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tv   Markets Now  FOX Business  December 16, 2013 11:00am-1:01pm EST

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connell, it's yours. connell: stuart, thank you very much. big hour planned. you can forget about the honeymoon if you're janet yellen. at some point the federal reserve whether this week or next year has to start pulling money off the table. already that is bringing out the critics for the new presumptive new fed chair. the winkelvoss brothers are not going away. they continue to talk their book on bitcoin of all things. our friend brian wesbury, apparently reading from a completely different book of the he will be here to counter the twins. t. boone pickens will be here this hour on the infrastructure need to make natural gas work in this country. mr. pickens is apparently getting into the mutual fund business. we'll talk about that. oversaturated, the delayed release of "the wolf of wall street" movie. the movie makers are concerned about a jam-packed box office. we'll get into that. dialing daigh and even a little more on "markets now."
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dagen: that movie better be good. connell: we heard a lot about it. dagen: nothing but naked woman and drugs and stock fraud in the book. can you handle three hours of that even with leo dicaprio. we have triple-digit gain. nicole petallides at the new york stock exchange. >> good morning, everybody. the dow jones industrials up 135 points right now as dagen and connell noted triple-digit gains which erases some of last week's loss. last week we lost 265 points on the dow. we're making some of that back right now. we're focused on the fed as we do have a fed meeting. we'll see if they slow down on the money printing and bond buying. that will be on the 17th and 18th this week. keep in touch here. exxon, ibm, caterpillar, american express some of the best performers on the dow jones
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industrial average. the big picture is in europe they actually turned things around. they had been seeing losses. recently they have an up arrow. productivity numbers here at home were good news there. there was one part of weakness. chinese manufacturing slowed slightly. that is something we'll keep in mind as well. certainly a lot of focus on this. dagen and connell. back to you. dagen: most definitely. thank you so much, nicole. connell: focus on the fed. the federal reserve is celebrating its centennial today. apparently they have a number of events planned. sorry you and i will not be able to get down there for that with fed chairs past an present. dagen: scandal. speaking of history, next year might be the most scrutinized in the central bank's history. peter barnes is in washington reporting for us. hey, peter. >> dagen and connell, that's right. december 23rd marks the 100th anniversary of the fed. the republican chairman of the house financial services
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committee. he has a big present for the fed. half a dozen oversight hearings and a bunch of studies examining the fed ages history, mission and especially economic stimulus programs that launched during the financial crisis, especially quantitative easing. chairman jeb hensarling a frequent fed critic, his goal is legislation to reform the fed. >> i do believe this will be the most comprehensive, ambitious oversight of the federal reserve that they have seen in their history. and again this is not your father's fed. we're seeing a federal reserve engaged in activity we've seen never before. >> hensarling kicked all this off with a hearing last week. he says any legislation will grow out of 9 findings of the committee's work next year. he won't prejudge the outcome but he says his biggest concern he doesn't think the fed ask accountable enough. a top democrat on his committee is pushing back.
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maxine waters says, quote, before we contemplate legislative changes to the fed and mandate congress should allow the fed to finalize important reforms included in the dodd-frank act. we should not rush into reforming the fed itself merely for the sake doing so. the fed is holding that 100th anniversary bash with remarks from chairman ben bernanke and former chairs, alan greenspan and paul volcker. dagen and connell. connell: there you go. the fed will as peter says will be the big story of the week. from that discussion of monetary policy we transition our way to the literal definition of monry. there has been a lot of debate whether or not bitcoin actually meets the requirement, even to be considered a real currency. so we talk about bitcoin. the winkelvoss twins, you remember them, from the facebook movie and everything else, have inserted themselves once again in the conversation. here to talk about it, brian wesbury first trust advisors and our good buddy, charles payne. let me off the top, i don't want
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to speak for you and we may be predispose toddies like the winkelvoss twins one way or another. we may put out a disclaimer that says we're biased with our reporting boeing in. charles is chuckling. brian, with that, tell us your view. whatever people call them, they love bitcoin. they put out a statement, one of them did, bit coyne is digital currency for those that don't know, could be 45 times more valuable than it is today. you say what, brian. >> if, if bitcoin actually becomes a true money, a scrip that makes it in the world, it could be worth a whole lot more but we have never ever seen a scrip become worth anything. we tried a bunch of them in the great depression. there were over 150 different attempts at making scrip. all of them failed. all of them have disappeared.
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and so there's no real reason to believe that bitcoin can be a true alternative to yen and dollar and euro. connell: right. >> in the end you can't really show me that it can be used to buy things. and that's really what gives money its value. that people accept it in a transaction. connell: exactly. that is what brian as he is explaining now as he wrote in "the wall street journal" and his piece. ultimately what gifts money value is accepting by others in trade for something else. will that ever happen you think? maybe you're a big fan of the winkelvoss twins, i should have asked you in advance. are they right or are you with brian. >> there was talk before bitcoin as alternative currency to the dollar. i believe there a lot of people with money and lot of people with little money that think the u.s. dollar is not a place to store wealth. i think about it coin will
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continue to gain traction. alternatives will be continuing to grain traction. connell: are you in at al. >> i've been talking about it. a part of rise is indictment against fiat currency, particularly the u.s. dollar. there is a lot of question marks about it. a lot of people don't understand how it is worked. even people attracted to it, that this no guaranties of limit of bitcoins will somehow not be abused and gets wiped out somehow. connell: in any industry or any conversation about something new, i don't know, brian, where you fit in on all of this, there is tendency those from quote-unquote, establishment to make fun of something on the rise of the there has been some of that happening. by the way some of it is legitimate. maybe it is worthy of mockery do you think? or something you consider to be a serious alternative? >> what i would say is that i think what you end up with is a real polarized world. connell: right. >> some fans are such big fans they're going to support it no matter what and ignore all of
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its hickeys and pimples and everything else. i'm not really on the other side. i try to analyze it from a economic point of view. what make as money worth something and why would, why would it replace the dollar? and charles is right, if the dollar truly is devalued, if the fed ruins the currency, then something will replace it. but the bottom line is, that the dollar's not ruined. it is really hard for me to look at the world and saying we're having massive inflation, the dollar is collapsing. it's not. in fact gold prices are coming down. connell: right. >> people, you know, so and on top of all of that, the bitcoin is extremely volatile. connell: oh, yeah. >> imagine having our world priced in bitcoin today. talk about a distorted world? there is no way to really do transactions in bitcoin right now and that is why it is not a serious contender today. it may be in the future but not today. connell: the winkelvoss twin in question says he doesn't look at the price every day because it
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is so volatile. he is in quote, unquote, long term. charles, follow up what brian is saying. whether i asked you whether you were in it. what would it take for charles payne to put in his own money or advise clients hey this bitcoin -- >> i don't think i would be comfortable there is amazing mathematical formula. and it is designed only 21 million ever issued and never be abused somehow. that part of it is a big giant sticking point. connell: i have a abused somehow in terms of what. >> someone figures out a way to create more about it coin. instead of 21 million, it is 42 million. it is not treated, almost the same drawbacks with the dollar. you print more of it you dilute it you take away its, you know, its true legitimacy. i feel like that can be a guaranty on it. that is one thing that held me back. connell: one more quick word on brian. is there a key or situation. maybe not bitcoin. maybe some alternative we haven't talked about yet where
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an alternative currency becomes a reality in terms of you, from an economic perspective as you were talking about earlier where it is viable. >> right. you know, we did have gold and silver for a while in the world. the problem with that is it is really hard to carry in 100 ounces gold around in a briefcase to go buy a tesla. you can't do it. and that is why we invented dollars so we wouldn't have to barter. that we would have transportable, storable, investable currency over time. bitcoin has not reached that point. we don't know, might get to that point but then the real reason for bitcoin to become the alternative currency of choice is if the dollar would collapse. and i just don't see that happening. connell: that has got to be the tripper. >> in my lifetime. connell: brian and charles, both good guys, clearly haters of the winkelvoss twins. we don't like to see. good to talk to both of you.
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>> good to be on. connell: all right. dagen: bank of america, everybody, sounding a warning to its clients about chinese debt. why should we be worried here at home? jo ling kent is on this report. she is all over it. what is going on here? >> several -- bank of america is advising clients if the people's bank of china pulls back at all on monetary and creates a credit crunch at all essentially this could be very bad for people who are investing and they are advising them to take out credit default swaps. over at the bofa, he is in asia. and saying that the bank they're advising buying credit, basically saying that they should buy swaps on five-year chinese debt as the easiest way to quote, hedge the china tail risk. there is lot of context here. remember back in june international markets shook after hints that a chinese central bank governor would be cushing credit and then lending rates in china skyrocketed. remember that? in october the pboc held back on
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liquidity operations. the market anticipated that and may put a brake on credit expansion. look how asian markets reacted to this. kospi was down. hang seng was down as well as nikkei was down. shanghai was down 1.6%. if you look what actually happened on the ground, dagen and connell, seems the roll back on the credit they have been talking about actually hasn't been fully executed. if you look at new local currency, loans that were dispersed, $103 billion in october. that's actually up from, sorry, that's up from october. so 103 billion excuse me in november. so that actually, a lot of what they're talking about on the ground at the pboc hasn't actually on executed yet. this is more bracing for what could come in 2014. dagen: anything that hurts the chinese economy hurts the global economy period. higher credit, higher rates. >> the pboc is trying to get rid of some of the shadow banking
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that is happening and becoming a problem and strain on economy n trying to do so they're creating more concern about the broader lending situation. dagen: thank you, jo ling kent. connell: looking forward to talk to t. boone pickens later this hour. we'll get into natural gas which he has been talk about for last couple years. entry into the mutual fund business. boone pickens. dagen: if you hate your family, you're in luck a glut of movies is opening on christmas day and around christmas day, including there you know, another reason to show you video of leo decaprio. connell: if you hate your family you're in luck. china is not only news which v. chinese lending, rover on the moon. first mission to the moon in 37 years. from china. we'll get to that on "markets now." oil is up, 97 and change.
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connell: "markets now" is back.
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nice looking rally we'll take on a monday, no doubt about it. dagen: nicole petallides what are you looking at, nicole? >> i've been looking at one of the big deals of the day we're focusing on. this is a chip deal and lsi soared to new highs up to 10.99 a share. it was a chart that was dismal. came back down and hovering around the bottom area. today you have avago makes chips and makes chips for apple products saying they are now set to buy lsi for $6.6 billion. it will provide a free cash flow immediately. it will save them costs over the next year ahead. probably about $200 million in annual costs. the fund helping to fund this deal is silver lake partners. it's a deal about chips and really pushing lsi to new highs. i'm sure shareholders jumping for joy when they see their stock up nearly 40%.
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and avago up too. dagen: nicole, thank you very much. if you don't want to spend time around your family this christmas you're in luck. this marks the most number of movie releases coming out around christmas to date. a total of 12 films are opening nationwide, including "wolf of wall street." "american hustle" is opening earlier. the secret life of walter mittty. a total of 12 films opening nationwide. five blockbusters on christmas day alone. a big jump from the average the average in recent years has been less than 10 films around this time period. according to "the wall street journal", christmas weakened is one of the top five grossing weekends for the box office. connell: there you go. plenty to do. story already about china jo ling kent was talking about a few minutes ago but the other story today involving the chinese they landed successfully on the moon. the chinese probe touching down over the weekend. the probe taking pictures of the craft. how about this?
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essentially space selfies from the chinese. this is big deal, in terms of first mission of any kind to the moon in 30 seven years. china is able to do it. their space program has come under fire over the years for the amount of money they spend it on versus what people think they should be spending money on. they get up to the moon. dagen: does it make sawed now, we as a nation have no way of getting our own astronauts into space? kind of pathetic, isn't it. connell: i don't know if it is or not. such a larger discussion. knee-jerk is response is, yeah, sure. larger discussion should we do that, versus what we need to spend money on. all the private, spacex are getting into it on private side. dagen: eventually that will be center piece of the space program. connell: who knows. >> private versus government. t. boone pickens is coming up. peeking of making big money and leading on on the in the u.s. what will you talk to him about nat-gas maybe you? never know
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what might come up. connell: that is exactly right. you never know what come up. predictions on markets and plans he has for the future. we'll get to that. a slippery ride retail stocks are on, people are shopping for the holidays but they're spending less. as we continue, we'll look at currencies around the world. no bitcoin. dollar, pound. dagen: no bitcoin? connell: the loonie. ♪
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>> breaking news at 24 minutes past the hour i'm lauren green with your fox news minute. harvard university on high alert after unconfirmed reports of explosives located at four separate buildings on campus. you're looking at live pictures. we learned the president has been updated on the situation. sources telling fox news the threat came by way of an e-mail. according to the officials, the science center, emerson hall, thayer hall and sever hall are being searched by bomb teams. students were evacuated shortly
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after 9:00 a.m. there are no reports of explosions and we'll keep you updated on nye new developments. news about the phony sign language inner interpreter at the nelson mandela funeral last week. he was among a group of men that burned a man for stealing a television. he reportedly never stood trial because he was deemed unfit. he was an arm's length away from the president. those are the he had lines back to you, dagen and connell. connell: what apstory. lauren greens, thanks. dagen: keeps getting more and more bizarre. a new survey is out and shows americans are not so much in the giving spirit this holiday season. and that is bad news for the retailers. could mean more discounts ahead. connell: that is the bottom line from. liz: and emac joins us from the newsroom. liz? >> yeah. this study, this poll came out today. it was from princeton survey research associates and get
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this. it is finding that four in 10 shoppers now say they plan to spend less this holiday shopping season and just one out of seven say they plan to spend more. these are surprising results, connell and dagen, because they not only mirror similar findings back in 2010 when the economy was in a slump but respondents to the survey say you know what? we feel more financially secure than we have since the summer. a third less are comfortable with their savings. that is the backdrop for the negative findings in this poll. a third less are saying. are saying they're less comfortable with their savings and they're also worried about flat-lining income growth. we could be seeing increased discounts coming out of retailers. tj maxx, apple, amazon are trading less than 52-week highs, guys. so retail stocks have been hitting somewhat of a slippery ride since the thanksgiving holiday shopping weekend, pies. connell: liz, thank you very
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much. market looks great so far. liz macdonald. dagen: the crowds have not been very big at sachs for example. i want to drive a natural gas car. who is the man to make it happen? boone pickens. he is standing by to talk to us about energy and where the world stand. connell: we'll get to mr. pickens. but the nsa's answer to criticism about snooping on your email. a big "60 minutes" piece about the nsa last night. we have questions coming up. first some winners that wee seeing today. this was not a difficult list to put together on the s&p 500 with the market up big. the most free rearch reports,
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>> here's what is coming up on "markets now." t boone pickens on deck to talk about america's standing in the energy world. oh, how it is getting better. edward snowden, some disagreement if we should bring snowden back with an amnesty deal. the white house delivering a strong no way on amnesty. general motors has a major announcement coming up in the next hour that could mean more jobs in this country. jeff flock will have all the details. connell: let's go to nicole petallides. possible internet tv deal, what is going on with this? nicole: big news for verizon and intel. let's take a look at the verizon angle, verizon may move forward and complete a deal to buy intel
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internet television service. this could happen as soon as next week according to certain reports. intel is up nearly 1%. this transaction would basically for verizon add to what they offer, could help boost the lucrative traffic they hope for. intel has been working on this, announced that last february with hopes to launch it by next year. that did not come to fruition. there are reports it may be about $200 million deal or less, there are other reports that say intel was hoping for 500 million, so they may be gravely disappointed with this. connell: we talk all the time about the natural gas boom, america's standing at the top oil producers in the world. our next guest is very well known, talking about it today. t boone pickens joins us now. always good to talk to you about
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all of these big issues. i would like to start with something new because from what i understand, you will be getting into the mutual fund, business. what is that all about? what are the plans for it? >> we have got some real talent in our organization, bp capital. it was an idea that came up from there. we are in an energy renaissance in this country. we feel like we are as good as the best on energy. and we decided to come with a mutual fund on it. connell: give me a wine now on it. naturally so the article, going through career trajectory, obvious impressive, people know it already, but they went
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through all the years but at the end they pointed out he lost a lot of money during the financial crisis, getting into what might happen next, does at him and me to with this new course? >> no, not really. we took hits back in 2008, we have made a good recovery, we havhad a good year this year, 13 will be good for us. in all sectors of our business. we just decided that somebody came up with this idea, we talked it out, had several meetings on it and decided to do it. we will be good at it because we know the energy business so well, it fits right in. it will be next month. connell: all energy all the time, right? >> that is all i know.
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connell: i knew it was something new you were getting into. cynthia talked about for a while is natural gas. headset i would like to drive a natural gas car. you have been all over this the last few years, what is your assessment now of where we are in this country in terms of adopting natural gas? >> the fuel is so much cheaper. the question was the infrastructure. and whether we had the engine best suited for heavy-duty trucks. that engine has now been introduced. it is for sale, and sales are big for cummings on the 12-liter engine. the heavy-duty trucks is what i have always focused on because they are the big users of the fuel. so we are right where we want to be. i would say it is tipping to you, and in '14 you will see a move for heavy-duty trucks to
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natural gas. connell: 2014 specifically for this business will be a really big year. you quantify it at all? >> you are moving in two major sales of the 12-liter engine. everybody knows who that is, they are the best on the diesel engine. and so here they are with the natural gas engine. it is tipping to heavy-duty trucks, all that is going to happen. the fuel is about half the price of diesel. that is a driver to make this decision, but second it is 30% cleaner than diesel. so you have cleaner, cheaper domestic abundance all in your favor. so once it tips, it is going to go pretty fast.
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connell: the story this week, here are the prices, energy prices. i remember we would interview you all the time, you would, on and i would get an oil price prediction while he was on. some years it will be like cad before 60, whatever it was at the time, 130 before 110. what about oil now? do you have an outlet for oil? >> our industry has done an unbelievable job. they have advanced the development of oil and natural gas. natural gas first, but now you're increasing a million barrels per year. unbelievable. the only place in the world increasing their production. so now i see wti, 95-100. i think you are kind of range bound between 90-100 now.
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i don't see that move up 80 before 60. connell: you would pick the higher number versus the lower number or vice versa. let me and on a global economy question because that'll be the story of the week, the federal reserve, we were just noting five years ago today the federal reserve really impart on the zero interest rate policy. not a big question is when will they pull back on that, and will the easy money not be there next year? what do you think about that, and outlook for the global economy based on that predicti prediction. >> you know you are talking to a geologist, not an economist, but the geologist has been around a long time, i remember a lot of things. but they're going to have to, it can't sustain interest rates where they are today, you're going to have to taper someplace in here. i would suspect it is coming up
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pretty quick, but again, you know who you are talking to. connell: we have covered most of the subjects you talk about lately. we will check on them again in a not so distant future. boone pickens, thank you for today. we appreciate it. dagen: merry christmas. did i say it in a way he could understand it? among other things. dagen: trying to propel itself in the name of national security. mike baker to talk about that. connell: gm, another announcement in the next hour, it could be about jobs. dagen: janet yellen, what she will be walking into as the next federal reserve chief. ♪
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>> i'm adam shapiro with your fox business brief. production for november jumped by the most in a year led by rising auto output. it increased by 1.1%, more than double the expectation 4.5% increase. u.s. worker productivity increased the fastest pace since the fourth quarter of 2009. rising by 3%.
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topping both labor department forecast and analyst expectation. proposing tighter rules on antibacterial liquid soap. the agency found there is no evidence the germ killing hand soap and body wash is more effective than regular soap and water preventing illness or infection. also saying chemicals in liquid soaps could interfere with hormone levels. but his latest from the fox business network, giving you the power to prosper.
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dagen: the national security agency opening its doors to 60 minutes trying to show americans what it does and doesn't do in the wake of the edward snowden epic week. -@here is what they are investigating what he actually uncovered set about giving batman amnesty. >> my personal view is yes, it
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is worth having a conversation about. i would need assurances the remainder of the data could be secured and my bar fills assurances would be very high. more than just an assertion on his part. speakers at a unanimous feeling? >> it is not unanimous. dagen: not by any stretch. the white house still saying no way to amnesty for edward snowden. joining us, covert operas are demagogues and founder and president of diligence llc. where do you stand on that? it does not look like he will get amnesty, but if it finds out we find out what he really released and uncovered, would you be on board with it? >> absolutely not. i hope all is well. there is no way i would vote for snowden to get amnesty. i am happy the charge of the
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task force felt is was worth having a conversation about, i'm not sure i understand his logic. this idea he would need assurances, the whole thing, what he is doing is saying you don't want to take anything off the table, and i respect that. he is in a position to understand fo far more than i or anybody on the outside would know, but i don't see this ever happen. i would certainly never approve of it. dagen: this is clearly a public relations campaign the nsa is beginning or at least maybe it ends here. do you think it accomplished anything by green to do this "60 minutes" piece? try to clear out what they do and don't do with e-mail records, an internet searches. >> i don't think it will change anything for all those people who will never shift from their belief in their belief is based
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on no experience or inside information. but their belief is the government is out to screw them or the government is out to listen to everything they do. you will never shift those people. perhaps it makes a difference with folks in passing the don't really have any emotion tied into it, but i do think the intel community in general has done a very poor job over the past decade or so in explaining or having others perhaps the administration explain the things they do, the reason why they do it without going into the source and method, of course. it is not their job to defend itself for very good reason because you don't want to get out on the radar screen and talk about sources and method, but the administration including this administration should be providing more cover explaining this is a very important part of the government. they have taken a lot of hits over the past 10 plus years. i understand why the nsa would
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allow them to do this story. dagen: big picture comedy to the scrutiny will make us less safe? >> yes. again, i'm a small government guy and i understand always needs to be risk versus gain and intelligent conversation about what we do regarding u.s. citizens and privacy. i think that is very important. but at the same time what snowden has done and what others continue to do in terms of leaking this information and also his idea somehow should have a more open and transparent intel community, that does not serve to make us safer. frankly we do have on this planet the most transparent intel services anywhere. so i think we should draw a line under it while at the same time
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i respect the fact we always have to look at the issue of privacy and citizens rights. dagen: good to see you, or see your photo and hear your voice. have a great christmas if we don't see you before then. mike baker. connell: a strong market rally we see today. we'rwere talking to boone pickes about his outlook. the strong industrial production numbers did come out helping to send stocks higher today. it is interesting because you start talking will the fed taper, does is make it more likely even as soon as the meeting this week. standing by at the stock exchange to talk to us more about that. good news is good news today. would remain as such? >> if the market started to get used to the fact there is good economic data, it is long-term going to be good for stocks. the trading you will see in december even though we have the fed meeting tomorrow and wednesday especially for today is driven more by seasonal
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factors as well as technical indicators, strong economic data helps but more about seasonal factors impacting the stock market. over the last 100 years equities are up about 1.5% usually in december. the fact we are down 1% so far this month means we should get a nice little bounce into the end of the year. >> connell: we will take it today. being free of government ownership in a new ceo soon to be at the helm. general motors sai set to make w announcement this morning terms of u.s. manufacturing plans. dagen: jeff flock from the gm plant with more. jeff: we believe some of the investment will come here, this is a truck plant. a lot of workers at this plant already ready to hear that information. it is about investment in the future. this is where they make the silverado truck.
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you can see the assembly line running, and pretty soon they will come in here and make an announcement, he is still the president, he'll take over over for the new ceo, who was the head of product development. before he does, he will announce what we believe is an investment of over a billion dollars, could be as much as $2 billion. i have been selling off their share of allied financial, telling off a share, the head an alliance with them, so saving the money, the it will shut down their australian operation as perhaps you see the silverado, it is always fun here at the assembly plant. at any rate, selling off all those things making room for cash and for the way forward. we will have that announcement when it comes probably in about 20 minutes, we think and talk to
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the governor of michigan who will be here, one to ask a couple questions about the detroit bankruptcy. back in a moment from flint, michigan, as the future is apparently bright for general motors, we will see how bright. connell: the shine is off gold and the fallout is steep. sandra smith on top of it for us, and she is next. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates.
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dagen: i was making a face. connell: that is just how we roll. nobody knew. dagen: processing the steepest drop ever.
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connell: sandra smith with the trade from the cme. sandra. sander: the reason this is so important is the popularity of these etf have arguably driven the precious metals to the near record highs we have seen over the past couple of years, and now they are not so popular. look at the gold etf while it is actually up today, it lost more than a quarter of its value over the past year. for those watching silver, the largest silver etf, has lost 38% of its value over the past year. the reason the slump is remarkable is because this is the first time we've seen investors actually fleeing out of those exchange traded products. holdings in 14 of the biggest exchange traded products plunged 31% since the beginning of the year. this is the first annual drop with unit holdings since they began back in 2003.
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so putting out the belief more will be leaving these exchange traded products or exchange traded funds over the next year, that will continue to devalue gold prices, which plays into the hands of all the big calls for gold to drop to 1000 or less in the new year. something to watch, back to you. connell: the nsa says it is not going after your e-mails, your phone calls, but do you believe this? feel free to send a tweet to cheryl casone or dennis kneale with the helpful information. your responses and the all-star panel coming up next. dagen: is taking the next hour of "markets now." connell: all right. it's not the "fumbling around with rotating categories" card. it's not the etting blindsided by limits" card. it's the no-game-playing, no-earning-limit-having,
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everybody's phone things, we are not listen to that. our job is for intelligence and wwe're very good at that. >> the nsa, as we sit here right now, is listening to the universe of 50 or 60 people that would be considered u.s. persons. >> less than 60 people globally considered u.s. persons. cheryl: the head of the nsa speaking out on who they are targeting. i am cheryl casone with dennis kneale to take it to the next hour of "markets now." the nsa says they are not going after your e-mail or phone calls, but do you believe them? tweet us what you think. your responses plus the all-star panel coming up in a couple of moments. former fcc commissioner joining us with his take, and general motors making a major manufacturing announcement this hour. we will be live with you in flint, michigan. the next hour of "markets now."
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more importantly we have a nice rally on this monday. dennis: it is almost like they don't care. taper or no taper. nicole petallides at the floor of the new york stock exchange, what do you say? nicole: taper, no taper. there was the time we sought two thought for sure they would taper the bond buying program. and it didn't happen. this time around it seems the market are just bouncing back after two weeks of selling, the dow the top 147 points, boat that wonderful percentage point. at any given point is today all 30 dow components in the green. meaning it was technology, energy, industrials, consumer discretionary. it was up across the board, shows you what is interesting as
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we see the dow, nasdaq and the s&p all higher. the other industries of about three tenths of 1% each. the fear index, the volatility index, where is it? it is pulling back a little bit. what is worth noting is it is not too far off the annual high. it is not too far off the unchanged line, which means it could go the other way at any given point. but right now you're seeing the vix pullbacks major market averages are gaining. back to you. dennis: thank you, nicole. cheryl: first up on the panel, how will the fed get the money off the table weather starts this week or next week or next year, it is expected to fall on janet yellen. that means no honeymoon for the fed chair. republican congressman has already said he plans to subject them to unprecedented scrutiny, but is this fair? let's take it to our panel. charles payne with us on set.
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kennedy joining us, great to see you. more abuse on this monday. i want to take this first to you, do you think she is being frankly dumped with this massive taper responsibility? >> anybody going into it would be dumped into that. she knows it is common. it does not concern me as much as just do the right thing. a lot of people have said it is time for the fed to pull back. dennis: i'm tired of waiting around for this fearful bogeyman and seems the economy is ready for it. >> to have held us hostage. it is like getting stabbed in the side of the body and submit to you but if we pulled a knife out too quickly, you will bleed to death. thank you for looking out for me. cheryl: this is kind of what the g.o.p. wants to do, they will take this into the new year, the 100 year anniversary of the fed today. hearings start tomorrow in washington.
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spea>> this ignites a whole bunf people. here's the thing we have to differentiate good major difference between tapering, not buying all the junk stuff and actually getting some of the extra trillions, extra $3 trillion at two and half trillion dollars off of the fed balance sheet. can they handle that, and what does it mean for the economy? we may have a different fed chairman before we decide can we sell this junk. dennis: they can handle it. the question is do you want politicians meddling in the federal reserve. because when congress starts printing of money, watch out. >> have go to treasury, right? dennis: watching the fed very closely when they have no discipline on anything fiscal at all. i think it is kind of a big
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joke. dennis: i agree with you. cheryl: don't trust them, but to learn how useless the fed really is. dennis: they are incredibly useful. do you really want to go back to 2008? quite honestly do you think this country would have survived what could've happened in 2008 without the federal reserve? >> no, i don't. >> standby, you're going to be a contrarian on this one. this is the nsa last night telling "60 minutes" their folks at less than 60 u.s. persons. not everybody's personal e-mail and phone calls here in the united states. you believe them? >> no. just because you say you're only keeping track of 60 people, when
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you have the ability to keep track of hundreds of millions of people, does not mean you should have the right to do that. this is not a transparent agency. this is not fair or just, it resonates with people. the story will not go away. i frankly was surprising was not "time" magazine man of the year. cheryl: white house has said het will not offer him amnesty. but last night on that report exactly brought up they should offer him amnesty. he would bring back classified materials they would not be leaked to governments. >> he has big bombshells he could drop. it is not just that they can't, but they are listening to millions. why are you bugging angela merkel cell phone? 60 people, you need all of our information. dennis: the fact they insist on
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tracking areas of phone calls and e-mails shows there lie when i sit here looking at only 60 people if you're only looking at 50 people, look only at them. adam: i think it is naive to say they don't spy on allies as the allies spy on us. we have edward snowden who has put this country in jeopardy by what he has done. we need to get him back within these borders so we can control him. >> i disagree with him. it was their responsibility, like the fake sign language guy, it is responsibly of the party who employed him in the first place. dennis: so he is not at fault? if they had better security could have robbed the bank? the fault of the bank? not the bank robber? >> she would be fantastic, amazing. he could have been an assassin.
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cheryl: if you go back to 911, they would have known about two of these hijackers, they would have been able to track their cell phone records. that would have picked up on this. >> we could have foiled a plot without any extra security. i love the fact we know about this, i'm still, the jury still out, but i think it is a blessing we know just how deep the government mistrusts its own citizens. >> it is a big weekend for movies. hollywood keeping extra servings of blockbusters on the plates. 35 movies in november and a dozen movies in december 12 and christmas day. this is a huge record christmas week is one of the most important weeks for the studios but several are worried this is going to be too much for moviegoers to handle. dennis: a surprising amount of
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adult films. they jammed up the summer with all kinds of blockbusters, hurt individual profit per film, but i do think the oncoming rush of films will mean they will have set a new all-time box office record with 10.2 billion. cheryl: that is a lot to ask of personal time. now a movie is three hours. dennis: i would love to see "anchorman." with 12 different are 20 different movies to choose from, you pick one, you pick two. you are a working girl. how are you going to do it? >> you watch the screeners. cheryl: some of these executiv executives, sony and others have
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expressed concerns this will hurt the bottom line for the companies because there is too much competition this year. dennis: yet hope some point it will bring more people to the theaters but a lot of really good, racy stuff. wolwolf of wall street will be really good. "american hustle." cheryl: everybody will see "american hustle." i find it amazing how the wood is always demeaning capitalism, they've enjoyed some of the most amazing inflation of a product you have ever seen. i think it was a nickel to see "gone with the wind." they are so hypocritical. so hypocritical. cheryl: they don't giv damn. cheryl: thank you very much.
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great to have you on the show. welcome to fox business. we met 10 minutes ago, and was a pleasure to meet you. adam shapiro, charles. we see you guys all the time. dennis: sprint eyeing a bid for t-mobile. we're joined with his take on it. cheryl: may be talking on the cell phone's is the problem. he will find the worst drivers coming up next. i look at how the energy market is faring on this day. oil still pushing 100. we will be right back. my mantra? family first.
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cheryl: the market moving on corporate news, not political news. want to show you exxonmobil. goldman sachs updating the stock, but a price target on exxonmobil right now. the dow sitting at 99.
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the stock will sit higher than that. 127 points on the dow. let's bring in nicole petallides on the new york stock exchange. twitter getting downgrades. nicole: hi, everybody. first he should note is toda tht actually hit a new all-time high on twitter. that doesn't sound too bad. right? it has run up, big time up nearly 40% this month, so it has been an ipo from early november with a lot of volatility, a lot of media fanfare. after last week got some upgrades and had an issue pertaining to block users, unpopular and then reversed, the stock took off on that. i have been gaining some momentum and not couple of downgrades from an underperformance cut in the
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target to $39. downgrading twitter to a neutral. there are one of the first ones to have a buy rating. it is interesting. back to you. cheryl: thank you, nicole. dennis: which state has the dubious title to being home to the worst drivers in the country? this year that distinction goes to louisiana. they got top honors, also finishing in the top five for failure to obey. speeding tickets and careless driving. this is the second year the state has when websites top prize. rounding out the rest of the top five, south carolina, mississippi, texas and alabama. cheryl: texas? we are responsible drivers in texas. gearing up for another ober battle. the fights this time it's in seattle. dennis: the number three wir
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>> i am lauren green with your fox news minutes. updating you now on the situation at harvard university campus on high alert after unconfirmed reports of explosives located at four separate buildings. you're looking at live pictures from harvard. we have learned the president has been updated on the situation. sources telling fox news the threat came by way of an e-mail. according to officials, the science center and other holes have been searched by bomb teams. students were evacuated from those buildings shortly after 9:00 a.m. there have been no report explosions awaiting officials all clear in a police news conference shortly. united nations will need $13 billion in aid for the upcoming year. among those receiving the relief, the millions of syrians displaced by the ongoing civil war.
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according to the u.n., it is the largest amount ever requested at the start of a year. those are your headlines. back to dennis and cheryl. dennis: thank you very much. sprint is making the latest move in monopoly. sprinn is mulling a bid for rival t-mobile in a directory worth $20 million. joining us now, the former fcc commissioner and hudson institute visiting fellow, some people think because the fed decide to turn thumbs up on u.s. airways, american airlines, those were two of the top players, maybe it will clear the way for this, but you say not so fast. >> that had to go to the department of justice antitrust review, recently the head of the department said he likes the fact t-mobile was a destructor in the marketplace helping put downward pressure on prices and
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things like that. there is a small religious conviction within the administration and the fcc that for national carriers is better than three. a different case scenario than the airlines. those two airlines heavily unionized and those unions put political pressure on the obama administration to settle the case. in this case you don't have any unions involved they will not have the same kind of political pressure. dennis: to give a little background, it was the fcc that put the kibosh on the fcc with the two of them to compete better with number one verizon, at&t and t-mobile have a similar design if that works. sprint and nextel, adding a third incompatible network with t-mobile, it's not even as good of a deal. >> integrating all the different standards and those networks
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would be difficult, but obviously talk about it, they're looking at it. part of the argument is they would be a really strong third national carrier to compete against at&t, and verizon. after they shot down the at&t, t-mobile. now a reinvigorated sprint bought by softbank in japan. it is stronger, as a result of the breakup fee, t-mobile is stronger even though they desperately want to sell t-mobile to somebody. give it a shot. that would depart from the narrative for carrier for carrie really strong. it is a steep hill to climb unless there are some extraordinary confessions that could be made to where there is some other carrier that could benefit. five national carriers.
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dennis: may have said the fcc isn't so sure the wireless industry is competitive enough, yet don't we have more brains competing than ever before? don't we have a new rise of generic brands like walmart or best buy, retailers able to slap their own brand by buying wholesale minutes from a carrier elsewhere? >> there are more of those now than ever. this only choice of five wireless carriers be an average american has a choice of five. that is competitive, but the fcc came up with a report saying it is a highly concentrated industry. they will point to the fact verizon, at&t combined have 80% market share, more than 100% of the capital in the industry. there are arguments to both sides. dennis: the health of the housing market, berkshire hathaway home businesses will be
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here with his take. cheryl: and general motors just announcing 1.3 dillion dollars investment in the u.s. we're looking at live pictures from flint, michigan. we will head there next. take a look at some of the winners over on the s&p. a nice market monday, as h you n see some big names. all trading to the upside. we will be right back. my customers can shop around-- see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors,
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♪ cheryl: coming up this half-hour of "markets now," gm out with a billion dollar announcement. we will take you live to flint, michigan. amazon striking workers in germany making this strike to protest at the company's u.s. headquarters. looking to become the next netflix. details coming up in your "media minute." stocks now every 15 minutes. nicole on the floor of the new york stock exchange. >> reporter: looking good. 130 points on the debt and industrials, three merger-type deals that we have been focusing on. some names on the move, at least crabbing wall street's attention right now, including apple debut the target was raised over at jefferies. you're on apple, you want to hear this. they kept their buy rating. up from 650. the $500 range and it continues to move to the upside. north liquidators. some positive comments. and sprint, and this is one that
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has been on the move. continue to follow the story. exxon, the best performer in the dow jones industrials. we did have goldman putting a buy rating, $109 price target. i figured that i would reiterate that because we have been watching it. the number one dow component and test led to the downside. higher and that lower and now it is almost flat. some action today. cheryl: thanks. dennis: at dip in new and existing home sales year-over-year. lot of the country still seeing strong sales and stabilizing values and solid construction. this may be the making of a stable time in the housing market. early is ceo of hsn affiliate unrealistic brokerage network and berkshire hathaway's own services. he joins me now with more. what are you thinking of the outlook overall? where are we and where are we going? >> the overall outlook for housing is positive. notwithstanding the fact that we are in a seasonal area where sales are slightly declining.
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overall it looks very good. people buying houses for the absolute right reason, a place to live, a place to bring up your family. there are not looking at it as a vinyl cited atm. dennis: but a lot of the sales have been driven on the rapidly recovering markets that have fallen the most such as south florida, have not a lot of these sales been driven by investors buying homes rather than by people buying homes to live in them? >> sure. investors a been a large part of the marketplace and tend to be the first movers, but as the market is starting to recover, the owner occupant perspective, is starting to increase. investors clearly are the fastest moving group within any real as -- real estate market. cheryl: of course the single biggest factor affecting home sales would be where mortgage interest rates go. we have already seen rates start to creep up, and with the fed cutting back on these mortgage purchases that in a pelting keep rates low, are you worried about some headlines?
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>> although concerned. not so concerned about the taper is much as i am concerned about some of the new mortgage regulations that are going to be implemented as a result of dodd-frank. clearly the changes in those mortgage regulations are in many cases in a state of flux, and lenders are still trying to understand how they're supposed to implement those roles. we do see that as a potential head when clearly. dennis: what is the biggest potential chains that hurts sales? >> well, one of the biggest issues is 20 percent down payment. more than -- i would say two-thirds of the mortgages in this great country of ours have less than 20 percent down. the cost of those mortgages is going to increase in addition to the interest rates. dennis: what is the effect of all of the federal bailout forms? j.p. morgan just signed a big $13 billion settlement and has billions set aside for reducing principal and things like that. what does that do to the overall
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housing market? >> well, the issue is where those individuals that are clearly still under water. and all real estate is local. clearly certain parts of the country, many of those houses have not recovered. so the dollar's are going to impact those individuals. i think how it really impacts the overall market, i don't believe it is going have a significant impact. the issue really is more the recovering economy, the level of unemployment and really where we see rates going in the long term. cheryl: 25 years old, $100,000 cash inherited from granma, may she rest in peace. would you today put it into buying, would you today p
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appeal of the city's bankruptcy to get straight to a higher court. union, pension funds and retiree groups are fighting the judge's decision allowing the try to cut pensions as part of the city's chapter nine bankruptcy. the fda is proposing tighter rules on antibacterial liquid soaps. the agency founders, absolutely no evidence of the german killing hands of somebody losses are more effective than regular soap and water and preventing are let -- ls or infection. the fda also says that chemicals in the liquid soaps could interfere with normal levels. an alcoa announcing a $110 million long-term deal with airbus to supply the playmaker with aluminum and titanium. it will come from alcoa's cleveland facility. that is the latest from the fox business network, giving you the power to prosper.
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♪ cheryl: time now for the fox business. vice-president of equities with me now. all right. u.s.a. a favorite stock for the year is and has been duly and
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sciences bringing up the stock chart now. last year showing viewers are company. what you like this nine beast alike for 2014? >> we still like it. we would expect that it will continue to do well. the prices and will not be as rapid as we have seen this year. it is still the market leader, but we really think that the story going for it is the under appreciated pepsi story. recently approved delhi had molecule now named in areas like oncology. cheryl: want to stay in the farm
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sector for a moment in the year take. if you look at their share point the stock is a 92 percent over last year. an amazing run, but if elected glaxo's smithkline the stock is flat. is this a moment or use a look at other names in the space that might be undervalued right now? >> we would certainly agree. it was starting to get worried that some of the biotech names are getting a bit frothy. but we do think that going forward over the long term, biotech names have a big advantage over the more chymistry-based farmer companies like glaxo, but you raise a very good point. valuations matter. there will be an opportunity to buy a name. cheryl: other stocks they you are watching. i want to take a look at et and. this stock, especially because of recent acquisitions by the company.
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the topic we are all familiar with and from emerging market growth. on top of that, we think that you can take some of that model, which is service oriented. cooper has a great electrical product-oriented model and overlaid and get great synergies. if you treat cash flow, grow the dividend, stock buyback. cheryl: oxy is the ticker. you like this one because of domestic or international. >> both, but we really like it for the near term catalyst which incorporates both domestic and international. the and opportunity to spin off the part of their -- or maybe all of their california business. they are going to sell a part of their middle eastern business. there is they gas facility which
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is near completion, generating huge, free cash flow. this is a company that has been growing production slowly. it will be increasing production overtime versus spears. long, live assets, but those three catalysts we think are going to come to bear, at least two of them in the next couple of months. cheryl: only about 19%. that would be something that we can keep an eye on some of the other names in that sector have done better. thank you very much. created. >> great. thank you. dennis: in crude futures pushing higher as unrest in libya spreads to the ports. let's go with more. >> right now oil output is at the lowest level since bonds were dropping on them in 2011. and this is causing a major rally. the brent wti spread has had the highest spread level since this last december. that is critical because, of
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course, we have a strike in france and other issues that could keep this market well elevated. the good news is that the u.s. production at the highest level maybe ever which is what the energy and formation administration is predicting will happen. that is good news keeping the market somewhat held right now, but i will tell you right now, the concern to the oil market is that this could turn into a violent conflict in libya. the rebels are declaring themselves their own government. right now oil was supposed to be slowing. it is not today, and it may not be any time soon. be on guard for big spikes. dennis: libya is that big of a provider? get up they have been cut way back since the unrest. >> they have been, but he market anticipating that there would be back on line sooner than they will be. in fact, last week we had read deal that the rebels said that the ships would be moving today. that is not going to happen.
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the quality is very, very tight right now. north sea production if they can't get that saudi arabia cannot make up the difference. dennis: i know you did. dennis: do you know the answer. and in your monday media minutes x box microsoft, new original programs to air not on netflix or the cable channel but the new exports one. new shows will launch early next year. playing on x box one and 360. a tv show based upon the popular game halo produced by steven spielberg, one possibility, video-game network, serving of the new shows. 48 million paying monthly subs. mid tier cable network. other moves in hollywood. verizon reportedly in talks to buy intel internet tv business which never got off the ground. it and here is our ratings
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anomaly. usa network, the number one basic cable channel for the eighth straight year, and it did not have a single shell in the top-10. in that top-10, the walking dead is number one with 16 million viewow, debt dynasty , 13 million. and here are the top six basic cable networks for 2013. disney channel ranking second. coming in number six. cheryl: growing it's a robot army, details on the latest edition of robotics. this is real. dennis: it is so cool. one giant step for china. the first mission to the man kicking off. you could kick off a mission to the move. some of these winners on the nasdaq. ♪ [ male announcer ] how can power consumption in china,
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impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their0-year lipper average t. rowe price. invest with confidence. with investment information, risks, fees and expenses to read and consider carefully before investing.
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cheryl: breaking news in that fox business. investing over a billion dollars in five u.s.-based manufacturing plants. live with a lot more in a couple of special guests. >> as soon as this program is, the plant manager your the last of this announcement. a big pain shot. also investment in romulus
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mich., plan where they're doing transmission, one in indiana as well as that plants in detroit, which is the one that makes the chevy volt and the new cadillac blr. he just made that announcement here. snyder of michigan here as well. perhaps take a look. we are just about to end this event right now. i want to try to get in there year after i can. this is huge. you know, gm has obviously cut a lot of money recently, divesting itself, allied provincial. this is where they're investing the money back here in the u.s. making the last of this announcement. this is the end to my think she said. first live exclusively 1-on-1 as soon as the even is done, but i want to just go over, if i can come and get my microphone in his face and my voice in his ear for a moment.
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just want to get his instant reaction to what has happened. i also want to give governor snyder command by can. maybe i did governor snyder first. how are you? good to see you. i tell you, i know that you are. i got marked here as well. i just want to quickly because we have a live broadcast your. and so governor snyder is walking away from me. i guess i am going to have to go with mark reis. there you go. stand by one second. walk with me over here, if you would. i want to just listen in. maybe for the last time mark talks to his union friends here. obviously the president's of north america, a lot to do with the relationship with the union. now he will be talking about new vehicles. of course, the engineer who, you know, is in some ways in the ideal job as an engineer and product development. let's just listen for a second.
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hi. how are you. i will talk to you in a second, but i need your answer to reaction. these guys are pretty happy. >> they should be because they earned it. every one that did this that i'm with the company and then turned up the world's best trucks, what is the oldest chain in general motors right here, it is an emotional day, and it should be. before the holidays. it does not get any better than this. we don't do this on a casual basis. 600 million, and it's for the future. everyone here, i could not be more proud. this is where i started. talk to you in just a moment. i want to get out. a few of the reporters talk to him. one-on-one, if we can. a big day here in michigan. and we will talk to the governor later. as soon as we get back in a second. that is the latest. cheryl: i have a feeling that the governor once you go
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upstairs. in the next hour. a lot more, of course. and, of course, the governor as well. it looks like it will be having a chat. thanks. this is one of my favorite stories. adding to its roma -- robot army in its eighth acquisition, confirming, look at this -- is in this crazy? the video. i'm not even going to talk. they bought an engineering firm, boston dynamics, famous for its four legged robot, founded by former mit -- mit professor has helped design and that -- animal-like robots for the pentagon. a gas powered four legged robot that can climb hills. and jeter which can run almost 30 miles-per-hour. the stock up more than 21%. dennis: give that creature ahead cheryl: it is amazing what they're doing with robot technology. the gets back up like no big
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deal. all right. double trouble for shares of toyota as they downgrade. made a lot of money on the run-up. if you listened to suntrust robert pack. coming up. dennis: say hello. the peer to peer rental marketplace catering to the nautical crowd. it my votes co-founder and ceo joins adam and lori on the share economy. cheryl: in ♪
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[ male announcer ] if we could see energy... what would we see? ♪ the billions of gallons of fuel that get us to work.
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♪ 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 that 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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adam: welcome back to "markets now." lori: shares tumbling on valuation concerns.
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the money made if you listen to suntrust robert peck and his call now on twitter. and charlie gasparino digging into the report car like i may be buying up shares of his social media site. adam: peter hayes on the value to be had in muniz even as muni bond funds to 29 straight weeks of investor withdrawals. lori: we are the united states of renters. leaving people about the easy credit to buy, the what turned t renting isn't affordable either. the harvard study on those at the mercy of their landlords. adam: the hollywood blockbuster at the box office had a whopping 12 films. fighting for your movie dollars. but right now, general motors investing more than $1 billion in manufacturing plants right here in the united states.

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