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tv   Countdown to the Closing Bell  FOX Business  December 19, 2013 3:00pm-4:01pm EST

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feds come in? we thought the fainting goat analogy was appropriate. good afternoon, everybody, it's the last hour of trading, there is a very serious angle to that story we'll get to it. in the meantime, one day after the markets took off like a rocket on that taper news from the federal reserve, investors seem to be breaking just a little bit for the holidays. a little earlier we were up, we were down, we were all around, and right now at the moment we do have just the dow jones moving higher, a single-digit move up, eight points, but adding on to the big move from yesterday, you could look at that as a thumb's up to the fed decision. be right now even though chairman ben bernanke indicated interest rates won't be going up anytime soon, there are new signs of jitters in the housing market. what are they? well, we got sales of existing homes falling in november to the slowest pace in theory a -- in neary a year, the third consecutive monthly decline due
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innpart to slightly higher mortgage rates and low home inventory. the average rate on a 30-year mortgage rose in the week ending december 19th according to freddie mac and adding to those concerns on the economy, the number of americans seeking first-time unemployment benefits -- this number comes out every thursday -- unexpectedly rose 10,000 to 379,000 last week. that is the highest number since march. we're told the increase was likely due to volatility around the thanksgiving holidays. there's always something with these numbers. in the white hot social networking stock world, facebook took a bit of a hit today after announcing plans for a public offering of 70 million class a shares. more than half of those shares offered by founder and ceo mark zuckerberg to meet tax obligations. so it's not necessarily that he's getting out of the stock because he doesn't see it looking better in the future, he needs to pay a tax obligation here. the stock is coming down just
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slightly at the moment. but the day doesn't tell the real story here. year to date facebook shares are up nearly 100%. the number at the moment, $55.09 per share. while facebook took a little bit of a beating in the afternoon trading, a slew of other tech giants rallying. nicole petallides on the familiar -- floor of the new york stock exchange. let's talk about the movers and shakers. >> reporter: easy to find winners when you talk about technology, social media, names we're so familiar with including linkedin, pandora, groupon and oracle all with up arrows this afternoon going into the closing bell after a day on wall street of records yesterday. but let's see what we're talking about. oracle came out with quarterly results, exceeded expectations. outlook for earnings was in line. oracle hit a new high today, so great move there. groupon also jumping, groupon today up almost 3 percent, and this is as they are now having a
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few new offerings including gird cards -- gift cards, last minute deals, groupon envelope but smoosh it together, not easy to say, and some of the media stocks as i noted, angie's list, pandora all looking great. we're talking serious moves too. pandora, for example, up 5.7%, that's nearly a 6% move on pandora, and that's really been the theme this afternoon. back to you. liz: okay, we'll take that theme. and now you've got 20 mention facebook now down just about 47 cents. not really taking a hit, that would be an overstatement. so we just, listen, we like to look at all of these things. earlier today a bit more dramatic, but you see that mark zuckerberg isn't exactly selling out of that stock. that's an important point to be made. >> reporter: it really is. and he still holds a huge, huge portion of facebook. i think it went from 65% to 63%. he is in no way backing out of
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facebook. liz: not at all. good to see you. thank you, nicole. taper euphoria, we had it yesterday. receding just slightly, stocks look like they're in a holding pat everybody right now although the dow is ticking higher at the moment. let's get to the floor show, see what's on traders' mind for next week. jon corpina, you could say that volume would be low, but it's slightly on the heavy side today. why do you think that is? >> the markets are holding here, iithink that's a great point to point out here because what we've seen overall is this the last few trading sessions, the market hasn't moved the next day. and we have seen more volume in today's activity. it's just carryover from yesterday. the markets didn't know how to react to the fed news yesterday, investors didn't know how to react, and once the momentum started going, the market couldn't stop and didn't stop. we saw the markets close on the highs. so today the markets stabilizing, very, very healthy for a market even though the economic data out of washington
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was somewhat to the negative side, didn't really give us a good outlook, the market still is holding on here. coming into tomorrow it's the last trading session beforeeour, you know, before the weekend, and then we've got, you know, a holiday week coming up then. we do have some rebalances coming in tomorrow. we are going to see high volume, high volatility tomorrow, and there's not that many trading sessions, so i think investors are trying to get some positions shored up before the holidays. liz: there's his prediction, you heard it here first. charlie, looking at the cme, we did get some data points today, p didn't seem to shake the markets too badly in either direction, but the fed has talked about how interest rates will remain low. besides ray boar numbers, are you really looking at -- would it be anything that would give us a sense of how, for example, industrials are doing like the big ticket items and durable goods numbers. >> well, you know, i think you're going to go back to kind of the housing market is probably the the bigger thing,
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liz, than durables. liz: okay. >> you did see housing slow down, this has been a great year for the housing market, so i wouldn't be too concerned about the pullback that we did see here today. i hi it is a function of higher interest rates but also a function of banks' willingness p to lend. i went through the whole process of refinancing a couple months ago, and i'll tell you, i've never had anything like this and so much checking and double checking -- [laughter] liz: you're a criminal. >> i mean, well, come on, five, six years ago they'd come to your house, you'd sign the piece of paper, and they'd try and cram more money down your throat. now there's so much paperwork and so many eyes on it right now and, again, you have seen rates tick up. you've also seen the last case shiller we were up, like, 12.8% which is a rather robust number for housing. liz: right, i know. >> so, you know, again, looking forward i guess interest rates the most interesting thing i do see today is the spread between the long and the short-term
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rates be you look at notes what the ten-years are doing, you are starting to see those short-term rates tick up. liz: up three basis points. good to see you. unchanged for the 30-year, i agree, i was refinancing, jeff grossman, after so many questions i said, okay, i get it. the body's in the cask of the mack idea doe. yes, things have changed -- [laughter] i felt so guilty. let's talk about oil, i'm looking at a print, you have said we're not going to see $100 a barrel. what do you see now? >> well, again, we're not there yet, okay? and again, you have to really look. the february contract is the one that really is more key, and that did get up to 99.5 or so, 99.49 to be exact. again, what's really driving this market really are the products, but it's very important here is the heating oil and the gasoline which really as a result after the news came out yesterday really, they dipped initially and then have roared since.
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they're now about 7 or 8 cents off of those lows that they made initially after that report. so they're really driving this market here. whether they have any more legs is going to be doubtful here. in fact, this afternoon today looked like a very good sale, but the momentum carried them a little further on. tomorrow's going to be key to see how we settle up for the week. liz: indeed. >> but again, remember, you've got a market that definitely has upward momentum here. again, we'll see if it has the kind of legs that'll need to be supportedd-- and guess what? the stock market may be our real factor to decide whether this thing can go any further. liz: we will watch all of this. corpina says watch out for volatility tomorrow, you're saying be careful of what we settle for the week, i agree with you. and we're criminals, rushing to refinance -- returning to refinance. [laughter] thank you so much for joining us. we need to look at target stock, no laughing matter, it's getting hit by about 2% today after a
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huge hack attack. if you were out shopping during thanksgiving week and stopped by a target store -- this is not online -- you might want to check your credit card and bank statements. rich edson has the details from washington, 40 million numbers. are they starting to see any theft are this? >> reporter: possibly. all credit and debit card information from target's u.s. stores for most of the holiday shopping season could have hit all of its 1700-plus stores between november 27th and december 15th affecting about 40 million credit and debit cards including names, account numbers and expiration date. the retailer says there is no breach of online customers' information. customers are being urged to check their statements, and as long as customers monitor their statements and report any fraudulent charges, they should be okay. >> this is kind of invisible to the consumer. if your credit card is stolen, what happens you call up your bank, any fraudulent charges are
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waived at that point. so it's inconvenient at the very least, but at the end of the day, for us as consumers it's just another headache to deal with. >> reporter: in response to all this, liz, target says: target's first priority is preserving the trust of our guests, and we have moved swift hi to address this issue so guests can shop with confidence. we regret any inconvenience this may cause can. tech experts suspect a company employee could have accidentally downloaded malicious software that spread through the system, sending the criminals all credit and debit card information. the secret service and target will only say the investigation continues. if you shop there, check your statement. liz? liz: rich, absolutely. always good advice. always. i just heard melissa francis over on the fox news channel saying the same thing to gretchen carlson's viewers, so it's very, very good advice for every viewer. rich edson in washington d.c. we've got the closing bell ringing in 50 minutes.
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the taper is about to begin. january's the date, but should investors be worried about -- well, i'm not going to tell you what kind of risk, but it involves the housing market. and if you had 140 billion of other people's money that you had to manage, what would you do with it? would you put swiet the housing market, or would you be worried? pimco's mark, he's morning starr's fixed income manager of the year back in 2012. this guy nailed the housing market implosion. he knows exactly what you should be doing with your money when it comes to housing, and he's not scared. you've got to hear specifically where he likes to put money into housing. and when it comes to fainting goats, right? they just stop and they faint, you might be reminded of some high profile defendants in white collar crime cases. just happened yesterday, sac's michael steinberg faintedded in court, another sac employee, matthew martomo, also fainted
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when the feds showed up at his door. what is going on? should steve cohen be feeling woozy as well? >> the fainting goats at sac. hi honey, did you get e toaster cozy? yep. got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. so i kn untilt was full. you'd be crazy not to. is tt nana? [ male announcer ] fedex one rate. simple, flat rate shiing with the reliability of fedex. [ttdd# 1-800-345-2550 can take youn many directions. searching for trade ideas that spark youruriosity td 1-800-345-2550 you read this. watch that. tdd# 1-800-345-2550 yolook forhat's next. tdd# 1-800-345-2550 atchwab, we can help turn inspiration into action tdd# 1-800-345-2550 boost your tding iq with t help of d# 1-800-345-2550 our live online workshops tdd# 1-800-345-2550 like identifying market trends. tdd# 1-80045-2550 now, earn 300 commission-free online trades. call 1-888-628-7118 or go to schwab.com/trading to learn how.
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liz: breaking news, in just the past couple of minutes the white house feels it is apparently
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compelled to strengthen sanctions against iran. >> reporter: the issue here is that 26 senators have just now signed on and introduced legislation in the senate to impose new sanctions on iran should the administration's negotiations to end iran's nuclear program fail. and the white house is pushing back right now saying that the senate should not proactively take up this legislation or pass it as these negotiations continue. the legislation would further -- big business story in part because the sanctions proposed here by these senators would further constrain iran's oil industry, its roll yum industry -- petroleum industry, and the significance of this is there are a number of democrats that are key allies of the president, including robert menendez and senator chuck schumer of new york, who have
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signed on and are respond -- sponsoring the legislation. these senators are now breaking with the president on this issue. the president is trying to put a lid on it so that this legislation does not upset these sensitive negotiations with iran. liz, back to you. liz: peter, thank you very much. market pulled back by about ten point points. i don't know if it's anything related, but at the moment the dow up eight points, had been up 18. and if you are a bull, you were writing valentines to ben bear fan key yesterday after his announcement that not only would the federal reserve start to taper come january, but also he stressed that interest rates themselves would remain very low for a while. listen. >> the fomc also provided additional guidance on future short-term interest rates stating that it expects to maintain the federal funds target in its current near-zero range well past the time that the unemployment rate falled beau 6.5%.
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liz: what does that mean? you just saw we were showing you before the break what mortgage rates were doing. the average 30-year mortgage rose to 4.5% this week. you see the trend over the past year, this leading up to the fed's policy announcement up more than a full be percentage point compared to last year. still pimco, manager of the world's largest bond fund, says housing will be a bright spot in the u.s. recovery, and investors should jump on this opportunity right away. joining me now is a man who has real legitimacy when he talks about these things, he manages the $140 billion in bond assets at pimco. mark, first, because i didn't want get to talk to you yesterday, what was your reaction when you finally started to see that the taper will -- the fed will taper in januarysome. >> well, you know, we weren't that surprised because the economy has been improving, so a stronger economy allows the fed to taper, although our view is that low inflation and inflation core pce is only running at 1%,
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that's going to keep the fed on hold in terms of raising the policy rate probably for about two years. so net-net it's actually quite positive. the economy's improving, the fed can step back, and overall i think it's pretty good for equities as well as the front end of the bond market. liz: well, we know for sure with equities at least in the short term because that santa claus rally trip wire was hit yesterday as soon as we saw what was happening. we thought to ourselves, okay, we can talk forever about whether it'll last, but what happens to fixed income? that's your bailiwick. >> well, i think a lot of in this rate hikes is priced into the market, and the taper really didn't surprise the bond market. you look at the ten-year rate at 3%, a lot of that is priced in. the front end of the curve, basically, 2% fed funds rate is priced in by 2016, so the market is expecting the fed to do this. the thing we've got to remember, too, is this whole taper is a
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function of the economy, so the fed can dial up and dial down tapering based on how well the economy is performing in terms of lay wore market -- labor market and inflation. liz: either way, you really do like the housing market. you're a believer. you don't feel this rally has been artificial, at least off the floor. we're still short of the height of the market back in 2006, but that was unrealistic anyway. what areas do you like? because when you look at all of housing and that galaxy, are many subsector solar systems within it from materials, building materials, the home builders themselves, lumber, you could go -- appliances. which route do you feel is important? we can cycle through some of the charts with some of the names here. >> sure. i mean, the two big trends are that, basically, the demand for homes is about a million four, we're only building a million, so we think new construction will grow 10-15%. the other thing that has a lot of upside is remodel activity. remodel activity was suppressed, and now with home equity rising,
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home equity has risen 3.5 trillion in the past two years. people are going to feel more comfortable about remodeling their homes. so specifically, we like home builders on the new construction theme x we like building materials companies on the remodel as well as appliances. liz: it is wonderful to see you. of i hope you have a great year, mark, thank you. there's only a week left, to some back next year, okay? we'll see you soon. pimco managing director and portfolio manager. he's done extraordinarily well over the years there, more than a decade at pimco. we have some breaking news here. just a moment ago you may have seen us flash the headline, lower third, the sec has charged a senior portfolio manager at microsoft, also charging his friend and business partner with insider trading. we're going to have much more in just a moment. the stock is down about 45 cents at the moment, but we're looking at this story as it develops. somebody over at microsoft, a portfolio manager and a friend,
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have been charged with insider trading. a courtroom win for prosecutors could give sac capital, the embattled allege fund manager, steve cohen, a huge headache. charlie gasparino has been out front with his reporting on this story from the very beginning. he has the details coming up next. and love 'em or hate 'em, 3-d printers like these have captured the imaginations of both the innestor and the consumer. of talking to 3-d systems president avi reckon call the. what's happening in 2014? it's a fox business exclusive. ♪ ♪ [ male announcer ] here's a question for you:
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liz: we want to get you more on this breaking news. the sec charging a senior portfolio manager at microsoft and his friend and business partner with insider trading. we have the name, brian jorgenson, he lives in linwood, washington, obtaining confidential information about upcoming company news through microsoft's corporate finance and investments decision. a friend, nicole, has been
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charged here, stock down about 49 cents. >> reporter: what's interesting about this stock as i was looking at the intraday chart, it had been trending lower throughout the day, started to pick up in volume just before 3 p.m. and continues to dwindle lower but, again, not a huge move, down 1.3% for these two seattle-area men who were charged in the u.s. district court there. and, you know, the u.s. attorney talks about for every stock market winner there are these cheaters who use confidential inside information, so you have both of these guys thousand being charged with insider trading in advance of company news. and this is something that we're going to have to continue to follow. but in the meantime, this is the kind of stuff on wall street that regular investors don't want to hear, it ruins confidence, and these are the ones -- and, of course, it's being charged. we have to find out more about this as they delve into some of the details, but being accused of plotting, not a good one for
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this one. back to you. liz: looking at the chart, down just about one and a third percent. after a dramatic guilty verdict in court yesterday for sac capital's michael steinberg, do the feds hope that they can then turn him against the head guy over at sac, steve cohen? charlie gasparino head that potential connection weeks ago. he's here now. >> but we have updated on that. but i just want to make a point about some of these companies that are kind of tangentially involved in these, in stocks, in insider trading. remember, herbalife was one of the, herbalife's auditors was involved in insiderrer trading on herbalife's shares,. liz: 100%. >> it has almost no impact on the company itself unless the company is somehow come licit at a senior level. and usually it's a junior guy with access to a press release. so i would not draw, if you're an investor out there, do not
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draw any conclusions or don't make any plays on microsoft based on this. it has zero relation. liz: warren buffett always says i've got 300,000 employees, at any given time somebody's doing something wrong. >> right. and most people understand that. it's not a material event -- liz: let's get to sac capital. >> i don't want people trading off that because that's an ab sunday thing. we do know from senior government sources, people that are working on this case, and, you know, you've read a lot of stuff in the "wall street journal" and elsewhere that, you know, the criminal case facing steve cohen on insider trading was over, they were going to just put the company out of business, he may be able to restart his fund, that all may be -- i will tell you this, the criminal case is not over. don't believe what you read in any of these newspapers. it's not over, they are still eyeing him -- liz: are they emboldened? >> they are emboldened by this. this is one-half of the scenario they want to work out. their perfect scenario was this,
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steve -- michael steinberg getsr the sentencing guidelines theoretically he could go to jail for 87 years. @e's hot going to spend 87 years, he's probably going to spend five years. that's still a long time for guys with young kids. but him, he facing a long jail term, and matthew martomo, the other sac financial adviser who's on trial in february, which is a much more tighter case -- this case against steinberg, by the way, those guys and gals deliberated for, like, five hours on a very circumstantial case, and they convicted him on all counts. i will tell you, mark's is a lot tighter. the evidence is much better. this was a he said/she said thing with a lousy witness, the former analyst who was a witness against him, pretty shaky on the stand. they still threw the book at him. the other half of the equation is martomo, the worked out
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perfectly for the u.s. attorney's office for the southern district. they now are banking on either martoma and steinberg to now flip, and they think with steinberg facing a lot of years in jail, significant time in jail -- liz: they both have kids, and they both fainted. they both -- >> well, he fainted in court. liz: michael steinberg fainted in court yesterday as the verdict -- >> martoma fainted when the fbi approached him. liz: what's with the fainting? these guys are like fainting goats. >> i've never had -- liz: have you ever fainted? is. >> no. liz: neither have i, and i've been pregnant twice. >> it's funny, it's like when you go under anesthesia, you see flickers and stuff, but i didn't. listen, why do people freak out when the feds come calling? i mean -- liz: that's scary. you have talked about that. >> the fbi -- liz: they don't make it easy or
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comfortable. >> they come in, and they scare the hell to out of you. liz: they just faint like the fainting goats. [laughter] i would like to say if anybody's offended by this, it was my idea -- >> they still -- why are the goats fainting? liz: they get scared when they hear the sound and they all just drop. >> is this an mule cruelty? liz: no, this is part of their genetic makeup. but two have fainted? >> he tainted in court. i guess it was the prospect of long jail. the bigger story is that the feds have believed that they have a perfect scenario. they really still want steve cohen. steve cohen, we should point out, believes he's innocent. we have calls out to steve cohen, barry burke who's steinberg's lawyer, mr. mortoma's lawyer, hear their side of the story any time. they all say they're innocent. steinberg's been convicted, he's facing a lot of years in jail on a very circumstantial trail.
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martoma is a much easier case, and he faces a lot more potential years in jail. this is what the feds want, both of these guys staring at jail cooperating on still a potential case against steve cohen. the investigation, despite what "the wall street journal" said, is not over. liz: charlie, thank you very much. charlie gasparino. closing bell ringing in 27 minutes. the dow is clinging to gains of just about two points. guitars and bikes, even guns. they could all be made on a 3-d printer. but what's next? homes? rockets? a fox business exclusive, spinning it forward to 2014, the ceo and president of 3-d printing pioneer 3-d systems only here on fox business. and the markets may close at 4 p.m. eastern, but i am always on call for you. head to foxbusiness.com/oncall, sign up for claman on call. >> you're always working.
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liz: like you. e-mail me at two in the morning, i'll give you the top headlines, the biggest interviews. it's the most important 90 seconds of financial news after the markets close delivered right to your smartphone. stay tuned, we're coming right back. ♪ ♪ life's an adventure wh yo'.
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liz: remember when shoes were actually made by cobblers by hand? toiling away? well, now shoes are being printed out on one of the hottest trends in technology investing right now, 3-d printing. those printers seem to be popping up everywhere. everything from food products to fashion, yeah, the shoes, but we saw them at victoria's secret fashion show. those wings were printed out by
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3-d printers. leading the way, 3-d systems. the company has made three new acquisitions, only just simply in the month of december. they are on a tear, but so is the stock, up more than 130 percent % so far this year. er the not lone, the five publicly-traded printing companies have all done extraordinarily well. let's bring in avi reichental in a fox be business exclusive, he's 3-d systems ceo and president. avi, great to have you back. we wanted to have you to talk about spinning it forward to next year and where you think 3-d printing is going to go in 2014 and what we might see from that. >> it's good to be back, liz, and i think that 2014 is the beginning of what i call 3-d printing 2.0 which means we go from monochrome to full color, from monomaterials to functional multimaterials. we move faster, firmly onto the
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manufacturing floor with fully functional metal and plastic printers, and we accelerate consumerism by not only asking will we have a 3-d printer in the every home, but what room in your house will your 3-d printer reside. liz: you just said 3-d printer in every home, that was a question of mine. as we look at some of the pictures of fashion and, look, there's even a car that's been 3-d printed, i don't know how long that took because it goes slice by slice, but that really becomes the big question, does it not, on whether you can get this into consumers' homes. would we have have a 3-d printer in every home at some point, and if so, when? >> liz, i firmly believe that the questions we should be asking is what room in your house will your 3-d printer be. is it going to be this in your kitchen because you want to print delectable edibles and personal nutrition, is it going to be in your man cave?
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is it going to be in your wardrobe as you correctly just mentioned victoria's secret, is it going to be in your garage? is it going to be in your den because it's part of your children's education and this is how you want to give them tomorrow's skills today? i firmly believe that the democratization of axis this the mainstreaming and making 3-d printing part of lifestyle and part of popular culture is a train that has already left the station, and the fact that we have lots of exponential technologies that are going to enable it like incident computer powering the cloud and mobile devices and sensors only serves to validate that it's going to happen in the next few years. liz: avi, you are one of the lead trains here along with competitors like x1, r cam which is out of switzerland, but then here come the chasers.
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they're trying to catch you, and they're the big guys, 3m, hue let hewlett-packard. are you concerned? make your case. what can you do better than they do with 3-d printing if they start to enter this space? >> well, liz, obviously, we have lots of respect for all these 800-pound gorillas that you mentioned and, you know, our remedy here is to extend our first mover advantage and to cement our technological and market lace position s. as you know, just yesterday we acquired a portion of xerox wilsonville engineering and material science and their labs and access to their patents and extended our collaboration with xerox because we believe that by staking our claim on multi-jet printing technologies with innovative companies like xerox, by acquiring technology assets, by
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having -- liz: well, there's no doubt, there's no doubt, avi, that a you guys have been on that tear, but as exciting and as much as the industry and you have grown, the stocks start to look frothy to some people. i've heard more than one analyst says it looks a little bit like a bubble. you're getting tagged with that moniker along with the other guys in the space. i mean, i look you're up 135%, your pe ratio forward is 65, you're trailing 181, 19% of your float is shorted. people get a little nervous at that point. how do you convince them this is for real and this is for the long term? >> well, we have to remember, liz, that most of our business today comes from real industrial manufacturing. it comes to aerospace, it comes from automotive, patient-specific medical devices. that accounts for over 95% of our revenue. and with companies like ge and nike and gm investing billions
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of dollars in creating the flexible factories of the future, we believe that with our seven print engines we're best positioned to avail ourself toes of the industrialization -- ourselves of the industrialization of 3-d printing. add to that the upside the consumer, and i was saying this is a real business real long-term process prospects. liz: you've been here before, we love it, we want to see what else you're doing. but i think your point is fascinating about whereeprinters will be, the kitchen, the man cave, who knows? good to see you, avi. happy new year. >> good to see you too, liz. happy new year. liz: stock up more than 135% over the past year. we've got that closing bell, it's going to ring in 15 minutes. how do you outrun the bulls if they're already trucking pretty fast? listen to our next guest, he's outrunning the s&p 500. how has he done it? a much longer shot than some of
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liz: quick mention here, dow jones industrials just turning neck, negative, we were up 18 points earlier, not happening right now, down about one point. you saw some 3-d printers, how well they have performed over the past year. of well, another unbelievable trade have been the financials this year, but now investors are looking for the next big thing with a fund that's beating the
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s&p 500 by nearly 10% year to date. our next guest says the key to strong markets and strong portfolios are healthy banks. so what does that mean for your portfolio? joining me now, david ellison, he's hennessey fund's senior vp and portfolio manager. you've got more than $4 billion under management. david, you made a lot of money this year doing extraordinarily well, i'm talking for your clients and for fund participants, by investing in large cap financials. does that particular trade repeat in 2014? >> oh, it's, you know, i'm not sure if i predicted this year would be this good, but i think that, you know, again, these companies continue to get better. they have a lot of things that they can do to get better whether it be rework the assets, rework the liabilities, rework the head count, rework the branches, they've got, you know, regulatory stuff they've got to get over, so there's so much that they can do, and the question now is just sort of have to take the group hug approach, own all of them and
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see how it works out. i think next year, again, it's going to be much of the same we saw this year. liz: we flashed up the number, you've returned 40 president in your large cap financial funds. the s&p up 28%. that's just fantastic. you've done very nicely. does the same trade work in 2014, and when i say the same trade, i mean the same names. some of the names you've had widely held, jp hover began, discover. there's a bunch of other names here, and we'll ttlk about the ones you the is still look, but broadly, will you repeat the exact same names here? >> well, i don't have any reason right now to change the portfolio, and i think that, again, one can't predict how much they're going to go up or down in one yyar. they do go down at times, and we saw that four or five years ago. but i think the wind's at their back. they have a fed that wants to accommodate, i think rising rates are good for them, not bad for them, and you're going to hear more about that as hay start reporting earnings.
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i just had a meeting with a company that said the rising rates are going to dramatically expand their marginn because of all the liquidity they have on their balance sheets. it's going to help their spreads. credit's going to get better. will. liz: right. >> then they have all the things they can do on the expense and the revenue sides to improve earnings. liz: that can wiggle it. >> i think it's going to be reasonably good for the next three years. liz: your three picks are citigroup, aig and sun trust. we talk often on this show about citigroup and aig, but what is it that you like about this particular bank? >> well, sun trust is really a representative example of a traditional commercial bank that is, you know, 99% u.s. lending, 99% funded, let's say 70% of those funds are deposits. and so you've got a traditional bank that is now going to benefit from really the expanding economy. so you're going to see better loans, you're going to see better loan quality, you're going to see more commercial fee
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income, etc., and they're going to be able to start to utilize the balance sheet which has been sitting there and not growing for many years. so the issue really is sort of taking this kinetic energy and potential energy and turn it into kinetic energy, and that's the next two or three years we're going to see that. liz: good to see you, and we'll see you next year. it's only a week and a half away, david, thank you so much. >> thank you. liz: david ellison. i'm sure that many of you are familiar with that classic 1970s pop song "a horse with no name" by that band, america. how about an automaker with no name? we're talking about tesla and the efforts that ceo elon musk has made to break into the chinese auto market. he has run into what could be a significant and a little bit bizarre roadblock. a trademark dispute over the name tesla which means he can't use tesla as the domain name for the company's new web site in china. it turns out that a very smart
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chinese businessman has already registered the name tesla and has no intention of selling the rights to use it. so for now, he's ca is using another web address based on the chi news pronunciation of tesla, stock has done absolutely incredibly over the past year. we're only showing the intraday which is down about four and three-quarters, no surprise you see a pullback here, but trying to break into china without a name, at least at the moment. closing bell ringing in six moms. earlier this hour we bicycle the news that microsoft is charging a senior portfolio manager inside the company with insider trading. we're talking to a former federal prosecutor, doug burns, about this in the next hour. don't go away. and the markets, thereat at the moment. muck. ♪ -- flat at the moment. ♪ ♪ hi honey, did you get e toaster cozy?
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liz: just a teeny gain for the dow jones industrials. look at leaders on the dow. insider trading case against a microsoft employee. who knows whether that has to do with the stock coming down. johnson & johnson caterpillar, markets lower. let's get to david asman as we prepare for "after the bell." david: juicy news what is happening with microsoft. this insider trading case is just perfect grist for the mill. we have charlie gasparino and the former head of the sec to join us this hour to talk about that and the sac insider trading case. first go to nicole petallides at new york stock exchange. go to gold. one of the biggest movers around today. down almost, i think these are levels we haven't seen in three years, right? >> absolutely.
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right now gold is about 1190 a troy ounce and it took gold stocks down along with it, names like goldcorp and newmont mining hit new lows and the rest of the group pulled back. liz: isn't it interesting during this hour, oracle came out with the news and it was earnings numbers. the stock faltered a little bit, today hitting a 52-week high as numbers were digested and they were very well-swallowed. >> revenue is being look good for oracle. we saw it hitting a new high of 3696. tech did well today. >> i have a soft spot in my heart for pandora. pandora did well. they have been beaten down but they're chugging back, aren't they? they really are. pandora did well, linkedin, angie's list, doing very well, groupon. liz: we're awaiting news from nike. earnings in a few moments, the second they hit the tape we'll get them to our viewers. stock has had a stellar year up
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50%. intraday -- [closing bell ringing] >> athletic footwear has been great is the big question there is china. hey, the bells are ringing. they're hanging on to the gains yesterday, not really building on them much at all. but not giving away hardly anything of what we had yesterday with that spectacular build-up in all of the indices. today a very different situation. look how much we gained yesterday when looking at some of the red on this board. you do see green up at top of the board. barely so for the dow jones, eking out an ever so small increase but still it is an increase. all the others are down but again by very minor levels with the exception of nasdaq. when you talk about nasdaq, you can't for get about that huge gain in oracle by the way. so there are ups and there are downs even on a day like today. liz: time for your front page headlines. the numbers of americans filing new claims for unemployment benefits rose 10,000 last week to 379,000. that is the highest level in nearly nine months. david: we did have some home

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