tv Markets Now FOX Business March 5, 2013 11:00am-1:00pm EST
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your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. the two look at this. it keeps filling up. new all-time high. that is the rally. now the highlight reel. this is a new high for the dow. >> it is going higher.
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stuart: the dow has never been in this territory before. walmart is the one dow stock, one of the 30 dow stocks, that is in the red at this moment. i could not see a new high for the dow like this. that is what we have. i saved the dow closes today well above 142. >> it will close right around the 14,000 hi. stuart: on fire again, charles. how about that. dagen and connell, it is yours now. dagen: i loved the discussion about that 911 tape. the only moment in my life where i felt a warm feeling about a plaintiff attorney.
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connell: i am connell mcshane. dagen: i am dagen mcdowell. a new all-time high hit during the trading day. it looks like we will have a new all-time closing high. do we keep going up from here? connell: chicago gridlock. snow grounding flights in the windy city. dagen: martha stuart on the stand. two of the biggest names in retail fight over her brand. connell: the threat coming from abroad. china. we will talk about how much of a threat there is when it comes to our trade secrets. dagen: it is the top of the hour. nicole petallides has it covered. lou: a little celebration for all the bowls out there. we have the dow at 6500.
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now you are seeing it at 14,273. some of the names that are helping us along today are united technologies, hewlett-packard and american express. hewlett-packard is the best performer year to date. most of the traders did think that we were building to the new highs. some of the reasons they say we did that was because there was frustration and bonds and gold. and the fact that people just started to get back in there. and china, that was another factor. all-time new record highs for the dow jones industrials.
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connell: how long will the rally really last? we have a chief investment strategist with us today. which camp would you be in? a lot of people will see this today. do we stop here, hang out for little while, pull back or hang out a little bit longer? >> the transportation average registered new time highs last month. that would be the fourth signals in the bottom of march of 09. you have probably used up a lot of energy getting up here. you could see a little bit of a pause or a pullback. i think the stock will be higher at year end then they are now. connell: if you have it, put it
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in the stock market. if you think about the year today, you mentioned the transports, even the other major indexes and averages that we talk about, whether it is the dow, we will see, the s&p and nasdaq have also done well. the s&p 500 at 1540 right now. it closed out last year at 1426. we would probably take, if you said to us at the beginning of the year, they alright that is not too bad. you don't think we will pull back a little? >> >> the history is that the s&p is 6.1% higher a month later and 83% of the time and 12.8% higher three months later, 100% of the
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time. i have been chanting that everything that happened back in the beginning of january. there is a lot of underinvested people. we have 800 portfolio managers here. the mood is pretty upbeat. people are underinvested in trying to keep up with the s&p 500. connell: how do they do that? do i just throw it in a basket of stocks? are you much more selective and it so it areas? >> i think you have to be more selective. i like most of the sect ears. the only one i am not real wild about would be the consumer staples.
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i think you have to be somewhat selective within those nine other sectors. rather than throwing all the capital in at this juncture, i would suggest breaking up into four tranches. commit 25,000 of it today and wait for two or three or four weeks before committing the second. connell: it is not like every single concern we have talked about, political and otherwise, have necessarily gone away today. the dow is out 14 to and change. >> that is correct. that could give the market a
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cause for pause. i am fairly optimistic that the boys and girls will come together with some kind of solution. i do not think that pullback will be all that big. connell: as always, we thank you very much for coming on. dagen: how do you make more money from here? charles payne knows. connell: he is sitting here next to us. we will keep writing this for a a while or it is time to have some caution? charles: for the last few years, i have been saying bye, bye, bye. they always feel like they have listed. at every level, people said i missed it, i will wait for the pullback. i still hear that.
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people never buy the correction. dagen: it seems like people are psychologically more concerned about losing money in the stock market. the stock funds have picked up. you are still seeing almost an equal amount of money going into stock. they should be worried about losing money, particularly in treasuries. charles: that great rotation you are talking about has not happened yet. i do not think this is a bernanke stock rally market yet. i think what we get to frothy or levels, this is not the hysteria mark. in fact, this has been the stealthy as rally in history.
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connell: rotation that will happen, that has not necessarily happened yet, where people come out of bond income into stocks. it does not make any sense at all. charles: people chase performance. everyone thinks they will pick the bottom in the correction and they end up missing it. people don't pick the top either. we always chase performance in this country. dagen: let's not act like this snap back happened in a few months. it has been over five years.
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charles: you have to be prepared to invest in a basket of great american companies. dagen: that would be the dow pretty much. charles: that is why the dow is that a new all-time high. i am talking about dollar tree. they have good news outside of this country or they were growing outside of this company. i think that will continue. connell: more from charles payne throughout the day. dagen: meantime, the weather. chicago o'hare airport reporting 1000 cancellations so far. it is a giant snowstorm that is moving across the midwest. connell: we have jeff flock at one of his favorite places. o'hare airport in chicago. jeff: speaking of pain, here we are in chicago. it is march. supposed to be the worst snow
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storm of the season. over 1000 cancellations thus far. i want to take you inside and show you the boards. we are up to 1300 so far. talk about the tsa lines. take a look at the tsa lines. this is what it looks like today. if you thought they were going to be delays, well, not so much going through the tsa. take a look at the cancellation and on-time boards. the yellow, by the way, that is canceled flights. if you look at them out there, a couple boards, there are only a few flights on time. the airlines have done really well despite, you know, issues that have been out there. airlines have actually done pretty well. of course, everything is up today. it does not make much
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difference. we will continue to watch this at o'hare because it is headed your way. it is coming to you next. good luck with it. connell: thanks. dagen: looking forward to that, jeff. thanks so much. connell: then we have the story of a pilot who claims he saw a drone as he was landing at jfk airport here in new york. former cia agent, mike baker, will talk with us about the drone threat to our nations security. dagen: martha stuart back in court. she is doing something she did not do while she was on trial for, well, obstruction of justice. she is on the stand. two of the biggest names in retail fight over, well, her. connell: our cyber threat continues today. trade secrets for government and corporations. important stuff. you may learn something new later this hour.
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connell: here we go. look at this. breaking news of the day. let's go back to nicole petallides. nicole: i wanted to talk about some of the names. most of the names are in the green. all across the board, you are seeing winners. we were just going through them. some names are hitting 52 week highs. here is a look at the names in the dow.
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a short time ago, it did hit an annual high. johnson & johnson, 3m, american express, disney, home depot and boeing. these are the names hitting 52 week highs. on a day where we are setting record highs for the dow jones industrials, a day of celebration for many. we were betting the other way. it is a very interesting day on wall street. 14,281 right now. dagen: thank you, nicole. the sighting of a mysterious flying object near new york's jfk international airport. this after reports that a pilot claimed he saw a black drone hovering just 200 feet from his plane as he approached the airport. mike baker is here.
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good to see you, mike. thanks for being on with us. what do you make of this? maybe it will come to a surprise to people that drones are in use here in the united states. >> that is right. drones and develop to a great degree. that has always been the case. the military has benefited from technological advances and commercials suck yours. there are a lot of legitimate purposes for drones i think that, you know, people are very spun up right now. the drone program is going to come to the u.s. and suddenly everybody will be surveilled.
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well, honestly, i spent a long time. if you are not involved in terrorism or criminal activity, you probably do not have much to worry about. dagen: investigating crime scenes. mike, do we need to start worrying about it more? >> they have very interesting applications. the big stink has been about the idea that somehow we will use the drone.
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again, you'll never be able to convince some segments of society that that will be the case and that the government is out to do them in. i am more interested in the application. there has been a lot of this up on capitol hill. i know what they are doing which , they are poking the president, they are poking the white house. they disagree with john lennon's take on things, to some degree. dagen: according to a new fox news poll, 74% in use overseas to kill suspected terrorist. what if you look closer at these
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they have the authority to kill americans on u.s. soil. don't you find that shocking? >> yes, i do find that very unusual. i want to find who those people are. you can imagine, republicans are checking that box and things give that authority. it is a stunning bit of hypocrisy. again, i think, you know, we are getting a bit spun up. part of it was, the publicity. he has taken up arms over the
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u.s. he was taken out by a drone. he took up arms against the u.s. he basically renounced his citizenship. we could have taken the citizenship away. i do have eggs over getting any president the authority, to that degree, of targeting citizens here in america. dagen: great to see you. always terrific. if they want more of you, they can follow you on twitter. you are funny. >> i do my best. [ laughter ] dagen: it was great to see you. thank you, mike. connell: martha stuart back in court today. dagen: something she did not do while she was on trial. the cyber threat from china and other nations.
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>> out 26 minutes past the hour, i have your fox news minute. north korea is bowing to cancel the cease-fire that ended the korean war. the u.s. and china have reached agreement on a new draft to punish the country. venezuelan resident is having trouble breathing and is in a very delicate state. chavez recently returned to this country from cuba. chavez has not been seen in public since december 11. a former u.s. drug enforcement chief is worrying about a domino affect. the former dea chief say the obama administration should
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force the state to nullify those laws. those are your headlines. dagen, back to you. dagen: thank you very much. the queen of home goods took the stand today in the macy's versus jcpenney battle against her brand. we are talking about martha stewart. last week, macy's ceo testified that he hung up on martha stewart when she waited until the day before to let him know about it. the judge in this case signaled that he may block the rollout of products. you can check on the stocks of martha stuart, pennies and macy's. it is worth noting, arthur is on the stand today. she did not testify in her own
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defense. connell: maybe she should have. now, here she is. we will get back to the markets in a moment. the president's approval rating dropping to its lowest level since the election. dagen: the money spent on prescription drugs down last year. we will tell you why. here are some of today's winners on the s&p 500. ♪
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dagen: before the day is over with, i am going to get a yee haw from connell. we had an all-time high today. connell: let's go back to nicole petallides at the stock exchange. you remember 2007, nicole. nicole: i do. very well. so many people have been waiting to get back to these levels since that time. here we are today where we are hitting record highs again. right now, you can see hewlett-packard at $20.46 a share. it was $11 back in november. now it is $20. working hard on the turnaround. connell: thank you, nicole.
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dagen: the president and congress unable to strike a deal on the automatic spending cuts. his approval rating right now at 46%. connell: fox news contributor joining us in studio today. it is kind of interesting to follow up on what nicole is talking about. i do not know if it is a disconnect or not. we actually saw the economy shrank last quarter. i think what people are probably responding to more than anything else is the behavior last week during the discussion about the sequester. he was caught lying. saying this was congressional republicans ideas. this turned out to be an idea of the white house.
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they ultimately had to come out and say, yes, this was our idea. he has been pointing fingers and shifting the idea to other people. connell: again, it is like all of the bad things that will happen, they maybe do not want to hear that. >> rather than think of a way where we can avoid all of this, and he can do it, it just sounds kind of like a 3d imax horror picture. he said he does not want the flexibility. i think that point to what hh really wants.
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connell: it is kind of interesting to think about what may happen next. the president could pay a price for that. they do not happen, things are not that bad, maybe he will start to get credit for it. >> i think that the fact that the president's -- they should stand up and lead. connell: they are approval ratings are much lower. physically take the bill over to the senate and say we want to give the president the flexibility. if they do, great and if they don't, then it is their fault.
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dagen: the president is therefore almost another four years. >> he wants his ratings up. connell: good to see you. thanks for coming on. dagen: thank you so much. express scripts reported the first ever to client and basic prescription or traditional drug spending. a one and a half drop in spending. the pharmacy company says the drop in traditional drug spending is due to success in getting members to embrace cheaper pills and new versions of cholesterol drugs. shares of express strips of over 9% for the year. connell: also, some technology talk coming up.
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forget about the iphone a moment. dagen: the cyber threat. the effort to protect our trade secrets from evolution. ♪ [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing.
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>> i am lori rothman with your fox business brief. it is a sea of green on wall street today. the dow jones industrial average hitting an all-time high. a federal judge in texas -- in the insider trading case against him. the trial against the dallas mavericks owner is scheduled in june. allowing him to avoid paying more than $750,000 in lawsuits.
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future. american bullion. piece of gold, peace of mind. call 1-800-gold-ira now. connell: we are examining the economics of the cyber threat. the well-known report that came out alleging a branch of the chinese military hacked into 115 u.s. companies. it is interesting because we hear of iran and we talked yesterday about russia, we talked about lone wolf cyber attacks and all these other things. it seems many times to come back to china.
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>> china is caring out about ten times the scale of economic espionage. when china steals business and technology, it matters a lot more. they could be stealing an entire industry. connell: that is quite -- when you think about what china does well, everything comes back to scale. there is so much left. ten times more than any place else. if china, for example, hurts us, isn't it in fact hurting itself in some ways or no? >> china needs to maintain an
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extraordinary rate. they have been managing a growth rate of about four times of a developed country like the united states. in order to maintain that extraordinarily high growth rate, they have to copy western technologies. stealing western technologies and business secrets is part of the economic development strategy for the country of china. connell: it cuts back to your earlier point. the scale is at the chinese advantage. a lot of people have argued innovation. there is not as much of that they are as here in the united states or other place.
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you want to have a productive relationship with the chinese. >> the reason that china's is taking resources away from people who know how to innovate and taking them to people who do not know how to innovate. every year they produced many technological innovations. things like transistors in computers, the internet, smart phones.
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connell: that is not necessarily what you want to hang your hat on. today, thank you very much for coming on. appreciate it. >> thank you. connell: we are asking some of our regular market as for their stock picks. the names include cisco, emc and sematech. source fire. ted says he would avoid stocks like that one. a big update for the market.
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if you are worried about your security systems, nor money, the cyber threat, that continues next hour. dagen: nicole is looking at the dow's best. nicole: 14,286. we are just over ten points off the all-time record high. we continue to hold onto these gains. they have had multiple management changes.
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you have several names that are gaining double-digit percentage terms. jpmorgan, procter & gamble, home depot and disney all gained 13-point something percent. obviously, some stellar performers for the year 2013. dagen: thank you, nicole spee look look like a good time for apple. they are talking about a iwatch. reporter: it shook up the music and smart phone industry. that they are talking about shaking up the watch industry.
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the top designer at apple, the top design chief and a staff of 100 people have already filed 75 patents already and they are working on this wearable tech knowledge he that could have a whole host of very cool features. a lot of people very concerned about the long-term prospects that will generate growth out of this company. speaking of growth, citigroup believes that this is a huge opportunity for apple calling it the $6 billion opportunity.
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bringing additional revenues, higher margins, a win-win all the way. again, if you cannot get dagen to switch, what is the long-term prospect of it? [talking over each other] dagen: have some patience, trust us. we have a lot of stuff cooking. shibani: there you go. dagen: thank you, shibani. gold stocks trying to participate in this rally. connell: we will get to that in a moment. first, on what has been a record setting day for the stock market. plus, take a look at the nasdaq. a lot about the dow hitting an
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connell: gold stocks trying to demand a comeback after hitting a three and a half year low. dagen: sandra smith has more in today's trade. sandra: gold prices have been going right up to date with the equity market. gold coming way off of its highs of the session. up $2.23 per ounce. green, nonetheless, if i bring up the one-week chart, you will see that it is down over the
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past several trading sessions. with that being said, on a day where the market is hitting all-time highs, you may want to look at some stocks that have not been participating in that rally. i want to point out ringgold resources. trading at a pe of 16. this could be considered somewhat of a cheap gold stock to look at. janet said she expects the fed to continue. these are stocks that have not participated in the rally. something to keep in mind if you are looking to pick up some stocks on this big wedding day. going back to those gold prices,
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bank of america, merrill lynch may be working against gold. they do not expect gold to top 2000-ounce. that could be working in the other direction as well right now. connell: thank you, sandra. dagen: thank you so much, sandra. after a long flight, dell does suggest that you take a shower, but without water. helping flyers beat jet lag. looks like a tanning bed to be. it will help reset your internal clocks. i wipe down my seat with a handy wipe, that was nasty. connell: i bet it was.
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dagen: really, really nasty. connell: that would be great, by the way, these showers for our stage manager. when was the last time you showered, josh? dagen: josh wears the same clothes every single day. connell: he has a great laundry department in his building. dagen: i have a restraining department to keep him at least 200 feet away from me. connell: coming up, cheryl casone saying there is still time to get in on the big party. dagen: denys deal with the latest on the cyber threat theory. ♪ ♪ [ female announcer ] from tracking the bus. ♪ to tracking field conditions. ♪ wireless is limitless.
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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain b. ♪ all onhinkorswim from td ameritrade. ♪ >> 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 to relentlessly protect what matters most... [beeping...] helping stop crooks before your identity is attacked. and now you can have the most
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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 yo 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.
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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 felock 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! ♪ [ female announcer ] from more efficient payments. ♪ to more efficient pick-ups. ♪ wiress is limitless. dennis: we're at rally mode and that make me happy. cheryl: good news from china today. it has the balloons and confetti
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raining down on wall street. it hits the all-time high and then blows right through it and the bulls are still running. dennis: we waited almost 5 1/2 hours for this and we're covering all the an he wills. charles payne is here with us, sandra smith also in the studio with us and we'll begin with nicole on the floor of the new york stock exchange. >> it has been action packed. we've seen a market moving to the all-time record highs. there's obviously skepticism, caution to this market. however, you can't deny that so many people who were hit during the financial crisis are celebrating today on the day where we're back to the levels and beyond that we were at back in 2007. right now you can see the dow jones up about 150 points. that's worth a full percentage point. you're seeing a majority of the dow components into the green. the retail stocks, bank stocks all in the green.
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hewlett packard is doing well today and also the best of 2013. traders as i noted, some get the short sleeves right and others who just think that now may be time for a pullback so obviously we toov that disconnect between wall street and main street. however, right now, you have to just take it for what it is and it's a real winning day here. dennis: now is no time for the pullback. cheryl: phil, one of the things nicole makes a great point about is the fact that is main street feeling the effects? we've had higher gas prices and oil has been very volatile. where are we with that contract? >> i think right now the oil prices are up here a little bit and they're actually going up on optimism but the stock market, as much as i hate to spoil a party, i love to celebrate new highs. i love to celebrate anything. there's still a lot of negatives underlying this. the bottom line is the stocks are rallying because we're printing money all over the globe, whether it be china, japan, you name it and people
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are looking at the stock market that they can buy two for the price of one. if you look at the overall statistics, the last time the dow was here, it was a much more of a celebratory situation. i mean, you compare, for example, just some of the numbers here. i was looking at them before i came on the air. gas prices the last time were this high were $2.75 a gallon. now they're $3.73. look at the g.d.p. last time we were this high was at 2.5%. we're at 1.6% and the number that's really depressing is if you look at the all-time high. americans, the last time the dow was this high, unemployment was 1.7 million. today it's 13.2. we'll celebrate it but at the same time, it still covers some bad things in the economy. dennis: let's go to a smart bull. charles payne, the worry warts are going to say we're too high,
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too fast. this is not the top, is it? >> i don't think it's the top. i would invite anyone that thinks it's only ben bernanke, when is the last time you looked at any income statement of any company in the last quarter? i look at a lot of them, six to 10 every day. i'm talking whirlpool out today. let's just talk about operating margins and last year, the operating margin, 5.1%. fourth quarter, 6.5%. not just that they're up but trending higher and higher. why? because they're growing all over the world. now, there are some domestic stuff. the housing recovery is helping a lot of these construction companies, there's no doubt about it. lumber companies, but the change in the bottom line, obviously not coming from america. there's no correlation between the rally in america, say, for the housing market, people have that much right but they're discounting the world to have a euro thinking it's only europe and america when the globe has never been this prosperous before in the history of
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mankind. cheryl: one of the big signals of the world economy and the world doing well is gold. that's what you've been following today. the gold mining stocks have been a big piece of this rally over the last year. >> well, you know, over -- in 2012 but this year they have not been doing well, cheryl, and this is something charles and i have differing opinions on but one thing i was watching today, when we were hitting all-time highs is federal reserve vice chair, she came out and said that the ben bernanke and the federal reserve should continue their easy monetary policy. this plays into the gold picture as well. this easy monetary policy, these record low interest rates, they have people looking for somewhere to put their money. it's not a savings account. it's not a certificate of deposit. where do you make money right now? charles, they're almost forced to go into the stock market. as long as the federal reserve continues this easy monetary policy, it's off to the races for the stock market. we're not cheering on economic growth in this country. there's nothing to cheer.
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jobless rates still extremely high. what -- other than a few companies doing well because of global growth is there to cheer about? >> that's just that. we're talking about the dow 30. those 30 companies. that's why the nasdaq isn't back to 5,000 which was speculative but i think it's a mistake -- anyone who is suggesting to people not to be in the market, i want to know when they're going to come on tv and tell people to buy? will it be on the pull back to 6600? breakout of 15,000? when is the market going to get the okay from all the nay sayers because americans have missed this rally and that's the interesting thing. that's one of the reasons i'm bullish to be frank with you. dennis: the pickers are afraid the class will get mad if they don't make money. all right. thanks. fantastic job, guys. charles, sandra, nicole and nicole will be back every 15 minutes.
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stick around. cheryl: let's talk about the dow 15,600. that's what many bulls, including our next guest, say is the true all-time high for stocks and they say we can get there soon. he says this, anyway. todd morgan, senior managing director jon:s me right now. you say investors are holding back and charles payne was mentioning this. they're completely wrong. how wrong are they? >> well, i think they're holding back, first of all, not because they think stocks are too expensiv expensive. i think it's what happened of 2008 and 2009 but it's starting to change. we're seeing people put the excess cash back to work in risk or growth assets. it's starting right now. i think with the markets going to a new high and we've been seeing the marks going to go to a new high for a while, i think it will be an impetus to get people out of the bunker and start putting money to work in assets that will give them greater returns.
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remember, there's multiple trillions of dollars in cash right now and overweighted bonds. sha cheryl: you're right. we've had analysts say the same exact thing. you mentioned the fed. $3 trillion has been printed by the fed but now we're seeing a bit of a stronger dollar. what does that mean for u.s. multi nationals? people like home depot, caterpillar that have done so well over the last year. what does it do to them if the dollar continues to strength en? what happens then? >> i don't think it's going to be an impact. we like large cap, multi national, high dividend paying blue chips and the reason is they do business all over the world. there's greater growth in southeast asia, china, india, south america than here and they are beneficiaries. they have world class brands and i think if you think long term, not two months but two years, four years, you'll get a much
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greater return than you will on bonds. in fact, we think equities will outperform bonds the next two or three years by maybe double or triple the returns in your bonds. >> we were just looking at the s&p 500. there's your dow. i want to go back to the s&p 500 for a moment because the s&p 500 has yet to go over the big mark on the s&p 500. what would you advise viewers to do right now? dow up 146, the confetti is out. do we wait for the pullback and if history shows that the pullbacks are coming in, do we buy on the pullback time? >> that's a very important question. we would all like to see it pull back. we all have some cash to invest. but the market doesn't always accommodate us. it climbs a wall of worry and the problem is too many people are looking for a big correction to get in the market they missed. we're advising people to put some money in. if you have brand new money, you haven't put any money to work,
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you've put a quarter of a third in here and wait for a pullback but use disciplines. short-term, committee was not advise people what to do. long term, you have to plug your nose and buy world class companies here because you will get a greater return over the next three years. nobody can time the market perfectly. cheryl: we're looking at a chart of the volatility against the dow and of course, the s&p 500 as well and you're right. the smartest people in the world can't really time this market and neither should the viewers. todd morgan, thank you very much. good advice. thanks, todd. >> pleasure. thank you. dennis: long airport delays not because of the supposed sequester cuts but because of bad weather. we're live at chicago's o'hare. cheryl: martha stewart in the stand in the battle over her brand but penney's could be the loser. dennis: and worried about the security of your on line bank
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account? you should be and we have expert advice in part four of our week long series, the cyber threat. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello?
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piece of gold, peace of mind. call 1-800-gold-ira now. cheryl: we continue to follow the breaking news of the markets. blowing past -- the dow, anyway, the all time high. let's go to the floor of the new york stock exchange with nicole. history being made today. can we hold until 4:00 p.m. eastern? >> it's interesting that you ask that question, cheryl. we've held on to the gains. we're giving back just a little bit right now but our high of the day was 14,286. we're less than 20 points away from that level so the fact that we moved up that high and still hovering around those levels and a gain of 141 points is pretty impressive here for the bold out
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there who are loving the market. you can see all three averages are gaining more than 1% each. certainly feels like we'll be in the green by the end of the day. dollar is cooperating, not moving around too much. you see winners from sector to sector and most of the dow components well into the green. many of which are hitting 15-week highs. cheryl: chicago area airports are reporting over 1,000 cancellations so far and it's not spending cuts to blame. it's mother nature this time. dennis: jeff is in chicago where the snowfall is expected to bring 10 inches. jeff? >> could be as much as a foot they're now saying. we're outside the airport right now. that's the hilton hotel. that will be booked today because there are just a lot of cans clags -- cancellations. the storm is headed your way and it's wrapping the entire
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northern part of the midwest. and so, you know, you see what it looks like. as i said, it's headed to the east. let's take a look live here in the airport. you take a look at the t.s.a. lines. i was out at the airport yesterday. we did not see any additional delays as a result of sequester and today curiously enough, there are fewer people out here but take a look at the boards. look at the cans clagss. that's the arrival boards at o'hare and the live boards, i can put the numbers up. at o'hare it's 1080, over 1,000. midway, another couple of hundred and minneapolis, another hundred plus so there you go. people making plans on their cell phones. the total, over 1,300 cancellations thus far. everybody is doing great today. airlines doing well despite the weather but it's actually been a pretty decent winter for the
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airlines. they're telling us, this will be the worst snow in chicago of the year. welcome to march. dennis: thanks very much, jeff. our next guest says something is rotten in the beltway with government cutting down staff on airports and blaming it on the budget sequester. in your notes here, you start off with interesting math, mike. thank you for being with us. you say it's only a 4% cut in the f.a.a. budget but that still leaves the f.a.a. with plenty of money. please explain. >> after they did this, quote, sequester thing, the budget left is higher than 2008 and number two, controllers today are handling about a million fewer departures than they were in 2008 so if the sky is going to fall because of sequester, it's going to be this administration that shoots it down because these numbers just don't add up to make the cuts they're still talking about.
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dennis: and are the cuts that automatic? no particular division chief has the right to move some money here or there? is it truly that arbitrarily or can every agency do something to make sure that the impact is lessened rather than increased? >> let's keep in mind, 85 billion is peanuts. 600 million to the f.a.a. leaves a lot of money there. we shouldn't be laying off anybody. i think what's happening is the administration wants to make this as painful as possible for the consumer and blame it on somebody else but we couldn't have these layoffs, shouldn't have extra lines. the homeland security secretary has no business saying there's longer lines. $85 billion and $600 million from the f.a.a., that's nothing. dennis: do you believe that the administration, the democrats, want to play up the bad impact? haven't i also heard plenty of republicans hanging crepe as well? >> so both sides of the aisle we're dealing with people that aren't the brightest bulbs in the chandelier but the reality of the whole thing is what they're doing is trying to say,
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oh, because of sequester, all of these deep, deep cuts and no one bothers to ask on the media side, no offense, what kind of cuts are you talking about? f.a.a. $600 million in future spending, you have more money than five years ago and less work. dennis: do you think the sequester cuts will stay in place and ultimately will end up leading to longer lines, security lines at airports if we don't do something to fix this? >> no. these sequester cuts are nothing. they're absolutely nothing. f.a.a. with the cuts still has about 9% to 10% more money than five years ago and a million fewer flights to handle so there shouldn't be anything like this. this is all political posturing. it really is. i just wonder what country i live in now with this kind of thing going on in washington. dennis: inside from both parties, do you think there's almost a fear that what happens if we make cuts and almost nobody even notices and they don't care and they realize that
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government does spend too much? >> they do. this is the same week here talking about longer lines and inconvenience, the same week we give a quarter billion to egypt. this is lunacy and republicans saying, look. we saved $85 million. big deal. that's the cost of a christmas party, guys. cheryl: software company s.a.p. profiting from the sequester. those budget cuts. take a look at the stock right now. s&p 500, 8156, up $1.65. we have an exclusive interview with their co-ceo.
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convince syrian president asad to, quote, change his current calculation. united nations security council is expected to vote on new sanctions against north korea on thursday. according to china's u.n. envoy, both the u.s. and china have reportedly reached agreement to punish north korea following the country's february 12 nuclear test. north korea is vowing to cancel the 1953 cease fire that ended the korean war. venezuelan state tv is reporting that top officials and military officers are meeting as president chavez's health has worsened. he's having trouble breathing and said to be in a delicate state. 58-year-old returned to his country from cuba following cancer and chemotherapy treatments and those are your headlines. now back to dennis. dennis: could a merger of the mortgage bond visit the two giants, fannie mae and freddie mac, end up raising mortgage rates for you? >> it could and do you know what? the word on the street is half a
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percentage point at least is what the mortgage rates could go up. here's the plan right now. here is what the government at the market was saying about merging the bond units of fanny and freddie. we want to create something that could be sold and could be used as a foundation of the mortgage market of the future. so big plan underway at the bipartisan policy center. housing commission run by former senators george mitchell, martinez and former director. they want to wind up and break up fannie mae and freddie mac and turn them into a government bond insurer. this is a change in housing policy for the government and bankly the 30-year loan could go away. i mean, denmark is the only other country in the world that has a 30-year loan and here is why mortgage rates could go up. this is a five-year plan. it could happen in 10 years, it could be to the opposition but here is the future of fannie and freddie. they could charge fees for government bonding of just
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bonds, not mortgages and the new company would for the fi time have to pay state and local taxes and also would have to file for the first time s.e.c. registration documents, so again, this amounts to a huge change in the future of the government owned entities and this is the first time, merging the bond units is a first step. dennis: given the fear of too big to fail, if they managed to do this and wanted to spin it out as a private thing, it couldn't get bought, would it? >> here is how it would work. they would put the balance sheet up for -- we've been in the touch for these guys working on the housing commission. they worked on it for 16 months, talking to congress about it. they would put the balance sheets up for bid, up for auction. so a black rock or bank of america could bid on those parts of the balance sheet as they fit in with their own portfolios. they're still back half of the mortgage market but if this takes place, you can guarantee aside from the other interest
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rate pressures, interest rates going up, mortgage rates could go up if fannie and freddie are privatized. c.e.o. is already saying half a percentage point if that happens. dennis: let the free market rain, baby. here it comes. cheryl: the queen of home goods taking the stand in the macy's j.c. penney battle over her brands. martha stewart grilled over charges she violated her deal with macy's by cutting a similar deal with penney's. the macy's c.e.o. said he hung up on her and he said it ended the friendship. that spanned decades. now, the judge in the case has signalled he may block the role out of the cookware sheets and towels and other products at penney's which is set for may. take a look at the stock. there's martha stewart on the
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media. that stock is down three cents. j.c. penney down substantially, more than 9%. judge making a big announcement when he threw that out there in the courtroom. take a look at macy's. 41.79. dennis: martha hasn't felt this loved in years. they're talking about this brand new for the legal spat. cheryl: the brand in macy's, he's told me in the past, martha, besides the friendship, was one of the biggest of the store. a history making day. a new all-time high during the trading day today. where are we going to go from here? 3 1/2 hours to go. stay with us. dennis: cyber threat. week long series continues with a troubling look how vulnerable your own bank account may be.
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♪ >> there's the dow 30, merck, coca-cola in the red. best performing stocks since 2007, home depot, ibm, the worst? alcoa. bottom of the hour, and, of course, stocks now every 15 minutes. we got nicole on the floor of the new york city stock exchange who knows all of this and more. nicole? >> a day like today, so many people waiting for the all-time record highs, spoken of it so many times, dating back to 2007, and we went through a very tough financial crisis, and that's an understatement, but now we're here to celebrate the bulls out there for the iras and 401(k)s hitting record highs, obviously, now on this day in 20 # 13.
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among the names in the dow jones industrials, i know you were just talking about the best and worst of years prior. i want to talk about the names hitting some two week highs. you are seeing up arrows across the board, twentity seven of the 30 names positive for the year, but some hit 52-week highs including american express, boeing, disney, home depot, johnson & johnson, left out a few, but that shows not only is the dow jones industrial average pushing to the record highs testing upper levels as well, but, you know, people who own apple miss the run when google is at new all-time highs as well. >> thank you very much. ♪ the cyberthreat hacking is mobile. how smart is it paying bills online? joining us, tom kellerman, trend
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micro, formally an antihacker at the world bank. thank you for being with us. tom, we got numbers here. mobile transactions supposed to go up 60% this year up to 170 billion, but to multiply to $1.3 trillion in a matter of a few years. are we ready for it security wise? >> if you build it, they will come and not all be righteous. the modern day are ones that operate in cyberspace. great stat compliments yours, a 500% increase in mobile malware detected. >> 500% increase in mobile malware. the notes, the future of pickpocketing will be digital. elaborate. >> well, because it is mobile, many of the devices and operating systems are not secure. the only operating system out there is blackberry, and most don't use because it's not sexy. they use platforms easier to
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hack with a larger a tack service, and the criminal sipped cats of the world are aware of this. >> now, you draw a distinction, and i didn't realize that, thought credit card fraud, i'm liable for $50, and if they crack into the checking account, no problem, the bank makes good on that, but i read you say the financial institution is not liable if my account is hacked? >> they're not liable to make you whole again if your debit card is hacked. your cred cards, you're insulated from that because the mother chapters -- merchants eat the cost of the fraud, but when it comes to bank accounts transactions themselves, privacy policy, if you have not secured the computer to the best of the ability, they can make you pay for your own loss. >> that's a stunner. denial of service attacks, and that's a technique dating back 20-30 years at least froze the website, consumer sites of two dozen big banks.
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what's the purpose? trying to get money from the account? >> sometimes they are. many times it's more of an activist ploy to make the financial institutions look weak. the financial institutions have done a great job in combating denial of service attacks; however, sophisticated crews use that has a smoke screen for the activities they are doing coming through the back door of your house. >> oh, i see, the oldie version tactic. in terms of e-wallets, do you suggest i not use one at all yet? >> i think there's a level of maturity from security perspectives to deal with custom attacks, and they are trying to help companies in creating custom security platforms. the issue here is an investment one. organizations need to spend more on sustaining long term infrastructure, and you can't take shortcuts through the woods relating to e-wallets and payments. only significant brands took
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investment perspective to sustain it correctly against the criminals i speak of here. >> you basically say bet on blackberry only for now? i thought apple was kind of inas a vulnerable to hackers because they couldn't warrant its own? >> the obscurity has gone away. the wall garden is effective against 80% of the threats, but hackers i speak of, those who target financial systems are fully capable of compromising ios or apple products and platforms. we have to respect the fact and appreciate that the as a as a re nermt in the systems is tiew to- due to the applications down loaded. can you validate the safety or hygiene of the application itself as it exists in the mobile device? >> wow. all right. thank you very much. nice job. appreciate you being here. tom kellerman -- >> thank you. >> of trend micro, good day. >> thank you very much. >> how about stock picks in the security sector?
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aaron scharts -- schwartz specializes in security products, expects a share return due to changes in the israeli tax code. source fire and could rise on the unvailing of a new security chip. he's how the stocks are doing now, up, but then suspect everything today? don't miss tomorrow's installment of the cyber threat first and connell has the chairman of the intelligence committee on his push for tighter cybersecurity legislation at 11 eastern. if companies don't do it, watch out, congress will. the cyber threat all week long on "markets now." >> breaking news coming in to markets now. the fbi says it is looking for public assistance in identifying and locating an unmanned aircraft seen near jfk's airport after reports a pilot claimed he saw a black drone hovering 200 feet from the plane approaching
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the airport. in the last hour, we talked to mike baker about the incident. >> military benefited from technological advances in the commercial sector. there's a lot of legitimate purposes for drones blackberry you talk about, you know, the environmental, you know, surveys, whatever it is, along with the law enforcement and homeland defense. i'm a big buyer on drones. in fact, there's how you make money in today's stock market, invest in drone manufacturers. >> well, there you go. let's look at the drone stocks, if you will, and let's take a cue from him, alint tech systems, one of the names, lockheed martin, boeing, all the names up, aeroenvironment incorporated is the only name down only by five cents. drones not always a bad thing. >> we are far from the day of a personal drone, your own drone watch you wind surf. you watch. >> a high-tech kitty cam. the automatic government budget cuts good for one company.
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the co-ceo of sap coming up for an exclusive interview. >> plus, arnold schwarzenegger muscle-bound, ink stained wretch. that's ahead in media minute. in the meantime, take a look at the ten-year treasuries. ♪ it used to be easier but now there are more choices than ever. i want to know exactly what i am investing in. i nt to know exactly how much i'm paying. i want to use the same stuff the big guys use. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. and you wouldn't have it any other way.e. but your erectile dysfunction - you know, that could be a question of blood flow.
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business brief. fox news learned the house ways and means committee expected to unvail the next draft tax reform soon with the focus on small business. now, the new plan includes an expanded ability for businesses to use simpler cash king methods and make tax rules unified for sole proprietorships. blue chips hitting an all-time high, dow up 140 points. bullish on sears holdings after the ceo purchased more stock in the company buying more than 1 million shares in the retailer for $55 million. sears holding recently reported stronger than expected fourth quarter results. that's the latest from the fox business network giving you the power to prosper. ♪
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>> the automatic government spending cuts are beginning, and while many businesses feel the effects, software company, sap, says times of chaos are actually opportunities for those who remain calm. i'm joined now for an exclusive interview we the sap ceo. thanks for being here. >> thank you. >> you're bullish on the global economy saying there's opportunity for companies like yours with sequesteration. how do you do it? >> you have to make government more efficient. if there's less money, and you have to drive productivity, technology's going to be one of the few things available to change the game. today's constituents want transparency. like, what are you doing with my money, and what is it doing for me as an individual and voter? also, there's enormous challenges with data, like, what is the information that needs to be made readily available to people so they know whars going on. all of these things helpful to the business. the other thing that's developed is social because now in public
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service, you have to know what people are thinking in social communities and collaborative networks. >> you mean the government cares about facebook and twitter now? >> i think that's absolutely the case. you have a billion euroers -- users on various technologies, and if you don't know what they say with their friends and collaborative networks, how did you be in touch with that constituents want or expect? >> what you did in the banking crisis where you grew, you helped the banks streamline their back end business. you're saying that now with sequesteration, this is a new opportunity for you ape the company to streamline the back end side of the u.s. government as, you know, people are cut, jobs are cut. >> yeah, absolutely. i mean, you're going to do the same or more with less, and data is doubling as an example every 18 months in the world. you've got to manage this. >> uh-huh. >> the other thing is businesses have learned that they've got to
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move to realtime enterprises. don't governments have to be realtime also? >> i'd hope so. you'd think so, but the government surprises me, bill. i want to say 75% of fortune 500 companies use your software. >> right. >> one of the things you learned is the global economy is volatile. two years ago, europe was a mess. that was a problem for us. do you think they are getting better? how do you feel about the global economy as someone with companies all over? >> the mood as we discussed in davos was much more positive this year m i think people realize that the world's an uncertain place. it's certainly less than perfect, and there's a crisis of the moment, and ewe -- you can almost predict them now. business leaders need a vision and strategy and need to execute that strategy. >> going into 25 segments now, sports entertainment. you have a new product for the san fransisco 49ers, helping the
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football team manage the back end. that's cool. >> what we love to do, cheryl, is we love to make the fan happy. if you think about the average mother or father taking the daughter or son to a game, you want to make sure that's the greatst day of their life. they are connected on the mobile before they get to the game. then they submit their ticket. now you know who they are, where they are sitting, who their favorite player is, their birthday, upsell, cross sell, and make them so happy. also, the teams, they need to run like best run businesses. the visionary owner of the 49ers runs the business on sap. best of all, roger, the way he runs the nfl says, hey, i have to put the nfl on realtime on sap so i connect to the team and i connect to the fans. this is the final thing. the scouting process. if you think about money ball, who are the best players statisticically all over the country, and how do the teams recruit them? >> that's like the movie. bill, you're killing me.
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>> you have to manage the data. >> very cool. bill, we talked about it before, and there's always kinds of things you're doing. very interesting. bill, thank you so much. >> thank you very much. >> always great to have you. >> great to have you too, thanks. >> stocks every 15 minutes, nicole, of course, live at the floor of the new york stock exchange with a look at the record day for the dow. >> a record day, chearl. a lot of people waiting for this day, and, obviously, celebrating gains for the folks with high hopes of a record day like this, and most of the dow components well into the green; however, of the 30 names, three have not participated in this rally at all in the year 2013. now, you see here, they have up arrows, but these names are actually negative for the year 2013. alcoa the worst of the bunch, down near 4% for the year, bank of america, and united health care down more than 1% each for the year 2013, and this, of course, is the major averages are gaining 7%-9% this year. you know, if you're a
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shareholder of these three names, you're not necessarily celebrating like other people. back to you. >> thank you, nicole. time for the media minute. here comes oz, the great and powerful. the 300 million dollar gamble on reinventing the most watched movie of all time. "oz," a prequel to the wizard of oz, a big risk for disney that took a $200 million charge after the debacle of john carter last year. it premares this friday. there's a fox in the espn hen house. news corp., our parent, sets the august premier of fox sports 11, a new 24/7 sports cable channel. now, it's a tough time o go for it. espn, itself, has four channels or so, sports leagues have channels now, broadcasters start separate outlets, and cable systems breaking out sports and charge extra for it. we know magazines are dying. maybe a little muscle could
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help. arnold schwarzenegger executive editor and poster boy for two fitness magazines that featured him on the covers 60 times. "muscle and fitness," and "flex," here's hoping arnold pumps them up. cheryl? >> okay. out this. gun tourism coming to the serene island of hawaii. details coming up on west coast minute. look at the winners on the nasdaq. we'll be right back. ♪
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>> time for the west coast minute. arizona house of representatives approved a bill full of tax breaks for insurance companies willing to spend money on technology investments and expansion in the state. the breaks equal $50 million over the next three years and are calculated giving insurance companies in the state breaks on premium taxes. also in arizona, sweeping antiimmigration law that garnered national attention suffered another blow. the 9th circuit court of appeals hoping to work in the state upheld a ruling allowing drivers to stop traffic to solicit workers say it violated first amendment rights. you may think of hawaii as the place of sand and sun, but according to "usa today," hawaii is number one when it comes to
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gun tourism. four gun ranges have begun catering to tourists who want to test the most exotic and powerful weapons, but it's foreign tourists that are flocking to the gun clubs, not u.s. visitors. that is your west coast minute, dennis? dennis: don't miss the cyber threat series. connell with the chairman of the house and intelligence committee, congressman mike roger, pushing for tighter cybersecurity legislation, and i talk countermeasures with fire eye ceo dave dewalt. the cyber threat all week on "markets now." cheryl: new highs hit. melissa and lori talk about whether there's room for the bulls to keep running at 2 and 4 p.m. eastern time. dennis: there's no reason for the keystone pipeline to be blocked at day and time for the president to stand up for middle
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