Skip to main content

tv   Countdown to the Closing Bell With Liz Claman  FOX Business  October 21, 2014 3:00pm-4:01pm EDT

3:00 pm
average person, what should they be doing? >> the average person has money in 401(k) and invested fully until the end of the year. >> reporter: doreen, thank you for joining us. right now, winning day and we're holding onto the gains. melissa. >> we'll see, that's all for now, i hope you're making money. "countdown" starts right now. liz: the question whether it's too soon to say the bulls are back? 59 minutes to go. the rally holds as stocks zoom higher. look at the nasdaq, jumping 2 and change here but it's the transports charging ahead by 2.63%. you can give apple credit for the major averages on the screen. there are high hopes in just an hour that yahoo! will come out with results, earnings, what will they look like? in advance of that, the stock is up nearly 2%. the microscope will be squarely focused on marissa mayer who
3:01 pm
some yahoo! investors say must give a standing ovation worthy performance. two years ago started off strongly but wifted. one analyst says despite all of that, yahoo! is a buy. why? they'll explain. breaking new developments in the apple icloud hack. apple released a statement hours about a coordinated attack, that's their word, attack. they say they know where the attack is coming from. we will bring you the latest straight ahead. let's start the "countdown." if you are in stocks, you're making money right now, but let's call it the fast food revolution and mcdonald's on the downside of that revolution, it's not loving it today with the company announcing a 30% drop in profits due to a scandal in china, all kinds of tough
3:02 pm
competition in the u.s., and quite frankly perhaps changing tastes with consumers, no fiesta for what's considered the upand comer. the past food choice for millennials, chipotle. the yellow line there. it's a five-day chart. mcdonald's is the blue line, the mexican food chain chipotle beat on earnings yesterday, the stock is getting hit hard. trading down about 5.5%, as analysts question whether the company can continue meteoric growth? it does beautifully, but not meteorcally. what is it? burgers or burritos. time for a food show floor fight. we have traders, let's go to brian sozzi, jeff flock and at the first mcdonald's franchise to ever open, gentleman, which is your food choice and which
3:03 pm
is the better stock to own. teddy, i give it to you first at the nyse? >> the better one to own was chipotle. it had to have been mcdonald's overall, but there's been a shift in consumer taste. all you have to do is looked at performance of both those stocks. i remember when chipotle came out of mcdonald's and couldn't sell it fast enough. i don't know if that's seven or eight years ago. clearly that was the wrong decision. liz: i just wonder, when you look at all that's going on, jeff flock, you're standing outside the original mcdonald's, which is such a stalwart for some of the biggest funds ever. we can show the top five holders. the biggest of the big. you throw in state street. vanguard, you had to own mcdonald's, is that the case anymore? >> this is a company of a different era. this is the mcdonald's museum now. this was 1955. that was a very different
3:04 pm
america than it is right now. i got to tell you, when we went to lunch today, there's a regular, that's a museum, it's not open for business. across the street's a real mcdonald's. we could have gone there for lunch today. and the guy said, and i'll tell you, no pushing from me, said can we go to the mexican joint down the road, and we got burritos. it was just a runoff place. people's tastes are changing. liz: i go to jeff grossman in new york, is it burritos on the floor of the cme and the nymex or burgers? i had chipotle yesterday. i feel it's better, healthier. >> i can't speak for anybody else, i'm a burger man myself. if i was sticking to stocks, i'd have to pick chipotle. liz: you would have to, i think, because when you see the performance, but now suddenly it's struggling. brian sozzi, why is it struggling? have you done boots on the ground research about chipotle?
3:05 pm
>> yes, what you're seeing is entire generation of people under aged 25 growing up with chipotle as mcdonald's of choice. they're more knowledgeable in food and it's cool to take a selfie inside a chipotle and post it on twitter. no one is talk about the market. i talked to chipotle, they are starting to roll out asian fast food chain, chophouse, if i was dominoes and papa john's and pizza hunt, i would be concerned about chipotle's next avenue of growth. liz: they're going with locally grown food because it's less traveled. we can look at other ones in the near-term gain. some of these have become the choice. when my 12-year-old says i'm not eating mcdonald's, it's not healthy. who didn't at our age? not eat mcdonald's?
3:06 pm
we can put up the names of the competitors out here, but chipotle serves with a smile, et cetera. i want to broaden the conversation, teddy, to the entire market, what's going on? panera bread. let's sink teeth into the bread of the market. we have come back to the 200 day average of the s&p 500, the vix has chopped nearly in half all of the gains, so fear has come out of the market. what's going on on here? >> hard believe we've had either near-death experience, liz, just a few days behind us, and once again, for those of us that perhaps were tempted to throw the baby out with the bathwater, wrong again, and as we speak, look likes just another one of the harrowing sell-offs that turned out to be another buying opportunity not a selling opportunity. liz: isn't that the truth? >> there's a little bit of a difference now, and i know the market's obviously better. if you look at ibm's earnings
3:07 pm
and coke's earnings today and drill down into what they've said, the issue is currency fluctuations, which is code word for a strong dollar. we've seen this before, when the dollar gets strong, these big multinationals trip, and they trip over their guidance and trip over earnings. if the strong dollar continues, it's going to be problematical for a lot of the big u.s. companies. liz: phil flynn, when are they going to learn how to hedge. the strong dollar is not hurting apple. they have just as much a multinational business as the other dow components but it also affects commodities, things like gold and oil because the stronger dollar makes those weaker? >> everything, and a lot of the multinationals because of misperception of how the currency markets were going to play out really missed the boat. and it's hurting earnings across the board. you know, even if you look at
3:08 pm
what's happening with chipotle. what's happening with mcdonald's. it hasn't been issues necessarily in the united states, it's what's going on globally as well. you look at what's happened with mcdonald's for example, not only did you have the chinese disaster, you had rising food costs and rising beef costs. i don't think underselling mcdonald's just yet. i remember when mcdonald's was starting markets to grown-ups, that was a disaster and everything fell apart. i think mcdonald's is going to come back. chipotle, it's been rocketing. how much can you go? 600, $700 a share? would you rather own chipotle or apple right now? i would sell chipotle and buy apple. liz: quick mention on the situation in china. brian sozzi, you watch a lot of retailers overall, china came in and looks like they will miss annualized gdp number. so they have 7%. we'd kill for that.
3:09 pm
>> yeah, and one thing, i'm growing more concerned about china's slowing, librarying -- it's almost coming out of the blue. they're not seeing high levels of inventory in china. sales were up over 30% in china, many of the businesses and you look at nike a couple weeks ago, low levels of inventory, people are greatly eating up goods. slowing in china is going to be a major surprise to investors going into the fourth quarter. liz: good to see all of you. jeff flock, how many have you seen walk into the museum today? >> it's closed today. liz: closed? i thought museums were closed on monday. teddy, jeff, jeff, and, of course, brian sozzi, closing bell, we're 51 minutes away. keeping a very close eye. look at the healthy rally. chipotle rally we can call, it
3:10 pm
as yahoo! gets ready to report earnings after the bell. investors may be more interested learning how yahoo! plans to spend alibaba winnings than how yahoo! did last quarter. is that really all that this stock has? come on. we're going to look at marissa mayer's playbook and most of us use smartphones from trading or checking stocks to weather. what about smart city. pollution, crime, bioterrorism it. might be happening at a street corner near you. we'll introduce to you hugh martin, the ceo of sensity systems. the lights are on and they're watching you. it's monday.
3:11 pm
a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.
3:12 pm
and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.
3:13 pm
3:14 pm
. liz: check out the market rally. we're looking at the dow 30. 27 stocks higher. chevron leading the way and coca-cola leading the dark side down. although it's come off earlier lows. it was down, boy, more than 7%. that was the biggest drop in six years. now down just 4 and change
3:15 pm
percent. so with 46 minutes before the closing best. looking at still a volatile market because volatility goes both ways, even when we have a rally that is considered volatility. what's the best way to bet on the little guy. the russell 2000 or the index that tracks smaller cap names down about 4%. large cap names in the s&p are up 4%. however, our next guests say investing in innovation is the way to play the rest of 2014. do not follow the herd, we'll show you how. joining us to give you the names you need to know, cathie wood, ark investments chief investment officer, and jay kaplan royce associates portfolio management and investments. stocks were churning all over last week. i call it the mini flash crash. now things look more stable or do they, cathie? >> i think people are beginning
3:16 pm
to understand not all deflation is bad. oil prices going down is good, very good. earnings and sales have been surprising on the high side of expectations even though the bad news gets the headlines. there's a lot of it. we've seen expectations beat for the most part and there's good deflation not just in oil prices but innovation usually means lower prices and strong unit growth, and i think people are beginning to understand that. liz: jay, that's optimism at 30,000 feet. bring us a little closer, yes, energy futures and energy prices are very, very low, great for the consumer. but the dow resistance is hitting around the 16,576. we are, i don't want to get wonky and into numbers, we're almost positive for the year, right? we're actually above that level. >> the dow and smaller stocks are negative. that's what we play at royce. we have five years of almost straight up, so having a little
3:17 pm
bit of a downdraft is not that unusual. it's almost normal. we've forgotten what normal is. liz: normal is volatility, that is a normal state, correct? >> absolutely. liz: don't fear it. what do you look at, cathie? >> disruptive innovation. we're looking for technological change that's going to change the way the world works. liz: i'm thinking tesla. innovation, disruption, and you love tesla. >> i do. and i think a lot of people think it's in a bubble, and i do not. a bubble is defined as capital just crowding into a space, flooding a space, this has not happened in the ev space. no one is doing ev's the way tesla is. there's a wholesale shift away from the internal combustion. liz: that stock thanks to elon musk, he was outside promoting the fact not only are teslas doing well but rocket ships are
3:18 pm
getting great deals with nasa. 23% of the float is shorted. you liked athenna health and netflix. athenna has a 34% floatage there. bears are trying to push this down. does that scare you at small. >> that's an opportunity. if they're incorrect and i think they're incorrect, they'll have to cover the reports. if you look at athena, the core athena branded business was very strong. over 30%, and the physician growth, much stronger than anyone expected. i think the networking effect is starting to take off and i think people are going to be surprised how far this goes. liz: jay kaplan, you like innovation as well, in a different form and dividend form, too. >> we're looking for strong balance sheets, high returns on
3:19 pm
capital and cheap stocks. we love brocade which connects servers to storage. the market thinks technology is completely dead, not true, generates a lot of cash. liz: by the way 11 p/e, cheap! hard to find such low p/e's these days. >> it is. that's what we do every day. faber net manufactures optical components, they have a lot of cash, you take the cash out, six times earnings. you don't find a lot of those anymore. we're looking for things that are good companies at great prices. liz: connection, pc connection, this is a company about 14 times earnings. again, now let's talk about technology. we've had people on the network say tech is in a bubble. >> sure, well, some tech is in a bubble. these are enablers, they sell hardware and software, they distribute to everybody. they can be on the trend.
3:20 pm
if you need to replace computers because xp is dead. they will sell you a computer. liz: russell, you guys? >> this week was instructive. we had ibm, big tech, very cheap. trap. they've been through financial engineering taking care of shareholders, they forgot to invest in the cloud. liz: sap invested in the cloud and got into trouble. >> they can't change fast enough you. >> guys are against old things. >> no, no, very, very rapidly. liz: i guess brocade is not so young. >> it's been left for dead for a while. liz: you guys happened, and by the way, cathie, congratulations, cathie rang the opening bell today. congratulations. arc investments, props to you guys. i know you have us on the trading floor so thanks. >> thanks to you.
3:21 pm
liz: we are going to put all of cathie, jay, good to have two people who are believers in the rally and the russell 2000. thank you. >> you're welcome. liz: closing bell 39 minutes away, a good year for billionaire investor carl icahn. not all bets paid off. charlie gasparino, fair and balanced. not obsequious to anyone. and fashion icon oscar de la renta died yesterday at the age of 82. he designed dresses for jackie kennedy and designed amal clooney's wedding dress. here's a look at de la renta by the numbers.
3:22 pm
from fashion retailers to healthcare providers, jewelers to sporting good stores, we provide financing solutions for all sorts of businesses. banking. loyalty. analytics. synchrony financial. engage with us. to build something smarter. ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪ but it's always about thecan you start tomorrow? tomorrow we're booked solid. we close on the house tomorrow. tomorrow we go live... it's a day full of promise.
3:23 pm
and often, that day arrives by train. big day today? even bigger one tomorrow. csx. how tomorrow moves. the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest, ...baddest, ...safest, ...tightest, ...quickest, ...harshest... ...or nothing. at mercedes-benz, we do things one way or we don't do them at all. introducing the all-new c-class. the best or nothing.
3:24 pm
3:25 pm
. liz: breaking news, take a look. we are at session highs. we have jumped in just the past 11 minutes. the s&p up 36. the dow industrials up 205 points, despite the laggards, mcdonald's and coca-cola, but the nasdaq is charging higher
3:26 pm
by 100 full points here. 2.33 percentage points. transports ahead by 243. jay kaplan said it was a buying opportunity. when you get scared and the market is down 400 points. was it a buying opportunity? sure looks like it today. buying opportunity? look at hog riding high today. harley-davidson up nearly 8%. shares of the motorcycle maker surging after quarterly profits zoomed past targets. harley is saying it is on track to boost sales for the year by roughly 3-5%. despite today's strong move, harley shares are down % for all of 2014. we are fair and balanced here. we provide perspective and billionaire investor carl icahn had a lot of great bets in history. but in the past couple of weeks, he has not fared so well. charlie gasparino, what are you
3:27 pm
talking about? >> i read the agenda for the robin hood conference. robin hood is a huge conference, they raise money for various charitable causes. lots of hedge fund people speak, bill ackman unveiled short on herbalife. liz: couple years ago. >> couple years ago. david einhorn unveiled short on lehman brothers in 2008 at the robin hood conference. what's interesting is carl is there, carl is going to battle larry fink. they're going to have a debate over activist investing. larry fink is the ceo of black rock. carl does his thing. larry is critical of activist investing. i said to myself, who's right in the battle right now? i like what carl does, but his record hasn't been very good lately. what's interesting, i thought to myself, would carl icahn the activist investor be protesting
3:28 pm
his own record? if he was a public company and investing in it. i think yes. and you look at aside from his apple investment, he's done very well with apple. liz: and forest labs. >> paypal, very good. rig, not very good. liz: transocean. >> not very good. herbalife, so far this year, horrendous, ackman is on the right side of that one. and the biggest one of all, i think is netflix. we should take a look at stock chart of netflix. this is fascinating he's taken a huge loss. netflix plunged more than 20%. liz: where did he buy it? i guess the question, i mean look at herbalife, hlf. up 10% today, but at $51. >> you know why it's up today? that analyst tim rehme went to another firm and initiated
3:29 pm
coverage and the stock is up on that. listen, i'm just saying that if you looked at the list of activist investors, they make a lot of noise. dan lobe is on the list, he's speaking at robin hood,ine horn, icahn, you wonder what would the activists be saying if they're playing it safe about their own activist record. i can't imagine they're doing that much better than the s&p this year. liz: wait, there are differented tos of success, you said his ebay-paypal one wasn't great. he did succeed in pushing them. >> theoretically there is a method to his madness, right? liz: yeah. >> where is the stock value on that? the stock hasn't done that great since that happened. time will tell, it's always good to looked at activists' records when we have this debate. activist investing is a huge controversial subject. i like what they do.
3:30 pm
i like the fact carl holds people's feet to the fire particularly in corporate governance and things like should ebay spin off paypal or not? i think in order to be fair and balanced, you have to point out the negatives, the negatives is they're not doing well. dan lobe has an investment in sotheby's how is that doing? not doing well. none of the guys are scoring big knockouts. ackman is probably the only one doing well this year. that's after getting the you know what beat out of him last year. activist investing, give them a lot of press, we make them out to be icons. liz: the cult of personality. what's behind it? >> the record is not that great. liz: buffett tells people to tune out activists. >> he has his own things. listen, i put all these guys in
3:31 pm
the say. i believe in like the -- you're at a buffett, and take ideas from everybody. learned a lot about investing from george soros. it's our job to hold our feet to the fire a little bit. the activists will be protesting their own performance. carl would not stand for some of the investments he made. netflix is getting crushed since he bought it. the ebay investment did not work out post paypal. you know herbalife is up because of the analyst report. the guy is saying $100 stock. liz: the annual high for that was 83 and it's 52 right now. are you looking at the dow industrials. look at this move. >> look at that. liz: up 213 points for the dow. the breaking news is we are at pretty much session highs, a major rally going on. >> hate to say this, not one ebola headline. give it time, charlie, give it
3:32 pm
time. as we wait for the closing bell 29 minutes away with yahoo! earnings after the bell. the big question we are going to answer, is marissa mayer, the ceo as good as she was cracked up to be when she took the chair at yahoo!? smartphone, smart homes, smart cities just to the time when cities feel they could be under attack. what we are showing you on the screen could change all of that. it could nab gunmen, bioterrorists, all kinds of issues and warn of earthquake's come. it's technology that can make your city safer by providing video surveillance. hugh martin here in a fox business exclusive. you've got to see that. go ahead and put your bag right here.
3:33 pm
have a nice flight!
3:34 pm
traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing if we can't get your things there too. it's no wonder more people choose delta than any other airline.
3:35 pm
3:36 pm
3:37 pm
. liz: breaking news, we are looking at a very, very strong move just off session highs for the moment. dow industrials was up 205 points. we have 23 minutes until the closing bell rings. s&p, nasdaq, trying to score fourth straight wins, and the dow jones industrials climbed above a critical milestone, nicole. >> reporter: it has, we are watch wearing we ended the year 2013. we ended at 16,576. we're well above that now, well above that? enough, we can say we're in positive territory for the year dow jones industrial average. look at the green on the screen. look what's going on.
3:38 pm
we are up about 200 points right now. you can see the gains in everything from oil, oil services, semiconductor, banks, there is green cross the board from commodities and drugs and all the like. we are seeing key points we are seeing the gains. someone like doreen said she would sell into the rallies. others say if you had the 401(k) and iras, leave them alone. as far as people saying they would be buying, there seems to be nervousness. the transports have been beat down and picked back up. this group was 7, 8, 9% to the downside in a few weeks and positive for the month of october and for the year. so we certainly rallied back and people took some of the worries and put them aside for now. back to you. liz: right, and what they should have been doing is just as it was dumping out maybe picking up some of the names they've been dying for.
3:39 pm
that's always the classic story, isn't it nicole. thanks so much. the potential threat of home grown or imported terrorist attack coupled with violence in ferguson, missouri has a lot of communities looking for ways how to security and increase surveillance. how would you do that? well, one solution involves the idea that you just simply start linking a whole infrastructure that is already there. turning a dull, one dimensional thing like a street lamp into objects that are fully functioning, air sampling, crime watching data centers. cisco and a company called sensity systems partnered to create cost efficient street lights. here with me is sensity ceo hugh martin. when we looked at this when everybody is terrified of isis trying to get on the streets of australia and attack somebody
3:40 pm
and terrorize people or ebola, bioterrorism. there are four billion street lights around the world that are already there. what do you do to trick them out to change a city into a smart city? >> well, as you just said, there are four billion of them, and much like home consumers are changing out lightbulbs to l.e.d.'s, these are upgraded over the next 15 years. essentially, there are going to be four billion guys in bucket trucks to install a new l.e.d. fixture, which has many of the same components. a l.e.d. is digital as you would have in a smart sensor node, combining the two technologies, we lower the cost and we also have free labor. so it's a natural time to go out there and actually install four billion of the nodes. the other thing that we do that is important is when we gather all this information, we've developed a programming
3:41 pm
interface so software developers can write any kind of application for purpose that they could imagine so we eventually will have an app store that will have thousands of applications to make use of this information. liz: we were looking at kind of surveillance footage. we know there are cameras on many different streets. these are sensors, they can sense temperature, wind, as hurricanes this, this is important but can do things like vibration, that would be seismic activity. microphones to hear gunshots so you can get faster response by police. weather pollutants, bioterror contaminants. where are you testing these, do they exist in some cities? . >> we focused on a number of key areas, shopping malls is a terrific area, lots of lights, they're in a hurry to save energy and run malls more efficiently. airports are another area. we have a big installation with
3:42 pm
port authority at newark airport and starting to trial and pile it in a number of cities. with cisco we installed the demonstration system in downtown chicago. liz: i'm sure privacy is an issue. we'll bring you back to talk about that. efficiency and safety are certainly just as crucial. thank you so much. >> sure. liz: almost just as crucial. i'll probably get skewered for that one. smart cities. thank you so much. the company is called sensity. closing bell in 18 minutes. marissa mayer arrival at yahoo! brought this paparazzi-like entrance to the ceo and expectations that yahoo!'s second act. those of us who have followed it since the late 90s are calling it the 11th act. the internet giant reached a major crossroads. what is that? will investors stick around? should they turn the back at their own peril? maybe not. we got the latest numbers, more than 10,000 of you have
3:43 pm
signed up for claman on call. we will deliver the latest headlines directly to the smartphone. today you would get yahoo! numbers after the bell. it's all free. i'm only in my 60's.
3:44 pm
3:45 pm
i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you.
3:46 pm
call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country.
3:47 pm
[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. . liz: breaking news. with just 13 minutes to go, stocks are holding onto one heck of a rally. the dow jones industrials transports, jumping 251 points on track for biggest one-day
3:48 pm
gain since august of 2013. that, of course 14 months ago. very strong for the railroads, the airlines, and, of course, ups, fedex, all of the names in the transports at the moment. the broader market is look good. with the midterm elections just two weeks away, wall street is bracing for more volatility. jitteriness, just yesterday, the man who won the mobile prize in economy on volatility, robert engel told me that volatility is not even close to being on the top of his worry list. so what is? >> midterm elections. i think we're going to -- heading for more political deadlock. liz: is that a good thing? sometimes it's a good thing when we have the gridlock? >> well, it certainly makes it hard to solve problems. liz: what should we expect from the midterm election saga and what impact will it have on your money in the markets? rich edson, to hear the man who
3:49 pm
won the nobel prize in volatility say election and things like that, is interesting. >> it is. election predictors say the republicans will likely reestablish the six seats they need. if so, increased oil and gas drilling and approval of the keystone pipeline. that could boost energy stocks. republican senate could approve initiatives on free trade. the strategy for republicans would be to hold votes on bipartisan bills to attract moderate democrats and draw the president to sign off. >> i'm not saying again, it's going to be a flood of legislative activity. under republican control, assuming they don't go too conservative in their drafting of legislation, you could see their ability to pick off enough democrats to get pieces of legislation to the president's desk for his signature. >> there are questions whether republican-controlled congress
3:50 pm
would risk another debt ceiling fight or shut down. gop leaders will try to avoid that. there's a chance republicans demand concessions from the president in return for funding the government or raising the debt ceiling. while most analysts are predicting a republican win, leaving control of the democrats and leading to what it calls benign gridlock. congress keeping the government funded and operating without passing any major policy changes. liz? liz: exactly what dr. engel said, no passage of anything. we've got to get stuff done. rich edson knows just about everything you need to know for the midterm elections. fox business is the place to be. yahoo!'s earnings just minutes away. with all the alibaba hype in the rearview mirror because yahoo! owned just a huge stake of, it still owns some of it. stock surround pressure, and ceo marissa mayer might find herself in an uncomfortable
3:51 pm
position. we don't know yet. numbers aren't out. when mayer took over in july of 2012, she was on every magazine cover. mayer's name splashed across fortune and fashion magazines, covers with headlines such as yahoo! marissa mayer and the art of the turnaround. can she save yahoo!? more than two years later, investor optimism is dwindling. can mayer turn things around? joining me is scott kessler. scott has a buy rating on yahoo! stock, your answer lies in that. you believe she can, what does she need to do? >> i would qualify my response to the series of comments by saying that look, there are a lot of reasons to like yahoo! shares, and i'd say third or fourth or fifth or low or the list would be marissa mayer and management team and engineering a turnaround.
3:52 pm
liz: not a huge fan there? >> not necessarily. we see a lot of value in yahoo! as a company and stock, that is the primary underpinning for positive outlook on the shares. liz: what value do you see? a lot of people worried that the alibaba stake really kept yahoo! warm. so without it, there is 15% stake, they've sold a bunch of it. my question to you without the warm enveloping fold of alibaba fat is yahoo! just a skinny cat? >> to continue your analogy, yahoo! is still being warmed by the investment they still have in alibaba. if you add the value of yahoo!'s investment in alibaba and yahoo! japan and both of the companies are publicly traded, you get to a value of over $40 a share, if you look at yahoo!'s cash, especially accounting for the proceeds received after the alibaba ipo,
3:53 pm
that gets you to a value of around $50 without consideration of yahoo!'s core operations, so we think if they can just stabilize that business, we see further upside. liz: i've got this unbelievable list of acquisitions that yahoo! made since she was there. snipit, summly, loki studios. tumblr, it goes on for pages and pages, that is great. some of it i don't see juicing this company. and you talk about what is the reason to own yahoo! because somebody likes the alibaba story, they can buy alibaba's stock, scott? >> i've heard a couple of the things before. the first thing i would say is yahoo! isn't shy about acquisitions over the last couple of years. they've made as you referenced dozens of them. most are mall hires where small
3:54 pm
teams are added to yahoo! to enhance their stable engineers and developers. that was sorely needed. the only big acquisition they made of more than 50 million dollars or so was tumblr. a billion dollars. the other thing that is important is you could buy alibaba right now on the new york stock exchange. but you're not getting the value that you'd get by investing in yahoo! and having that 16% stake in alibaba. liz: scott, great to have you again, scott's price target is $50. yahoo! right now is at $40.14. you've got a buy rating. great to see. >> you thanks a lot, liz. take care. liz: fox business is the place to be for yahoo! results. david asman and you are going to run you through all the numbers on "after the bell." yahoo! it's all about yahoo!. in a way while it may lack the cool factor it's a bellwether, and therefore at 5:00 p.m.
3:55 pm
eastern, maria bartiromo hosting a special report, what does it mean for competitors and people who have bet on the company? watch maria. closing bell five minutes away. look at this rally. wow! a huge day for the dow, up 201 points. we are going to handicap those midterm elections. if the senate changes hands, it could impact everything from tax reform to the keystone pipeline and, of course, your wallet. as we break down that with a panel of experts. look at that, the nasdaq on track for the biggest gain of all of this year. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership.
3:56 pm
banking. loyalty. analytics. synchrony financial. enagage with us.
3:57 pm
3:58 pm
liz: no thanks to coca-cola or mcdonald's, but a lot of things to apple. these markets are on fire today. but with the color coming up from the smoke it is green, david. david: we're following it from the start, right with nicole petallides. nasdaq is where we see the
3:59 pm
biggest movements. >> no doubt, dave. we're seeing biggest movements in the nasdaq, 2.3% to the upside. this could mark the biggest day ever for 2014 for the nasdaq and the dow in positive territory now for the year 2014 with this 205-point move. there is the big cap tech rally. yahoo!, hewlett-packard, cisco systems, each gaining more than 2%. liz: we could focus on yahoo!. there is that other story of yahoo!, back above with alibaba $90 a share. >> alibaba $90.92 a share. it had been under pressure. this inpehad so much -- ipo had so much hoopla and it has made a long way back about 10 bucks. david: first quarter coal, we're wondering about the banks. con must have the by the way were 100% wrong about interest rates a year ago what they would do today. banks very much in play but seeing a great day today.
4:00 pm
>> no doubt. bank of america sup 2% as jpmorgan. great day on wall street. [closing bell ringing] liz: bells ring on wall street, it's a win for the bulls. dow jones industrials if not at i highs of the session, up 211 points. nasdaq had a huge gain here. david: wow. liz: 2 1/2%. that is good enough for 103 points. the russell 2000, also back on track, up 17 points. having pretty much erased much of the loss it is had endured over past couple months. let's get right to it. "after the bell" starts right now. david: this is the biggest gain of nasdaq since 2013 a huge rally, we've not seen th

28 Views

info Stream Only

Uploaded by TV Archive on