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tv   Markets Now  FOX Business  December 10, 2013 1:00pm-3:01pm EST

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adam: the blast of snow up sitting commuters in the northeast. ahead, the latest forecast and travel delays. lori: let's start with your market. stocks are edging lower from the new york stock exchange and nicole petallides. we are coming back from the lows of the day, however. nicole: we are down 24 points at the moment. we had broken down below 16,000 mark, right now we are down two tenths of 1% on the s&p 500. but this after a record date again yesterday. we had our 39th record close for the s&p 500. we have a mixed bag as far as what we are overseeing for the stock market. up right now at 1261. of $46.30 at the moment. this move up 2 and a quarter percent. gold-mining stocks are higher as
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well as you look at those. the stocks have been beaten down to a certain extent, but a stronger dollar has helped them along. there they are. back to you. lori: thank you, nicole p at a adam: general motors making changes in the management team at the government finished selling its stake in the auto market. jeff. jeff: the headline, no more crappy cars. she has not done any interviews yet, the last time she did one was a few years ago, actually. she did say famously w can't mae crappy cars anymore. it is that simple. she boiled down a complicated dress code policy to two words, dress appropriately. tape provided by general motors. >> today's gm is vibrant.
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we have been through a lot, we learned a lot of lessons but we have never lost our spirit of wanting to win. jeff: she has personally been through a lot. started as an intern. she has done a number of jobs, she handled hr for a while. other winners in all of this, let's take a look at them. a former ceo, the new nonexecutive chairman of the board. fun fact to know and tell about him, he was in a classmate of dan quayle in indiana. harvard mba. very well respected. former cfo is a former investment banker at morgan stanley, has done a great job in the cfo position. new leadership at gm. on facebook take a quick look at what some people are saying out
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there. a woman in charge, that makes me happy, says one woman. famously started at gm, and her dad worked for pontiac for 29 years. from the factory floor to the corner office, that is the way it should be. and that is kind of nice. we like with somebody works their way up through the corporate ranks, especially when it is a woman. lori: nobody really saw her assignment coming. really a surprise to so many people. jeff: there were more high-profile candidates, who will stay on the board but will basically be out. i talked to somebody at gm today who said it is a little bit like obama. he sounds really good, but could use a little bit more seasoning. other people think this is a really solid choicee
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adam: let's get into real numbers here. general motors number one car sales, but then we have one vehicle in the top 10 selling vehicles in north america. for gm, it is a truck, the silverado. can she turned that around? jeff: the product you see, a lot of what she has done. but you're right, it is a huge behemoth of a company still. but she has this ability, dan ackerson says, he was singing her praise is a year and a half ago, to bring people together, he was really trying to change culture at gm and he thinks she can be that agent of change from the inside. not from the outside, but somebody who has come up through the ranks, knows the culture and can change it from the inside. adam: i think everybody wishes for the best but only one vehicle in the top 10 best-selling vehicles. they have to change that around as well. jeff: good point. adam: approving the volcker rule
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today. we are waiting on votes to officially accept the addition of restrictions on banks following the financial crisis. joining us now to discuss this in an exclusive interview with a former drafter of the volcker rule, a partner in washington, d.c. and i should point out you were on the initial committee that wrote the initial version of it, but you left in 2010, 11, and what got voted on today was not what you actually would have been in favor of, correct? >> first, thanks for having me. what i worked on was initial statutory language, which was a page and a half long. adam: and now it is 900 pages. explain to me, somebody who is not a lawyer, what this means for the average guy on the street. and m i protected as a u.s. taxpayer from what had been a concern of mr. volcker from
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banks gamble and with money because they could be bailed out by us? >> first of all all banks engage in taking risks. so you will never eliminate risk from the system. the idea there will never be too big to fail is a lofty goal, i don't know it is achievable. in terms of what the average consumer can expect, i imagine higher prices and less liquidity in the market. adam: for somebody like me in simpleton terms when things can trade with their money, they can create more money they can then turn around to lend to people like me. that is what you mean by less liquidity, right? >> and banks make loans they create money. in this instance when you say there is less liquidity because banks are not in the market buying and selling as much as they were before with fewer buyers and sellers, the supply and demand would indicate they would be less demand and prices will go up all things being equal.
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adam: how does that affect me as the average consumer? how will that impact me? >> if you own securities and you want to sell them, you will not get as much money on average. if you have securities you want to buy securities, you have to spend more money. all things being equal. adam: your concern is there would also be a potential of for instance stock prices coming down, security prices coming down at the banks try to unload some of these entities? >> the second part of the rule is a prohibition of the ownership of hedge funds. if banks cannot only his assets, they have to sell them. somebody will have to buy them and if the demand curve shifts like that and the supply curve remains the same, chances are the prices on these assets will go down as well. adam: as we begin to wrap up, is there anything good you see and what we are calling the volcker
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rule and the approval unanimously that happened today? >> well, we can search for it, there are some improvements over the initial proposal but to the effect it is stricter than it was before, we will all be paying at the end of the day. adam: they are given the banks until 2015 to begin implementation of this, do you expect to see immediate reaction to it or will it begi beginningn 2014? >> the banks have already been reacting to it and they will continue, more time is good, it will be a more orderly conversion to it and that is a good thing. adam: thank you very much for joining us. coming up, charlie gasparino on the biggest loser from the volcker rule. lori: wells fargo will join us to talk about why he thinks this breather could last well into next year.
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adam: lululemon pans are known for being flexible, now the founder is trying to be too. lori: winter weather creeping is. travel delays in the northeast up to 6 inches of snow today. [ male announcer ] here's a question for you:
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lori: breaking news for you, a white house speaking out on president obama's controversial handshake with cuba's raul castro. this happened at nelson mandela's memorial. it was not a discussion. all this from the white house moments ago. adam: a date has been set to consider appeals on the detroit bankruptcy decision. the judge stephen rhodes will hold a meeting to determine if creditors can directly appealed the decision that detroit is eligible for bankruptcy and can cut retiree pensions. employee unions and pension funds are looking at a bypass of regional and going to the court of appeals.
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lori: as we do every 15 minutes, let's check the markets. nicole, gm not the only management shakeup reports today. nicole: a few companies doing that. let's take a look at lululemon. today down a half a percent at 69.97 as we speak. watching lululemon shares, change in the leadership, also notable the founder will be resigning. the new ceo coming in, certainly a lot of experience and plans to expand globally. back to you. lori: it is time to make some money with charles payne. looking at a rail car manufacturer. charles: i'm trying to get a little conservative. one of the things i'm looking at is a company that hasn't necessarily done well for
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whatever reasons, the railcar business has been okay, some of that is changing in part because of the fleet and technology and different uses of gas transportation and things like that. it is on the cusp of doing something really big. missing earnings the september quarter came in line trading at one time spoke less than one time sales. we want to convert the shorts into buyers. wrapping up the fiscal year earnings estimates. three months ago they were at $0.92, so the stock is actually breaking out today on really fantastic volume, the stock looks phenomenal to me as a growth name and as an undervalued play. lori: i don't know if this is the right question. there is the devastating metro-north rail car accident. would this plan to the stock
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rail companies might be looking to upgrade, update their fleet? charles: it plays into the idea these are old fleets, technology plays a role everywhere. a lot of these older fleets need to be updated as well. in a way it is sort of related. it is also a global economy play. as demand around the world for iron ore, coal, things like that you still have to take it to the port. i think everything is in place for this tonight. it is not very volatile. lately has not been doing that well. they are too volatile for the audience. you know what i mean. you feel like i am a snake pit again.
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you get the santa claus rally. adam: world leaders joining the memorial service. latest from south africa has president obama eulogizes the last great liberator of the century. lori: 15 days left until christmas. retail guru that helped launch stevie wonder drives me with a must-have gift this season. when does your work end? does it end after you've expanded your business?
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>> i am lauren green with your fox news minutes. thousands gathering in south africa today to honor the life of nelson mandela. among the scores of mourners, 94 dignitaries including president barack obama and george bush and jimmy carter. calling mandela a giant of history. 60 of state john kerry testifying before the house about the high-stakes deal to ease sanctions over iran's nuclear program.
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john kerry defending the agreement despite concerns from several lawmakers that it is far too weak. the obama administration is adding a new advisor to its payroll. joining the white house team during what has been a tumultuous second term. that is thanks in large part to the disastrous rollout of obamacare. a well-respected democrat served as president clinton chief of staff. those are your headlines, now back to lori and adam. adam: thank you very much. the cftc approved the volcker rule. we are now waiting for the occ vote. and it will become law. expected to sign off later today. another news alert for you, the snow is making his way up the east coast slowing down action in washington, d.c., while the federal government is closed.
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janice d and track in a storm the weather center. >> not a huge storm, but it caused delays. a lot of kids have the dela day. parts of new jersey over 4 inches, 3 inches in delaware. it is not a blockbuster storm, but it did cause delays at the airport. still in delays as well as jfk and philadelphia over an hour delay. call ahead and pack your patience, as they say. light snow being reported in philadelphia, sunny skies in new york may get a hand o band . the other story is incredible cold, the wind chill, what it feels like if you are not protected when you go outside. some of the coldest air they
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have felt going down to zero on thursday night and we will be dealing with incredible cold tonight across these regions, these are actual air temperatures, not just with jill. --dash windchill. we might have another storm system to talk about maybe on sunday. back to you. adam: i don't think people want to find out there is another storm system. we appreciate you keeping us informed. lori: speak for yourself. skiers cheering today. having the best-selling product on oprah's favorite things list this year, seems there's nothing chris burch cannot do. we continue the series with a billionaire taking the retail by storm. thank you for coming in. on this smelly, crummy day 15 days until christmas you have a
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brick-and-mortar presence, you have an e-commerce presence as well, so our bad weather days good or bad? >> bad weather is never good for anyone. so our e-commerce site comes alive when it is a bad weather day. people want to sit at home. on good days they like to go to west chester, the great malls, have fun and feel the environment. we like bad faith, we like good days, but we preferred good days. lori: tell me about the shopper trends these days. i go to the mall, i see the beautiful, the colorful right there. i might look at something and say do they have that product in a slightly different color? see if you have that product. >> we are very strong on the e-commerce site and shopping.
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it is really important you have both of those. we are fortunate because we control the distribution, we enjoy entertain the customer when they walk in our store. lori: is it a huge coup for you are not really? >> she has been really great to see. you get an item like that, it makes your christmas. lori: how are things which mark you dealt with legal battles. this all behind you from what i understand. you mentioned west chester, the stores are pretty close to one another. >> she is a great leader and a great human being. we have a little bit of a business conference, but we have six children, three with my first wife and three with victoria. she hhs been great to my girls,
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and she is a great ex-wife, a great person. i'm a large owner, i'm not involved on a day-to-day basis but we complement each other well. it is great. lori: the expansion plan, another store in the emirates mall in dubai. how do you choose your real estate? >> we have 30 stores and we are really lucky because dubai is our first story, and we're doing something really exciting in bloomingdale's, we will be in the bloomingdale's stores opening international expansion around the world. we believe this market is very global. it is a creative market and when you talk about the malls, we are the show room for the world, and new york city is the biggest showroom. lori: how are you heading your account? with so many having to adjust accordingly to accommodate for what is looking like higher cost for a lot of business owners. >> it is hard.
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a little concerned about obamacare, and the cost to operate a business in a u.s. e-commerce helps a little bit but we are being careful about how we hire, who we hire, we want the best in the world but we are very excited about growing our business worldwide. lori: thank you for coming in today. safe travels in this weather. adam: you missed the opportuni opportunity. lori: it is not a day with me to wear a sleeveless dress. adam: the united states of fannie and freddie, agencies writing nine out of 10, any chance that will change? the pick to run the fha. lori:'s wall street stealing returns from 2014 ahead with about next year. listen up for that.
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tdd#: 1-888-852-2134 call 1-888-852-2134 to learn more. tdd#: 1-888-852-2134 so you can take charge tdd#: 1-888-852-2134 of your trading. lori: our top story today, general motors announcing mary barra will be its next ceo. our next guest has been in the auto industry for 30 years. she said she never thought she would see the day where a woman would head a car company. of the michelle expense from edmund.com joins us by telephone. you say this is not fill the slot with woman appointment. i let you take it from there. >> not at all. mary is a extremely strong automotive executive. she is engineer. she came up through the manufacturing ranks.
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you can't be with a wuss to be in that business. she worked with designers and engineers developing vehicles for general motors. she knows the car part of the business. adam: michelle, nobody wants to see her succeed more than us here at fox business. lori: and me. adam: and you. all of want to see miss barra succeed. only one of the top 10 selling cars in the united states is a general motors product. it is silverado. they're the number one sales leader as far as total vehicles, don't they need to produce more cars better than they already are to break at that top 10? >> i think that is the wrong measurement. i think you should look at profit march spins and how much they're able to -- profit margins and how much they're able to get for vehicles. let's remember five years ago general motors was in bankruptcy and we didn't think they would even exist.
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so they have come a long way. yes they have to get, they are, on the road to producing vehicles people want and people want to pay for. in the past, general motors kept producing cars and warehousing them. we're not in that same place these days. lori: michelle krebs, thank you for your time and insights. we appreciate it. glad we got to connect. adam: back to the floor of the new york stock exchange and nicole petallides. you're watching homebuilders. >> i am. i'm keeping a close eye on homebuilders. we got numbers from toll brothers. it was a mixed bag. there was a piece of good news from the report. stock not doing too much. a little back and forth. it clicked into the green moments ago. it had been down. that has been the action we've been seeing all day on to brothers. the rest of the group seems to be leaning more to the upside. much to brothers came out with their numbers. one thing that they did say was that deliveries jumped 36%
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year-over-year. they saw prices, this is good for them, prices jumped. that is good news for to brothers as well. don't forget. you now you go from winter into the spring, into hot selling season for homes. there will be some people will be buying this the next few months or few weeks. back to you. adam: nicole, thank you. the s&p 500 is up nearly 27% so far this year but our next guest says these gains are not going to last. so where should you invest in 2014? scott wren is the senior equity strategist for wells fargo advisors which oversees $1.3 trillion. scott, always great to see you but even better to have you here in the studio. >> great to see you guys in the studio. adam: let's get right to the bad news. we'll still be positive you predict, s&p 500 but next year you said we'll be lucky to do better than 5%. >> i see the s&p trading 1100, 1900 by end of the 2014. only 5%. throw a couple percent on
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dividends. 6 to 8% possibly on total return. of course we had a great year this year. just these last few months, this last rally, this last 100 points or so in the s&p 500 i think they pretty much stole returns from 2014. lori: so what is really going to slow the momentum? is this really about the fed? taper talk is ramping up again. >> i think it really, the fed has been the major fuel in this rally. and i would argue once again, with that 100-point rally we've seen over the last few months, the poor economic news has really fueled that. janet yellen's comments have really fueled that because it makes people think that the taper is not going to happen right away. i certainly don't think we'll see anything in december. i think it is march at the earliest. adam: i realize your outlook is based on several, almost 200 different factors but i will ask you a question counter to what you're saying and this comes from your own note. chief macro strategist gary thayer who talks about the fact most households have lowered the debt burden we
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haven't seen since the early 1980s, 1990s, which preceded big economic recovery. aren't we poised perhaps for that and perhaps that would spur stocks higher? >> when i look forward, i think we'll see 2% gdp this year. nothing to write home about. next year only probably 2.4%. if i had to guess into 2015 it may only still be 2.5%. i think we're in this long period and we have been in a long period of modest growth with modest inflation. clearly market can do well in there we've had valuations on our side but i think this next year we're not going to see anything like what we've seen this year and probably next couple of years. i think this cyclical bull market has two or three years to go. modest returns. lori: a lot of money is dying to be invested in all sorts of tools, all sorts of types of investors, individual investors and institutions what have you. where will i go if not so much into stocks? >> i hate to say it.
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i think a lot of money on sidelines today will never make it back into the market. in the past 20, 30 years, you can almost count on money moving in. i think we have a lot more baby boomers. they're afraid of the market and outliving their money. they hold way too much cash and they are underinvested in stocks. i think right now what you need to do is be in the cyclically sensitive sectors, industrials, technology, consumer discretionary sector. the homebuilders were doing well today. they show up good in our work with home improvement retail, something like that. but those three sectors we're overweight those right now. they're sensitive to the economic recovery here and abroad. you don't want to hide this things like health care and utilities. you want to be out there ready to take advantage of the growth. adam: scott wren, great to see you in new york. lori: happy holidays. >> same to you. lori: congressman mel watt clearing procedural vote in the senate clearing him to be new
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director of the federal financing housing agency. rich is this result of the rule change in the senate? >> it is looksry. we can expect the senate will finally confirm mel watt to lead the faha. republican sass say it could be al bad for freddie and fannie mortgages and assume mortgages from higher risk borrowers. the fhfa under current leadership has been against that. this is something they put out last year writing, quote, borrowers may become delinquent in order to qualify for the program. our analysis of principle forgiveness and loan modifications have not reeled indicators that principal forgiveness will lead to improvement on loans modified by fannie mae. one analyst says mel watt would be well-sized to not to move too quickly.
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>> there is danger if mr. watt movers to aggressively and off putting to hill republicans, particularly conservatives in the house, that might diminish his ability to engage congress in that broader gse, housing finance reform debate which is just begun as really surprised folks with the speed and viability with which it has moved this year. >> republicans in the senate had been able to block an fhfa appointment by president obama for years. ever since the rule changes the senate instituted last month, threshold then becomes 51, more% than enough democrats to accomplish that. so by the end of today, or end of this week, mel watt should be confirmed by the senate. back to you. lori: rich, how close are we to a budget deal? >> i heard a number of different iterations of close. we are hearing they're fairly close at this point we could have something either later today or tomorrow according to senior sources. >> really? >> that is true. there are a number of different definitions in washington for done deal.
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it is not officially done until it is completely finished. still negotiating. there was a meeting this morning between the two lead negotiators. lori: forgive my skepticism. i suppose it is understandable. >> it is. it should be. adam: thank you, rich. lori: biggest loser volcker rule edition. charlie gasparino hear with the latest. adam: somewhere between zero and 250. no, not charlie's weight. coca-cola new plan to fight sagging sales. charlie is in really good shape. coca-cola, that is another story. they want to fight sagging sales with a new low-calorie soda. ♪ every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than another place in the world. in fact, we've invested over $55 billion here
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stick with innovation. stick with power. stick with technology. get the flexcare platinum. new from philips sonicare. >> i'm jo ling kent with your fox business brief. office depot will keep its global headquarters in boca raton, florida. after merging will know based officemax the company considered to moving to former officemax location in napierville, illinois. small business sentiment increased slightly in november. the national federation of business independent businesses optimism rose by nearly a point. up from october's reading of 91.6 but small businesses say they anticipate increases taxes and regulations and health care costs ahead. the commerce department says wholesale inventories rose 1.4% in october. that is more than the expected
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adam: okay. now that the final details of the volcker rule have emerged and lawmakers are taking it to a vote which wall street firm has the most at risk are with these strict new regulations? charlie gasparino is here with the details for us and who is going to get hit hard? >> it has got to be goldman sachs. we should point out we put lots of calls into goldman sachs last couple days in preparation for this vote. they have no comment but there's been a lot of analyst chatter particularly from brad hintz, sanford bernstein, one of the smartest analysts out there, was ceo of morgan stanley, this is
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interesting, he issued the report late friday so it went under a radar a little bit but basically saying goldman sachs is in the process of significantly reengineering its trading business. that is pretty tough stuff from an analysts, basically reducing compensation levels and looking at its balance sheet. what does all this mean? it means goldman sachs in the wake of volcker is interpreting volcker not just cutting back proprietary trading, taking risks with the firm's own capital, those guys are gone from goldman sachs. they're looking at the sort of market making function, where you take a degree of risk, standing as the middleman for clients and making money that way. under the strictest interpretation of volcker, guess what it is very hard to do that, this law, we've been going through the law all day, nobody exactly knows what this means right now, but goldman is preparing, it appears, appears they're preparing to interpret this in a very strict way and it
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is changing their business model. adam: why are investors seem to be flocking to goldman? trading $172 a share. that is a new 52-week high and for the year they're up 43%. >> it should be going down. i don't know. lori: maybe they're relieved, they have been worried about this and already passing it. >> maybe goldman implementall this stuff. goldman had a lousy last quarter. they could have a couple big trading sessions and bounce back. this is not like jpmorgan, with a gazillion clients. they can be market-maker, without taking risk just packs through. goldman sachs has to take risk. would i say this if you're long-term better on goldman watch it, this is one stock i would worry about. lori: what about jpmorgan and jamie dimon so critical of dodd-frank and its inception and clearly -- >> right. we should point out one of the provisions of this -- adam: "london whale." >> because of the "london
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whale," doing some sort of portfolio hedging. the "london whale" by the way was port sole outside, wasn't quite a proprietary trade. it was the bank's outside bank portfolio. not really a hedge fund. it wasn't supposed to be. this is every money banks have outside. they have their own portfolio. basically invested in less risky assets. they did some hedge with it went awry, i.e., the "london whale" as a hedge. but this rule as being interpreted basically address that is. adam: does it protect the shareholders of an institution like jpmorgan from that kind ever huge loss in the future? does it protect taxpayers from bailing out this? >> i would say this. bureaucrats are incredibly dumb. , who are supposed to be implementing this thing. we're on the five-year anniversary of bernie madoff. i'm telling you, they hired 200 more sec people they would not have caught bernie madoff. bernie madoff didn't get caught because the sec officials and other people in the u.s. attorney's office failed to do very simple analysis like check in bernie madoff ever made a
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trade. okay that's what bureaucrats do. they are handcuffed by the crock crocksy. there is institutional mentality that prevents people from acting and thinking on their own. if you're an average investor out there and you think that volcker rule will prevent the next financial crisis, you're crazy. adam: this is five-year anniversary of the meeting with madoff and his sonsed alleged -- >> that's what happened. madoff did not get caught. madoff turned himself in. adam: 11th a day a lot of people remember. >> tomorrow. adam: charlie gasparino, thanks very much. lori: thanks, charlie. taper fears seem to weigh on the averages today. let's check in with mark newton on the floor of the new york stock exchange. mark, the dow is off 31 points. what do you think is going on today? >> i think a little bit of consolidation after last friday. we saw a move to the upside. you can't really make too much of this just now. i think everybody is focused next week and what's going to happen. some people say it could be march. some people say it could be next
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week. at least we'll have some discussion regarding what's happening. what would stocks do p they decide to tapeer? that is really the big deal people are discussing. i think one thing, somewhat unexpected we probably would be see a pretty big surge to treasury rates back up to highs. 30-year and 10-year are up to recent highs. we have a decent three-day rally in treasurys. we're getting down to yield based support where it could provide some sort of a cushion. lori: all right. >> we've been almost 82 weeks now without seeing a consecutive three-week pullback. that is the longest, this actually surpasses 1987. formtory that, it was actually 2005 or 1995, had longest of 107 consecutive weeks without a three-week pullback. so there we are. 82. lori: we appreciate it very much. >> my pleasure. lori: see you soon. adam: the future? there are report that is coca-cola is launching a new low-calorie soda which may hit u.s. shelves pretty soon,
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coca-cola life, is what they would call it, would be seat sweetened with sugar and a zero calorie sweetener. it is already a hit in argentina. coca-cola's move steps from consumer concern about artificial sweeteners like aspartame causing long-term health problems. aspartame is used in diet coke and many other diet sodas. store sales of diet sodas are down 7% from last year. coca-cola shares are trading down on today's session. kind of like david hasselhoff being a hit in germany. does it translate here if it's a hit there? lori: no comment but i hear you. you have a good point. adam: i know it is illogical but makes sense. lori: turning trash into glass. coming up we'll introduce you to the engineering students turning lunch leftovers what could one day be the face of your smartphone. ♪
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lori: one man's trash is adam's treasure. no, it's a man's glass. that's right, a group of engineering students are trying to ease the demand for glass by using food waste. fox news's alicia acuna is in denver with details on this one. alicia? >> hi, lori. actually it is pretty cool. these scientists are from the colorado school of mines and they patched in a way to take the minerals that you find in household waste, including food and convert them into glass. >> the lab teary fridge is packed with a treasure trove of leftovers. >> coffee. clean glass. >> we eat the food and use the
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waste to create materials we need. >> worldwide demand for glass is booming. global usage stands at 100 metric tons a year. the high value minerals used to manufacture glass are normally dug out of mining pits. >> what we have done is, we can find the same materials that the mining industry can provide today from a different source. >> in other words, food that grows from the ground is absorbing the same minerals. >> plants extract this from the ground essentially. so in effect the plants are doing the mining for us and they're bringing it into the plant. >> items like eggshells, banana peals, peanut shells, cornhusks, get ground down, melted in a furnace and the molten liquid is poured and cooled to form glass. scientists found two benefits to this method over conventional glass making. toxic agents like arsenic do not have to be added to get rid of bubbles and colors occur naturally. one of the big goals here is to take the glass and one day use
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it in our windows and more importantly, our smartphones. lori? lori: thank you, alicia acuna. thanks again. adam: breaking news right now. treasury secretary jack lew is applauding the approval of the volcker rule calling the banking regulation, this is a quote, a critical step toward completing dodd-frank wall street reform and consumer protection act. secretary lew went on to say the approval by financial regulators stays true to the president's vision by setting tough but workable restrictions while still allowing banks to perform essential market functions. lew pledged to remain vigilant against market behavior that threatens the stability of the financial system. lori: okay. that from jack lew. skirting the volcker rule though, will wall street find a way around it? your tweets and panel debate with tracy byrnes and adam, you're sticking around as well with trace. all this next hour on fox business network. stick around. ♪ [ bell ringing, applause ]
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adam: welcome to the 2:00 hour of "markets now." i'm adam shapiro. tracy: i'm tracy byrnes. skirting volcker rule already. the street's so going to find a way around it, don't you think? adam: yes. tracy: your tweets, our panel debate next. adam: the weather outside is frightful. the northeast is being hit with a storm that could dump half a foot of snow causing travel nightmare. we're live in the fox weather center to help you get around it. tracy: tomorrow's business today. there's a chick behind the wheel at gm. i could say that, because i am a chick and i'm psyched for her. general motors picks mary barra to lead the carmaker into the future. she drives a camaro which means i like her even more. adam: my brother want ad could marrow few years ago. fox business exclusive, we have the dunk, nfib chief economist bill dunkelberg behind all the
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chief headlines for. >> all that and the markets. i had a 1987 camaro. t-tops. adam: new jersey. tracy: we'll look at the snow hitting the financial capital of the world before we move on. could you see behind us? it is kind of weak right now but it is coming back. prepare yourself, nicole. when the markets shut down there will be snow down there waiting for you. >> the truth is, i never leave this building. you can't even see through the windows. i will be in for a real treat when i leave later today. dow jones industrials down about 50 points at the moment, 15,976. so right near session lows. not too far off session lows today. the s&p 500 one third of 1% after setting its 39th record close yesterday. and the tech-heavy nasdaq pulling back by 11 points. the vix, the fear index, has been moving higher. financials have been holding on, doing well as least. we saw goldman sachs hitting a new high on heels of the volcker
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rule. some defensive plays pulled back. , some consumer type stocks. look at general motors talking so much about it, you have a changing of the guard for general motors, mary barra coming on board. she was an engineer. father used to work at pontiac many moons ago. worth noting treasury sold off the rest of their stake to the taxpayers. came up short by $10 billion but frees up the stock to move forward right now at $40.58 a share. tracy: thanksee you in a bit. adam: the ink is not even dry on the volcker rule but we want to know if wall street will figure a way around the rules? tweet us your answers. just ahead we're all over this morning's approval of the rule to rein in wall street. we have liz macdonald and peter barnes with up-to-the-minute
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coverage. peter. >> we're waiting on one more regulator to formally approve the volcker rule, all 900 plus pages of it. the fed, cftc, the fdic, have all done so. we're waiting on the occ, office of the comptroller of the currency but the comptroller is a member ever the fdic and he voted for it this morning. this is formality. this is a done deal. it is part of dodd-frank financial reform named for the biggest advocate, former fed chairman paul volcker. it is supposed to prevent future financial crisis and taxpayer bailout. it will prohibit banks from making risky bets for their own profit, called proprietary trading. prohibits banks from owning private equity funds and hedge funds. allows trading on behalf of customers of course, and allows some hedging activities to continue. the rule requires ceos to reasonably attest to compliance and internal supervision of the
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rule. it would, first cover banks with assets of more than $50 billion and they will have until 2015, july 2015, to comply. officials say the rule is designed to be tough but flexible. some consumer advocates worry about loopholes. some banks say say it will raise costs limits services and limit market liquidity and limit activities to overseas banks or less regulated shadow banking system and you can bet that there are some lawsuits coming. back to you. tracy: no doubt. peter, hang in there with us. we want you to join this little covers. we have emac and charles here. all right, emac, it is obvious the street will find a way around this, right? >> peter cited a few of them. we're already hearing they're shuttering their prop trading desks and shuttering the activity to off-balance sheet vehicles or off-balance sheet entity that is do this kind of trade. the question is, is proprietary
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trading riskier than lending itself. credit mania cause the financial collapse. tracy: which this does not fix. >> it will be in the use of the regulator what is market making, what is proprietary trading what is hedging. that is a question for the markets. do we need more bureaucrats to decide what the banks are doing and calling it? adam: charles, what will happen to average people like us who go in and out of the stock market? mr. lamson, one of the original architects was on last hour of the volcker rule and regulation, he dropped out. it is much different than what he was originally in favor of. 1 1/2 pages then. 900 pages now. >> as usual. when peter talked about liquidity, shadow banking all of that stuff i think matters. you would think for, i'm not in favor of that. i don't know that we necessarily need, certainly we didn't need 900 pages. but you would think that the banks would get back to the bread and butter business anyway was raising money in ipos and
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things like that and not be so fixated on proprietary trading. if it is their money, fine. what i was against though is absence much disclosure. in other words, you as bank telling me x, y, z, looking pretty good when you had a big short position on it at the same time. again didn't need 900 pages to fix it. >> does it make it more opaque because they shove all the activity away from the balance sheet? >> right. tracy: the peter, the whole point of this, to emac's point was to fix the mortgage crisis and this doesn't even mention the word mortgage i think in the whole document. >> yeah. you know one of the questions here is, one of the keys to being in the mortgage business was, to have the ability to hedge, right? tracy: right. >> a bank goes out and locks in an interest rate for you on a loan. then it goes out and put as hedge on that, against an increase in interest rates. so, it can offer you the best rate. this issue of hedging is a big one in the volcker rule.
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the rule does allow some hedging activities to continue. but regulators are going to be all over it and, requiring a lot of compliance. adam: going to drive up prices for consumers? >> it could and here's why. in order to do what peter just said that is allowed under the rules they have to establish a track record. they have to have record-keeping showing that they're being market makers and not making these risky bets. i'll tell you something, the other thing too peter mentioned was lawsuits. now the bank executives have to do, they have to sign off, certifying they're not engaging in proprietary trading. that means they make violation of that. that you will see lawsuits because offthat. tracy: charles, these banks have been doing this for two years. morgan stanley has been doing this, pretty much anticipating this for two years now. >> it has been a long time coming. in fact it doesn't go into effect until summer of 2015 and even then it might be delayed. talk about many solve these proprietary trading, some slight exemptions. underwriting, if you do any
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underwriting, get exemptions there. tracy: right. >> market making related activities. exemptions there. risk, mitigation, hedging. so, i think, left enough loopholes in there to -- >> in eyes of regulator. hiding in plain site, citigroup off-balance sheet vehicles. we talked about that yesterday. right, guys? it will be in eyes of regulator what will violate the rules. adam: paul volcker said anything about this final version of what has been -- >> i don't think he has. adam: given his approval? tracy: let's ask peter because i heard you giggle to that one. is paul volcker jump in on this as well? >> well, yeah. not today but he has mount ad very strong defense of this and sighs, listen, he is acknowledged that proprior ary trading didn't cause the financial crisis. if jpmorgan wants to go out and trade proprietarily with "london whale" and lose $6 billion of shareholder money should that be up to jpmorgan or should regulators curtail that?
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i will let you guys argue about that one. >> i'll tell you, by the way, peter, i think treasurys are still exempt and certain sovereign debt. >> that's correct. >> one day they could become risky bets the way the bond market -- tracy: let's let peter finish his thought. go ahead, peter. >> volcker has mount ad significant defense of limiting, of getting out of proprietary trading and other activities saying this will help prevent a future financial crisis. his name's on it. >> yoo know what? he is like dr. frankenstein. this is not the monster he set out to create i don't think. i think legacy established for himself with ronald reagan. having said that when this is all said and done, guys, it will feel like much ado about nothing. they were looking for a scapegoat at the height of the crisis. this is one of the ways they blame wall street and make sure it never happens again. adam: which have a statement from the president. the white house just put this out talking about it. he is saying as part of this wall street reform we fought to include the volcker rule, a rule
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that makes sure big banks can't make risky bets with their customer's deposits. but sounds like, no, they can still make some bets. >> they were making bets with their own money. >> but the letter goes on to say that the financial system will be safer. no, it won't. it will be more complicated. adam: we should ask volcker. he rides lexington avenue bus. i see him every now and then. tracy: he is so tall. he stands up. you can't stand up on bus. emac, charles, thank you so much. >> thanks, guys. >> there is that tax thing coming up. you have to pay attention to it. we know you dread it. you need to make adjustments right now specifically if you have investments. it will affect you big-time in april. you can't afford to miss part one of our little taxing series ahead. adam: tech minute, santa has extra helpers at the mall but this is kind of creepy. device that is track shoppers to get them, them as in you, to spend more. tracy: that is a little weird. but up next we have a fox business exclusive.
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nfib senior economist bill dunkelberg on small upticks in small business confidence but of course you know fears of obamacare still linger. as we head out to break, look at snow hitting outside of our studios here. okay, there is not snow but it is coming. it is supposed to be back here -- adam: it has been snowing all morning. it hasn't stuck but been snowing all day. tracy: it is supposed to get stronger and harder by 3:00. make sure you check the flights. we'll be right back. tdd# 1-800-345-2550 searching for trade ideas that spark youruriosity tdd# 1-800-345-2550 can take you in many directions. tdd# 1-800-345-2550 you read this. watch that. tdd# 1-800-345-2550 yolook for what's next. tdd# 1-800-345-2550 atchwab, we can help turn inspiration into action tdd# 1-800-345-2550 boost your trading iq with t help of
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tracy: we have breaking news for you. as adam mentioned in the last block the white house put a statement out reacting to the volcker rule. it says in part, it says our financial system will be safer and the american people will be more secure because we fought to include this protection in the law. president obama goes on to say, i encourage congress to give the regulators adequate funding to effectively and efficiently implement the rule which protect hard-working families and business owners from future crises and will insure confidence in america's dynamic financial system. as we heard from our panelists maybe not so much. that being said. it is quarter past.
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we have to check on the markets. they're down about 40 points. nicole petallides, on the floor of the exchange. you got your favorite coffeemaker of the day, not doing so well. >> that's right. we're looking at starbucks. it is indeed my favorite place to go for coffee. however i would -- other place as well. starbucks is down 3.3%. it is the biggest loser in the s&p 500. this is a call from itg. itg says basically they have had two great quarters but you know what? their sales momentum is expected to slow. that is what they're looking at here. they're watching that. as they say that they're pulling back. you may be interested, we have a starbucks on floor of new york stock exchange and some people have been floating rumors they may actually close it. then what will i do? adam: dunkin' donuts. tracy: adam is here. >> hi, adam. tracy: say it isn't snow. adam: starbucks is kind of burnt coffee. dunkin' donuts is, go with
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dunkin. >> every 15 minutes we have to bring in a report. tracy: i love the dunkin' donuts pumpkin but the skinny vanilla latte is my favorite thing on planet. adam: i have a thermos. it gets me through the first part of the day. tracy: we'll get awe percolate tore if all else fails, schnick coal. we'll see you in 15 minutes. adam: shopping season kicked off and barely boosted optimism as the nfib index barely post ad one point gain. bill dunkelberg is the nfib chief economist and says the world year is not ending on a high note and joins us. thanks for being with us. this is troubling because we keep hearing signs of thingsstrength in the economy and hear a report, that people that put people to work are not that confident. >> that is unfortunately the case but, they're telling us what we see kind of in the macro numbers. that is, sales are not really great. we still have more owners saying sales are trending down than
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trending up. that is not a good sign. so, overall they're optimism didn't go up. it went up almost a point but that is less than half of the loss we had in october. so, we're still in that trading range kind of for the index between 88 and 95. we haven't broken 59. of course the average going into this recession was is hundred. so we're way below average there owners are not optimistic. they're not spending money and not hiring a whole lot although hiring was kind of a bright spot in this report for november. tracy: makes you wonder then what made the index tick up at all quite frankly, right? was it anticipation that holiday sales might be okay? because seems like everything else is pretty much the same place it was last time we talked to you, just down and dismal. >> yeah, that's right. the index has 10 components. as we noted, the did see four-point improvement in plans to create new jobs. we saw 1 point improvement in job openings and that suggested
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to us that we would predict a decline in the unemployment rate which we got. but on the other hand, we had, the, one of the worst readings on expectations for the economy six months out. tracy: right. >> a negative 20 percentage points. that is, we've only had about 10 worse readings in the 40 years of surveying. so they're very pessimistic where the economy is going to go and not very optimistic about their own sales. so everything is kind of modrat. adam: is it, are they very worried about the unknown impacts from having to meet new rules with obamacare? >> well, certainly, that is starting something that is starting to reveal itself to them, as small business owners, most of them, with fewer than 50 employees, they of course are not mandated to do anything in particular. but those who offer it are now going to see it is a lot more expensive to offer. they may have to give it up. of course their employees would like to get something. they certainly have to worry about what is that going to cost them.
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that is certainly not resolving itself. if you look at the top problems they tell us they have which is rising health care costs, uncertainty about the economy, energy costs, cost of regulation and red tape and uncertainty about government policy, what has gotten better in that whole shoe? maybe energy cost as teeny bit but oil prices are up a bit today. there is nothing happening to make them more optimistic. they could get good news for the government if they reach a two-year deal. that will make them happier. 30% who say it's a bad time to expand say because of the political climate. the fed might start tapering and that might be good news. tracy: that number, bill, 20% drop in those that expect the economy time prove going forward. that's really bad. adam: it's bad. >> yeah. they should be happier than that but they're not. tracy: yeah, you're right. we're happy you're here, bill dunkelberg. thank you very much. >> thank you, tracy.
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adam: snow snarling air travel. we want to show philadelphia. shut down schools, own closing government in washington, d.c. we're live in the fox weather center next with the forecast. tracy: president obama and the world remember nelson mandela. that and your up-to-the-minute coverage of mandela's memorial service. we'll have that and more for you next in your fox news minute. the dow is down 40 points. don't go anywhere. hi honey, did you get e toaster cozy?
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>> just about 24 minutes past the hour. i'll lauren green with your fox news minute. thousands gathering in soweto, south africa, today, to honor the life of nelson mandela. among the scores of mourners, over 94 dignitaries including president barack obama and former presidents george w. bush, bill clinton and jimmy carter. president obama addressing the crowd, calling mandela a giant of history. a landmark victory for foxnews.com reporter janna winter. you will remember winter was threatened with jail time unless she revealed the sources for a bombshell story about the movie theater massacre in aurora, colorado. new york's highest court ruled she can not be forced to divulge the sources because after new york state law that protects here. fox news ceo roger ailes
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praising the decision. >> today's rule something a major win for all journalists. the protection of jana winter's confidential sources was necessary to preserve and protect journalism and democracy itself in my view. so, the highest court in new york did the right thing. >> those are your headlines. back to tracy and adam. >> that is a huge ictory for those of us journalists. >> absolutely. and a huge story that roger ailes would come out and actually comment about that. tracy: really fantastic. great stuff. thanks, lauren. >> absolutely. tracy: we've been talking about this snowstorm, totally sweeping up the east coast causing headaches for travelers like me who commute, people who want to fly anywhere. total pain in the neck. more than 1300 flights canceled thus far. all federal government offices in the d.c. area are closed but they don't know how to handle snow anyway. business as usual for congress, supreme court and financial regulators thankfully. we have up to the minute forecasts. we have to head to the fox
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weather center. janice dean the weather machine is with us right now. i am such a baby when it comes to snow but it is here for a while, isn't it? >> it is. we'll see one rival this weak thing you're complaining about, tracy. this one was a weak storm but of course came on the heels of the storm over the weekend that really affected much of the country including dallas, texas. this wave of low pressure is almost offshore but we're still seeing light snow in and around providence, rhode island, but by this afternoon and evening it will be gone and out of here. however still seeing a lot of delays at the airport. boston reporting delays. new york, laguardia, jfk, newark and philadelphia. that will be a problem heading into the evening and probably tomorrow morning as well. just keep that in mind. and, the other big story is the incredible cold across the upper midwest and northern plains. these are windchills temperatures, what it feels like minus 12, what feels like in iowa city. minus 12 in minneapolis.
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that will continue unfortunately for next several days. and then, and then, tracy byrnes, we have the potential for another big storm. this one could be a big one across the nor east. saturday into sunday. i want to show you, one of the computer models we're looking at for next five days. uh-huh. watch this. maybe six to 12-inches. higher amounts in new england. it has been busy and it will get busier. tracy: janet, does this mean winter will be a total washout? is this foreboding of future? adam: this is good news. tracy: for skiers. skiers are going whoo-hoo. >> depend who you talk toys, possibly a white christmas. this is good news. >> thank you for the silver lining, adam. fabulous. tracy: have to drive every day to work. adam: not every day. >> good thing this will come on the weekend, all right? you will be home with the kid and set the decorations and hot chocolate and all that stuff.
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tracy: i looe you for being glass half-full, i really do. janice dean, weather machine, thank you. >> you got it. adam: we have cold weather here. oil is gushing to a seven-week high. sandra smith joins from us the trading pits of the cme. sandra is not afraid of a little snow. >> no, not ought all. in fact we're quite used to it in the chicago area. it is cold outside. here it is cold on the east coast and that is driving pretty much energy prices up across the board. gasoline is up. heating oil is up on the session. you have to factor that everybody will turn up the thermostats. it does affect energy markets. crude oil price, guys, up a full percent on the session. we're staring $99 a barrel straight in the face right now. interesting to point out, crude oil prices risen every single day in december but one, and that was yesterday. crude oil up 7% for the year. this is giving boost to oil gas and exploration production companies. some of those stocks up big-time
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in today's trading session. look at the natural gas prices. if you live on east coast and turning up your heat, you're probably paying 10-month highs for those, for that natural gas and those prices are expected to continue to rice, up 23% since november fourth, natural gas, guys. energy prices getting hit by this storm as well. back to you. adam: sandra smith, thank you very much. tracy: she could care much about the weather. she has sleeveless dress on. i would be in a parka. adam: minus 13 is a heat wave in chicago. tracy: sandra smith, we love you. tomorrow's business today, gm's women driver. we have analyst ahead to take a look and insight into gm's new boss. adam: why american and british spice infiltrated the world of witchcraft video games. tracy: sounds crazy. look at philadelphia airport. lots of snow. lots of flights, not moving. big delays because of the
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snowstorm that janice dean the weather machine just told us about. we'll have up up to the date updates on your weather all throughout this hour. dow is down 40 points. don't go anywhere.
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y let's look at the dow off 30. some much for the full court rule. goldman sachs, jpmorgan up there as well. nicole petallides on the floor of the stock exchange, looking at social media winner. >> standing at the twitter post, where it is up 5.5%, $51.89,
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highest at 52. and investors piling in for the second straight day. the ipo back in early november, up $26 ipo, above $60, and back in action a lot of green with other names like facebook, linkedin and pandora. >> general motors named the new ceo, and she is a woman. and the first female chief in the auto industry. >> it is one of those that are more vibrant. and learned a lot of lessons, but never lost our spirit of wanting to win. adam: an analyst with stifle nicholas joins us, welcome to
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the program. and working around the same time tracy byrnes was driving and 87, arrow. that affected the floor. >> earlier than the 87 camaro but you are right, hard pressed to find someone with more experience who is better suited for the roll. it is unfortunate the circumstances there leading under with family matters at home and thoughts and prayers to him and his family and in terms of the bench i don't know you could have picked a better successor. tracy: she in turn in 1980 but i did drive and 87 camaro and it was my favorite car to this day. production development, design engineering, she could be credited for the fact that people like to drive a cadillac. i grew up with that and it went away and now is back and it is kind of because of her. >> that is fair. she is not the only person involved in the last 33 years but you are right, she oversaw a
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lot of product development issues that have been plaguing gm for decades. dennis: i am a big fan of cadillac right now especially the concept that we hope they build a stunning vehicle, does she share the responsibility for the problems? did she not learn been bad lessons that would be entered? >> hi don't think anybody at gm is arrogant enough to think there is not more improvement they can make and not more they can learn from their missteps. one of the reasons we are told rated is it has taken longer to make tucker decisions relative to their -- this time last year they were investing in manchester united to get but chevrolet brand represented better in europe and west week announced they are pulling out completely. you are absolutely right. there's some humility for sure that is going to help in the future. tracy: who would have thought the impala would be hot again?
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my girlfriend drove one in high school and we called rosemary's baby because it had a mind of its own but the corvette is hot again. someone has to get props for the two along with the way. does that mean change at the top? new stuff coming down the pike? do we invest in this company? >> a lot of the reasons the stock has worked has to do with technical issues. the u.s. treasuries fell down, they bought back 1 twenty million of their outstanding preferred shares, paving the way for a common share dividend, fundamentals are shifting more slowly fan the technicals would imply so we would be a little more hesitant to get involved at these levels given it has outperformed the s&p by our measure, 15%. ashley: the sting ray may be hot and they have products to get some excitement and at the end the day the number one selling
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vehicle is ford, two times as many sold in november as chevy silverado and i ask the different analysts, gm doesn't have one vehicle, all they have, that is not a good measure. top-selling vehicle is a truck and after that you have to go back into the 17 top-selling vehicles to find a general motors product. >> absolutely right and a great debt and one of the reasons at the margin we think ford is doing a better job in the battleground segment meaning midsized cars, even in hybrids, taking more share from toyota, gm hasn't demonstrated the consistencies the ford has. another reason i would be hesitant given the run they had in 2013. adam: thank you very much. welcome to the disco. i need the disco music.
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time for your -- santa has extra helper that the mall but this is creepy. shoppers to spend more in dozens, small gadgets keeping tabs on shoppers cellphones. about 1,000 retailers to macy's outfitted their aisles with these centers. the stores open sides from the data will give the man edge over competitors including online merchants. the forecast meets the real world. reportedly infiltrated the fantasy worlds of second like and world of which clapt conducting surveillance and scooping up data in the online games fearing criminal networks could use them to communicate secretly, move money or plot at tax. disguise who created make-believe characters try to recruit. this might make sense, youtube user posting a video that showed catching fire but what makes
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this noteworthy is samsung, the company reportedly said it will replace the phone after the user pools the video from youtube. the user ghostly ridge support responded by putting up another video which has generated over 600,000 views, double the original video. samsung's reported letter to the user has been published on the internet. that is the power of social media. here lesson that perhaps samsung should check out the video and youtube. tracy: the tax man is coming and when you to know how to avoid some of it. the co-founder joins us next with some moves you need to do before the end of the year and that is coming up quickly. adam: la guardia airport in new york city, more snow headed this
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weekend. a storm is on the way. ♪ [ male announcer ] if we could see energy... what would we see? ♪ the billions of gallons of fuel that get us to work. ♪ we'd see all the electricity flowing through the devices that connect us and teach us. ♪ we'd see thatlmost 100% of medical plastics are made from oil and natural gas. ♪ anan industry at supports almost 10 million americanobs. life takes energy. and no one applies more technology to produce american energy and refine it more efficiently than exxonmobil. because using energy responsibly has never been more important. energy lives here. ♪
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lori: lori rothman, jpmorgan chase filed a containment system to bitcoin, an application of the system that provides electronic payments of the internet relying folks remain anonymous without revealing your name or account number. the number of job openings reach
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four million, a five year high. and number of people quitting their jobs arrange the five year high. analysts say both figures point to a more dynamic job market. office depot will keep its global headquarters in boca raton, fla. after merging witt office max. $1.2 billion acquisition in the company says it considered moving to former office max in natureville, ill.. that is the latest from the fox business network giving you the power to prosper.
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tracy: our special series tax he in. with the end of the year coming, time to make smart decisions. otherwise you will be much happier in april and you do not want to pay more than you have to especially since this is the first year investment income is
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subject to every tax on the planet. here with top strategies to lower your bill, the founder of our c 0 advisers. really, kind of all about your investment income this year and that means anything, not just cap gains but rents, royalties as well. >> definitely. what you want to do is figure out what income is going to be subject to these additional taxes. one of the biggest ones is this 3.8% surtax, obamacare tax. investment income over -- if you have $250,000 of adjusted gross income you will be impacted by this on your net investment income and that investment income and closes rent and royalties as well. tracy: if i make $250,000 i worry about this and the next step is to figure out my net investment income and you are saying it is important to make sure your neck is zero.
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>> difficult to make it zero and that is not actually a goal. but if you have a lot of capital gains, look at your portfolio and say do i have any losses in my portfolio? if you saw losses in your portfolio, as long as you stay out of that security for 30 days and there are strategies to do that, sell it before the end of the year to offset those capital gains with that loss. tracy: you are referring to if you want to buy it back, buy it back but get a tax loss for the time being. other things we could do, we talk retirement contributions, all before year end. >> charitable contributions if you make charitable contributions before the end of the year look at your portfolio and say do i have anything in my portfolio that i will sell soon that has a long-term capital gain? instead of giving cash to the
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charity, give them that stock or mutual fund and you are better off, you will never paid tax on that. tracy: appreciation out of your portfolio and don't have to pay silly taxes. let's talk about this piece rule, on your itemized deductions. >> what it is is this is coming back, this is familiar, you have seen this before, basically what happens is when adjusted gross income is over $300,000 every additional dollar of adjusted gross income you are going to lose itemize deductions as the general rule equal to 3% of the access for married people that are not married and 250 is the number and in that sense what happens is any income over $300,000 for married people is taxed at 103% of the income.
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tracy: it is mind blowing and everyone needs to think about this and prevent it from happening and the final piece of good news is in regard to personal attention. >> this is another thing that is coming back. once your income is over $300,000 if you are married you will lose your personal exemption so by the time your income is at $422,000 you have no personal exemptions at all. if you make a lot of money don't have children for your taxes. tracy: this will kill the population of our country. they have no idea what you are doing. this is $5,000. a lot of money. thanks for bringing all the good news. don't miss more, turbo tax's vice president, talk about how to get this done on line, how to use this software, all the updates are there, run your
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returns, honestly, and still have children but you're going to get clobbered at 2:00 eastern tomorrow. adam: peter barnes joins us with reaction to the volcker rule. peter: the approval of the volcker rule, former fed chairman paul volcker says in a long and arduous process the agencies dealt comprehensively with thousands of particular conceptual questions raised by unaffected bankers, legions of lobbyists, other interested parties and the general public and a four page statement, he praises the rule and skipping to the end says respect for the intent and spirit of the law should become second nature for supervisors and banks alike. the result should help the process of restoring trust and confidence in commercial banking institutions. it is, after all, those institutions which benefit from
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explicit and implicit public support that we count on to provide a strong, safe and effective financial system. adam: thank you very much. tracy: how about this? sarah palin's latest alaskan tv adventure. dennis kneale is here to handicap it. adam: restaurant diners be where. the jesus tipper has made his way to new york. why would you be where? how about welcome. we will explain ahead as why thousands of dollars in tips could be headed your way.
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adam: sarah palin, former alaska
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governor and vice presidential candidate is stabbing reality television. dennis kneale has agreed details. dennis: she draws controversy everywhere she goes but will the great outdoors the more welcoming? the polarizing politician will start appealing in her weekly outdoors reality show next april. midterm elections for congress are heating up, amazing america% with sarah palin set to premiere on the channel that will cover call links to the great outdoors. it is unpredictable and we have the mother of the mall. the hook and bullet outlet which shows on fishing and hunting, and by a private equity firm. fuhrer than 32, and 1 ten million or so. espn, over 1 hundred million homes. in her new show she seemed more -- a contributor to fox news. the timing is interesting.
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the announcement comes after another sarah palin careful involving nbc commentator. in her previous stab at reality sarah palin's alaska was scolding a salmon senseless. it was canceled after one season. tracy: polk came. i like salmon. and the overgenerous diver, tips from jesus made his way to new york city thankfully for all waitstaff everywhere. one lucky waiter got a $7,000 tip over the weekend. another at the lincoln center got a $3,500 said. a waiter at bose cajun got $1,000 check from the mystery guest. the waiter told a mystery post the mystery to it for west jack sylvia who has been rumored to be -- selby hasn't confirmed
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dead and he is not going to come out and tell you. he would be anonymous. who knows? come un. adam: bringing a lot of holidays for a lot of people. tracy: come in dublin "countdown to the closing bell" the victoria's secret fashion show is tonight. cannot so secretive economy from the very cool 3d printed butterfly wings to the jeweled encrusted broughts. adam: what is the hand gestures? tracy: anything for chicks on tv, and it adds up for cbs, the dow down 37 points. don't go anywhere. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market
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been outside, you know that a big winter storm is here. but that storm did not stop regulators today from turning the so-called volcker rule into a reality. and it is supposed to put a freeze on riskier outsized bets by big financial institutions. just moments ago, volcker himself praised the rule. we're going to tell you what the rule is, what it left out and how financial stocks are reacting during this last hour of trading. also another relic from the financial crisis, general motors getting a new chief executive. it is a first for detroit. mary berra is the first woman to run a major auto company, just one day after the u.s. treasury announced it had sold its last shares of gm stock, ending its partial own ownership since the 2009 bailout. this stock

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