Skip to main content

tv   Markets Now  FOX Business  July 23, 2013 11:00am-1:01pm EDT

11:00 am
two sides. dagen: thank you, stuart. everyone should be selling long-term bonds right now. look up. people in their 20s are getting them. it is because they have their heads buried in their handhelds. storing aluminum. it is costing beer makers and car companies that times. why it is good for the business of the game. all of that and so much more on this power of markets now. ♪ connell: ryan braun. dagen: is a good business for the game? connell: some people think so. there is a big money story.
11:01 am
and lots of financial incentives dagen: you get suspended and come and go. stocks now and every 15 minutes. nicole: we are taking a look at the market. yesterday there was a two-point game. as i noted, we have had some back-and-forth action. the tech heavy nasdaq is still under pressure. we are seeing financials doing well. names like travelers and united technologies have had some moves. continuing to watch names like
11:02 am
netflix. the u.s. dollar has changed direction. gold has pulled back since yesterday. the major market averages are mixed at the moment. back to you. connell: what about bonds? our first guest has some very clear advice. sell them. sell them right now. with us from chicago is the vice chairman of ariel investments. we like clarity. >> if you look back at the history, if you go back to the 1800s, we have only had one period of time where interest rates were lower than where they have been recently. obviously, interest rates have gone up to 2.5%. interest rates have been artificially suppressed by the
11:03 am
fed. that is going to come to an end. it will come to an end, i think, in september. it will continue to slow down next year. interest rates will go up to their natural level. connell: a very clear message. you have to prepare yourself for the environment. what about other, you know, maturities? are there other areas that you do get involved in or just forget it altogether? >> generally would advise against in general. if you own a two or three-year bond, you will not get hurt in the same way. i tell friends that i would not buy any bond or maturity more than five years.
11:04 am
connell: stocks have gone up in general. record highs day after day. if this environment that you are describing, what about stocks? is there a magic number? >> you have asked the question. unfortunately, the answer is a little more cloudy. there have been lots of periods of times where prices have gone down and interest rates have gone up. connell: is there an argument that you favor more this time and if so, kind of articulate that. >> i think the u.s. economy will
11:05 am
be better than people think. i think the u.s. economy will be better and as a result, i think that the stock arctic can do well. connell: okay. he hedged a little bit. very clear on bonds, not as sure, which is fine, on stocks. always terrific to have you on. dagen: nice. detroit's fiscal meltdown shining a light on other financially strapped cities. chicago, minneapolis, santa fe, new mexico, even. bob massey is here. this all depends, though, however, on how detroit's bankruptcies goes in the court.
11:06 am
yes or no. >> yes. for sure, dagen. generally speaking, they are different than chapter 11's. there is no outside agencies such as creditors committees that could influence a final decision. the big reason they want to stay in bankruptcy court is because these contracts can be negotiated. they can be severed. tomorrow there is a hearing. at any time you follow bankruptcy, you have to make sure they are eligible for that bankruptcy. dagen: did the city make a good-faith effort to negotiate with the creditors? >> well, not only yes, i think that the court will look at that.
11:07 am
we have already heard discussions that they attempted to negotiate with the unions. the unions refused to move. are they really insolvent, by the legal definition that the court will look to. these cities that we are talking about, there is also the national problem that we have been dealing with for the last five or six years in this country. the other thing was detroit and the real estate industry. the cost, though foreclosures, . you have all of these things playing into ultimately resolve it. dagen: staying on that note, you mentioned that unions, the city was also negotiating municipal
11:08 am
bonds. they were offered something that was not to their liking. i think it was $0.17 or $0.18 to the dollar. do you think that the judge will put to the side state lawsuits? >> i think, ultimately, when you file bankruptcy, it is like putting up a dam. it stays and stops any state action. listen, that there are all of te other issues. we want the chance to re- organize and structure our units a polity to save it. if you allow this to be lifted, it will ultimately compromise the integrity of the city of detroit. dagen: do you believe that other cities will follow suit? it will be messy.
11:09 am
it is a real talks on the name of a city and the reputation of a city even if it will ultimately be better for that city financially. >> i was born and raised in pittsburgh. in the 70s, when i was still living there, we went through this type of thing. i think we lived in a time where you go and concern about how it looks is unimportant. i think we have men and women who have worked for years in detroit depending on the pensions, depending on the monthly payment. i think, ultimately, and by the way, the other issue that should be looked at is the corruption and mismanagement. yes, i do not think that the image is important. i think that saving the city and these poor men and women is
11:10 am
important. dagen: i feel sorry for the people of detroit. more sorry for them and the people that make it their pensions cut a little bit. >> i agree. dagen: good to see you. bob bassi. >> thank you. connell: if you use your phone too much, you can hurt yourself. that is because there is this study out revealing more people, and some young people, too, are suffering with cervical disc herniation. those are going up by about 8.1% since 2007. cofounder of twitter has some
11:11 am
billion-dollar advice for mark zuckerberg. he suggested that facebook offer a premium addition that would allow users to pay $10 a month and get rid of the ads. it would be big money for facebook. if 10% of users were to sign up, it would bring in an additional billion dollars of revenue for facebook. the slow economy forcing parents to cut back on helping their college student pay for school. student loan provider sallie mae reporting it is down 30% from three years ago. dagen: it makes the kids go to cheaper schools, that is not
11:12 am
necessarily a bad thing. dagen: investors cashing in on the cyber threat. charles payne shows us which stocks are making money. connell: the storage of aluminum. you are paying more for the battle to just sit in containers. dagen: a quicker turnover for sellers now than just a few weeks ago. you know who is here? you watch hg tv? he is a tough guy. we cannot wait for this. let's talk about oil. down today. ♪ the boys used double miles from their capital one venture card
11:13 am
11:14 am
11:15 am
to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. t words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can actuay use, you never miss the fun. beard growing contestnd go! ♪ win! what's in your wallet? connell: we will talk to charles payne and a moment. let's go back to the call. nicole: some are good and some are negative.
11:16 am
let's talk about what we got from netflix. they added subscribers. that sounds good; right? it was under what the estimates were for the company. they raised their targets. web bush has an $80 target and underperformed. basically, this particular firm said $80 they do not like it at all. they reiterate their underweight pretty amazing. back to you. connell: all right. thank you very much.
11:17 am
dagen: take it away, charles. connell: that is too big things making you money. we have talked about source fire. hold on for this, we will have the next source fire in a moment. charles: i think it is a really good deal. everyone on the street kind of knew it would happen. it has been all over the place. the deal was out there. i did a real big. two peer comparison. it is a bigger company. their revenue grew. margins are just about the same. source fire had 86. these guys had 170. on valuation, that is where you release all the difference. much higher p/e ratio.
11:18 am
they will report real soon. from a pure valuation point of view, if source fire could get that kind of command, i think this could be a $30 stock. dagen: excellent. good work, my man. charles: by the way, we have to get that die on. it is either hit or miss. connell: wanting to be famous like charles payne. connell: the cost of storing aluminum. we will talk about this. it is actually driving prices higher for things like beer. we will talk about the turnover in the housing market.
11:19 am
you'll have to stay tuned. take a look at currencies around the globe. how they are holding up against the dollar. ♪ the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm moni santiago of fidelity investments, and low fees and commissions are another reason
11:20 am
serious investors are choosing fidelity. now get 200 free trades when you open an account. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-bz you've been burning for at the summ event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st.
11:21 am
going on now at your authorized mercedes-benz dealer. we replaced people with a machine.r, what? customerdidn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello?
11:22 am
ally bank. your money needs an ally.
11:23 am
♪ >> 23 minutes past the hour. in london, the royal baby boy and his parents, prince william and kate, are still at st. mary's hospital. they are awaiting the first glimpse at the 8-pound 6 ounces royal. mother, son and father are all doing well. laguardia airport is back open after a plane hard landed last night. the landing gear collapsed. the jet landed nose first.
11:24 am
the faa is investigating. the popes driver took a wrong turn in brazil and got stuck in traffic. those are your headlines. back to dagen and connell. connell: driver taking a wrong turn -- there you go. dagen: thank you. new evidence is linking goldman sachs, jpmorgan and your beer can. rich: brewers are blaming banks for increasing the cost of aluminum. goldman sachs, jpmorgan and
11:25 am
others old warehouses. miller coors says they are slowing delivery of aluminum. the delays are driving up the price. >> the increased cost that we incur take away from innovation and new products that we can come up with. rich: the things warehouses are part of the system. in a statement, goldman sachs says the warehouse companies say they do not own it and its facilities. lme warehouses are prohibited from trading all products.
11:26 am
back to you. connell: rich ads in from d.c. dagen: thank you so much. we talked to the host of a brand new host of an hg tv. connell: the suspension of ryan braun. why it is a good thing for baseball. ken rosenthal will make the argument. before we get to all of this, let's get back to the markets. let take a look at the winners we are seeing on the s&p 500. ♪
11:27 am
11:28 am
11:29 am
11:30 am
connell: here is a look at what is coming up on market snow. home moving off of the market quicker, we will talk to mike aubrey as those of the show power broker. we have china up promising to keep economic growth above 7% and will the numbers be what you can believe? why is brown suspension this suspended from baseball? making an item about why this could be good for the baseball business. dagen: bottom of the hour stocks now at >> caller: minutes. nicole: wendy's is doing well, working on the menu, analysts say they have the right price
11:31 am
and the right size. you know wendy's for their square burgers, dividend rose a penny to $0.05 a share. that is the big deal. they are selling 425 restaurants by mid 2014 but certainly a real winner here for wendy's and 9 interested in trying the bacon cheeseburger. nicole: good coffee. connell: let's talk a little bit about existing home sales, got buried in that number which is interesting. the median time homes spend on the market was down to 37 days in june, 41 in may so 47% faster than a year aao. dagen: and his last? the real estate agent, host of power broker, a new show on hdtv. i was obsessed with your old
11:32 am
show real estate invention because you were tough on homes. >> i don't tell people what they want to hear but i tell them what they have to hear. dagen: do you think this cannot last in terms of how fast these homes are selling? >> i don't. this is driven by the fact that inventory is low and even from the street as much as we see reports like the case schiller index, those are generally a couple months behind which is why they get adjusted. from the street i am seeing inventory coming up, mortgage interest rates go up, those days have to expand as we go through. connell: every conversation including one earlier on the show when we talk about markets and rising interest rates, get rid of bonds because if anything rates are going to go up. we can argue how quickly and everything else that has an affect on the housing market but what is the biggest effect in the near term? >> the big effect in the near
11:33 am
term is by the end of summer we will see inventory go up quite a bit. right now what we are seeing is buyers who are on the offense and waiting for the sweet spot at the bottom of mortgage interest rates are seeing that they missed it and are jumping off of the fence which is driving people to buy quickly. connell: for years people were saying rates are going down and could go down more. let me see if they do and they're coming to the realization. >> it is like standing under a bridge cadging a falling knife. you have a chance of ending with all your fingers above comes. by the time you realize what is going on, the bottom of a market has gone by. dagen: inventory on the market right now is a lot of that now people who were slightly underwater? not real-estate owned or foreclosures but people who were waiting to sell until their prices picked up and it is the time? >> exactly right. those people in that position where they were closing couldn't get out based on what conditions were going to cost or all the
11:34 am
things that go above the sales price and now they are in the window where they make the move based on low interest rate and confining move on. connell: dagen mcdowell is in to the past. will she be happy with this? >> this time power broker, working with buyers, not sellers. is neat and timely. even though the market is hot it shows you tough negotiating can be a good deal for buyers. what we do in the first half-hour of the show is we look at three or four houses and let buyers pick one and then negotiated a deal on their behalf and take the money we save in the second half. my colleague kaukauna director takes that money and turned it into their dream house. dagen: how responsible are they for misleading their customers in terms of i have heard this over and over again, not illegally misleading but you are going to miss it.
11:35 am
you won't win this property unless you raise your offer. just to close the deal encouraging people to overpaper property because you will start seeing that again because in some of these areas you see bidding wars for these properties. >> real-estate agents are the people who are out there selling the houses. they have their finger on the pulse of what is going on the market better than anyone. real-estate is local and i suspect if you see a real-estate agent who tells you you better dig in and put your fast foot forward you are on the outside looking in. connell: well done, there you go. dagen: they are just trying to close the deal and another property will come along. i never hear anybody saying that. that away and find something else you like. this isn't your dream home. there's no such thing as a dream home. you can turn a house into something you love rather than
11:36 am
overpaying for this thing. >> the power broker. dagen: really quickly can i ask one more thing? connell: of course. dagen: what is the one thing you can say when negotiating price? one mistake buyers make when trying to get the best deal for themselves? >> the moment you decide you have to have a property no matter what you have given up your power. at that point you have no power and might as well pay what they want. there are always -- dagen: that is what i'm getting at. over pay, walkaway and find another house. connell: good luck with the show and thank you for coming in. dagen: please come back. connell: power brokers at 9:00 eastern time. dagen: a big shift at the defense department but a major victory for wireless phone companies, internet companies and broadcasters. connell: and offering to auction valuable spectrum space to train the military, things like
11:37 am
drones. for that story bring in liz macdonald. tell us about it. liz: there has been a big fight between companies like at&t, t mobile, verizon and the internet company with the u.s. government saying the information superhighway is really crowded. the fcc is projecting that by next year mobile data traffic will be 35 times what it was in 2009 so we had in a reversal of pentagon saying it will move to share spectrum space that is really valuable. this is spectrum space used basically by the military for air combat and training system and drones. this is the first big federal option we have seen in half a decade. it will take place by february of 2015. here is the white house, the white house likes to this and has been pushing for this, president obama is saying this will promote economic development, we will get greater broadband speed and coverage to develop cutting edge wireless
11:38 am
technology and help reduce usage charges but the defense department has been leary of this. look at what the pentagon is saying. they are worried about addressing the critical national-security needs without any interference from other broadband users and got to weigh the responsibility for national security and operation responsibilities as well but it looks like for now this is a movement that is of foot that will wireless companies, internet companies, companies like facebook have been pushing for and we could see this valuable spectrum space auctioned off in the next couple years and i am sending it back to you guys, possible more jobs and ipod usage, phone usage this could be a plus for people who use mobile data. connell: expansion below 7% china says it won't be tolerated. stalking about that even if the country is working towards more
11:39 am
consumer and prosperous society, we will explain that coming up. dagen: what a victory for phil mickelson over the british open over the weekend but what will be paid out in taxes? it will blow your mind. connell: a comment on it like he did last time but this guy, ryan lebron, speaking of commenting on things, we will talk about his suspension and the argument from ken rosenthal of fox sports, maybe a good thing for just about everybody in baseball. dagen: even him. connell: let's look at more numbers for the markets, treasuries, we talked a lot about treasury, 2.5%, ten year yield. we will be right back.
11:40 am
11:41 am
diane: i am adam shapiro, shares 66 partners are soaring on the company's new york stock exchange, the unit of oil refiner and chemical company phillips '66 rating $378 million. from its initial public offering. the company plans to use the money for general purposes including potential acquisitions. taco bell is planning to eliminate kids meals at all of its restaurants in the u.s. around january. the fast-food chain says the future is not about kids' meals
11:42 am
but positioning the brand for millennials. it sells 1 billion kids meals each year. the programming note, liz claman will have the dean of the school, this week master business series continues on "countdown to the closing bell" at 3:00 on the fox business network. that is the latest from the fox business network giving you the power to prosper. friday night, buddy.
11:43 am
you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. dagen: the bottom line of acceptable growth in the country saying 7% is the target. connell: joline kent has more on this. >> 7% doesn't sound terribly familiar but according to chinese state media premier, told economists in a meeting 7 since -- 7% is the new bottom-line and cannot allow growth below that number so what does this mean? we have seen a lot of gdp numbers, let's do a quick
11:44 am
summary. the finance minister recently said in washington 6.5% would be, quote, tolerable with the government leader walked back and two days ago china reported second quarter gdp grew 7.5%. and back in the springtime, according to analysts what we have been looking that we can expect 7.5% at the floor for the rest of this year, 2015 and 7%, and is a limit through 2020. the shanghai composite reacted positively on the news closing up 2% and for investors this is encouraging news that made slowing growth. and support expansion, continue to invest in construction if needed. and exports falling last month since the financial crisis. he is knownore
11:45 am
candid about the state of the gdp, up and man-made and unreliable. and diplomatic cable by wiki leaks. this is a shift from 8% and something we should be watching for but this will be a number that is a very important to watch as we look at stability across the country. dagen: thank you so much. joline kent in the fox business news room. joining us is meridien equity partners, big names reporting "after the bell" today. you cannot not what chapel. >> it is the household name. don't care where you go but somebody within your reach jones an apple product. we will get earnings today, interesting susie how stock reacts. it is 450, the only problem is the expectations are always so
11:46 am
high for apple. numbers get diluted and lost in their production and what the revenue is moving forward so sometimes it gets shortchanged but i would continue to see it stuck in this range. we get a telephone "after the bell," another good name for earning season that helps investor confidence and we are seeing results in line from last quarter but we need to see the revenue and outlook moving forward. we need this sentiment to stay in this market. markets had good run and we're looking for sell opportunities. let's not give it to them yet. dagen: i am stuck for general motors later in the week wednesday and thursday, america is out buying cars, says a lot about this country. good to see you. connell: phil mickelson with back-to-back wins overseas, won at the scottish open and won at the british open. won a lot of money. big purse for phil but anti-tax bill which we will talk about.
11:47 am
dagen: the hefty price ryan brown will be paying, suspended for the rest of the season. what about the cost to baseball? we will talk about that coming up and some winners on the nasdaq. with the spark miles card from capital one, bjorn earns unlimited rewas for his small business
11:48 am
take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase everday. produce devery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] grt businees deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and rn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button?
11:49 am
11:50 am
connell: phil mickelson had great time overseas, won the british open, before that won the scottish open and a lot of money,$.2 million.
11:51 am
the tax bill, and there was some match for us, and he says after he paid taxes from the u.k. he will have to pay state taxes when it comes back. england will catch the endorsement when he was in scotland. michelob -- phil mickelson will pay 61% of his earnings though he takes home 640,000 as opposed to -- and the whole thing after that. i don't think phil mickelson way -- will be making much commentary after the last time. >> 65,000 games with no pay, suspension for the rest of the season for violation of the drug prevention program, will lose $3 million of $8 million salary. connell: ken rosenthal's from
11:52 am
sports -- fox sports, he is senior writer at foxsports.com and the television broadcast. thank you for coming in. why is it good for baseball? >> because it proved that the sport is serious about cracking down on use of performance enhancing drugs even beyond its testing program. this is not a case where ryan braun tested positive. it caused based on its conduct with biogenesis that the aging clinic in florida investigation on its own andy was unprecedented in terms of what professional sports leagues had done to eliminate it. dagen: do fans care about this? are they going to stop watching the sport and stop going to games? >> no. if anything, what baseball has done has restored the faith of fans to some degree.
11:53 am
at least of sport is trying to clean it up. it won't be clean. but fans do care, i would hope, about the playing field, this has come over and over again with players who use, they have an advantage and take their jobs and money. it can be a moral question. i get that but at the same time i would think fans would want to see an even playing field between their team and another. connell: that is a financial question. i allays thought the incentives of this are interesting from a financial point of view, people said for years baseball, in its interest to have a great product on the field so they will look the other way. you obviously covered this on the major-league level. the quick thing i would add is one year of radio minor league
11:54 am
baseball happened to the 1998. so my experience talking to players off the record they would not admit about themselves, make $100 a month and i have a shot to get up, whatever the minimum salaries i can make 1 million and on and on. that is not going to change. >> days will always existed if you are of mediocre player on the edge you might become a better player, keep your job. there is the real temptation and what i am not sure i could resist. dagen: he loses $3 million, what does he make next year? >> it is a very interesting case, he is losing 2% of total career earnings which will be by the end even with guaranteed contracts over $150 million. you can make the case that for him the risk was worth while.
11:55 am
the only problem is his reputation is shattered. connell: will alex rodriguez ever play for the yankees again? >> difficult question to answer. my guess is he will not play for the yankees again. not as certain about major league baseball. to get to that point, it will do a lot of negotiation and work with other insurance companies. dagen: fans don't want him back. we will keep reading you and watching on tv. dagen: please come back. connell: august 17th. dagen: oh yes, what we find about? i could not be more excited. have to watch espn. connell: a lot of time they do well. we got to go. dagen: apple earnings are out "after the bell". can't tell you what they are
11:56 am
going to be but we can debate it. that is coming. connell: another problem for boeing. the landing gear that came off of the plane and collapse, we will have more on that and look at the stock as we continue on markets now. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistct shoing ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪
11:57 am
11:58 am
11:59 am
cheryl: i am cheryl casone. dennis: i am dennis kneale. we're holding on to some gains, wall street focusing on apple earnings "after the bell". is it a buy, sell or hold? we debate it ahead. cheryl: more head winds for boeing, another problem with the airlinemaker as investigators try to figure out what caused the landing gear on a 77 to collapse at la guardia last night. we will look at the long-term impact on the stock and the aircraft. dennis: what is bugging me?
12:00 pm
food stamps. and february fix or dangerous addiction demy take that and i want to year from you. cheryl: you don't want to miss this, tv going to the dogs literally. we will talk with the ceo of dog tv. it is so exciting. top of the hour, stocks every 15 minutes, nicole petallides on the floor of the stock exchange, what you watching? nicole: we turned the t v on, the dow, 10 of the last 13 trading days hitting a record all-time intraday high above that 15,600 mark, holding on to gains of 18 points with the drug index and bank index to the downside the the dollar has been weaker and some names that are not looking good including united technologies, dupont, dupont pouring some options for its chemicals on one particular arm of the company like wendy's
12:01 pm
doing well after its quarterly report and netflix disappointed to certain extent but the big picture is a great run on wall street, straight weeks of gains and today is a record-setting day despite the fact you see a pullback. dennis: our next guest says despite some disappointment from big names on earnings like mcdonald's, growth is still set for a come back the second half of the year, and investment senior portfolio manager joins us now. what is the reason for your optimism which i welcome? >> i think the economy is in the healing process and we are growing at a stable rate. corporations are profitable. the economy is doing fine. there is tailwind in the economy, things like housing, energy, capital goods spending by business, the things that provide a positive underpinning for the economy and corporate profits are still intact. we have come a long way but
12:02 pm
don't know why we can't go higher. we are not overvalued. dennis: what about with theory that says the rise in stocks is a souffle of hot air fed by the fed? >> i have been hearing that two to three years. the fed is supplying money into the economy, not as much as people think. they are supplying the money, buying bonds and that will end eventually but when it does end it will end when the economy is so strong and standing on its own two feet so well the week and a broth and be just fine. dennis: disappointing report on existing home sales in may, less than expected, head winds they always talk about. might this mean that the fed can continue lose money and stocks continue to rise or is it more because of real economic progress? >> the fed can supply money to the system. they upset two metrics, and
12:03 pm
employment needs to go below 6%, and they need to go above 2%. even if we cave tour of but i still expect bond bind to go on. and it is getting better and better. dennis: you also like utilities which is a more conservative sector. >> the utility had got hit hard when short-term rates spiked in a month or so but these stocks in general hold some value. dividends they pay are all of -- well above the 2% the ten year treasury pays and there is value in the cash flows to the attractive to investors. dennis: you mike verizon and dan at chemical co. verizon first. >> i think verizon is a great company to own. they pay a great dividend, they continuously beat on the earnings side of the table so
12:04 pm
their margins are continually expanding. is not the fastest revenue grower but they own the best telecom network in the country. the company will continue to perform well. i think margins will expand and you will make a decent return going forward. dennis: what will happen with buying out vodafone? it owns their cellular wireless business and apparently cost them $100 billion to get rid of that and doubled what will happen and tell us about vanguard. >> m&a activity, there is speculation they may buy out their piece of wireless and make a foray into canada. whatever they do they won't do unless they think it can add value to the total picture so i would be positive on in and day moves and american vanguard corp. is a small-cap company, in the agricultural chemical sector of the market. imagine a smaller dupont. they have a great niche and growing product line in the
12:05 pm
props and plantable land in the world is finite and the things they provide will help expand the yield out of there and they had a setback because of the wet weather but the story is intact. dennis: thanks for being with us dagen: update you on that crash landing at la guardia airport late yesterday. the new york airport is fully reopened following a malfunction with southwest airlines operated boeing 737, the aircraft's landing gear in the front but the link which led to a hard landing skidding on its nose. no one was seriously hurt, including three crew members. this, another headache for the aircraftmaker boeing. joining us from washington before -- for four years we had
12:06 pm
such a safe run for the jet industry the best since jets were first invented. three crashes in the last two weeks. what is going on with these incidents? what is going on with boeing aircraft? all of these planes were boeing planes. >> that is true. they are boeing airplanes and they have problems with the dreamliner but this 737 is an airplane that has been around since 1968. it has been the most successful airplane in the history of aviation so to relate one with the other is improvident at this point. the question is should the pilot has recognized the nose gear wasn't fully extended? there are indications in the cockpit whether three elements of the landing gear which includes the nose gear is down and walked. cheryl: let me stop you because that is the warning system and i have heard those warning systems. there's an issue with the
12:07 pm
landing gear they're incredibly loud those sirens going off in the cockpit but no communication from the pilot to air traffic control, no indication from any of the crew members that anything was wrong so you have to look to potentially a mechanical error that the pilots were not aware of. >> from what we see so far they didn't have the indication. if they did they would have communicated to the airport and the dollar around and put the emergency gear out in preparation for such an accident but to say that it is inherent in the boeing product at this point is improper. this airplane has been around too long. the dreamliner is another problem. cheryl: the triple 7 is pilot error as well. >> also in that case an interface between the electronics and the pilot which is an ever growing situation. it is not good for boeing
12:08 pm
because boeing's flag is only on three airplanes but to really want to the other would be an improvident conclusion to draw at this time. cheryl: to have a nose gear fall from landing there was no indication of any issue whatsoever, is incredibly rare. the 737, 700, one of the newer versions. these were meant to why and. any idea what will happen with the plane? >> it is speculation. and what was maintained in that beer, as far as we know is not an inherent problem in the 737. what middle is known about this
12:09 pm
and in this investigation, if there are any maintenance problems. cheryl: thank you very much, appreciate your perspective. i am going to get reaction, going one on one with the head of southwest airlines, ceo, he is this fair is a reporting quarterly earnings, and we will discuss what happened at la guardia on thursday. dennis: food stamps are out of control, n.y. post says new yorkers on food stamps are loading the big barrels with foodstuffs and shipping them to their relatives in jamaica, haiti, the dominican republic, the practice is illegal but supermarkets stock 45, 55 gallon barrels to help these people do it. it fills a need. if you can afford to skip and ship you should be on food
12:10 pm
stamps but the feds want you to be. president obama like a food stamp president increased spending 46% is first year in office and now we have fifteen million people on food stamps uu 68%, it is up even more and doubled in four years. radio ads tell us about food stamps, grease or managers of fis you on how to get the maximum benefit. and the debit card, shame free. and are rigged clogging junk food, any time government entitlements store, fraud soars with them. and food stamp nation, temporary fix, dangerous addiction. cheryl: i read that article. dennis: we give them direct aid and you are not supposed to do that. cheryl: all right, we've dennis
12:11 pm
kneale for that one at fox business and as investors prep for apple earnings "after the bell" we will have more on the reports that apple is working on a larger i phone screen, the debate ahead on whether you should buy, sell or hold on this. dennis: the ceo of dog tv why you want to pay to entertain 50. as we do every day at this time we look at energy.
12:12 pm
12:13 pm
12:14 pm
cheryl: three big dow components coming down with earnings, the stock is actually the leader in the dow. interestingly because they had a revenue mix. that is one story we are watching and look at dupont coming out saying largest u.s. chemical company in the nation right now coming out, they actually missed a little bit. stock is higher. travelers actually blew apart when it came tooearnings and revenue. the drag on the dow, this is how markets go. quarter after the hour time for stocks. nicole petallides on the floor of the stock exchange.
12:15 pm
nicole: getting a close look at yum brands, the parent of kfc, taco bell, pizza outlets, looking at taco bell in particular because it says now they are going to discontinue kids meals and first and toys at the restaurant and they will begin the removal in july with nationwide implementation anticipated by january. they said it is not part of their long-term strategy, had an insignificant impact on their system sales because what was interesting was an interesting article in wall street journal, maybe it was an insignificant part of sales but is this actually in response to the growing pressure from thousands of parents and health professionals across the world who have been saying these fast food places like taco bell and mcdonald's are marketing junk to kids. i didn't even know taco bell had a kidney. but i think it is parenting
12:16 pm
whether your kids are eating junk. cheryl: the food police, that is why you're getting rid of these, i grew up in arizona, taco bell, okay, thank you very much, well said. dennis: make a little money with charles payne looking at semiconductor ram research corp.. what do you say? charles: this whole space obviously semiconductors. we are trying to pick the best one. will appleby samsung and all that. let's start betting on the chips and the companies that make equipment for jetmakers because one thing we have seen, ships, these chips have outperformed gdp growth around world and as j.d. -- as gdp goes up this will be huge for the entire industry and we got mobility, cloud computer, greater complexity within these things. finally this stock will be on the verge of a true break out. the true break out as a 52 week
12:17 pm
chart, stock closes at a 52 week high on better than average volume. that is a gigantic buy signal, not a sale signal. i'm looking for a minimum of 57 but longer-term north of 60. dennis: is that happening right now? looks like it could. charles: we close above 51 but i would like to see strong volume, twice the daily average. that will be a huge signal light you see a lot of smart buyers chasing from there. cheryl: we should be looking at the smaat phone makers, and rea talking about verizon, the phone companies, going in a different direction. charles: you want to pick the best airline, picking companies that make airline parts, airplane parts, pick the best car company, picked apart company that makes the car parts and -- and the makes money, and every time we look at that, where they are in mobile.
12:18 pm
handout raised by the mobile switching. charles: they make the equipment that chipmakers buy from them so they are ahead of the curve with respect to all of this. these stocks don't move often, they become omentum stocks. cheryl: waiting for the first look at the royal baby. royal cambridge they're calling him. the crowd gathering outside the london hospital. dennis: watch out for the silver spoon. a senate committee, rising aluminum costs, important because they are paying more for a can of soda. 1 wall street firm will corridor the worldwide market. let's look at how the currencies are faring with the u.s. dollar. [ male announcer ] the mercedes-benz summer event is here.
12:19 pm
now get the mercedes-benz you've always dreamed of. but hurry...becau a good thing like this won't last forever. here you go, honey. thank you. [ male announcer ] see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. ♪ do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. ve it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your wallet?
12:20 pm
12:21 pm
and so too is the summer event. now get an incredible offer on the powerful c250 sport sedan. but hurry before this opptunity...disappes. the mercedes-benz smer event ends july 31st.
12:22 pm
>> your fox news minute. british public still waiting for a un name and their first glimpse of the 8 lb royal baby
12:23 pm
boy, he and his parents, prince william and kate will remain at st. mary's hospital overnight. and they're doing well. parents moving and grants and scholarships instead of their own money to pay for college according to a salary may study. average prayers spending for college costs dropped by effort compared to three years ago. and pro ball for a phil mickelson,.-- or take out. and california taxes if you live there. and final take-home winning their seventh thousand dollars, 60% tax rate. really? and it is not my money.
12:24 pm
>> thanks very would much. dennis: the banks win, you pay, from wall street's biggest banks in the cross hairs of regulators and global price-fixing scheme for your can of beer. rich edson in washington with latest. >> beer, coke, anything in an aluminum can might cost more fix the country's largest banks. that is what the beer brewers are saying. subsidiaries of goldman sachs, jpmorgan and others own warehouses and store aluminum. and the warehouses slowing aluminum delivery. increases warehousing and storage fees and drives up the price of aluminum. >> imagine a warehouse with a huge door marked in and a tiny door marked out. in japan and incentives, this makes it harder and more expensive for other aluminum
12:25 pm
consumers to get the aluminum we need for products we sell to keep our employees working. >> the london metal exchange regulates the aluminum warehouse system, in response they own the warehouse operation story metal zoned by investors, they control 8% of the market. 89 any scheme, and a 40% lower than they were in 2006. and not driving up the price of aluminum. congress and the federal reserve looking into regulations allowing and controlling bank's ownership of warehouses. power plants and other business plants. dennis: let the bank bashing continue. thank you, rich edson. cheryl: the fox business or time showdown. we are down to 7, to be the result of the monthlong stock plays, this friday we will say
12:26 pm
goodbye to rob morgan or jim fritz lang and they have more than their reputation on the line. >> this is rob morgan, chief investment strategist with fulcrums society in philly. i bet philly chief picks yours. i am so confident that if you win i buy you two. >> looking forward to summer time showdown, rob morgan and i accept his challenge and i will match it with new york's best pizza. cheryl: philly cheese sticks versus best beat the. loser pays up, got to watch the show down, thing to see who's pick. dennis: what is bugging me? food stagnation, temple larry fix or dangerous addiction? still time to tweet me your answers. we will read some of the coming up. cheryl: wall street focusing on apple, those results coming "after the bell" today but is
12:27 pm
the iphonemaker going to be a home run when it came to iphones? a full debate coming up. dennis: tv station, you heard that right, pixels for puppies. the c e l of dog tv is ahead. (announcer) at scottrade, our clients trade and invest ex. with scottrade's online nking, i get one view of my bank and with one login...nts to easily move my money when ie. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i n't trade like evi'm with scottrade.ke me. (announcer) sctrade. awarded five-stars from smartmoney magazine. alyour itant legal matters in just minutes.
12:28 pm
protect youramily... and launch your dreams. at legalzoom.com we put the law on yo side.
12:29 pm
12:30 pm
dennis: it is the bottom of the hour. the dow is doing pretty well. 15,572. early in the morning we did open on and intraday high. somehow, we are still ending up a little worried. let's see what cheryl is up to.
12:31 pm
cheryl: it will be all about apple. this is the iphone four. there are reports that this company is assessing a bigger screen for its next iphone. there is the manufacturer. reports came out in the journal yesterday. apple is working with suppliers over and asia. samsung, they are the ones that have that major big-screen. we have howard rooencrantz in studio with me. we also have scott kessler. the iphone will be half of the
12:32 pm
revenue and sales will be strong. >> i am thinking that the black magic is way behind them. i will focus on the three c's. the first being the category. it is not nearly as hot as it once was. samsung's recent offering is not as hot. they are a vertically integrated player. samsung continues to introduce better -- now you have a player like google. google cares about making money on one metric. that is search. the last category that i will look at is the customers.
12:33 pm
cheryl: you told me last night that the phone companies hate them. >> they hate them. they want to get the subsidies down. margins will go down and earnings will continue to go down. cheryl: do you agree with anything that he just said? >> first of all, i do not know how you care to rise strong. cheryl: i think $36 billion, that is the general estimate, i think thaa is pretty good. >> that is reasonable. not the growth that we solve. a lot of the commentary, customers don't like them, the
12:34 pm
phone companies don't like them, the reality is, though, there is still a market leader even if they had not had a new product in the market for nine months or so. cheryl: apple is the leader. samsung has to be globally. >> samsung spends a lot of time and money on lower margin products. apple likes being a leading provider of the high-end phones that they have come to be known for. first of all, for all of the issues that we are talking about , it does not seem like
12:35 pm
apple has lost a lot of share. people still love their iphones and ipods. i think what is going on is switching costs are high. you look at the notion of stickiness. if you look at customer satisfaction, higher than anyone else. >> right now you are waiting for the june quarter's. everyone is waiting around for the new iphone. this is really going to be the end of the era for apple. the i watch, all of the other suggested products. cheryl: apple tv.
12:36 pm
>> the estimates will continue to go down. cheryl: you are saying that they will miss and scott is saying they will come in minimal. we will find out. gentlemen, thank you. we will see what they say. dennis: cisco is buying source fire for $2.7 billion. we will talk with chris young had. cheryl: a television channel just for your dog. we will be right back. ♪ i want to make thgs more secure.
12:37 pm
[ whirring ] [ dog barks ] i want ttreat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you wanto take your business? i need help selling art. [ male announcer ] from broadband to web hosting
12:38 pm
to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ ♪ dennis: here is your fox business brief. consumer confidence in the second quarter rose. this according to a survey by global information and insight. portugal remains the most pessimistic. starbucks is entering the joker business. teaming up with cnn. it will be available next year.
12:39 pm
this programming note, liz claman will have the deed of the tuck school as this week's master of business school continues on countdown to the "countdown to the closing bell." that is the latest from the fox business network. giving you the power to prosper. ♪ our one millionth stomer. nobody lik to miss out. that's why ally treats all their customers the me. whether you're the rst or the millionth. if your bank doesn't think you're special anymore, ally. ally bank. ur money needs an ally.
12:40 pm
cheryl: dogs. they have it all. why not their own tv station? .tv will be available to direct tv subscribers and their dogs. dennis: do you have carriage on this? >> we will be on channel 354. we are very excited.
12:41 pm
you can subscribe for $4.99 a month. dennis: this is a show really truly for dogs. >> this has been used for over 40 years. >> good music, soundtracks and things that make them enjoy it more.
12:42 pm
cheryl: you are trying to stop them from getting bored at home and keeping them call. there is no parking on your program. >> yes. we do not want any barking. dogs spend many hours a day home alone. they are bored. they are scared. they are lonely. cheryl: it is not shot like regular television. >> dogs are actually colorblind.
12:43 pm
we love dogs. giving him something in the background, they will not be sitting there for eight hours watching tv. we are looking forward to being in many homes. cheryl: thank you very much. >> we will get them to watch fox business.
12:44 pm
cheryl: let's head to the trading pits of the cme. we are down about $1.80-$1.90. a lot of reasons for the gold come back is talk about a tightness in supply. we have one of the biggest speculative in the gold market. we are seeing a bot of that get covered. we could see a squeeze play. cheryl: fell, thank you so much. >> states are setting up health care services.
12:45 pm
we will tell you about one big insurance company that will not participate. dennis: it is what is bugging me. food stamp nation. your last chance to tweak me what you think. your thoughts ahead. ♪
12:46 pm
12:47 pm
12:48 pm
dennis: profiting from the cyber threat. source fire is on fire today. chris young is a vice president at cisco. he joins us from baltimore. thank you for being with us, chris. what makes it intelligent?
12:49 pm
>> source fire has a tradition in investment and security. they are one of the best at finding the most advanced threats. the market cap says it is 2.35 billion. dennis: why such a nice premium? >> we have been working with the source fire team for several months now. we have been working on a way we could deliver. the combination combined with the product portfolio that they have, we believe it is one of the more powerful combinations.
12:50 pm
dennis: it seems like it is cisco's responsibility to make sure that it is baby proof. >> we have a strategy that has three pillars. we partner very aggressively. we have opened up a very large partner ecosystem. source fire brings us tremendous expertise. we felt that we needed to bring them into cisco to get the value in our portfolio as well.
12:51 pm
dennis: has it basically increased the need for cyber security? >> the increasing threat landscape. they are more focused and more funded. our customers are drowning in security tech knowledge ease. they have turned to companies to bring them integrated security that can help them deal with a bot of these challenges. security is top-of-the-line for everyone out there in the marketplace. cisco and source fire are now together. they can do with the problem
12:52 pm
once and for all. dennis: thank you very much. you are a living powerpoint presentation. chris young of cisco. congratulations on the deal. ♪ cheryl: time for your west coast minute. united health group, arizona's second largest group is foregoing the exchange. take a look at these healthcare stocks right now. san francisco, planes with advertising may be banned. legal experts may object to this.
12:53 pm
an arizona -based farmers market planning to go public. the underwriters include goldman sachs, deutsche bank, barclays and more. that is your west coast minute. dennis: here is your media minute. univision, you have arrived. the network ranked number one in adults under age 50. four decades, they have all new
12:54 pm
original programming. in the key demo of 18-49, univision is up. our sibling is up 24%. take that. this just in from the department of my enemy. time warner cable says if they do go dark, it will urge customers to switch. earlier i asked you on your thought of food stamps. >> it should be for food staples only. no booze, tobacco or lottery
12:55 pm
tickets. cut entitlements. the worst thing you can do to a poor person is make them comfortable. this may be a good indication that reform of the food stamp program is in order. be a little bolder. cheryl: a kind of goes back to the issue of medicare and medicaid. dennis: let's remember college loans. fraud soars when government spending soars. cheryl: there you go. that is it for us. coming up, creative moves that are costing the aluminum industry.
12:56 pm
dennis: apple earnings are up after the bell. what it will mean for the tech giant after the bell today. cheryl: tender is ready to spark a fire. will they actually cash in on this one? adam and lori coming up next. adam shapiro and lori rothman, we will give them last names. ♪ [ ghostsoani ] surprise -- yourar needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. it's just common sense. trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment.
12:57 pm
axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate breast cancer. women, especially those who are or who may become pregnant or men with prostate breast cancer. and children should avoid contact where axiron is applied as unexpected signs of puberty in children or chang in body hair or increased acne in women may occur. report the symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prosta symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problemsreathing while sleeping; and blood clots in t legs. common side effects include skin redness or irritation where applied, increased d blood ll count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the on underarm low t treatment, axiron. peace of mind is important when so we provide it services you bucan re on. with centurylink as your trusted it partner,
12:58 pm
you'll experience reliable upme for the network and services you depend on. multi-layered security solutiond secure. and responsive dedicated support ets your needs, and eases your mind. centurylink. your link to what's next. bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] ors small busiss earns double miles
12:59 pm
on everyurchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth y ttle for less? ahh, oh! [ garth ] great businesses deserve limid reward here's yourake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? lori: i am lori rothman. adam: and i am adam shapiro. what the earnings may be saying about the broader economy. lori: prices dropping and users opting for older versions to save money. dennis: move over lawnmowers and
1:00 pm
dishwashers. sears trying to look luxurious. lori: in the red-hot. a quick yes or no all based on your picture. it is linking couples and second. two prophets come that fast? let's get an update on the markets. nicole petallides watching the earnings report from some major names after the bell today. nicole: i got a little giggle. it will be interesting to hear about it. the dow jones industrials up about 22 points right

132 Views

info Stream Only

Uploaded by TV Archive on