a return. does the economy have to move at a certain pace in order for people to not lose faith in the stock market even though we are saying it is disconnected, but how much can companies take of a sideways economy? does it eventually have to show up in the stock market? >> it eventually will. the u.s. economy must grow by enough to lift rates. a fancy way of saying the unemployment rate has to continue to edge lower if investors are to have sufficient confidence in the equity market. melissa: what is your guess on the jobless number?
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>> once again the unemployment rate stays at 7.8%, perhaps we had 155,000 jobs to payroll. however if we continue to grow payroll by 155,000 jobs per month, maybe by year year's ende unemployment rate will be at 7.5, 7.4%. that is too high to the feds liking but as long as the employment rate is drifting lower, that can be more than enough to keep the equity market happy. melissa: great analysis. good stuff. >> thank you. lori: out the door after four meetings. president obama closed the chapter on the jobs council. with 12 million people still out of work, how will the administration focused on job creation now? let's go to rich edson for more. rich: they will begin a new effort to work with the business community. republicans charge the jobs council is nothing more than a facade designed to make voters
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and the president actually listened to businesses which we had no business doing so. including business and labor. meeting four times with the president. the last time more than a year ago. the recommendations to the jobs council were considered in the context of the president's broader economic policy and job creation agenda and while he didn't agree with everyone of their ideas, most of their recommendations were acted on by the administration. retrofitting government buildings with energ energy-efft technology and fast-track review for infrastructure projects is council recommendations it put in place. some of the council recommendations are at odds with white house positions when you call to allow u.s. companies to avoid taxes on the overseas profits. republicans say serve as nothing more than a political show. >> once in the president could have done instead of wasting so much time blaming others would have been to convey the java
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council he created a mixed so much fanfare. he is no has not done so for mon a year. rich: the two-year charter now expires. back to you. melissa: breaking news right now, federal judge in iowa has sentenced financial group chairman to 50 years in prison, the maximum term. he attempted suicide last summer outside of peregrine headquarters before regulators learned $200 million in possible funds went missing. russell wasendorf was 64 years old, is 54 years old, pardon me. the twinkie name over $24 million. when they open the bidding for the snack brand, but how high could the bidding go? adam shapiro with more on that. adam: maybe $920 million depending on what the bidders are willing to pay, but apollo
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global management and they set the floor on what they're willing to pay for hostess brands, wonder bread has already been sold. the ceo of hostess was just on fox business with dennis kneale and talk about the price targets they're trying to get with the investors. here's what he told us. >> i think where we are today if you take all the transactions now that we have generated over the past couple of months we are at $858 million of total floor price. >> that you raised, okay. >> probably have another 80 to 123 million of other things that we will have to sell that will add to that. from there it is a function of where the bids go. >> he pointed the finger at the bakers union, the biggest union pointed the finger back at management, previous management
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with 2 billion unfunded pensions and that is the reason for the bakers union so they went on strike. back to you. melissa: adam, thanks so much. all right, so much for drinking buddies in the proposed deal to buy corona maker. facing interference in the department justice. lori: big pharma has been losing up tout to generic competition r years. $30 billion in losses last year alone. but that could all about to change. and we will send youtub you to . $1663.69 per troy ounce. twins. i didn't see them coming.
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find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. melissa: time to make money with charles payne. this hour he is following up on under armour.
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charles do you buy any of that stuff? nicole: i do. i buy workout stuff for my husband. charles: the stock has been kind of wishy-washy. pretty good numbers. i think the number was really good, but footwear up 23%. they can make inroads there, those two things really put up, obviously peril is 80% of their business, not too bad, up 25% as well. i like the operating margins. that is a huge jump putting some cost in line. everything that came out pretty good with the number, the stock is relatively low. this may be a good time to think about buying it. lori: where are the mainline retailers you can find under armour? melissa: i bought it at nordstrom's. charles: there are some knockoff
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versions of that material, but i have seen everywhere from modell's 2-foot locker. lori: i thought it was much more harder to find. charles: exclusive. melissa: i have seen it all over now. like you said, i don't shop at foot locker, so i don't know if it is there or not. charles: it is a true overnight success story. just really took off. they had some growing pains which is obviously going to happen. i think they keep it going like this, who knows what migh, it me attracted to somebody like nike. i like the risk/reward opposition. maybe tomorrow we will talk with elizabeth martin.
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i think i look at your red sweater and thought about it. lori: thanks, charles. time for an update on the market, the dow down 20 points. they call on the new york stock exchange. you're watching constellation brands in particular. why? nicole: i sure am. the parent of corona, you can see the stock down nearly 20%, has come up off of the earlier lows but a name that has been in focus today. behind me a huge crowd. the stock has halted three times today, all on news the department of justice is now obviously opposing the deal with anheuser-busch and constellation brands have taken that, and that is why you are seeing down 17%. the department of justice is concerned consumers will pay the price for beer and the competition will dwindle. take a look at another name on the move, keeping an eye on the dow, down 22 points.
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the fear index pulling back. nowhere near 14,000, we are taking a little breather from that at the moment. back to you. melissa: thank you, nicole. talking beer a couple of days before the super bowl. lori: energy traders taking a look at the middle east. melissa: closer to home gas stations sticker stock. $4-gallon for gas could be coming to a pump near you soon. all stations come over to mission a for a final go.
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greg: at least three are dead, 20 injured in a massive highway pileup in detroit. 30 vehicles at least involved in a crash on southbound i. 75 in detroit. without conditions being blamed the accident occurred three hours ago. severe weather has been
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impacting entire country from the midwest across the southeast to the east coast. president obama defense secretary nominee, former senator chuck hagel facing pretty tough questioning today before the arms forces senate. urging some senators not to write him off base in his earlier comments about iran and israel. the hostage standoff in a rural alabama town is ongoing this hour. negotiations are in contact with the suspect. he is a retired truck driver holding a five-year-old boy in an underground bunker. the man grabbed the boy off a school bus tuesday after shooting and killing the bus driver. those are your headlines. now back to lori. lori: thank you for that, greg. moving slightly lower. that said oil is up more than 6% over the last month. what is driving the trade to a? sandra smith from the pits of the cme.
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sandra: that is just it, the oil market tracking the stock market not just today moving lower, but it has been moving higher with this stock market for the duration of 2013. i don't just look at the date, they look at the week, the month, the year. this is despite the fact we have had weaker consumer confidence data, weak gdp, weak jobs numbers and an inventory report yesterday that was very bullish for oil prices but still hanging oonto above $97 per barrel for yesterday rose above $98 per barrel, the highs of the session but this is a continued reflection of the low interest-rate environment created by the fed and also the money environment. that is why crude prices continue to rise with the stock market despite the weak economic data we have at hand. look at your other energy products on the session. natural gas has been a big
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winner in the face of cold weather temperatures, natural gas prices down slightly on the session. foyour wholesale gasoline price. gasoline prices have been rising up above $0.10 over the past month and are starting to catch up with those higher oil prices, so if you're worried about those gasoline prices at the pump, we're starting to see them come up in line with those oil and stock market prices. back to you guys. lori: that is fantastic news. melissa: bad news at the pump especially if you live in california with crude oil prices spiking, california motorist paying an average of $3.77 per gallon. it is the average. with refineries switching to costlier summer blend, voters could soon see $4. national gas prices currently
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average $3.42, up from $3.29 a month ago. matt smith is a commodity analyst here with more on what is behind the gas price jump at the pump. i was reading one report that prices rose $0.17 yesterday. what happened? >> i have more bad news than that, the national retail prices increasing as well. we are seeing rising prices. the price of gasoline was cheaper last month and the base for california was $3.50, now we're at $3.77. on a national average we are around $3.45 where we were $3.20. we are seeing rising across the board but higher in california because starting from the higher base. melissa: do you think they just go up from here? it will continue.
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>> it is a seasonal thing really as we get more demand moving into driving season, following a blueprint as we did last year and the year before, seeing prices gradually rise from here to peak in april. national average short of the $4, but in california will be one that's especially if you're already at $3.75 now. melissa: so why are prices so high? if you look at the data out of mastercard, driving demand, how much fuel we are actually buying it at the lowest level in decades and decades and decades. >> that is right. total demand in the u.s. is flatlined. it will continue to go down. gradually lower process. it is not because of energy efficiencies, it is because of high unemployment, people are cutting back on driving. the reality is there is a high
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input price of oil. $115, and so it is only natural we are in this new paradigm we will see higher prices and as you mentioned before that it is because of lower interest rate economy we are in the weaker dollar policy as well. lori: people trying to make money in commodities piling into the futures pits. other things driving up is a situation in the middle east today we look at things going on between israel and syria, we are not seeing a big reaction in futures prices to what we have seen on the screen. as tensions rise in the middle east, that has to put pressure on the price of crude, do you agree? >> very much could have an impact because again the rising pockets of geopolitical tension, algeria and seizure last week, yesterday we had air strikes by
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israel in the supposedly convo convoys, and then i ran going on as well, all these different aspects but at the same time we have equities at a five-year high, the euro rallying so prices being lifted by this different influences. melissa: thanks for coming on. we have another truth even if it is not what you want to hear. he made it sound good even though it is bad news. lori: anybody can understand behind the price target. that is a given. it makes it a little bit easier to digest. melissa: it still does not ease how much you're paying at the pump. facebook fourth-quarter peak district of the downgrades roll in.
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if the company's strategy working? lori: and the drugmakers, the big pharma names. stocks getting beaten down. and competition from generic. but there is still reason to be optimistic. next.
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. ... melissa: time for stocks now as we do every 15 minutes. let's head to the floor of the new york stock exchange and our own nicole petallides. what have you got. >> i'm looking at a market here that has been somewhat mixed.
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nasdaq is managing to squeeze out gains the dow dropped below 13,900. some names names weighing on the dow, united health care, bank of america. market breadth actually as i look at it, almost even, 162 million, 163 million. some of the traders i talked to, late last year we talked about you who the market was trying to move up because of apple. now we're seeing that the market continues to move up without apple that is something we should continue to follow as well. a whole another story on the market that is not just dependent on apple. imagine if that ran too? forget it. back to you. melissa: nicole, thanks so much. lori: after expiring patents caused the pharmaceutical industry to lose more than $30 billion to generic competition last year is the industry headed for a rebound this year? joining me, damion con
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novemberer "morningstar" research. >> thanks for having me. lori: pfizer and little lilly lost a hefty sum. do you expect them to rebound this year? >> i think so. we're approaching an inflection point for the pharmaceutical industry. we're moving away from patent losses and moving towards pipelines that are getting better, much better pipelines than we've seen in the last five years. that should really entice the investment community to look at these stocks where they have been trading flat for many, many years. finally over the last few months, started to get a little bit of momentum. lori: let's go in this direction. ther pipeline, better innovations but a much tougher fda, right? will that curb getting new products to market? >> you know it could. what happened is if you look at the past few years the fda got very conservative in response to the vie yox recall and avandia scares.
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high-profile drugs that got recalled so the fda got very conservative. what the pharmaceutical companies have done focus in unmet medical needs in oncology and neurology and immunology. if these areas if you show a little bit of efficacy you will probably get through the fda. that is much different than the drugs the firms were bringing to the fda a few years ago larger in primary care industries. lori: are there blockbusters coming to market? any billion dollar revenue generators we'll see very soon? >> i think so. from pfizer's standpoint they have a new drug just approved in rheumatoid arthritis this could be a major block buster. it is a huge indication. very strong pricings. another product that pfizer's partnered with bristol on is called, eloquis is for atrial fib
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perlation. this is setting up to be a best pipeline that they have had in many years. lori: i would imagine that has got to help the drug industry across the board, brand names and generics? >> i think so. this is one thing that is just starting to come on investors radars for big pharma. in 2014 you get the mandated insurance that will increase drug sales. generics will benefit more than branded pharma. but nevertheless branded pharma should get a nice tailwind from obamacare into 2014. lori: so what is going on with the supreme court? we know it will take up this so-called pay for delay. essentially whether or not the brand-name drug makers should be ail to peja nashg drug companies to actually delay putting treatments to market. how do you think this ends? who wins? >> i think it will be a case where you will likely see the generics and the pharmaceutical firms be the winners here and the way that they win is that i
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don't think the supreme court will rule against these sort of agreements. in the past almost all the other cases have largely favored these sort of settlements. these settlements are beneficial for breath branded pharmaceutical companies and generic companies. so i think it will be a win for industry on this one. lori: i really have no time, eli lilly or pfizer who is the better stock to own? >> right now we're looking pfizer is better potentially positioned. patent losses doing a lot of stuff with restructuring. i think pfizer is little better positioned. lori: great information. damian, thanks so much with "morningstar". >> absolutely. thanks for having me. melissa: a down day for the broader markets but up beat earnings sending a handful of names to fresh 52-week highs. the names to know. that is coming up next. lori: charlie gasparino, where has he been lately? well, he joins us with an all-star bank analyst. dick bove's call on financials. looking at interest rates today. seeing moves in the bond market unchanged. not a lot of movement in the
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bond market. 1.99 is the yield on the 10-year. we're back after this.
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>> i'm adam shapiro with your fox business brief. a judge sentenced perigrine financial group founder, russell wasendorf, sr., to
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the maximum of 50 years in prison for stealing 50 years in prison. he was accused concealing the theft for more than 20 years was ordered to pay more than $215 million in restitution. shares of wms industry are soaring after scientific games agreed to buy the slot maker for 1 1/2 billion bucks. scientific games makes tickets and software for lotteries says the deal will beef up its exposure to the booming casino gaming industry. 368,000 people filed for first time jobless benefits. that topped the estimate of 15,000 from the prior week which stayed at 330,000. that's the latest from the fox business network, giving you the power to prosper.
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melissa: bank analyst dick bove unveiling his manifesto
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and it is nothing like the karl marx devised though. although, like marx he might be a bit delusional on some stuff. i'm not saying this. this is right there. according to fox senior correspondent charlie gasparino. can you demystify what was in there. >> i wrote that. bank analyst dick bove unveiled his manifesto and nothing like you could think a little copy editing here. one that karl marx devised. lori: cut and paste, baby. >> hear is the bottom line. bove, was his first conference with investors since he changed firms from are ochdale from after fert at this. it is wrong again. raferty securities we broke on fox business network. he came out with the manifesto. it was interesting two hour presentation. a book about that thick where he came out with some of the most outrageous and, you know, in certain respects because i love dick bove i would say delusional
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stuff where he sees the markets going. i will go through this. bove predicts that banks will be profitable over the next 14 years. 14 straight years of profitability. he thinks, and i asked him why? he gives you all these reasons about housing coming back and all this stuff. when you ask about fed policy, how can you predict fed policy nix 14 years. that has impact. he says fed doesn't matter. take it for what it is worth. that is what he said. he talks about all the banks being a criming buy. see all the red. obviously not moving on dick bove's comments. saying everyone exempt for wells or state street you should buy. he would put those on hold. i would say state street was one of the better performing banks over last year. he is saying hold state street. hold wells. put goldman at the top. hear is the most i guess outrage just thing he came out with. he predicts basal three won't go into effect.
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they're not going to implement the new capital requirements which means banks have to do all this stuff, hold a lot of capital. and basically they're not going to fully implement dodd-frank. that the firms will just, it will be largely ignored. melissa: hmmm. >> what does he base this on? i don't think he has any, i don't think he has sources in the european, you know, union or, i don't think he has sources among the global bank regulators. i don't think he has sources in washington. he believes to fully implement these things would destroy the banking business and no way governments are going to do that. so take it for what it's worth. i sat there, hour and a half, two hours. i listened to this. i will say this. i like dick bove. he has been a right on a lot of stuff. melissa: a lot of stuff. >> he picked bear stearns early on. he has the chops to go out where he made mistakes, i did horrible research on lehman. told people to buy lehman, stick with it. bove thought they would never let it go under. the federal government let it go under.
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you know, so he has done some good stuff, but i'll tell you this thing blew me away in terms of, there is, irrationality to, best way i can put it. i like the guy. melissa: i love dick bove. i have so much respect for the work he's done. i know ceos on wall street respect him and like him and think he's tough. i haven't read it so. >> think there will be 14 years of straight bank profits? lori: so arbitrary, 14 years. >> how about 25? lori: exactly. how does this tie in with the job change? do you think he felt he had to come out with a manifesto or giant statement. >> no. maybe. but he believes this stuff. he believes this stuff. i mean, you know, this, when you talk to dick bove was telling me how great citigroup was before it imploded. there are certain things i think he has blind spots for. he loves this industry. you ask him about breaking up banks which i think there will be pressure to do that. not saying it will happen but there will be pressure. he called hit masochistic.
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i said are they going to do it? he said no, they're not going to do it. how he knows this is beyond me. i can't say anything, listen i only deal with probabilities, generally. i sound like a character from "zero dark thirty" talking about usama bin laden in that compound and cia people, said we only deal with probabilities. you know the world is a tricky place. i don't know how he can be so certain about this stuff. but he was and if you're an investor out there he has a voice. he is right on certain things. take it for what its's worth. good to follow these guys's long-term trend. one of the things jpmorgan has taught us, particularly i think is that the power of a bank to make a lot of money. jpmorgan has --. melissa: in spite of what happened. >> jpmorgan had the london whale. melissa: that is great point. >> they are printing money. we should point out citigroup before they blew up they were making $25 billion in 2005. these banks do print money in a certain way. melissa: that goes to his
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point obviously. >> that was before the blow up. melissa: charlie gasparino, always good stuff. it was a pleasure. lori: it is quarter of. as we do every 15 minutes let's check the stocks on the new york stock exchange. nicole pet on the floor with earnings winners. >> i'm looking at some earnings winners in addition to having good quarterly reports having multiyear highs, all-time highs like hershey for example. whirlpool, hershey, viacom, mastercard all out with numbers last 24 hours. whirlpool up 4.7%. when you think of whirlpool you think of appliances did well in the fourth quarter. quarter earnings helped them. hershey sales in china are doing well. gave a good outlook for 2013. stock is up nearly 2%. checked 20 year chart, looks like all-time highs for hershey. viacom up 1 1/2% and mastercard up half a percent as people use credit cards
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more so than cash. you see nice 52-week highs is with key names. back to you, medical list is a and lori. lori: putting america to work. energy industry creating. needed jobs and ones that pay too, how about that? melissa: there you go. facebook made money last quarter but the concern over profit margins as the downgrades roll in. ♪ . ♪ . [ male announcer ] at his current pace,
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lori:. melissa: so can fracking solve this country's unemployment problem? demand for skilled workers in the fracking sector is on the rise. how much can they make and where are these jobs? fox news's steve brown is in wheeling, west virgina, with more on this story. i love it. steve, what do you have? >> well a lot of those jobs are right around here. this is kind of ground zero, wheeling, west virgina, for the current boom in the natural gas industry in north america and here in the united states and the problem or the complaint you get from the natural gas companies they can't hire qualified workers fast enough. there is consortium of 20 local community colleges and trade schools and in west virginia, pennsylvania, ohio and new york called shalenet. they took a five million federal grant and turned it into a program to teach people how to work on these natural gas rigs. the slots are limited but the training is free. >> it's an opportunity that they're giving a lot of people that is unemployed a
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chance to, you know, get back into the workforce and i think that if you don't have a job, this is a class that you should be looking into taking. >> recently the federal government has poured another $15 million into shalenet to try to expand the program and produce some different kind of workers. all sorts of job skillsets are in demand by the natural gas industry in this area and let's give you an idea. if you have a truck driving license, a cdl, if you don't have one they will help you get one, some of these companies, pay you about $60,000 a year if. can work on the rigs and overtime you could make six figures doing that after a couple months worth of experience. if you have engineering degree in petroleum and natural gas, get out of college and accept a degree agree at $90,000 a year. most of the kids are snapped up and working before they graduate. back to you in new york.
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melissa: steve brown, thank you so much for that great information. >> you're welcome. lori: in technology a beat and a miss. roller coaster ride for social media giant facebook today due to better than expected fourth quarter results help the company's shares? shibani joshi has been following that, the aftermath on tech. joshi on tech. >> hi. it was a good number. lori: but what happened? >> reported great numbers yesterday? i. >> investors have been burned and they want a whole heck of a lot more delivered. here is exactly what traders didn't like about the report. they beat on the top line. they beat on the bottom line. so on the surface everything looked fantastic but you dug in a little bit deeper here is what not to like last quarter. mobile revenue was not high enough. investors wanted it higher by 30%. so they missed the mark in terms of actual growth rates. the company announced investment plans, meaning spending. basically that will put a
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cap on earnings growth over the next few quarters. lastly user engagement was flat. user engagement is key. i have a billion users but if people are not checking the facebook pages daily they will not be able to make money off it. that said, there are a couple of firsts for facebook we can get excited about over the short term but many people believe this is longer-term story. mobile exceeded deck top users for the first time 680 million users checked in online versus laptop. mobile rave news i mentioned grew 23%. they unveiled tons of new products. graph search, gift, promoted posts. they have a lot of items and revenue generating items in the pipeline. lori: what does it buy you? >> so this is a new thing. actually launched today. it wasn't in the previous quarter. this is brand new news that just came out a couple hours ago. move over visa you will fay with the facebook card.
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this is physical card they just unveiled. totally under wraps. figure out where they launch it how you can get it. do it on the site. it is a physical card. they teamed up with four companies. target, jamba juice, sephora and olive garden. about getting your credit card number. this is what they're trying to do to get the credit card and buy music and gift people stuff and buying stuff on facebook. they're trying a lot of different ways. lori: they need a revenue generator. thank you. melissa: so coming up tonight on "money", dean atkinson, ceo of sum all. he joins me to how the companies keep their salaries on a shared drive viewable by all the employees. i can look online, how much does that lori rothman is making a year? i'm going to look. they think this a great idea. lori: nothing is sacred. melissa: builds morale. lori: builds morale? melissa: i think it is insane and pits people
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against each other. we'll talk about it 5:00 p.m. eastern on "money". lori: i'm sitting in with lou dobbs. he wasn't with us today. he is a little under weather. i will sit in and host. melissa: good for you. lori: the market is still underway in trading hours. europe expert nile gardiner, says americans should pay close attention to the european crisis. tracy byrnes and ashley webster are next. [ male announcer ] you are a business pro. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and from national.
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lori: wait and see before the big jobs report. what are you looking at me with such disdain for? melissa: no dispain. i never know what you're going to say. i was waiting to see what would come out. markets down 12. ashley: changing the subject quickly. lori: jobless claims bumped up. that is bit of a troubling
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precursor to tomorrow's jobs report. ashley: the january storm. tracy: that is only thing you can blame the storm on. ashley: will be blaming everything on the storm for the next 12 months. ladies thank you so much. melissa: have a great hour. ashley: we will. good afternoon, everybody i'm ashley webster. tracy: i'm tracy byrnes. with two hours to go stocks are headed for the best january in decades. dow is up 6% and the s&p is up 5%. steve wood sees major volatility ahead and he is here. ashley: watch out he says. europe's quiet crisis has been out headlines, if you think no news is good news, think again. the heritage foundation's nile gardiner tells us about the most severe problems facing eurozone right now. tracy: no way things are good over there. white house giving up on president obama's jobs council. how does it plan to create american jobs now? we're looking for answers ahead. very funny that the jobs
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council couldn't keep their own job. ashley: they're out of work. might as well join the crowd. if you can't beat them, join them. first time for stocks. the dow is off 13 points. let's go to nicole petallides on the floor of the new york stock exchange as we do every 15 minutes of course. and, nicole, well-mixed i think is the best word for today. >> that's a good way to say it. there is no doubt, ashley and tracy, we've seen this market running up as you noted. our best january in decades. but at the same time there really was a lot of overhead resistance at that point. we had run up so far so fast, taken a lot of stocks and sectors up along with it, the dow is getting better than it was earlier today, sitting right near 13,900. you may remember in the last few trading days we were about 31 points away from dow 14,000. as i talk with traders there is no doubt we really ran up and taking a breather is okay. let's take a look here at some names here. ups and facebook, two names that came out with quarterly reports. ups down 2%.
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concerns about economic uncertainty, fiscal uncertainty. they certainly are looking to washington for some clarity and not getting that. also fighting with pennsylvania shuns and that cuts into their numbers. facebook at $31 certainly improved from earlier today. while they have seen ad growth, mobile ad growth and they have seen users but their costs have been on the rise and that is something that obviously cuts into their profits. back to you. ashley: nicole, thank you very much. we'll be back in 15 minutes. tracy: our next guest says the market's rapid rise has given him the returns he expected for all of 2013. he will close up shop and go on vacation. is a market pullback ahead? joining us steve wood, chief market strategist for russell investments? is that really it? >> so when you look at our year-end forecast coming end of november, early december, you gather the data. ing at market, s&p 500, low 1400s, we thought it would be high single digits year.
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the advice we're giving retail clients, a it would be positive and magnitude would be high single digits. from strategic asset allocation direction that lets you know the allocation and direction. we think we've been pretty accurate a lot of good news melt up the gripedding improvement. no great shakes but priced in and more than anything you were talking about europe earlier is that europe has been kind enough to take us off the front page for a little while. and that has given multiple expansion a little bit of room. ashley: the big question, steve, are we due for a pullback a big pullback as some are predicting? to tracy's point if we've been sitting on the sidelines all this time is it too late to jump in. >> i don't know if it is too late to jump in. it depends on your time horizon. being the strategic allocation at beginning of the year so we participated in this. if you have longer time horizon i don't know that equities look overly stretched or expensive and you buy the long-term opportunity. look at alternatives, cash, safe haven, bond don't look
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attractive or treasurys. if you're being strangled in the safe haven assets longer term you need to look at globally diversified asset portfolio. that will get you needed return. stretch out the horizon. tracy: a lot of volatility to be expected because washington is involved these days. what do we do? do we buy good stuff and leave it until december? otherwise where are you putting yourself to sort of a of allow me to sleep at night? >> you're looking at u.s. which is up 5 1/2%. looking russell 1,000, 2,000, large cap and small cap. we think there is upside and will be volatile to get to the path. look at europe, there are great companies if you do homework and research. europe will be good shaky. attractive valuations. globally diversified strategy looking at emerging markets, looking at infrastructure and what has return risk characteristics for a long period of time. i don't want to say become overly skeptical but just understand you're going to need to be nimble but you
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will also need to be disciplined in that those invests, you know, look you have got the jobs report tomorrow. what if we get a surprisingly strong number, does that suddenly signal, whoa, maybe the fed needs to rethink about its exit strategy on qe? on the other hand, if it is not as good or really disappointing that means qe floodgates will be opened for some time and investors love that. >> i think we've been seeing this grinding reluctant but measureably positive recovery for a while. the gdp numbers, we can talk about those. i think headline number covers over good data underneath the gdp i think likelihood the fed will change policy very, very remote. got minutes yesterday. i was at a bernanke luncheon couple weeks ago, he is very clear. they want 6.5% unemployment. want inflation above 2 to 2.5. ashley: that could be a long time the way it is moving now. >> gets back to the earlier point, if you're close to zero percent interest rate world for a while how do you look at globally diversified portfolio? you need multiasset risk
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strategies and understand how they fit in global portfolio context. washington will give us a lot of volatility. markets tend to look through that so you might want to use that volatility. tracy: quickly what derails you or derails this plan. >> washington partly got it right and wrong what they do best. european central bank took a lot of pressure off. interest rates come down. i would expect european politicians to get very complacent. that could be a risk. ashley: some believe that is already happening. >> steve wood, always excellent. ashley: good stuff, sieve. now to the debt ceiling talking about washington. the senate is expected to vote on a temporary measure. rich edson in washington with more on that. rich. >> senators will likely pass the debt ceiling increase this afternoon and the president is expected to sign it extending the debt ceiling through may 18th and paving the way for the next washington fight, spending. >> the republican playbook of continuing complaining
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about spending is something we know we have to do something with spending. >> there are two things we know about tax increases for sure. first, they reduce jobs and hurt economic growth. and second, they distract us from addressing the real problem which is spending. >> so automatic spending cuts known as the sequester begin in march and a large forges portion of government spending authority runs out on march 27th. if lawmakers fail to reach a spending and budget deal we'll have another government shutdown then. president obama is allowing his jobs council to expire. the 2-year-old council including business and labor leaders. ge's jeff immelt chaired it and met with the president four times. the last time more than a year ago. the white house cites visa processing retrofitting government buildings with energy efficient technology and fast track review for infrastructure. the republicans claim the
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president ignored the group's recommendation, treating it as a nuisance than a vehicle that spurred job creation. back to you. ashley: now it no longer exists. rich edson, thank you so much. appreciate it. tracy: they will need a job. coming up one beer combination leaving regulators with a skunky aftertaste. ashley: yuk. plus is the eurozone destinned to self-destruction? heritage foundation's nile gardiner weighs in ahead. why he says america needs to pay very close tanks. first as we do now every day let's take a look how oil is trading. it was, seemed like it was going to hit the 100 dollar level. down half a percent on the day at 97.43. this is $100,000.
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we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. allyank.
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your money needs an ally. i have obligations. cute tobligations, but obligations.g. 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. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackck. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ashley: it is time to make money with charles payne. this hour he is following up tractor supply company. everyone needs a tractor,
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right? >> rev up that diesel. ashley: thinking of barney. >> that applies more to the stock because they don't sell tractors, right? tracy: we should cue up the picture of stuart varney. >> please don't. give him a break. ashley: why? >> i don't know. that is a good one. ashley: it is. >> tractor supply, we did it december 17th, 87. look at the stock. that is bonafide grand slammer. this is a great heartland company. they don't sell tractors they have clothes, financing heating livestock, pet, tools, generators. ashley: pets? >> what about the livestock? you can buy chicks, little baby chicks. you understand how they take care of them. they tell you how to take care of them. disinfect the area. got to be dry, draft-free. use chlorine and ammonia. keep it warm. eight weeks you feed them chick starter. push them out into the regular pen and then after 20 weeks you train them
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where to lay eggs. still trying to train my yorkies where to use the bathroom. can you really train a chicago where to lay eggs? i want one here. want one there. tracy: does it work on children? [laughter] ashley: hey, you know it might be worth a try. tracy: by the way, maybe should take a cue from rim and change their name if there are no tractors? >> if the stock goes from the 104 to 4, maybe they will. right now everything is working for them. if you have the stock today, i suggest to people you hold it. ride the momentum. ashley: still up -- >> i still think so. i think the valuation is there. gross margins are up. same sales from stores are up. average ticket price was up. maybe $100 if you're a stickler and don't want to lose the gains. more or less i'm a buyer on dips. tracy: and chicks. >> and chicks. tracy: dips and chicks. >> money for nothing. chicks for free. tracy: we could get in so much trouble right now. dips and chicks.
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ashley: leave it at that. thank you, charles. tracy: all right, then. "wall street journal" reporting today that the government is expanding its crackdown on offshore tax evasion and the federal prosecutors are conducting at least 100 criminal investigations against suspected tax evaders. we heard this before. this is after the u.s. and switzerland agreed to require swiss bank, ubs, to reveal the names of account holders. this is four years ago. ashley: that's right. tracy: u.s. government has won about 50 criminal cases and collected at least $5.5 billion connected to undeclared offshore accounts. half the time you have got a snitch. ashley: you do. tracy: you got to rat somebody out and say, hey, joe in the other office has money overseas. ashley: i would say, move it now. move it now. >> just want to make one observation. 4 1/2 years ago that is when ashley came to the network. after they raided his bank account he had to go back to work. ashley: mere coincidence. mere coincidence. tracy: meanwhile charles payne has money over there. but we'll not say.
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>> legano. that's where you have got to go. ashley: as we do every 15 minutes, or cayman island is lovely. check the markets. nicole petallides on the floor of the new york stock exchange. nicole, beer companies given a changeover today. >> no doubt. let's look at some names related to liquor here. looking at bud, looking at constellation brands, anheuser-busch, inbev. you have the department of justice moving in and basically now saying that they are not too happy with the deal that is going forward with anheuser-busch and grupo modello. don't forget constellation brands has a joint venture with grupo modello. they think that customers are going to suffer here with high beer prices, less come tis -- competition. anheuser-busch came out with a statement very tough against us court in washington saying that they will vigorously contest the department of justice
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actions. meantime not only are we seeing stz down big-time, but you're seeing anheuser-busch down six%. back to you. ashley: nicole, thank you very much. of course we'll be back. guess what in 15 minutes. tracy: yes we will. more and more student loans are going bad. we've got startling numbers on that ahead. ashley: well, pick your poison in europe. the heritage foundation's nile gardiner tells us many problems facing eurozone countries. it is a crisis far from over. how is the dollar doing now? talking about euroland, the euro continues to make ground against the dollar, up at 1.3574. getting more and more expensive to go to paris, tracy. tracy: darn it. ashley: we'll be right back.
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>> at 20 minutes past the hour i'm gregg jarrett with your fox news minute. at least three are dead, 20 others injured in a massive pileup in detroit. 30 vehicles involved in the crash on southbound i-75 in detroit. whiteout conditions being blamed for the chain-reaction accidents. president obama's defense secretary nominee, former senator chuck hagel, facing some pretty tough questioning and defending his views before the senate
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armed services committee. hagel is urging some gop senators not to write him off based on earlier comments he made on iran, iraq an israel. the whos stage standoff in a rural alabama town is ongoing this hour. negotiators are talking to the suspect through a four inch ventilation pipe from the underground bunker. the suspect a retired truck driver, kept a five-year boy hostage there since abducting him off a school bus on tuesday after shooting and killing the bus driver. those are the headlines. i'm gregg jarrett. back to ashley. ashley: gregg jarrett with fox, thanks very much, gregg, appreciate it. without daily protests the eurozone is driftings off the front page but doesn't mean the region's economic situation has gotten any better and my next guest says it is just a matter of time before it self-implodes. joining me, nile gardiner, director of margaret thatcher center for freedom at the heritage foundation. nile, thank you so much for
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being here. look it, the ecb last year essentially said we'll do whatever it takes and put all sorts of cheap money out there for banks to enjoy. the biggest problem was that italy and spain, they're big economies that are really struggling wouldn't be able to pay their bills. they were going to run out of cash. seems as though that is off the table. is that right? >> well, i have to say that the situation in the eurozone at the moment remains very dire. even though the eurozone crisis is not dominating headlines in the united states as it did on some occasions ahead of the presidential election the long-term progsnows sis for the eurozone and for the european union as a whole is extremely grim. even the french labor minister this week declared that france was bankrupt in his words. spain, the situation is extremely critical. you have unemployment at 26%. youth unemployment now 55% in spain. debt rapidly rising in the country. very little economic growth
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in spain or across much of the eurozone. and that's not forget british prime minister david cameron said last week in a speech in london that europe is responsible for 50% of the world's social spending. ashley: yeah. >> sort of entitlement spending on a global scale there. yet it only accounts for 25% of world gdp and has 7% of the world's population. so that gives you an idea of the scale of the problem at hand with europe. ashley: nile, look, you believe it is just not sustainable. what do you think will be the trigger and how soon will that be? you mentioned the u.k. there is a chance that the u.k. is membership in the, in the euro could be put up for referendum, put up for a vote, which in turn could mean they could pull out of the euro. could that be the catalyst for this alliance essentially to fall apart? >> well, david cameron did last week pledge a u.k. referendum on membership in
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the european union to be held in 2017, provided of course the conservatives win an outright majority in the 2015 general election. that of course is a big if. ashley: yeah. >> i would expect to see over the next two or three years potentially a number of members of the eurozone peeling away from it. in particular i think that greece, portugal, spain, perhaps italy may all fall away from the eurozone. the current situation with regard to spain, for example, is completely unsustainable. the spanish simply can in the survive i think in the euro as currently constituted. it really is a straightjacket which makes it extremely difficult actually for individual eurozone nation states to decide their own economic future. after all, the euro is a huge straitjacket and imposes all kind of restrictions upon national sovereignty. after all interest rates set by the central bank in frankfurt. so individual european
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governments have very little control over their own economic destiny in many respects. ashley: wow, it is a pretty grim outlook. but you could well be right. nile gardiner. thanks so much for joining us. >> my pleasure, thank you. ashley: as we've been saying the eurozone has been out of the headlines for a while but certainly the economic picture has not improved that much. the economies in the weaker southern economies are not growing and of course they have this huge amount of debt of the so it will be interesting to see whether the headlines start to come back and what impact they have on the markets here. tracy: steve's point, if they become complacent about it could explode all over again. ashley: that's true. tracy: oil prices snapping three days of gains. sandra smith live from the pits of the cme. hey, sandra. >> hey, tracy. well the gdp data shows hedge fund and large institutional players are still pouring into the long end or the bullish end of the oil market. even that prices will continue to move higher from here. but we are down on the day. we're losing about 40 cents
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of the recent rally but still $97 a barrel. yesterday's rally we topped $98 a barrel for the first time since september last year. but doesn't look like prices are falling anytime soon. a lot of traders down here are i tooing the rally in the oil market to the stock market. and just like the stock market is down today so is oil prices. they're saying that the oil market being able to deflect a lot of this bad news on the economy, weak consumer confidence, weak jobs numbers because it is moving higher with the stock market as the fed pumps more money into the civil and we continue to see that low interest rate environment. watch the gap prices, guys, back to you. tracy: watch them go up. sandra smith, thank you very much. ashley: on deck, serious questions about the consumer protection bureau. senate's top republican on the committee says major reforms are needed. mike crapo talks with senior washington correspondent peter barnes next.
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tracy: first, let's look at winners and losers on the s&p 500 as we head out to break. the dow is down 18 points. we'll be right back.
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ashley: is half past the hour. let's look at the blue chip stocks, the dow 30, one of the losers outnumbering the winners, hp and skill on the upside but with exxon moving lower as the price of crude starts to drop a little bit today. let's hit the floor of the new york stock exchange where nicole petallides is standing by. nicole: we always look at this market, we were getting closer to 14,000, 31 points away.
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we have run up and had a great january but a pull back appears to be okay. the account is as a pull back toward the expect more? >> we did not begun yet. the market had a heck of a run the last few months and there are few signs of slowing down. we see real movement in the end of sectors in the last week. the spread between bulls and bears its near 30 so typically those are levels that do coincide with a correction so doesn't seem to be any fear in the market but as you mentioned, 14,000 a big psychological level. last time this it was october of 2007 so it is a big level based on that but nothing else. not just because of 14,000. nicole: we talk about the run-up, this is not a pullback you with thinking of. can you give us something to look for? >> the s and p gets the 1430 that will be significant and a first level to consider buying. i expect over the next month the market had a decent run and starting to sell off. one thing that is positive we
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are about to finish in january, we are up 14%. historically we had the january that could translate into a good year overall. it happened about 83% of a time when january is good the rest of the year is good but we have come too far too fast and need to back a little bit. nicole: i was reading about utilities, what are the sectors that stick out in your brain either good or bad? >> we have seen very good moves. industrial and financial and consumer discretionary. nicole: buy or sell. >> those are indices you don't want to buy. media starting to roll over, transport had a good run, sectors are moving lower. the russell 2,000, transports, the airlines are rolling over. nicole: thank you very much. back to you. ashley: we will be back in the 15 minutes. tracy: several issues on the agenda for senator mike crapo as the takeover of the banking
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committee. our senior washington correspondent peter barnes joins us from capitol hill with more on his exclusive interview that happen dirtier today. peter: we wanted to sit down with senator crapo who is taking over from senator richard shelby and i asked about his top priorities as the new head republican on the committee and he said number one oversight of dodd-frank reform legislation implementation along with some legislative fixes to that legislation and reform of any mae, freddie mac and the at h a. the big thing is consumer protection agency which was created as part of dodd-frank, the president has renominated richard cordray as director of the agency, republicans blocked in protest over the way the agency was set up. the president resets -- recessed appointed him last january. he has nominated him once again
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to be the official head of that agency but crapo said they could block the nomination unless they get the changes of the agency. take a listen. >> our concerns are the agency has given all of its power to one individual, the director, no board, no commission and that needs to be corrected. secondly there is no congressional oversight once the directors put into place over the budget. there is not even any kind of requirement that the financing for that agency come from private sector funding work from the government. >> the funding comes out of the federal reserve. i also asked about jetblue who the president nominated as next treasury secretary. crapo met with him yesterday and said he hasn't made up his mind about jack lew yet.
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back to you. tracy: taking his time. thank you very much. ashley: oil closing $0.45 at $97.49 a barrel snapping three days of gains. tracy: i don't buy it. it is a big cheese. gas going. ashley: trains union study reveals more borrow words are delaying repay in their student loans. that is a worry given half of college graduates under the age of 25 are either unemployed or underemployed. gerri willis is here to weigh in on this. not a good sign. gerri: deferment or forbearance, two programs if you lose your job, if you can't make the payments you can stop paying, doesn't mean that the debt doesn't continue to accrue ended does the because of interest payments that you can stop a which is one more people are doing than ever before, 51%, more than half of student loans in these programs in different
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or forbearance. the amount of the debt when up by 70% because of this. at the end of the day if you are thinking maybe i will be able to pay, maybe not but you better try because you will be paying it into your 40s. student loan balances increase by 79% from 2007 to 2012, average student loan debt per bar were increased 30% and that is 23,000 so you're starting out your life with $23,000 worth of debt on your back, it is horrific for people out there and i know it is a tough job market, i understand that, but don't stay in these programs a long time. people get in these programs and stay in them and they are paying this debt off. we talked about how people have student loan debt in their 40s and 50s. is not made clear to these kids that the interest continues to accrue. tracy: is not going anywhere. the interest keeps accruing. match your expectations with
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reality. if you are studying -- [talking over each other] tracy: art history don't take out $200,000 in student loans. ashley: and gary and poetry. a favorite but can't do much with it. i wish i hadn't taken it. would you have tonight? gerri: this story and others. join us at 6:00 p.m.. ashley: right here on the fox business network. tracy: the best story of the day. those this finds assayed year. that bakery helping to turn on of unwanted and. detail ahead. ashley: sets to be winning the super bowl, not only because of this came upton and and digging for other reasons as well. we will put that up. tracy: leave page. with the spark cash card from capital one,
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$215 million in restitution. 360,000 people filed for first-time jobless benefits last week. that topped the estimate by 18,000. wall street is waiting to that important jobs report for tomorrow. despite the continued struggles with unemployment president obama's job counselors shutting down. the council's authority runs out today and the white house says it is not renewing it. instead the administration will focus on new ways to engage with the business community and create jobs and that is the latest from fox business giving you the power to prosper.
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tracy: eight carmakers will the rear tires and miserable but one brand maybe far more visible then arrest. dennis kneale covers that story
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now. more skin in this one. dennis: the and even started yet but there's already a clear winner. mercedes-benz. mercedes as two ads running in the super bowl and both of them feature the sports illustrated cover model kateton, one number involves a comely kate in a car wash and british consumer groups have protested about the objective occasion of a woman makes her living wearing short shorts and a bikini. that ad kind of hearkens back to the paris hilton at 4 carl jr.'s burgers some years ago so as you see paris was even more risk a and the mercedes ads are only the start because condition played at the superdes moines new orleans officially known as the mercedes-benz superdome. that will give mercedes from more often than the other car brands advertise in the super bowl xlvi. the name calling will get mercedes-benz 600 minutes of
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exposure during the broadcast of the game and that will amount to $5 million in free exposure for mercedes. cbs's record high price $3.8 million per thirty-second spot and the value of the mercedes name in the superdell would be $25 million and the two spots mercedes will run during the game, the second spot features creepy character actor william devoe as the devil and keep upton makes an appearance as arm candy and a few spins from the singer rapper usher. what all that has to do with the new mercedes c l a model that starts at $30,000 escapes me but it is this a. tracy: will lie by at mercedes because kateton is next to? no.
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tracy: dennis: if he thinks i will get a date with terrified by that mercedes -- i will try. tracy: everytime they see welcome to mercedes stadium will that make me buy a car? dennis: probably not but every amount of exposure advertises. you want to figure out a way to copy out and justify what you are spending. ashley: kind of lucky get your name on it. tracy: to get kateton to announce for mercedes. ashley: she is coming out of it very well. it is a quarter till getting close to a. time for stocks as we do every 15 minutes. let's head to nicole petallides on the floor of the new york stock exchange, looking at a company making its debut on wall street. nicole: trypoint hasn't had a home builder idea in eight years. it is up 12% this morning. if they offer the price of $17 it has been higher than that and you see at 1910 outpacing the
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original range which was $14 to $16, they're predominantly in california, but with all of the good news we have heard in housing over the years certainly a good time to freeing it here and well accepted on wall street. here it is up $2.11 and that accounts for a gain of 12%. nice day, nice start. ashley: thank you very much. tracy: those living defense cuts could have a ripple effect on one industry that might surprise you, technology. we have that story next. ashley: take a look at today's winners and losers, the dow struggling to get back to where it began but we had some winners, qualcomm up 4-1/4%. we will be right back. [ male announcer ] at his current pace, bob will retire when he's 153,
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ashley: the bidding is on for the twinkie brand, two investment firms, more than $400 million, adam shapiro joins us with more. >> talking about apollo global management, the baseline, and a host this and other companies, wonder bread promise to somebody else. dennis kneale on the fox business network, an interview in markets now, with ceo of hostas talk about their goal of getting $850 million to $980 million when all the sales are completed in mid march but
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here's what he said as to why this process started in the first place. >> the death knell for the business was the strike by the bakers' union. we could not overcome that strike. was unsuccessful in convincing them to come back to work or get enough people to cross the picket lines to stay in business and we do not have the liquidity or financial resources to weather a strike like that. we were pretty clear that would be the outcome. >> and it was the outcome, 800,000 people now longer put the best part of the hostess world, they lost their jobs, pensions $200 million in unfunded pensions, the reason the makers union went on strike in the press like the arctic and the bank of the ones before around 2007. upon emerging the unions say they took a cuts to make concessions but then hostess of course stops making payments to the pension fund and did according to the union reward management of hostess with multimillion-dollar pay raises for some of the top executives. that was a fight that brought
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them to bankruptcy. the bottom line is it looks like a hostess will live in a new form sometime after mid march. ashley: adam shapiro, appreciate it. tracy: all right, proximity to the pentagon and other federal agencies have led to a booming tech industry around the nation's capital. washington d.c. has more high-tech job openings and silicon valley. according to, living defense cuts out of the sequestration threatened to delay of -- derail the job growth. scott mollen, chairman and ceo of dice holdings, thanks for being here. you did this survey about tech dollars, what did you find? >> the interesting thing was nationwide they have gone up about 5% and after two or three years, paltry gains, 1% less than 1%. we are seeing here is this tight
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labor market we're seeing across this country is finally forcing employers to recognize that in an adjusted salaries. tracy: tech dollars going accompanies like northrop grumman, raytheoand, they employ tech people. >> they have large tech division doors part of the large defense contract for defense projects they have going on. it has been a boon over the last ten years. tracy: we're talking $600 billion, by 2023. everyone gets hit by some amount. small players and small contractors. and they have other agency private businesses, and usually dependent on very specific government programs. tracy: what was the biggest surprise in the survey for you.
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>> the biggest surprise was we had a major move in salaries and that hasn't happened for years. actually that could be an indication of what is happening in the general economy. tracy: it is not just silicon valley, what california taxes if you don't have to. >> there are terrific opportunities if you have these skills across the country whether it is seattle austin, texas, minneapolis, great tech sectors. tracy: you talked to companies in the d.c. northern virginia area, they are feeling the uncertainty of this. how do you plan when you don't know what money is coming away? >> very difficult situation for many companies because this creates uncertainty and very difficult to do hiring or make any sort of planning when you are dealing with such uncertainty. we have actually seen that in the job growth after the first quarter of last year, we saw a decline in the overall demand for tech divisions in the d.c.
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market. still a great market, ala opportunities but not as good as it could be if we didn't have this hanging over our heads. tracy: i don't think of people think about technology when they think of the fence. you don't become sweet to are collated but our defense system is entirely technology innovated. >> tech is a part of the defense project, each one has software with technical elements, also think about cybersecurity. that is a growing segment of what the federal government is doing and what the defense industry is focused on. tracy: do you have a new product called open web. tell us about it. >> open web is we are very excited about it because he essentially what we are doing is allowing recruiters to see information and background on people from their social profile that are all across the web. you are able to take a look at the talent pool broadly in your marketplace but looking at information that you would have gotten from their facebook
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profile or twitter profile all publicly available. tracy: that is good for employers but not so good for employees. >> is good for employees, prospect of employees should be aware we all leave digital footprints across the web and you should manage those footprints. tracy: you are so right. thank you. i like that. you leave footprints. ashley: research in motion revealing its latest offering, the blackberry 10, the smart phone offers a slew of new features but it is the absence of one feature that has many on wall street frankly upset. the new device doesn't come equipped with the game break breaker which developed somewhat of a cult following on wall street. the game used to be in store on every blackberry, the former lehman brothers chief executive was reportedly so addicted to the game he had the i t
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department removed -- the company spokesman says the company is hopeful users will soon be able to download a version of the game. you don't want to be in the game business they want you to download it. tracy: the one enduring quality of the blackberry. ashley: if you love the old fashioned keyboard you will of the brick rider. they're keeping the old fashioned keyboard. some people love it. my touchscreen -- tracy: liz claman will take us through the last hour of trading. thomas barrel talked about sweeping changes in the business model and why it could pay off for investors. and gregory's clinton looks down a road for the trucking play, "countdown to the closing bell" is next, don't go anywhere. ♪
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