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tv   Markets Now  FOX Business  January 17, 2013 11:00am-1:00pm EST

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charles: here it is. the highlight reel. >> we will face an unprecedented blizzard of assault. >> you cannot as a practical matter predict when somebody who has a really severe mental problems will break. >> it will come hard, it will come back, it will come soon. >> behind-the-scenes, they will do anything to block any common sense reform. >> he is using the children for the agenda. >> some pretty smart young people. charles: does the nra still stand behind that? >> yes.
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charles: thank you. now, dagen and connell. dagen: the dream liner rounded around the world for battery checks. the damage done for boeing. connell: manti te'o and lance armstrong. the price that some people pay for image. dagen: the bp price hostage. former agent who carried out numerous operations in that very country on what can be done. connell: welcome to the 21st century. quite a buzz inside the republican party today. get its own jay carney. it is a pretty good hour that we have lined up. dagen: a lot of news. that situation in algeria changing fast. connell: nicole petallides
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joining us every 15 minutes. nicole: not the day that we expected exactly. we got into earnings from citigroup and bank of america. some improvement in housing and labor. we see the dow jones industrials up about 55 points. the market remains to this trend to the upside. we wanted to take a look, also, at a name on the move. that is boeing. they are under pressure again. it has been flagged by one issue after another. it has now been grounded by the faa over in europe. for the month, it is down 2%. on the one hand, it is horrendous and having a pr nightmare, on the other hand, it is what new planes do. the stock is down only 2% for the year.
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that is not that bad. considering. dagen: the faa joining companies around the world and grounding boeing 7873 liner -- boeing 787 dream liner. jeff: the plane came in from warsaw, it did not the part. it is still on the ground. just one of the planes has been grounded both here, in the u.s., europe, asia, as well as, in the middle east. here is what we know at this point. it is the first time the faa has grounded and aircraft since a historic flight. chicago. american airlines flight 189.
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it crashed on takeoff. it turned out that the engine fell off that aircraft and went into a barrel roll and crash. thus far, obviously, though boeing dreamliner has been able to avoid any kind of crash or serious problem. the problem is, those lithium ion batteries. there are problems with lithium ion batteries in new vehicles. working the kinks out of it is something they need to do, but that is something they have successfully been able to do in the auto industry. they believe boeing will be able to get it eventually right also. dagen: jeff, thank you for that
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reporting. jeff flock in what looks like a very cold chicago. raising the price of its aircraft. possibly taking advantage of boeing's problems with the dreamliner. meanwhile, here is a list at some of boeing's suppliers. the japanese firm makes the lithium ion batteries. it is for the battery control circuit. united technologies makes the plane auxiliary power unit. no questions have been raised about the engines themselves. general electric is the supplier there. connell: four years, rob, this had been a play that we had talked about because it was being delayed. one plane after another. what do you make of this? >> new air planes always have
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problems. [talking over each other] connell: i want to ask you a little bit about that technology. you hear this is the future of aviation. everyone will go down this road. what do you know about those batteries and, well, any risks that may be associated with them? >> lithium ion batteries are lighter. that is one of the reasons they are in the airplanes these days. weight is always an issue on any kind of aircraft system anywhere. i mean, they can save 20 pounds here, 40 pounds there and they will do it. what they are also finding out is there are some anomalies with these batteries.
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that is what we have seen in laptops that have overheated. connell: when this all gets resolved in whatever way it does and, you know, we assumed the plane will get approved to fly again, you are an airline looking at this, do you order 787? what is the long-term affect? >> i think the long-term affect is yet to be shown. i do not think the airline will order a 787 because of this. they will wait, perhaps, a bit just to see what the fixes. that is the other issue that we have not spoken about. the fix has not been decided yet. it simply says they need to fix the problem and boeing does not have that in place yet. they are hoping it will be soon, but we do not know what that will be. it is not just a matter of changing out the battery.
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connell: right. rob, thank you. rob mark. cheryl and dennis will have a former department of transportation general. more on it coming up. big story. the republican party needs a lamplighter or make that someone who can set twitter on fire. dagen: dan henn injured says they need to get into the 21st century. they need someone to deflect any negative attention. >> that is exactly right. they need their own jay carney. they need a spokesman. a tea party spokesman for the republican party.
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the president has been doing this across the last 80 years or so. you go down the list for people who are white house secretaries and you, with names like tony snow, anyone who pays to politics recognizes the names immediately. they spoke for the president. the only two names that come up in the senate are senator mitch mcconnell and john boehner. they are the leaders and they are trying to do too much by being both the leader and the spokesman for the party. connell: you want someone who is not an elected official. dagen: ironically enough in williamsburg. connell: you know a lot of people inside the party and i would say you have some influence of writing in the journal's editorial page at least what people are thinking about. is this something that they are
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considering? >> i think it is something that they should consider. i, frankly, connell, and getting a tremendous e-mail response saying they just want someone to speak for them. a voice that is identifiable and articulate their ideas. they could speak -- the republicans have good policy, but they simply are not being articulated and publicize in a way that the public could be forced to come to grips with. dagen: again, with the use of twitter, how can the republicans take advantage of the kind of rapid fire way because connell and i both, the first thing we look at in the morning is twitter four hour news. republicans seem absent in many ways. are they really getting tutorial? >> i am sure that each one of
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them will do it individually. i am talking about something much more focus. and individuals whose responsibility is to convey the republicans message. so the press knows to go to this person. certainly, they could use those technologies, but i think the simple ability to articulate and an intelligent and credible way, whether on twitter or television, is desperately needed. connell: who does this person work for? >> the practical matter, connell, they would work for the speaker or the minority leader in the senate. i think that is where the emphasis has to come from. somebody would have to control it. i think working out of the speaker's office or minority years office would make the most sense. dagen: who would you hire? >> i mentioned mary magdalene.
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there are plenty of people who have a skill set to absorb the policies and articulate them in a simple, consistent way that will allow the republicans to allow what they stand for and what they are bargained for. connell: it is not that there is no one listening to the gop, it is that there is nothing to fear. >> they have a good message, they just have to get it out. connell: how about raising the retirement age? seventys sounds about right. dagen: the price athletes are willing to pay for brand image. manti te'o is in the middle of a firestorm of controversy. could he have avoided it? we are trying to make sense of this story. it is so bizarre. we are so confused.
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a look at the oil markets. nothing confusing about that. up a bulk of apparel. again, we will talk about the situation in algeria coming up. ♪
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act right now. call the number on your screen now! connell: dagen will be talking to jim rogers about the market. let's go back to nicole petallides. the financials taking a hit today. we caught her by surprise. nicole: let's take a look at the financials, in particular. looking at citigroup, as well as, bank of america and goldman sachs. goldman sachs not on this floor, but did hit a new 52 week high.
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jpmorgan also a new high. citigroup and bank of america releasing their numbers this morning. revenue based on bank of america. that has been a big lag or on the dow jones industrial. wells fargo slightly lower. a day where the dollar is pulling back. those are some pieces of good news. the nasdaq higher today. back to you. dagen: if our government's financial situation is so bad, why are people willing to lend this country money at a rate less than 2% over ten years. jim rogers and answers -- jim rogers can answer that.
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usually you are on the phone with us from asia. good to see you. >> i am delighted to see you. i am in des moines looking at farmland. dagen: you will not move back to the states and farm land in iowa. will you buy it with borrowed money? [ laughter ] which is great if there is an inflationary environment? >> if one can buy money at a fixed rate, i would certainly urge them to. in my view, interest rates will certainly be going higher over the next decade or two. these interest rates are absurd and will not last. why would i buy land? because agriculture will be one of the most exciting parts of the economy for the next 20 or 30 years. you should learn how to drive a tractor. dagen: i know how to drive a tractor. i probably learned before you
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did. talk to me about the treasury rates, real quick. when will this come home for us as a nation because, again, congress and our lawmakers are getting a free pass and not doing anything about our long-term financial situation because we can still borrow at such low rates? >> it is because the federal reserve is in their buying bonds. this is an artificial development right now. something that is artificial, it comes home to haunt them eventually. the problem, i am sure -- the problem, dagen, there may be more turmoil coming in the currency markets. you see what is happening with the again right now.
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it is the wrong thing to do, but they will do it anyway. dagen: you like agricultural commodities, obviously, you are buying farmland in iowa. what about other commodities at this point? gold has been very volatile. >> i am not buying farmland here, i am here because of farmland and i am looking at it. farmland in various parts of the world will be great investments going forward. as far as metals are concerned, i own gold and silver. i am not selling any of it. i am not sure it is time to jump in. i am not buying at the moment. if they go down, i assure you, i will buy more. dagen: jim, great to see you. as always, be well. great to see you in this neck of
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the woods. connell: 65 years old is not enough. dagen: the award winning film "argo," iran does not really like the way it ends. that country is ready to make some changes, well, to that story. look at how currencies are holding up. $1.33 on the euro. ♪ [ male announcer ] let's say you pay your guy around 2% to manage your money.
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>> 24 minutes past the hour. i am jamie colby. this is your box is in it. one u.s. unarmed drone is ahead abp as field in algeria. at least 35 hostages have been killed, along with 15 terrorists after algerian military surrounded the facility.
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pineda responding, who need them except you guys in battle? the ban expired in 2004. here is some good housing news. fewer u.s. homes foreclosed in 2012. it was down from 804,000 in 2011. those are your headlines. i will send it back to connell. connell: pushing the retirement age up to 70. the number of ceos that make up the business roundtable moving the age of 270. it would affect social security and also medicare benefits. initial benefits for the so-called wealthy retirees would also be a little bit smaller.
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seventy is a little young to retire in my book. we will see. dagen: ben affleck "argo," telling the story of the escape during the 1979 hostage crisis. authorities in iran want to put their own version of "argo" out. the film will be titled "the general staff" and will be based on eyewitness accounts. connell: that is great. you go to some of these movies, "argo" or "wink and" and people joke around, i guess we know how it ends. dagen: how will this manti te'o story ends? connell: it has not started off well. dagen: i cannot make sense of it all. connell: we are trying to reserve some judgment.
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manti te'o, the linebacker for notre dame, number two in heisman voting. dagen: what girlfriend? this very difficult situation in algeria. no joking matter at all. a hostage situation. americans are involved. we have mike baker who had conducted a risk operations in that country coming up. here are some today's winners on the s&p. ♪ [ male announcer ] you are a business pro.
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dagen: bottom of the hour. stocks now and every 15 minutes. gm investing heavily in north america. nicole: remember the 2009 bankruptcy and saved by the u.s. taxpayer. general motors is up they have presented today. they are cutting down some of the cost that they face in the next generation volt. the dow jones industrials have been on the move here. bank of america has been a big lag or weighing on the dow jones
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industrials. jpmorgan wang on the dow also. the delay some good from general motors. back to you. connell: a lot more still to come. we will get to this manti te'o situation and algeria in a moment. let's talk about facebook. there are new signs that the phone may already be here. dagen: shibani, what are they? shibani: mark zuckerberg, at one point saying making a -- a very silent update that was upgraded overnight to facebook messenger. this will be a competitor to microsoft. the facebook phone may be here.
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it is just a software update, essentially. here is what happened over at night. it was upgraded to a brief call button on it. when you are looking for your friend, maybe you are wanting to tax them. you cannot take it one step further and you can actually call them. facebook is trying to keep its site more sticky. we had graph search on earlier this week. this voice over ip addition will keep people from using other competitive products. no hardware, a software facebook phone. there you have it.
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connell: we will see if it works. thank you, shibani. dagen: we have some very critical news to bring you. a tent situation in algeria americans are among those being held. a drone is being used to monitor the situation. connell: we have mike baker with us now. what is your take? >> it is conflicting news. there is very little coverage. this is a remote region. this is a part of algeria that is kind of a waste land. this is all that nothing happens
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in a bubble in this region. the algerian army has been fighting extremists for years and years and years. it was an incredibly dangerous place to be. the armed islamic group was out there fighting the army and you lost hundreds of thousands of lives. what that means is, in a way, not to oversimplify this, but the algerian army is very good. they have been dealing with extremists for a long time. they came to grip with the extremists and they try to assimilate them. al qaeda has been there for years now. this has been a hotbed of extremists. we have sat around for years fretting and worrying about afghanistan. we misdirected this. you look at libya, they fell.
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weapons were everywhere. they made their way down to algeria. a lot of those made their way down and took over the northern part of that country. france comes into malley. now we are providing some assistance. some surveillance assistance. the leaders of this hostage taking situation at this gas plant, you know, they have said very directly, this is because of the french involvement and foreign involvement. dagen: how does this progress, mike? will this be an isolated situation? what do we do as a nation? >> first of all, you cannot try
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to negotiate with some of these individuals. some of these are hardened extremists. they have been involved in a variety of kidnappings. there are french hostages and malley right now. kidnap and ransom in algeria and moving that that has been a big business for quite some time. it is rumored that the lieutenant may have been killed in the algerian military initial assault on the facility. connell: the bottom line with the french involved, that potentially drags us into a situation, us being the united states, that we did not want to be in. we could get involved in this, right? >> we could get involved. we are already provided in
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malley. i do not necessarily think -- this is where the problem is. four years, we have not been having a discussion about afghanistan. i think, frankly, instead of nationbuilding, we need to be thinking about how al qaeda and the extremist elements operate. we need to be a little bit more thoughtful and surgical and going after them. if we had to go after them, we have to go after them in limited ways. dagen: cia type. connell: thank you, mike. dagen: great to see you. mike baker. the strange story. notre dame college football player, manti te'o. his dead girlfriend, well, she ain't dead because she never existed. and how a tv show could profit
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from it. connell: getting into some of that. also, in the markets today, stocks are up. here is the treasury yield. we will be right back on markets now. ♪ ♪ [ 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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there's a land of restful sleep. we can help you go there on the wings of lunesta. >> i have your fox business brief. stocks getting a nice boost today. united airlines pushing for a second air hike this year. it is only january 17. jetblue also following sue raising its pickets by as much as five dollars. discounts for southwest have to match a fare hike for it to speak industrywide. is college worth it? the high cost of college plus growing public dow about bachelor degrees have costed to revise down.
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dagen: manti te'o girlfriend was one of the saddest stories. it turns out, the girl did not exist. connell: we have the founder and ceo of -- here to talk to us about it. this is a big college football star. he claims he is the victim of a hoax. if that is true, if his story is the right story, he should stick to it. what if there is more to it? >> it is critical now more than ever for him to be honest in all of his communications. if he is lying, he has to come
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out and say that. there are not enough facts either way at this point. connell: eventually the truth comes out. >> absolutely. the truth is really going to come out with social media. there are tweets to back it up. apparently, she came back to life last night on twitter. dagen: the fact that he has officials at notre dame backing him right now is critical. these people at notre dame are in terms putting their necks on the line if this turns out to be altogether a different story. >> absolutely. it will negatively affect his future career if, you know, he is lying. and employer will not want to work with him. [talking over each other] connell: we always ask ourselves, why do we care, for
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some reason, we are all just gripped by it today. does it have an affect? in nfl team will look at this and say, that is a little. maybe he did not tell the truth. they will make a judgment about that that affects -- >> absolutely. people do not want to work with people that they think are lying to them. it is critical now more than ever to tell the truth about the situation. connell: i am not surprised in the least. dagen: i watch everything. connell: this idea, apparently, if you believe what the website is telling you, the guy who is behind all of this had done it before. he set up these fake relationships.
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>> this is another real-life example of that. this actually did happen. he is humiliated. connell: it comes down to it is not your girlfriend if you never met her. dagen: that is one screwed up generation of people. it is screwed up. [talking over each other] >> let's just say this really did happen to him, he could get behind the show and really help other people. that is a pr opportunity. connell: it is crazy.
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dagen: -- connell: you have never been catfish, have you? dagen: what? i know how to cook catfish. connell: let's go to nicole petallides. nicole: let's talk about netflix. barclays made a move on the price target. today, it is to the downside. there has been a lot of talk. they are trying to beef up the services and viewing opportunities for their subscribers. i also wanted to take a look at williams-sonoma. they have come out with their numbers. their numbers are pretty steady through the holidays. here is a look at williams-sonoma.
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let's take a look at the major market averages. the dow jones industrials up. the vix is taking a breather here. the market certainly is to the upside today. back to you. connell: threatening the crops out in california. talking about aliens of dollars. we will take you there live to get you the very latest. dagen: some of today's winners, manti te'o is not one of them. i am talking about the nasdaq. ♪ ♪ ♪ ♪
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connell: let's go to california. the citrus industry is trying to whether a cold snap. temperatures below the freezing mark for over a week. our next guest is one of the farmers. describe the situation and what you are going through, john. >> we have been out fighting the frost. it has been down to the bed, well, somewhat lower 20s and a couple of spots. connell: obviously, there are financial implications to all of
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this. we have a little bit of a satellite delay with john. there will be a couple seconds in between. what are you most concerned about? >> well, you know, it is too early to evaluate. i think, at this point, we have a small percentage of our crop that has been damage. it costs us a lot of money to try to protect it. it looks good. connell: speaking of how it looks, you look alright to us today. you are not dressed in a big coat or anything. >> it has really improved. it has really improved a lot. i think the coldest we have is 29, 28 degrees.
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we have picked up several degrees last night. today, it will be in the high 60s. it is improving quickly. connell: thank you to john, one of the citrus farmers. dagen: oil prices on the move today. better than expected economic numbers coming out. connell: sandra smith has the trade for us. sandra: when i was down on the floor of the commodities exchange, i was telling you, even though we have a lot of bearish fundamentals, they were still very bullish when it came to oil. up another percentage point. if i print this out to a three month chart, we are at the highest level we have been in
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months at crude oil prices. one thing for sure, when you start to get $100 a barrel, it is still a good thing. i want to point out, chevron and exxon, these are your big oil giant. they are some of the biggest leaders in the dow 30 right now. the ceo over at exxon, they do not like it when it gets much higher than that. one other thing, the energy sector itself tops $95 a barrel. look at this, a lot of expiration companies, they are seeing. lofty levels. big jumps in today's trading session.
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i will have a look at a couple of the big oil companies. dagen: it has been a nightmare for boeing and its streamliner. shares really hard hit the last couple days. that jet is grounded, here, there and everywhere because of battery problems. connell: cheryl and dennis are coming in. they will have a former transportation general. whether this unprecedented move was warranted. ♪ twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes
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investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. >> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock
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to relentlessly protec what matters most... [beeping...] helping stop crooks before your identity is attacked. and now you can have the most comprehensive identity theft protection available today... lifelock ultimate. so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity theft was until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you
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call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! cheryl: coming up on one eastern time. i am cheryl casone. dennis: diane dennis kneale. happy days are here again. the s&p 500 hitting another five year high, are we going up or
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down from here. cheryl: a nightmare for the dreamliner and shares of boeing. the 787s grounded time gain -- causing the stock to take big dives. we are live chicago's airport and talk with u.s. the part of transportation inspector general mary shea although's to whether this move was warranted. dennis: groundbreaking for new-home construction at its fastest pace in four years. time to get back into housing stocks. cheryl: one of the most bizarre stories along time. college football hero of manti teo, catch fish, the strange story ahead of his strange girlfriend who apparently never existed and tele-tv show will profit from it. sound like a media story to me. stocks every 15 minutes. we have nicole petallides on the floor of the new york stock exchange. looking pretty good. the s&p 500 hitting another multi-year high. we are liking this.
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nicole: not bad at all. so far so good. the fear index has pulled back. you see gained across the board. the ticket in nasdaq up 1/2%. all three major averages with up arrows and the trading week, and so far it is looking like a winning week but one name that remain under pressure is going. let's look at how boeing is doing. not as bad as it could be. boeing is down 1.6%, that feels like nothing considering the issues that have had. now you have the f a a. and over in japan and india and europe all ground in the 787 dreamliner, fitch coming up with headline saying this could hurt profitability and cash flow but it does on several months they may change the outlook to negative. those a year breaking headlines. dennis: first time in forty
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years regulators have taken such a dramatic step. cheryl: governments around the world have followed, grounding all 787s. jeff flock is live at o'hare airport in chicago where one of those aircraft out itself ground as well. jeff: came in yesterday from warsaw. the polish airline operates a multiple dreamliner errors and one can last night, did not do so, still on the ground and that airline, you won't like this, the stock is not going to like this, becoming the first to talk about getting compensation from boeing as a result of this grounding. we are analyzing the quote from our contract with boeing, the possibility of seeking compensation. all elements and irregularities that generate cost we will look into in terms of seeking compensation from boeing so the stock is not going to like that.
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the issues around these lithium ion batteries. i have a lithium ion battery in my hand. this is one that operates the back of our camera, very light battery, one of the reasons the airline likes this. just interesting to knows as a side note or not a side note we are not allowed to carry these lithium ion batteries in the cargo hold of the aircraft. when we fly we carry them on our person. if we do the issue goes to the same issue around the chevy volt when it was crash tested. of the battery is pierced in some way the corrosive fluid comes out and causes problems. that is believed to be one of the problems associated with this grounding, corrosive fluid emerging from the battery. how it did it we don't know. lithium ion battery very important, they're very light batteries. you can see that works well. that works well for one reason and not so well for another. we are on it. dennis: thank you very much.
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cheryl: the faa has not grounded an entire class of aircraft since 1979 when it took all dc-10s out of service following a major crash. is the faa over reacting to this problem? former u.s. department of transportation inspector general mary shea of low, an aviation attorney. is this justified? >> yes it is. when they have several incidents going on over several months that is typical of a new aircraft model, now they have had two dangerous events with this battery and in the aviation world two events is a trend. the a is not overreacting and did boeing a little bit of a favor and that they limited after this battery an electrical problem. once boeing shows the safeway to do this or maybe changes the battery maybe these batteries were simply defective, once boeing fixes this problem the plane comply again. the faa did not take a broad
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pointing action to ground it. cheryl: direct quote, release of flammable electrolyte damage, smoke, resulting from those incidents is dangerous. one of these batteries in the dreamliner directly underneath the cockpit. that is a problem. the concern of how with regard to bowling and the aircraft itself is the faa and the government self regulators will be stepping in and this will take months of investigative work to determine whether or not this is safe. that could leave the future production line of the dreamliner in jeopardy. is that correct? >> that is true. it depends what they find out. the faa's overall review of the dreamliner, reviewing all processes is going to be on for a long time. this directive concerns a battery electrical and the time depends on the problem of the defective battery and they don't have to reengineer anything or change the battery or rewrite computer code that is a very fast fix.
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if they have to reengineer or change anything then they have to get that -- that particular part or component recertified by the faa. cheryl: one of the things that looks all along, the 787 was three years delayed. there are only 80 of these planes flying around. boeing is sitting on 300 aircraft order, far from fulfilled and what the faa is saying is because of what it controls, emergency lighting, cockpit recorders, crucial aircraft facilities being run by this battery which now is being questioned as to whether or not is even safe. jeff flock's sources tell him they have concerns about it in cars. aircraft are completely different story. are you confident that this battery can be sustained in an aircraft? >> no, i am not which is why boeing has to get it right and the faa should have looked at this long before now.
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they certified every part and every component of this plane as it was being manufactured and that is the problem. that is why they acted now with an air restructure because on a plane anything that releases fumes or fire, fumes or fire on an aircraft are deadly even if the plane has not consumed in fire rear bed many tragedies in the past where the fumes themselves have caused passengers to perish. the pilots have smoke hoods, they would survive. the passengers would not. those are serious and that is why they were grounded. cheryl: the ceo is speaking with the at a a in constant communication that we will monitor. thank you very much, joining us via skype today. thank you. dennis: financial earnings season in full swing and we have heard from the big boys this morning, citigroup and banc of america, rear recording lackluster results and billions in charges. joining me from chicago, look at today's report, chin said all, let's talk banc of america, 63%,
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something like $4 billion in fourth quarter charges for warranties, compensatory fees. cote latest report, foreclosure of penalty, what do you think of the results? >> obviously the results weren't good. one thing looking at bank of america and citigroup, they have incentives to take a big bash in the fourth quarter. more of these charges they can get out of the way now the better they position themselves for 2013. at the same time these problems have been going on so long that investors are losing patience. you saw it with bank of america, regulators said before they could return capital even though their levels for good they needed to share recurring earnings power. that is what everyone is waiting to see and that is the big disappointment with this quarter even though a lot of these charges are unlikely to continue. dennis: i would think after $4 billion of the quarter you think it is over but more
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charges for bank of america coming on the foreclosure side? >> yes. if you look at the amount of claims still coming in, citigroup a few minutes ago were talking on their call about future settlements yet to come. there's a lot of litigation still out there. even the best case scenario in which they win all these cases, hundreds of millions of dollars or more -- dennis: $900 million in legal fees. it is just a scandal. >> exactly. it is not something that is going away anytime soon. these banks to lot of wrong in the years leading up to the crisis and it is obviously something that is still with them now. dennis: let's talk city. their earnings came in a way below expectations, close to $3 billion in charges. what do you need to see? >> the same sort of thing. city may have had bigger incentive with new management to get a lot of these charges out
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of the way but they see more pessimistic with regard to more litigation, more charges going forward. city holdings, the pace of decline has come down a lot, 8% of assets but still leading to billions of dollars of losses rear, $3.7 billion this year in losses from city holdings and with a lot of those assets having lifespans measured in years that is something that will be with them for a while. with these banks need to do is make some money, show us the money, show investors how they will make money going forward and how much. dennis: that is hard to do when wall street journal put it we are basically transferring wealth from banks over to consultants and lawyers and all the foreclosure settlements, all because a lot of people didn't pay their mortgage on time. i still don't get it. thanks for being with us, gyms and a gold. >> thanks for having me. cheryl: oil markets reporting at hostages have been killed in the
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crisis and a gas field in algeria. we are live with reaction from the floor. dennis: might be solar part of the answer to ending those wild swings in oil prices? live with the ceo of in our gee. cheryl: the strange story of notre dame's college football hero manti teo and his dead girlfriend who we find out never existed and a tv show involved. sound like good dennis kneale media minute. dennis: let's take a look at metals.
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dennis: 15 past the hour, stocks every quarter hour, team coverage led the new agenda, phil flynn in the trading pits
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of the cme, sandra smith at the data wizard on energy stocks and charles payne making money on land research. chris nicole petallides at the nyse-listed nicole: a picture of what is going on with markets, dow jones industrials are gaining some momentum of of 77 points, these are your dow winners, verizon, disney, home depot, microsoft and intel, intel one of the better performers of the year 2010, 2013, rushing myself, hewlett-packard is the no. one performer this year so far, take a look at major averages, the nasdaq composite up 1/2%, the s&p 500 also gaining the same amount, the dollar pulling back, boeing has been on the dow recently. that is on and floor of the new york stock exchange. dennis: the words of those hostages getting killed this
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morning put the rich premium back into the oil markets especially if you look at the other side of the pond. brent crude leading the charge right now up 172 today after these reports. but immediate concern is the actual gas, uk natural-gas prices soaring. algerienne happens to be the third largest provider of natural gas supplies to europe and because of the concerns of the destruction in cold temperatures we saw those stock prices at the biggest jump in ten months a lot of concerns, more risk on a natural-gas side than oil right now. in the u.s. the highest price for natural gas of the year, colder than expected temperatures, bigger demand and a drop of 148 on the b.c. s on a report today. look at what happens on the wizard. sandra: looking at the brent crude prices, year to date already's several% making a run at $100 a barrel tapping $95 a
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barrel in today's session a jump of $1 more than 1% in today's rating and keep that chart in mind because when i go to the energy sector and show you the energy stocks something will look familiar. look at oil in this company, this could be one of the first big oil companies to be reporting earnings. looks very familiar. a lot of these energy stocks falling that rise in oil prices. they don't always do that but that is the case right now. also want to show you dow 30 to show you what those are doing for the overall market. chevron, one of the leading stocks in the dow, one of the top five gainers up $1 in today's session and also point out exxon mobile perez well. they tend to like it when prices get a between $100 a barrel above that they struggle but right here this week spot for energy stocks. gerri: bp trading higher despite what is happening. phil flynn and nicole petallides, thank you very much, time to make some money with charles payne.
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he is talking about technology stocks, research corp. waivers. charles: the chips are acting well today. i really grapple with this and look at all of them for the show, a few may be like a little more fundamentally but share prices are higher. i came to the conclusion maybe research has got 11 -- trading at a most reasonable valuation and recently acquired novellas and their goal is to take market share, to the number one in market share and they got a driver's, pc drivers no longer around which used to drive these companies but tablets, 50%, smart phones, a whole new world out there and chip stocks really great, this one is acting good, gross margin are phenomenal, the growth has been phenomenal, technically it has broken out right now, not lot of resistance between here and 55. in the past that was where the stock fell. if it goes through i think it could really take off. dennis: you don't think that
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stock may have already reached 20% since september? charles: a lot of times i glad you brought this up, i start with a 52 week chart but also encourage people to plot a 5-year chart, tenure chart because where the stocks have been ten years ago tells you there's a lot more room to the upside. i agree with what you are saying, 55 is a series resistance deck above a breakthrough, lot longer term chart. cheryl: thank you very much. hole now runs the largest power generator in the united states. david crane, ceo of energy is here next after ringing the opening bell this morning at the nyse, completion of a major merger. dennis: time to get back into housing stocks. housing out of the basement. new home building at the fastest pace in four years. cheryl: as we go to break we look at the world currencies and how they're faring against the u.s. dollar. the euro at $1.33.
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>> this is your fox news nanette. house republicans today in
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williamsburg, averaging yet, part of an annual retreat and strategy session and on the agenda a possible proposal that would link raising the debt ceiling in exchange for delaying implementation of the affordable care act. the national rifle association is planning president obama's gun-control proposals. david keene earlier on "varney and company". you have a president who is dedicated to achieving an ideological agenda, is willing to spend political capital to fight a fight against -- against public feeling and public attitudes that have been in place for many years and to fight in spite of constitutional safeguards for those attitudes you have a real battle royal. >> the international big committee stripping lance armstrong of its 2000 bronze medal, his interview with oprah winfrey will begin airing tonight. those your latest headlines. we will have more.
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dennis: thank you. housing starts for december surging to a four year high. another clue for the fragile housing recovery. made in the grass joins me with how to play. a lot of stocks are up 80% to 100% in the past year. is it too late? >> most of the upside is there. if you are looking for another big 80% year we don't think you will get it this year. stocks could do okay, maybe beat the s&p but it is not the year to see a big surge, generally, don't overweighted this year. >> go after a few of these stocks, let's look at lennar, near neutral on that one. why is that? why not more? >> it is a hot stock this week. the stock is trading at pretty rich multiples above two times which is pretty rare for these stocks and the company can out this week and pumped the street down, lower expectations for the year. i think there is not a lot of upside left in that stock.
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dennis: you are forecasting 40% growth in new home sales let's go to the body in this sector, j. b. holmes. >> that is the turnaround stories this year. got to be a little patient and get the community up because they have been lagging and it was a mistake, if they can get their start up to get the order growth they are trading at a discount to the group so all they need to get some upside is to compress the discount and move a little bit. dennis: when we look at housing stocks we shouldn't look at them as the old p e multiple but instead as a multiple book value to save the entire sector, two times book value, and -- >> 1.4 times. dennis: let's cut to one where you have us all on these guys. >> ireland is one of the most expensive stocks in the universe trading at 2.4 times book value. our concern for them they have done a good job this year but started to buy growth and use
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acquisitions and our concern for them is at some point nehr orders are going to decline because they won't have those acquisitions in the numbers and we are concerned about her expansively they're doing the acquisition so we're watching the markets. are they doing it and increase in the bottom line as well. we think once you look good, we would not short it going into the quarter because the's and acquisition the long term we are concerned they're buying their growth. dennis: i realize you follow housing stocks rather and housing but i am wondering what i'd be better off taking $25,000 and instead of putting it in the housing stock sector putting it into a house. >> depends where you live but it is a really good time to buy a house in most markets if you can qualify for mortgage. we have a survey of real-estate brokers, number one concern for 2013, lax credit. you have to have perfect credit in order to baja. dennis: i do. really great job. thanks for being with us. cheryl: i have better credit
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than you do. housing is rebuilding, talking about that. new home construction and a four year high, the markets are really liking the data we're seeing today, as dennis and meghan were just discussing. we follow the market. dennis: iran unhappy with the end of the hostage drama. guess what it is doing about it? rewriting history. cheryl: as we go to break we look at the winners on the s&p. the s&p hitting a new 5-year high, the multi-year high for the s&p, there's a name, moving the s and p. we will be right back.
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dennis: weekly jobless claims fall more than expected hitting a five-year low. is the recovery for real?
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and the strange story of the notre dame football hero. his dead girlfriend who supposedly never existed and how a tv show me now profit from it. and how iran is changing ben affleck drama "argo." cheryl: stocks every 15 minutes, nicole, you have yet to be hitting multiyear five-year intraday highs, good stuff today. nicole: the traders talk about going to the upside. they continue to see it moving to the upside. i want to take a look at a shoemaker, a smaller company. 113 million market cap. the stock is certainly searching up 38%. north korean conglomerate moving
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ahead saying they will buy the company and stock, roughly where it is trading $4.72 right now. 200 brands under their umbrella. the group analyst actually using this deal giving them an enterprise value of 135 million which is above the current market cap. the equity value of the whole deal, this is good news because the stock over time the shares have plunged 91%. since 2005. so not good news there. today is a nice, big pop. back to you. cheryl: thanks, nicole. dennis: in today's media minute, the bizarre tale of notre dame's star linebacker manti te'o and the dead girlfriend who never existed. te'o got duped online baby by
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digital cross dresser, a guy pretending to be a girl. an investigator listened to what manti te'o himself said about her in a tv interview after she supposedly died of leukemia. >> y. me, why then, why all in one day? six hours ago i just found out. you take the love of my life read dennis: the love of my life but an incredible job, dead spin.com prove the girlfriend never existed, she's a figment of twitter and facebook. they traced it to a male friend of te'o's. now speculation, some say te'o wanted sympathetic heisman trophy votes, others say the online girlfriend was to hide his own sexual orientation,
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whatever that could be. the question is who was hoaxing whom. the media, espn, cbs, everybody bought the story, nobody looked into it only this website, deadspin. what happened to the media and reporting? cheryl: coming up, after solyndra it became the industry that everyone loves to hate, the solar sector. with growing interest from investors like the oracle of omaha himself, the solar sector may be poised for a comeback. joining me now fresh from ringing the bell at the new york stock exchange read welcome. you made a major acquisition. goldman sachs putting you on their stocks to watch list saying you're heading to $3 per share. a lot of buzz, but there is still this vale of solyndra over
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the solar sector. a piece of your business. how do you feel about that right now? >> solyndra is almost irrelevant to our business. we have 46,000 megawatts of conventional generation in the united states. we are very excited about solar, but solar is 1000 megawatts of plants under construction operation. the future of solar is unlimited. cheryl: your fossil fuel, wind, nuclear, solar, you have a little bit of everything. are you concerned about u.s. tariffs against china? what we're seeing now are the chinese have cheapened the solar panel market. in other own market, pitching, said they will do market pressure to get some of their solar company to combine, to merge. this seems like a market negative.
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does that help or hurt the u.s. solar market? >> you mention solar had a difficult year last year because wall street looks at solar and solar manufacturing and the price of solar panels has gone down 80% in the last 18 months. weather is caused by chinese dumping or not, cannot be in a position to say. all i can say is people who want to make electricity with solar power. we use solar panel panels to mae electricity and it is a great time to be on that end of the business. cheryl: warren buffett taking a piece of one of her projects. that is a mid-american renewable. is this where you think you will go with the piece of business, the partnerships if you will with the likes of warren buffett? >> anytime you can partner with warren buffett on a transaction is better than being opposed to him on a transaction. we like to think we were in the solar business before mid-american and warren buffett, but the fact they're coming in
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certainly shows that it is part of the future. we would love to partner with mid-american on other projects so that people who want to participate with us, it is a capital intensive industry. all the costs up front. when you have the solar panels can we have zero marginal cost electricity for the next 20 years. cheryl: you're working with a lot of big nfl teams on their stadiums. do you think what it is the just for the giants or pick your team, the redskins, all of them working with you to make their stadiums more environmentally friendly and cost control the amount of lights you're using. do you think that will actually help kind of change the storyline, the headline if you will on solar? >> customer awareness, consumer awareness, we've got electricity for the same way for so many years. no solar allows people to self generate. the fact the key nfl teams are doing it.
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solar is not just a source of electricity, is branding, sending a message to your own customer base or brand based that you are embracing sustainable energy. what the nfl teams are doing with us is a fantastic thing for us and for them. cheryl: your stock is up over the last year 35%. goldman sachs saying a stock to watch. we would love to have you back. >> thank you for having me. cheryl: one of the biggest power companies of the nation. dennis: ben affleck's "argo" tells the story of the escape of u.s. diplomats in the 1979 iran hostage crisis. new reports out of iran say authorities want to put out their own version of "argo" with the diplomats voluntarily released. it will be called "the general staff" based on eyewitness accounts. i am thinking "argo" its chances, i thought "lincoln" would run away with it, but i think "argo" could be the best
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picture. cheryl: "argo" is an excellent film. guests are getting ready to be wine and dine at the white house. the festivities this weekend. the man providing some of the presidential wine. dennis: and take a look at the 10-year treasuries. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor...
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>> i'm tracy byrnes with your fox business brief. while the expor report is giving stocks a boost today, the dow is up about 93 points. new mortgage servicing rules are out requiring banks to do more to help homeowners struggling to keep their homes. consumer financial protection bureau looking to stop the foreclosure practice while they apply for lending. jobless claims fell more than expected last week hitting a five-year low. the four-week moving average moved out of volatility also
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fell suggesting some improvement in underlining they were market improvements. that is the latest from the fox business network giving you the power to prosper.
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cheryl: we are coming up on quarter until the hour. every 15 minutes we have stocks now with nicole. pushing session highs right now, nicole. nicole: almost triple digit gains on the dow. good news if you ar are a bull t there. this is antiaging creams and such, they're doing well. after their reports rumored this is the gun company, we have seen gun sales doing well over time here up 2.5%.
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bank of america lower, boeing can use to weigh on the dow. look at microsoft and facebook. today now bing says they will help to make a decision on the sidebar, they will have more available from facebook to help you make decisions. that view. dennis: washington will meet long island this monday for the first time a wine made in new york will be served at the presidential inauguration. joining me now for this week's on the road, jonathan lynn, executive vice president. this is the actual drink sold, 96 bottles, do you sell it to them or donate it to them? >> there may be rules involved with that, but they take it for the luncheon on monday. dennis: i remember the wonderful wine movie "sideways." they basically trash merlot as a
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terrible wine. are they wrong? >> the movie was making an amusing joke, i spent a lot of time fighting against that perception. but east and west coast merlot are very different. a very bright, vibrant merlot. dennis: how tacky and blunt can you be to market this as your brand which mark >> it is an extraordinary honor and great recognition for new york food and wine, in fact we have a debt of gratitude and sense of humor to the host committee for the inaugural who went to great lengths to feature new york food and wine and over the course of an extensive tasting process of i think 100 new york state wines, they selected our merlot for the first course, we're very excited. dennis: is this a sandy sympathy thing? >> i don't believe it is, but i
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can see how those two things would tie together and it is reasonably impacted though we were very fortunate and did not get hurt too bad. dennis: what are you going to do to leverage off of this? >> we don't do a lot of paid advertising. wwe're doing a viewing party actually at our winery in long island on monday during the inaugural where people will have an opportunity to have an americana alongside this wine and some other offerings and watch the inaugural speech and some other proceedings. dennis: good merlot. sounds like a great combination. thanks for being with us. >> thank you so much for having me. dennis: have a great day. cheryl: it is 5:00 p.m. somewhere. from wind to freezing temperatures gripping th the wet coast. we will head out their lives in a special edition of our west coast minute. speak with one california grower that is trying to protect his
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crop and his investment. and the foot-long sub. but it turns out it may not be what it appears to be. we will explain. and i want take a look at some of the winners over on the nasdaq. ebay a big market winner overall. we will be right back. [ malennouncer ] you are a business pro. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choo any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ ale announcer ] just like you, business pro. just like you. go naonal. go like a pro.
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cheryl: west coast minute, special edition bet good califoa $2 billion citrus industry is trying to weather a cold snap seeing temperatures drop below the freezing mark for more than a week causing farmers to shell out for frost attention.
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they citrus farmer has thousands of acres of crops. joining me from riverside california. i know you have oranges and lemons, talking grapefruits in california, how nervous are you another farmers that you're going to have damaged to the crops? >> it has been touch and go the last several nights. whether we have any damage, it is a little early to tell, there might be some in isolated spots. we brought the warm air down somewhat. i think we're in pretty good shape. cheryl: one of the things about the california orange crop, what people may not realize is a lot of those oranges go across the country. talking about the mandarin oranges or the navel oranges, isn't it the mandarin that are the biggest concern right now because of their sensitivity to
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the cold? >> they have smaller skin, easier to freeze. that is our biggest concern. there again there will be isolated spots that could have some damage, but most of the crops are in pretty good shape. cheryl: let's talk about the cost of that. you and many other california farmers have wind machines trying to deflect the frost, if you will. what is the overall daily cost, do you think, to protect your profits at this point? >> well, the wind machines cost 50, $60 per hour to run, we have been running about 10 hours per night. each machine takes care of about 108 years and plus the water bill. it will cost several hundred dollars for every acre wheat
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farm, so overall cost the state of california should run into the multi-millions of dollars. cheryl: when you talk to the grocery stores and distributors of your product, ar or they tryg to maybe get some of the products earlier to get it to the stars or is that even a possibility? >> they can only sell so much at a time, they just need their orders. i don't think they will be an accelerated amount is because the retail market can only take so much so we just pick an orderly fashion. to meet the demand. cheryl: we certainly wish you and all of your colleagues out there in california, your fellow farmers the best of luck. i know it is really cold for californians right now. thank you so much. >> thank you.
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dennis: you know, those oranges and californians must be in shock to have 40 degrees weather. cheryl: they are freaking out. dennis: nothing funnier than freezing in california. subway popular general, $5 for the long, may not live up to its promise. this shortfall discovered after australian customer decided to measure the so-called foot-long sub way to fight was short by an inch. post a photo with a tape measure on subway's facebook page as the company to respond, it hasn't put over 100,000 customers have in one form or employe employ de change saying the sandwich when toasted tend to shrink. cheryl: this is just a travesty. how dare they? mr. visitation of subway sandwiches. dennis: it is a seinfeld episode waiting to happen. melissa and lori will assess the situation of boeing.
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as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp.

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