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tv   Markets Now  FOX Business  July 26, 2013 1:00pm-3:01pm EDT

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are charges coming for steve calvin? is the indictment enough to put the term out of business? team coverage in moments. dennis: down day on wall street even as u.s. consumer sentiment jumps to pre recession levels. ahead s&p capital iq stands stovall on what will push them above the key 1700 level. lori: battle royal brewing over who will replace ben bernanke, janet yellen versus larry summers. what the white house is saying about it now. dennis: in may of the fed's resources but if you have a few bucks burning a hole in your pocket we can help. stuart: get big ticket items that would taught your to buy list. a look at the top picks for 2013. the best of the best. webmac let me parallel park the afton martin. a state of the markets, on the floor of the stock exchange. contractors napa four week winning streak. nicole: we are looking at a
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margin that has down arrows, the dow is down 150 points, has come out of the lows the last four weeks of all been gains. this week is looking like a losing week unless something changes, we will be snapping that winning streak. 15,543, we are well below that. nasdaq looking like it is going to lock in some losses, down six points. a majority of names to the downside and activevision, the vendee selling off its majority figure told part of it but you see 15%. back to you. dennis: thanks, nicole. to the latest developments in the case against sac capital, team coverage, adam shapiro outside lower manhattan's federal court house and charlie gasparino with what is next for as ac and steve coin. let's go to you first.
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lori: or start with charlie. adam, we got you. let's go ahead. sorry about that. lou: -- >> the issue was passed out loud and everyone was playing nice from the attorney's office as well as the defense team. what was perhaps getting a head line is the amount of discovery, the evidence the government has at this point as it is building its case for trial and discussion of wiretaps. wiretaps were crucial in the conviction of raj rajaratnam from galion and the insider-trading case. in this case wiretaps, no mention of richard lee, vaughn man who is cooperating with the government, who came from another hedge fund, quoted in the indictment as being part of an insider-trading circle, the hedge fund from which he came, denied there is an insider trading circle at their office but the bottom line is we are in
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the beginning of building the case and the government has to put up or for lack of a better term shut up and what they put up will include those wiretaps. we did get a quick chance to ambush the attorneys as they came out to see if they would explain why stephen cohen has not been charged, how he feels about that, the spirits of the people at sac because that is a term that will be doing business civitan with a lot of people withdrawing money. >> are the spirits of the people? are people dispirited by what is going on? at a loss of words other than fine, everyone is just fine. dennis: we have got charlie gasparino who knows a much about this as anyone else. >> peter looks really find. that was a vote of confidence. you could tell nothing has changed the sac business as usual.
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this place for lack of a better word as a business is just about done. i am not saying they're guilty. they are innocent until proven guilty but with an indictment, banks -- when banks get indicted people stopped lending them money so they essentially go out of business. when banks start pulling money.gov mfglobal lending money they can fund themselves. funds are different but you got to get people to trade with you and will be hard for wall street firms to trade with a firm that is indicted. not saying it is not happening but it is very hard for funds to keep their investors in a firm that has been indicted and open up to tremendous liability if they lose. they are out. the future of sac capital, i will tell you this. based on the record of the u.s. attorney from the southern
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district is almost zero. dennis: sac. >> for the chance of the government losing and sac winning is very low. the u.s. attorneys for the southern district is one of the best conviction records. cheryl: are we talking guilty until proven innocent? they pleaded not guilty. >> i am just telling you, giving you facts and figures and my best guess what is going to happen. can't tell you who is guilty. the cases they bring they generally don't lose and the question is:. he hasn't been charged but i will tell people this. i don't believe insider-trading as the crime of the century. of government does with i think the victims are nebulous. i wrote a book about this. i try to be intellectually honest but the government thinks it is really bad, hurt investor confidence. if you believe insider-trading is bad this is a very compelling case. this is a hedge fund where it was allowed to exist for long
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time and we are done with it, they are done, we will indict the company. we don't know enough about the guy in the middle, insider-trading is hard to prove but the firm itself so much of it occurred there is nothing else we can do. this is not a bad case. it is not. lori: i am sure we will see you throughout the day. let's get in an insider's look. for that we turn to former u.s. attorney this and the district of california thomas o'brien, litigation -- thank you so much for joining us. you tried dozens of cases like this as a u.s. attorney. do you think the next step is criminal charges against steven cohen or as a former u.s. attorney if you were investigating and putting together this indictment would you have pushed to charge stephen cohen himself? >> i can promise you this, having been in that seat,
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stephen cohen was clearly a target of this investigation. i promise that there were many robust discussions, some might call screening matches prior to the indictments being handed down on whether or not to charge mr. cohen himself as head of this hedge fund. i promise one of the things the fbi does is investigate. they are aggressive, spend a lot of money and time and resources. you can see over the last months if not years individuals from sac who have been charged, who have cooperated with the government, the ultimate target was mr. cohen and the indictment handed down yesterday specifically did not name him. dennis: the indictment handed down yesterday indict the firm but says nothing about steve coin. some believe this is just a witch hunt aimed at a big fish to teach a lesson to the rest of
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wall street and yet can't manage to get big fish. the editorial said this morning, basically the charge essentials least as sac is a financial version of the soprano's without a broken bones. if all of that is true why hasn't the government indicted mr. coin. can a criminal enterprise be run by someone who isn't himself a criminal? the journal says this is a troubling case, not only because of the government's use of such a bruised force, what do you say to that? >> not sure it is brewed force. by the media reports what the government has done is put together an investigation, the government being the sec and the department of justice it has been a lousy few months for as ac. of few months ago they coughed up $600 million to settle insider-trading charges against one of their portfolio managers. last week the sec filed
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administrative proceedings against mr. cohen essentially accusing him of being a poor supervisor and now criminal charges were brought yesterday. at this point there appears to be insufficient evidence to charge mr. coin. i would guess the government police are awfully close. there are several other individuals about to go on trial the next few months. i would speculate that the pressure will wrap up on them from the government to try to get them to cooperate. the government has been looking for that one piece of evidence that will link mr. cohen to actively engage insider-trading knowing information he received and act on was something he shouldn't have received. the government does not have it. cheryl: i they making animation to crack down on wall street or does that go into his in box? >> he is well known, well respected by the department of
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justice for taking on this need. 93 u.s. attorney offices around the country and the u.s. attorney's give great latitude by the president and the department of justice to use his or her resources as they see fit. being in manhattan, has always had a strong role on insider trading type cases. this u.s. attorney has taken it to a new level. as charlie said they have been very successful and i promise you this indictment, the u.s. attorney himself was extremely active and his fingerprints are all over this indictment. dennis: who got hurt here? i read a headline in the journal saying clients of as they see capital have billions in the firm were actually worried they would be forced to pull money out of the firm still would seem they were doing a good job serving its clients. who was the firm's target? >> you hit a great point. why are we charging, why is the
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government charging a company, a hedge fund, what is the implications of that? it is very rare for the department of justice of reasons the arthur andersen collapse for the department to charge for collateral consequences. i am sure the sec attorneys made to the government over the last few months over 1,000 employees around the country if not the world, few if anything have anything to do with the allegations and by charging the company you risk what you're talking about now which is money being pulled out of the hedge fund, secretaries, staff members, other traders, people who have no knowledge of any of these allegations the going to be on the street looking for jobs and the argument from defense counsel is that is not fair. dennis: is this term dead? can i have my reputation back? >> that is a market decision, not a decision i can weigh in on
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as a criminal defense attorney. clearly that firm is severely damaged and whether it survives or not is difficult to tell. lori: what is the next step? stephen cohen's name, mentioned all over the indictments, is there anything we as everyday people should look for, listen for or whether or not charges are still ahead? still to come? >> sure. going back to what adams said in front of the courthouse people are playing nice and playing nice will stop today. the discovery will be provided to defense attorneys who will go through and look for evidence they can use to defend the company and you can see i expect for the fbi and u.s. attorney's office finding one more piece of evidence which will move mr. cohen from being referenced for robin diamond, too a
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co-defendant. lori: thank you for joining us, appreciate your time. >> my pleasure. dennis: more than a cup of joe for starbucks. the world's largest coffee shop banking done something else to boost its business. lori: and the best of the best which costs more, a 13 porsche carrera or that watch? we will tell you what is ahead. dennis: investors are cashing in their chips today.
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lori: let's check the markets with nicole petallides on the floor of the stock exchange watching zynga and expedia. nicole: they're having a tough time and that is an understatement because zynga is down 14.5%, expedia down 25.5%
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and give you our shareholder you are really upset to see the numbers. let's talk about zynga which really there were hopes for online gaming. it turns out that was going to be the sole lifeline for zynga and they are going back to crucial gaining and people are not coupled with the fact that their sales fell 31%, the number of users dropped, not good news, down 14.5%. expedia when you talk about online travel, price line is down as well on this expedia news down 25%, their earnings fell. analysts across the board are cutting their numbers because their quarterly profit fell short of analyst estimates facing intense competition. outlook is under pressure aad you can see the results are down 25.5%. dennis: a slippery slide for crude. oil prices down 3% on the week, trading at $104 a handle and phil flynn of the price futures
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group in the trading pits of the cme. >> they slipped below $104 a barrel but there's a lot of concern about chinese demand and tropical storm dorian and what it is going to do next week but more than anything we are worried about the fed and china. but at oil, did down to 10390 and 10456 and it was the latest report on tropical storm dorian seems to be losing a little bit of momentum. when we go into other markets would like precious-metals and copper right now copper is getting slammed. dennis: what about gold? still on track to a an end the week higher? >> we are down a little bit but it is looking at the copper and that market and getting ready for the fed next week gold has had a pretty good run from the lows of 1200, probably seeing
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some profittaking as we get into next week. those concerns about china as well and he physical demand side could come in play if people in china lose jobs. dennis: phil flynn of rice futures group. lori: you heard how saturated the smart phone market is. competition is heating up. the top ten named in the industry see a rocky second quarter, and iphone sales increased by five million units. the tech giant declined to 13% in the second quarter down nearly 17% a year ago. the other smart phone giant coming up short, south korean posting second earnings miss analysts' earnings. and a flag ship for galaxy x 4. dennis: that market share lost for apple is a stunner.
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and it will develop -- a less mature network and neat cheapy phones and samsung better than that. lori: the smart phone boom was fantastic and helped the economy coming out of the great recession and exaggerated so fast too. dennis: the watch or the glass or the hearing. lori: you will want to stick around. dennis: for get access to servers at google, facebook, microsoft. we are learning the government is gunning for your password. detail ahead. lori: the fight over the next fed chief, said secretary larry summers and is the fray.
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>> 24 minutes past the hour your fox news amended. attorney general eric holder is assuring of the russian government u.s. will not torture or seek the death penalty for ed
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snowden but president vladimir putin's spokesman says russia will not extradite ed snowden to the u.s.. ed snowden has asked emporia asylum in russia. though lincoln memorial is temporarily closed, park service workers clean up the green paint early this morning but authorities say the damage to the monument is not permanent. u.s. park police are reviewing security camera footage but so far no suspects have been identified. in cleveland aerial castro pleaded guilty in a deal to avoid the death penalty, he had been awaiting trial on 1,000 counting quitting kidnapping and rape of three women he kept captive for more than did the. castro will spend the rest of his life in prison without parole. those are your news headlines. back to lori and dennis. lori: a battle royal brewing over who will replace ben bernanke.
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federal reserve vice chairwoman janet yellen, a former secretary larry summers and rich edson is in washington with the news that the white house is remarking. rich: senior administration officials saying we should and expect the president to narrow down his choices and submit something or a nominee until sometime this fall when all these budget battles are happening in washington but wouldn't you look a what the report as been lately the favorite had been janet yellen for some time though larry summers's and she has been popping up in the number of reports lately. when you look at summers's chances in the senate this is something that would go through a u.s. senate confirmation process he is running too a little trouble with senate democrats especially the more liberal senate democrats. there is a letter started by senator sherrod brown according to senate aides who were picking janet yellen, supporting her nomination, the president should the nomination and won fed watchers said it was because
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janet yellen would have an easier time in the senate. >> i think she would have an easier time. larry summers has a history of saying things that are controversial that i think he will be asked about and i think he was on the wrong side of the issue about deregulating financial markets before the financial crisis. >> this nomination would go through the senate and banking committee, ben bernanke's term ends january 31st of next year. dennis: the fed pumping $85 million a month into bond purchases to keep interest rates low. for that money you could pick up a few of these. the robber report's best of the best picks of 2013. cheryl: some lori: markets, the dallas in the in the red to snap a four week winning streak. sam still all next on how to get the bulls back in the saddle.
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customers as buying anything from tea to juice, bakery companies. they have been expanding. they have 19,000 cafes around the world. they're doing well here at home, well internationally and so their earnings really help them to show better profits and really surprise wall street certainly and that's why you're seeing it as a real winner on a day where there are some losers. it is up over 30% this year alone. this one is often busy on the floor of the exchange. i will tell you i have a card which is connected to my american express because it is we'll a food group for me. cardholders since 2008. so i don't know, anybody else have a card since 2008 that shows you there are some people who really love starbucks. dennis: thanks, nicole. i like kahlua in my coffee. i hear they're experimenting with alcohol. i'm in favor of it. for the week the markets are relatively flat with busy week in earnings and a majority beat
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expectation. it wasn't enough for the market to celebrate. sam stovall, s&p capital iq joins us now think the s&p is headed from here. you talk about a new catalyst being needed. >> hey, dennis, absolutely. i think we're going through a bit of a consolidation right now mainly because we got very close to that 1700 century mark and i find anytime you come up to a century mark the market tends to pause because it acts as a rusty door. so it will require several attempts before it finally breaks open. and, yeah, we're looking for some sort of a catalyst. maybe getting better than expected second quarter gdp next week. maybe getting better payroll data could help. we'll have to wait and see. dennis: so the second quarter gdp, this is the first estimate coming out, right, on gdp? so and wall street wouldn't say it was a backward looking number. we don't care. that might be enough to get people hopeful? >> possibly. right now the bar is set very, very low. only one half of 1%.
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so if we end up with a number that is still equal to or less than what we got in the first quarter at 1.8%, think a lot of investors will say, maybe we'll see the fed start tapering program in december or maybe even wait until the beginning of 2014 which as you remember really sort of sparked the markets activity in the beginning of this month when the expectation was delayed a bit. dennis: right. stocks had a fantastic first half, up 15 to 20%. second half, no way we'll rise another 15 to 20%. so where do we go in the second half? how much higher can it go? >> well you brought up a good point a lot of people like to say we did really well in the first half so as a result we can't do well in the second half that we'll run out of steam. history says the opposite. dennis: oh. >> on average we end up with 4.2% gain in the second half regardless what happened in the first but if we ended up with a
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strong first half, 10% or better we ended up gaining 7.5% in the second half. the frequency that we saw in advance went to three out of over four years versus two out of every three for all years. so -- dennis: momentum feeds on itself. dennis: yet, i've been waiting for that momentum to take over and really catch fire around yet so many people out there are still so pessimistic. there's a new survey coming out. you always see people do not like stocks. they're always just too afraid. >> well, that's good for the bulls, for those people who believe the market will continue work its way higher, that is positive. if you have everybody who is optimistic, who is left to buy? who is left to support or even propel share prices? of course we don't want it to go too high because then we end up with prices that are well beyond what the fundamentals can support but right now we're still looking at valuations on a trailing or on projected basis that are at double-digit discounts to the median over the
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past quarter century. dennis: dow is at 15,500 or so now. where does it finish the year at? >> well, obviously i'm with s&p capital iq so i focus more on the s&p. our belief is that we probably could end up moving up toward the 1730 to 1750 level before we start to stumble a little bit from exhaustion. so our year-end target is 1730. our 12-month target is 1780. dennis: all right. liking that a lot. thanks for the specificity. have a good weekend sam stovall. we appreciate it. >> you too. lori: also making news today, shares of boeing. honeywell sharing sideways after japan's found damage on boeing dreamliner locator beacons. the damage found was small. the beacons were sent back to the manufacturer honeywell. the damaged beacons were likely identified as the likely cause of the ethiopian airlines fire at heat throat airport.
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beacons are designed to guide rescuers to downed aircraft. we're learning e.u. regulators ordering boeing 787 operators to remove or inspect the emergency locators. halliburton pleading guilty to a criminal charge admitting it destroyed evidence related to the deepwater horizon oil spill in the gulf of mexico. per the plea agreement they will feign maximum fine, 3 -- $200,000 and made a 55 million-dollar donation to the fish and wildlife foundation. they dumped four million gallons of crude into the gulf before the well was finally capped three months later. dennis: they say everything is bigger in texas but maybe not the price for stadium naming rights. why after four years of negotiations dallas cowboys owner jerry jones may still end up being disappointed. lori: your e-mail is targeted. it is not hackers who want it this time. why the fed is going after your password next.
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streak. right now the dow is down 57 points. t-mobile temporarily eliminating up front payments on new phones but it is increasing the price for some models through higher monthly payments. unlike rival carriers, t-mobile charses full retail price of phones spread over two years but reduces monthly service fees for voice, text and data. coming up at 5:00 p.m. detroit may have declared bankruptcy but it is moving ahead to spend 440 million taxpayer dollars on a new hockey arena. is this reckless spending or could it prove a economic boon for the city? that is latest from the fox business network, giving you the power to prosper.
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lori: the u.s. government record he hadly demanding that major
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internet companies divulge user stored pass woods. let's get to the above this one. liz macdonald, this could represent a escalation of government search techniques that has not been previously disclosed. >> >> this is c net report and thin on details but it goes above and beyond what nsa leaker edward snowden talking about prism program. the companies involved here are strenuously denying that they are giving overpass woods. that would wreck their business. companies like google, facebook, microsoft and possibly yahoo! as well. the fbi is declining comment this is sure to raise eyebrows in washington, d.c. at a time growing number of senators are saying hey, wait a second what is going on with all this surveillance? democratic senator ron wyden from oregon is saying just that he is worried about the limitless surveillance powers of the u.s. government. here is ron wyden. >> when the american people find out how the government interpreted the patriot act, they are going to be stunned and
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they are going to be angry. from my position on the senate intelligence committee, i had seen government activities conducted under the umbrella of the patriot act that i knew would astonish most of our people. >> senator wyden made those comments in advance of a vote in congress that basically did support and is allowing the u.s. government to what is called data mining of phone records but the fact that this c net report is coming out now, by the way we don't know the passwords were given over or attempts to get passwords from these companies and what information has been given. again the reports are really, is really thin on details but this comes at a time when governments overseas including governments in china and india are asking these companies to give the algorithms to passwords because they too want to do their surveilance for their own governments. dennis: the tech companies when that original big spying scandal broke out all the big tech companies said it was not true, not true. when clearly the government is
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getting millions of records. they're saying again it is not true, yet i don't know whether to believe them. >> that is exactly right. this could be a developing story, dennis and lori, we could see unroll throughout the coming months. again if the government is getting access to passwords, that is a huge deal because somebody could go in and make like they are you and use your accounts. that's the danger here as well. so we're going to be tracking this developing story as it unfolds. >> quickly any comments from the companies themselves? >> they're strenuously denying it, saying absolutely not. so is the government. fbi is denying it too. lori: thanks very much, emac. dennis: it has been two days since google announced the chrome thumb device to plug back in the tv. google is putting kibosh on netflix promotion due to overwhelming demand. you buy that gadget get three months chrome video streaming service. $35 included in the netflix thing and comcast, i'm trying to speak here but not doing any
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job. lori: i'm not doing any better, backing up explanation. dennis: sold out on amazon.com. i have one from the show last night. they're supercool. it will be available in best buy stores by the end of the month apparently. very cool, it will wipe out apple tv. well, no, maybe not. google is not that good of consumer stuff. such a cool device, guys. think of it. now there are big boxes feeding video to computer. a little thumb drive. plug the baby back in a slot. that is so cool. lori: market getting tighter because of competition. dennis: as we do every day at this time, check the markets. we have jason weisberg on the floor of the new york stock exchange. hey, we were down over 100. now we're down only 58. just a flesh wound. >> that's right. we had the same type of flesh wound yesterday. looked pretty bleak yesterday in relative terms. we seemed to pull out a decent day. if we key on the financial results we've seen so far, we continue to see improved results from the financials that should lead the market, the broader
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market higher. historically financials have been required to, you know, hold the a sustained gain in the indexes. that hasn't been the case last few years. i think for the first time as the government decides to leave the laws of supply and demand to do their thing we'll see if financials lead the market and we'll probably close out the year on a high. dennis: i like that. in terms of trying to ignite a second half rally here, which do we need more earnings as usual or maybe revenue growth as the more important item? >> certainly we need revenue growth but if we have a prospect of revenue growth where might be nonexistent today, if we have a prospect of revenue growth and see delivered results on those promises then it won't matter what the revenue growth is now. dennis: okay. i'm still betting we close above dow 16,000 by year-end. can you second that emotion? >> totally. i'm with you. i double down with you. dennis: okay. liking that very much. thank you very much for being with us, jason weisberg. >> my pleasure. dennis: money to burn?
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"the robb report" can help you with that. an up-close look at the very best of the best as the luxury magazine celebrates 25 years. that's next. [ male announcer ] the mercedes-benz summer event is here. now get the unmistakable thrill... and the incredible rush... of the mercedes-benz you've always wanted. ♪ but you better get he fast... [ girl ] yay, daddy's here. here you go, honey. thank you. [ male announcer ] because a good thing like this... phew! on't last forever. mmm. [ male announcer ] see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. but hurry, offers end july 31st.
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lori: welcome back to markets now. so excited to be outside with david arnold, senior vp of "the robb report." everyone's favorite luxury magazine. you're celebrating the 25th anniversary of the best of the best issue for "the robb report." >> right. lori: to commemorate that you
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brought a few best of the best. let's begin with the cars. >> let's begin with the new porsche 911. this is 60 years since they introduced the porsche. it has complete makeover. extraordinary makeover. it won car of the year was pretty prestigious award. lori: what stands out? >> performance. handling. fairly fuel fish went which surprises for high performance car. surprising low-priced a little bit over $100,000. lori: just a hair over $100,000? how does it work to buy one? give me your card take care of it this afternoon. lori: are these limited? >> is not a limited production. they produce a sufficient quantity worldwide. if you want one we could have a week or two. we have to figure out the color. i know you're very particular. lori: i'm particular. i don't know if i decide between the porsche or aston-martin. >> indeed. i guess for me, with a little
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bit of british history, james bond association i have a little bit of love for the aston-martin. this is the first four-door full four-seat car. lori: four-door? put a car seat in there. >> you can actually put a car sleet in there. it look as little slight. as long as you get, very cozy once you're in. put the kids in the back to take a whole family not the option you have with a porsche. lori: we're neighbors. we both live in the same town. i see you driving pretty fancy wheels. you've seen me driving. how do you feel like me taking a spin and parallel parking it? >> i think without the parking you would do find. lori: without the parking? >> without the parking i think you do very well. this is the type of car you would valley. you wouldn't park it yourself. lori: pair point. what will this set me back? >> $200,000. lori: wow. you like the porsche over aston-martin. >> they do different things for different reasons. ideally you need both in the garage. lori: we have the podium set up
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here. these are stunning but i can't tell them being more outstanding than some. other watches i see on men's wrist. >> they have been making watches well over a couple hundred years. this grand complication takes one watchmaker well over a year to make. lori: all done by hand? >> absolutely. moon phases. tell you pretty much anything that you need to know and times in addition to moon phases you've got great. grand complications are pretty much the most difficult complications any of the watch companies produce. they make very few of these. they don't tell us how many. i suspect a very, very small quantity. pricewise looking around $140,000. lori: so this watch is more expensive than the porsche? >> absolutely. lori: wow! >> less than the aston-martin. lori: well there's that. >> it is all relative. lori: i suppose for a certain market that really doesn't matter does. >> it doesn't and we're fortunate that the customer base of "the robb report" speaks to a lot of your audience. they're not making choices to
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buy the watch or buy the car. this watch is extraordinary. the feathers are actual feathers come from italian rooster not one italian rooster but many italian roosters. there is movement in here i think you enjoy. i brought this because i thought this would be something very much appeal to you. lori: why? >> because it is stunning in. lori: thank you. >> now, limited edition here. they will produce 88 pieces. 8, 8, worldwide. this is number 5. if you want this we can bring it to your home with the car. price is$0,500. lori: my husband would not turn that away -- $70,500. >> you take this with the aston-martin and have a complete set. lori: i like the way you think. a lot of people are not wearing watches with explosion of smartphones and things like that. if you purchase a piece like that perhaps an investment idea because the markets are volatile and interest rates going up. >> particularly these piece the
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patrick phillipe known to hold value over time. go back to christie's auction they appreciated something over time substantially. if you brought something 20 years ago that would be a great investment. this timepiece is -- so customers that this would really appeal to i would argue that you would have a difficult time finding something quite this extraordinary if you were in the market. lori: arnold, this has been very instructive. >> that's all right. lori: we're out of time. david arnold, senior vp, "the robb report" magazine celebrating the 25th anniversary of the best of the best as you check it out. >> thank you. lori: back to you. dennis: thanks very much, lori. that was good stuff that was big bucks. speaking of big bucks at&t ponying up for the naming rights to the nfl dallas cowboys stadium in arlington, texas. it will be called at&t stadium. that should not be confused with at&t park, home of major league baseball san francisco giants. the dallas deal said to be worth
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up to $19 million per year, not too shabby. but espn reporting that the deal came up short of the $20 million a year that cowboys owner jerry jones was seeking. and coming up, america's shale boom, tracy byrnes, ashley webster wrapping up their week-long series with two of the biggest players in energy, kevin book and john hofmeister are next on "fox biz." don't miss it. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪
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these kinds of plans could save you up to thousands in out-of-pocket costs... u'll be able choose any doctor who accepts medicare patients. and you never need referrals. so don't wait. with all the good years ahead, look for the experience ancommitment to go the distance with you. call now to request your free decision guide. this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you. tracy: welcome back. i'm tracy byrnes. ashley: i'm ashley webster. sac gets its day in court pleading not guilty to criminal charges that it was a hotbed for insider trading. the government is promising to deliver tremendous evidence proving sac's guilt. we have the latest straight
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ahead. tracy: we have two hours to go. stocks are down but well off the session lows. the dow and s&p about to break a four-week winning streak. next week brings the fed meeting, jobs report, way more earnings. we'll have a preview of all that coming up. ashley: we have a full plate. a special report on america's shale boom. two top energy players break down the surge in energy production and what it means for american businesses and economy. coming up clear view's kevin book and former shell oil president john hofmeister will be here to talk about that. tracy: that will be good. top of the hour time to talk stocks with nicole petallides on the floor of the new york stock exchange. we're still up but down from where we want to be. >> we're up for the year. we're higher up off the lows of the day but we have a down air roy for the week. let's talk about where we are. 15,502. the dow is down 52 points at the moment. that is a loss of one-third of 1%.
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we had majority of the dow components lower. nasdaq composite slightly to the downside. we closed last friday, 15,543. so we've had four straight weeks of gains but this week, if we were to close right here right now would be a losing week on wall street. here is one-week charts for you at the moment. the dow as you can see the nasdaq and the s&p all pulling back to a certain extent. i should note that the nasdaq is actually now from when we've come off the lows, it may be positive for the week. i have .4. it is worth noting that tech has done a little better than the rest of the major averages. the retail and drugs and banks still pulling back. back to you. ashley: nicole, thank you very much. to the latest developments in that criminal case against sac capital. the hedge fund pleading not guilty to those fraud charges. adam shapiro outside of federal court walt latest details. adam. >> and there's going to be a status conference you might say on the 24th to find out how
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things are going with discovery, trying to find out if both sides are handing over the evidence, especially the government, if it is handing over the evidence it tends to use to built its case against sac. as you pointed out sac pleading not guilty. the peter nussbaum, general counsel representing the various hedge funds. although today was formal pleading of not guilty, yesterday sac put out a statement which they said the firm never encourage, promoted or tolerated insider trading and take its compliance and management obligations seriously. the government is attempting to build a case which will show they say that's not the case. also disclosed today that the government is part of the discovery, the evidence they're using to build their case against sac, wiretaps. we saw this in raj rajaratnam's trial against galyan. mr. raj rot nam was convicted. those wiretaps were crucial.
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expect seeing wiretaps in this case. we tried to get a comment from peter nussbaum. this is what he said about sac. mr. nussbaum, how are the spirits at sac? >> fine. >> are people disgorged about what is going on? >> [inaudible] >> again we'll be back in court. there will be a status conference on the 24th to determine how things are proceeding. this will not be a speedy trial. no date actually for trial yet has been set of the back to you. ashley: great effort to get a comment there, adam outside the federal courthouse in lower manhattan. thanks so much. tracy: joining us now with a look what's next for steve cohen, the company, the employees, former federal prosecutor doug burns. doug, i'm so happy you're here because i have a ton of questions. >> sure, fire away. tracy: i think people don't realize how unprecedented it is to indict an entity. >> yes. tracy: arthur andersen was last time we saw this and that now we know is defunct. usually they pick people.
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>> yes. you will hear starkly contrasting version in the case which is typical in any adversary yesterday. the government yesterday, attorney preet bharara said this was a culture of insider trading and it went on and on and nobody did anything bit and pervaded the entire entity. the defense will say, wait a minute. slow down here. this is a case where you guys are frustrated because you were unnble to make a case against steve cohen which was the premier and notch in your belt after the progress of the raj rajaratnam and the group at that efforts and in your -- gupta in your frustration you're taking course of action to put my client out of business. tracy: is that, that is preet's reputation now, isn't it? there is a little ego mania in here, isn't there? >> well the, the government doesn't like to lose and they have tremendous, tremendous arsenals and options. i think really that is the point to be made here. okay, let's assume for the sake of arguement as lawyers like to say they couldn't make this case
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against the significance ture defendant on wall street, steve cohen. so what do they do? the sec brings in administrative action which they fail to supervise properly. which any lawyer is somewhat watered down theory. it is not insider trading or securities fraud. it is failure to supervise. will there be criminal case. like an indictment is returnedded in the sac case. you got to be quidding me. i literal lay said on the way to the office it no way they indicted steve cohen. i'm not bragging. and i was right. they're indicting entity only. tracy: steve what happens to him? >> has some advantageous aspects to this if he emerges from this without individually prosecuted that's a huge advantage. seems they can probably can and will probably enter into some kind of resolution between the corporation. obviously it does not have anything like the drama of a case against an individual. you can't put a corporation in prison obviously.
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tracy: right. >> so the fact of the matter is, i asked one of my friends a long-time federal prosecutor and colleague of mine, i said, hey, have you ever seen a trial after corporation? yeah, once. where the corporation went to trial but it lacks drama. i don't have a crystal ball but i think they resolve the case. tracy: talk about those inside the corporation. there was once a legal team that settled on the $616 million back in march. >> yes, of course. tracy: one you've got to wonder writing that says if we pay this don't come back to us ever again and two, by paying the fee do you sort of admit guilt. >> great two parts to your question. first of all, the first part of your question, wait a minute, why didn't they get immunization clause which said in return for the settlement of 600 some odd million dollars no further charges will be brought? the reality howwver, it behooves me to point out that in civil contexts they can't and don't bind criminal prosecutions necessarily. so that is the answer to that. tracy: so that is legalese.
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>> that is legalese on some level. the other point though this business of not admitting, that's a very big dust-up right now. what happened was in the original case, before the $600 million sac settlement, judge rakoff had a security settlement. he said, wait a minute. i'm not accepting anymore of this type of resolution with no admission of liability. that is on appeal now. judge marrero, who took the settlement with sac said i will take it without any admission but subject to the outcome of the appeal in my colleague judge rakoff's case. that issue is yet to be fully resolved. tracy: that is still on the table. >> sure. tracy: before i let you go, as we talk about this entity that is probably going to go down, what is that like a little administrative assistants that clearly had nothing to do with insider trading? i shouldn't say clearly. >> no. tracy: there were people not involved in this. what happens with them. >> that is great point i totally agree with, there is often
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tremendous collateral damage. even a criminal investigation often hurts an entity. you hope, if the entity does go out of business, i can't say with certainty it would you hope the people would land on their feet, et cetera and you hope it will come out it may have been a small wing of the entity involved in insider trading. >> clear their names. i'm with you. doug burns, you're awesome. thank you so much. >> thank you. ashley: interesting stuff. some of the friday downturn for stocks no doubt, wells fargo's scott wren says guess what? it means some buying opportunities. find out what sectors he is buying right now. tracy: plus, who wants to be the nexter ben bernanke? that is rhetorical question. who the heck wants that job? ashley: no one. tracy: there are supporters. we have two top candidates that are gear being up their lobbying campaigns. look how oil is trading today. it is barely moving, $104.53 a barrel. the dow is down 53 points. don't go anywhere, we'll be right back. when we made our commitment to the gulf, bp had two big goals:
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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. ashley: stocks off the lows of the day but today's decline have the dow and s&p to snap a four-week streak of gains but my
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next guest says investors should be taking advantage of these pullbacks. joining me now, scott wren, wells fargo advisors senior equity strategist. scott, thanks for joining us. are you telling your clients this is a buying opportunity right now? >> ashley, i would love to see a little bit more actually..3 we had a 7 or 8% pullback a little while ago. i would who have to see another one of those. that is where the opportunity comes in. i think we'll see more volatility. we're dealing with retail clients here and a couple of percent here or there, that is not when they want to move. they need more than that. i think we have a chance to get more than that because certainly over the course of the next 18 months or so i think the market will do pretty well. ashley: that is interesting, we talked about a great rotation out of bond into the market but if you look a the numbers, the money come out of bond largely gone into the money market fund which is a very safe play. investors are still very gun-shy. how can you convince them that this is the market to play?
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>> they are really are and certainly our clients the money that has come out of bond has not come into stocks and really for our clients, most of their money coming in the stock market is coming in from cash. but what we've been trying to do, this has been a tough job over the last couple years, try to convince them that hey, we're in this modest growth, modest inflation environment. it is likely to last, i think, probably through 2016. there is some more upside to this market. valuations are reasonable. the global recovery, it stumbled a little bit here but it is likely to pick up at least modest speed as we go through 2014. so i think they's a lot of reasons to be in the market. i seriously doubt we're going to see a recession anytime in the next couple of years. so, really, i think, i think most investors don't realize how well a market can do when you have low inflation and modest growth. ashley: okay. with that in mind, where should they be pptting their money?
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what do you like right now as the best value? >> well i think that what they need to be doing is not getting defensive. in other words, we don't want them overweight utilities, health care, consumer staples. we want them into more sickly sensitive sectors of the market. things like industrials, consumer discretionary sector which has done really well for five years but still i think has more upside, information technology. it has lag ad bit here but if you look over the last three months and see the sector performance it's been all cyclical. hardly ever do you see such a straight cut where all of the defensives are at the bottom, all the cyclicals are at the top. i think that pattern is going to hold. we want our clients in those sectors that are going to benefit from a continue ages of the recovery here in the states and the recovery globally. ashley: you know, scott, we're about halfway through the earnings season. there is an interesting number. this is according to thomson reuters. it says more companies than ever are hanging on to their cash.
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$933 billion by companies on the s&p alone. what does that tell you and shouldn't these companies be putting this cash to work now? >> well we've seen some companies put some cash to work. the durable goods number, the business capital spending portion of that that we saw earlier in the week was pretty decent. i think that is going to accelerate modestly. i think there is a lot of uncertainty out of washington. companies don't know, what are my taxes? what's the regulation going to be? how much is it really going to cost me to hire new employees? so that uncertainty and just the fear that the economy's going to roll over into recession which they have been afraid of for the last three years, all of that has made these companies hold on to more cash and i think it is only going to be trickling out slowly over the next few years. you're going to see it increase but just not a surge. they need more confidence in what is coming out of washington. ashley: they certainly do. that is in short supply, that's
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for sure. >> it is. ashley: scott wren, thanks so much for joining us. have a great weekend. >> have a great weekend. thanks, guys. tracy: confidence out of washington. ashley: oxymoron. tracy: i knew you were going to say that. all right. quarter past. time for stocks. nicole petallides still down there. down 35 now. we're climbing back a little bit. >> we really are. if we get a pop we could turn positive for the week. we're not too far off from those levels. nasdaq is back in positive territory. tech stocks and drugs have turned around for example. so it is not all laggards anymore. i want to look at two names gaining some attention, zynga and facebook, both which had serious headlines. zynga down, 14.5%. everybody was hoping for online gaming to be the zynga story. instead it is back to social gaming which some people say is dead in the water for zynga. a lot of analysts are cutting their numbers and not loving it. facebook which certainly soared this week on their numbers which
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impressed wall street, today giving back a little bit, down 1.25% but still near that $34 mark. back near levels we have not seen since the ipo last may. back to you. tracy: good stuff, nicole. we'll see you at the bottom of the hour. coming up the debate over who will replace ben bernanke totally heating up. now the white house is chiming in. this is good stuff. we'll tell you what the president had to say next. ashley: first let's look at the good ol' u.s. dollar how it is performing against some of the major foreign currencies. down against the euro but moving higher against the pound, the canadian dollar and the mexican peso. the japanese general though moving slightly higher against the greenback. we'll be right back. with the spark miles card from capital one,
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>> at 20 win minutes past the hour i'm arthel neville with your fox news minute. attorney general eric holder is assuring the russian government the u.s. will not torture or seek the death penalty for nsa-leaker edward snowden but president vladmir putin spokesman says, russia still will not extradite snowden to the u.s. snowden has asked for temporary asylum in russia. the lincoln memorial is temporarily closed at park
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service workers clean up the green paint splattered by vandals earlier this morning. authorities say the damage to the mom you meant is not permanent. u.s. park police are reviewing security camera footage but so far no suspects have been identified. in brazil on world youth day, pope francis praised the elderly. in a speech the pontiff told young people to honor and thank their grandparents for the wisdom they share. the pope said the dialogue between generations was quote, a treasure to be preserved and strengthened. those are the news headlines. i'm arthel neville. get you back to ashley. ashley: a big crowd there to see the pope. arthel, thank you very much. appreciate it. the battle over who will be the next fed chief is starting to heat up. rich edson is in washington, d.c. with the latest. rich? >> we'll have to wait on this one, ashley. the president is not narrowing down his choices yet but won't make the call until sometime in the fall.
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behind me in the u.s. capitol a number about liberal democrats are certainly putting their choice on the table. it seems to be down to a choice of two, if you listen to fed-watchers. one being larry summers andian net yellin, vice-chair and more liberal democrats are backing yellin. this is an effort spearheaded by senator sherrod brown of ohio, a democrat and number of other signatories signing on to a letter saying they want yellin over larry summers. one of the signatories, tom harkin, there are a lot of concerns with some democrats when it comes to summers. jeff merkley, says, larry summers for fed chair that is disconcerting is something he tweeted out. could be a possibility, still at the white house when it comes to larry summers, because of the white house's familiarity with summers is an asset. >> he is a well-known quantity. he worked as the chair of the national economic council in the obama white house.
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they know him well. they don't know janet yellen very well. she keep as low profile. she's very well-known to people at the fed and in the academic community but she is much more of an unknown quantity to the obama administration. >> though still the concerns about summers for a number about democrats, they think he is too cozy with wall street. he is too in favor of deregulation and they're continuing this push on capitol hill against him this is something that will play out over the fall according to the white house's likely timeline. if you look how much time they do have, the current fed chair ben bernanke, his term ends at the end of jjnuary 2014. back to you. ashley: got a little ways to go yet. rich, thanks so much. appreciate it. >> yeah. tracy: so they're called worker centers. non-union worker advocacy groups helping workers appeal to employers and while not considered unions by law some are claiming that they're just unions in disguise on the prowl for more members and more money.
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fox news correspondent mike emanuel has the gory details of this story. hey, mike. >> hi, tracy. two republican lawmakers with the committee on education and the workforce are asking new labor secretary thomas perez for determination about these groups by august 6th. they write, quote, in the last decade between so-called worker centers and labor organizations has blurred. today many of these worker centers are dealing employers directly on behalf of employees. since the 200 or so worker centers across the country are not regulated but unions are, congressman phil roe is asking if they may be acting like unions. >> what's not though, is to behave like something else and not have the same reporting requirements and transparency that a labor union does. if they, and that is all we're asking the secretary to do, simply clarify that. >> this full-page ad from the center for union facts has been running. it shows the afl-cio's richard trumka and him in disguise and
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suggests if it looks like a duck, and walks like a duck, and quacks like a duck, you get it. here is an expert on what these groups are all about? >> worker centers are the mix of good and bad. some of what they do providing job training an english as second language classes is wonderful and everyone is should support that but some worker centers are being used by unions as front organizations to advance their own agenda rather than looking at purely altruistic effort to benefit workers. >> several of these organizations have declined to speak with us. a new york city fast-food worker group blasted the republican congressman for trying to silence ordinary workers. tracy? tracy: mike emanuel, sounds a little sketchy. thank you so much. >> thank you. ashley: on deck, our special report, america's shale boom. energy experts kevin book and john hofmeister weighing in on what we learned all week from t. boone pickens, energy ceos and more. tracy: yeah. let's look at some of today's winners and losers from today's
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s&p 500 as we head out to break. we're talking about starbucks. nicole petallides keeping the stock nice and high. up 7% today. we'll be right back. i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550
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today that talks about the long positions and microsoft. more importantly j.c. penney and that was there best short of 2012. j.c. penney came out with this whole strategy. they didn't believe in it at all. a green light short j.c. penney betting that it would go to the downside. everyone knows it was a real -- it was down over 40 percent. today right now it's up to%. take a look. we have it here. it certainly is worth noting that the most profitable short of 2012. there are also long gone microsoft. apple, and general motors, no comment on their gold position. the obvious a huge roar. bragging about it. tracy: then made money.
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thank you very much. [laughter] ashley: well this week we have been reporting america's tailbone -- michele boone. today to energy insiders are here with more on the seismic shift taking place in the energy sector. managing director of research it cleared the energy partners. a former shell oil president, now with citizens for affordable energy. thank you both for being with us today. first, legendary investor t. boone pickens kicked off our special report saying that the american shale boom that should help kick our addiction to opec oil. take a listen. >> breakdown. we used to but 18 million barrels a day, produced about half of it, and import half of it. the oil that we get from canada and mexico is pretty close to four, four and a half million barrels. the rest of it comes from opec. we don't have to have opec.
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that is the place to get out of it. ashley: strong words. kevin, you say that we should be careful not to alienate the producer nations that supply is. explain. >> energy independence is a great goal answer the producing more of our own energy is good from a security and economic perspective. we still need opec producers. even if we get to independence there will be a global price for oil that will come home to us. we want opec producing for the world saw the world as well supplied suppresses lauren home. ashley: do you agree it is a balancing act but essentially being able to export more energy for profit while also relying on oil-producing nations from supplies? >> it is a global business. you never want to alienate its trading partner because it may come back to buy you. further, we could do ourselves a lot of favors in this economy if
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we began to use transportation, the -- began to use natural gas as a transportation fuel, not just for trucks but cars and every other vehicle that we can think of. that would dramatically reduce the need for import, and dramatically increase the available oil to the rest of the world a reasonable price, and that would be an economic stimulus to the u.s. economy that is so desperately in need of an economic stimulus. tracy: let's talk more about that because that is something the governor brought up the other day. the impact of state and local economies from jobs and taxes. listen to what he had to say. >> it is really growing jobs, growing the economy. we have raised just under $2 billion since 2007 out of this industry. tracy: i know you have done some research on this. >> we took a look at every county in pennsylvania and correlated michele lulls to the
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economic fortunes, looking at@ the unemployment rate. what we found was a pretty strong correlation. drill more wells, more money goes into the county. more permits. guess what, the unemployed rate fell. it also started to go backup. natural-gas prices fell. more of the down sides of the jobs multiplier is that it works two ways. the important thing is make sure you don't have regulation in the way to keep you from expanding in maintaining the economic gains you're getting because it is real and it matters, but it goes both ways. tracy: this is something that the economy as a whole needs. >> absolutely. wonderful pockets of prosperity in areas where extraction is moving forward at a rapid pace. north dakota, texas, pennsylvania. what we need is national economic expansion. i would argue that if we moved our natural gas production from about 68 bcf per day, billion cubic feet up to about 100,
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that's a big number. we started to use about 30 billion cubic feet per day to make methanol, cnc, compressed natural gas, lng, liquefied natural gas, and gas to liquid, and ptl. we started feeling cars with a mixture of methanol and gasoline. we could do a whole lot of build out of infrastructure to make all of this methanol to increase the rate of gas production, and we would see national economic growth, not just pockets of prosperity. ashley: kevin, when we talk about fracking it seems like a big oil companies, and we talked about this earlier, somewhat late getting into this. so they have a choice. they can either go ahead and set up their own infrastructure or by other companies that are already using this process. cc a lot of acquisitions going on as we move forward from the big oil companies? >> increasingly are going to be seen that, particularly if gas
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prices remain low. what you get is something similar to pharmaceuticals with big companies by the innovative by attacks. a lot of companies that took big risks and still running and margins. big engineering firms and swallow them up and get economies to scale. that is the natural course of things, with as innovative companies are doing pretty well relative to the innovative companies in other sectors. tracy: india we all have regulations of his back. when you to take a listen. ceo and chairman on talking about natural gas exports waiting and waiting and permits. take a listen. >> we have been waiting on a permit. a complete application for over two years. the studies have been done. it is time to issue permits. important to note in our case, we have signed a 20 year export agreements with a company in japan. tracy: that is part of the problem. people want to do this and yet unfortunately the government to solve in the back.
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>> there are too many examples, and it is across the entire energy sector, whether it is the keystone xl pipeline, whether it is the setting or licensing of a nuclear reactor, whether it is a pipeline anywhere in the country, refinery, storage tank, a gas station, the regulations that engulf this industry are not for the faint of heart because you have to have persistence, a positive outlook, positive mindset because you have mindless bureaucracy or you have any mitigated political undertaking to try to prevent progress from taking place. and so to put up with that and still to produce more your investors is really a challenge for this business. we are holding ourselves back in this country from economic stimulation because of mindless bureaucracy and an over regulated environment. ashley: in the excitement of fracking and this huge resources
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of natural gas, lot of talk of converting vehicles into natural gas. we have seen it with the bigger trucks, 18 wheelers, but as for the actual passenger vehicles, it seems to me we are a long way away from having the kind of infrastructure needed so that could have a huge impact. would you agree? >> that's true. the finder of vehicles that have point to point passes, a good starting point for compressed natural gas. to find corridors of the next up. locomotives, also very interesting, potentially large market. some of the marine applicatioos. small passenger cars, the difficulty in terms of where you will fuel it. it takes a long time unless you do it overnight in your house. tracy: i would be remiss if i did not ask about the environmental aspect and the studies being done. the executive director of greenpeace, completely against fracking for.
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what do you say to all those people that think it is dangerous? >> well, you have some ideological zealots to make a religion out of the environment. they think they have the right to stop the vast majority of people in this country from just having a job, from just living a better life. i'm all for people having freedom of speech, but i think common sense has to prevail, not religious zealotry. ashley: thank you so much. clear view energy partners. john hofmeister of citizens for affordable energy. thank you for joining us. >> thank you. tracy: breaking news. oil closing down $0.79. $104.70 per barrel, nearly a loss of 1 percent on the day. a losing week, down 3%, snapping four straight weeks of gains for crude. stocks surging to a new milestone after the dumps the majority stake. dennis will tell us why this
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deal might spark some controversy next. ashley: as we head to break, take a look at the ten and 30 year treasury. we will be right back. ♪ ♪ ♪ ♪ ♪ [ male announcer ] if y can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. going on now at your authorized mercedes-benz dealer. she's always been able it's just her way.day. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph,
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in three years. according to strategic analytic the second place ranking drops. meanwhile the overall smart fun market grew 47% annual to a record 230 million units. meanwhile, tesla shares speeding higher after deutsche bank raised the electric car maker's rating to buy. the success has only just began. if you're looking for love you might want to boost your credit score. according to free credit score, roughly 20 percent of men and 30 percent of women would not marry someone with a bad crop report. the concerns, a partner with bad credit could hurt prospects for getting loans or lower interest rate. as the latest from the fox business network, giving you the power to prosper.
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♪ ashley: just coming up to a quarter till, time for stocks as we do every 15 minutes.
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that setback to the new york stock exchange. okay. what are your thoughts on the trade? >> i think you see people taking a little responsibility. earning seven great. i see no reason to go into the next week. for his momentum guys, big money guys, no reason to take the risk, to over the weekend. start fresh on monday morning. ashley: with that in mind, have a great weekend. appreciated. tracy: heading down to the floor. all right. video-game giant, as $6 billion deal to buy back most of itself from its parent company. dennis kneale is looking at this now. >> you know, shares of activision blizzard have been popping up as much as 15% on the plan to buy its freedom, heading a 52-week high. right now there up4%.
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the maker of call of duty and other megahits in the video-game business which is every bit as large as the movie business. it proposes paying 6 billion to buy back all but a 12% stake from the french company. here is the weird thing. the price is $13.60 per share. activision right now is trading over $17. that's what a 27% higher price than the deal price and it could mean the market believes another and better bid could emerge. here's an even weirder element, activision see note, a great guy the co-chairman the investor group that is buying a 24% stake in their company from activision . their prices only $13.60 per share as well. that could spark a fire fight to rival anything in call of duty. there have been in trouble and is selling off assets. a "wall street journal" is pushing to force activision to pay the vendee a dividend of more than $3 billion in cash
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white bigots out most of the 4 billion or so that the company now has. this deal emerged, but you have to wonder whether other shareholders will complain that they're getting a sweetheart deal. why would a company sell the shares of only $13 on the public market values the stock and 17? a hard time that other shareholders gave michael tell when he tried to buy his company on the cheap. activision dissent -- defends the price and says it is higher than the historical average. c'mon. what have you done for me lately? >> nothing. >> i like that. and i saw him a year ago in sun valley. you want to do a buyout. tracy: it's all about dennis kneale. ashley: a finder's fee. thanks. tracy: coming up, big-name stocks to watch. some of them are downright cheap.
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ashley: i like the sound of that. take a look of some of the day's winners and losers on the nasdaq. activision. up 13 &. the boys used double miles from their capital one venture car 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. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with dole miles you can actuay use, you never miss the fun. beard growing contest and go! ♪ win! what's in your wallet?
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tracy: in. tracy: earnings heating up this season. here with some big names to watch godparents' senior editor. first of want to talk about how to find cheap stocks with stock buyback. i have to quickly tell you my theory. i don't believe it. it's like living with a guerrilla never marry her. a dividend is to middle. that's the truth of it.
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>> and the worst part is with repurchases when the companies spend the most money on their shares, not when shares are cheap. earnings are booming and share prices tend to be higher. companies, like individuals, tend to overspend and buy back stocks. as an investor if you want to look for companies that are buying back stocks it's very important to also look for cheap companies. you need that combination. you can look for any. you must look for cheap companies. those are the ones that tend to reward shareholders. there's a strong link there. tracy: when you buy stock kind many times it is accounting gimmicks. >> right. there are correlations. of a company needs an extra penny or two to meet earnings, they tend to suddenly be repurchases. if management pay is tied to earnings per share. after be careful. is this cheap enough that i would buy it with my cash? if so if the company is spending
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corporate cash, that becomes an even better sign. tracy: maybe theee is a little more commitment there after all. not often times. dr. living with them for nothing >> i can't offer any data about that. tracy: talk to us some of the stocks. western union. you say they bought shares back the jeep. >> it's a cheap stock with a lot of free cash. this is a company that would have a huge global franchise, a transfer. very profitable. the stock got hurt last year because they had to cut prices. the big cap, saw the best margins in the business. still good growth. they looks weak right now. this is a company where you get an excellent dividend, of free cash. i have the stock a 12 times earnings. it's a really hard business to reproduce. it looks to me like kind of a safe spot. tracy: fair enough. pfizer was on your list.
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>> thirteen times earnings. a company that is getting past this patent expiration issue, good drugs in the pipeline, considering splitting into two companies. you have a faster growth company and the smaller growth company which could on like a higher stock price. even without that the stock looks cheap. tracy: they are reporting in today's before the bell. cheap stocks. companies to buy shares back. there's actually a bunch of reporting, a town of companies reporting. wholefoods is one of them. in the news a lot. >> no one understands the earnings power of wholefoods. the man and whole foods which means my pressure builds like a mortgage payment. tracy: you should know better. >> to make a lot of money. there are some good growth prospects. a lot of new competitors cropping up in the organic food business. chief among them are walmart and target which are diverting more store space to not so much the fresh organic produce, but the
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center of the store item, the canned good. some market share will be lost. thirty-eight times earnings, 38 times earnings, the future needs to be perfect. i think it's good, but don't think it's perfect. tracy: you keep shopping there. let's talk about procter and gamble. their report thursday.3 >> everyone needs to. boring inexpensive which is a bad combination. don't mind barring a jeep. this is boring and expensive. investors have looked for the traditional safe-haven stocks. it's 20 times earnings. is just too expensive stealing from jobs, something that looks sustainable. it's a very low growth prospects . eleven at 12 times earnings. the press and the slow growth. tracy: side. fair enough.
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banking on silicon valley. wish you could profit from start-ups? the moneyman from cisco to electronic arts is with us in a fox business exclusive. he has the midas touch when it comes to is bank and the funding some of the valley's greatest names. guess which top business group is building a silicon valley's east coast rival. you have to catch the final chapter of our master's in business series to find out. "countdown to the closing bell" starts right now. ♪ liz: good friday afternoon. i'm liz claman. it is the last hour of trading. you would not know it by looking at the major indices, but the nasdaq just this moment turned positive. you can see right now it has points slightly above the flat line. only a point. rollicking and it to see whether the dowig

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