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tv   Markets Now  FOX Business  March 7, 2013 11:00am-1:00pm EST

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thank you orville and wilbur... ...amelia... neil and buzz: for proving there's nowhere we can't go. but, at some point... giant leaps gave way to baby steps... and with all due respect, you're history. if you taught us anything, it's that you can't cling to the past... if you want to create the future. that's why, instead of looking behind... delta is looking beyond. pushing u.s. aviation to new heights. all 80 thousand of us. busy investing billions in the industry's boldest moves. it's biggest advances in technology. bringing our passengers the best, the most spacious fleet in the sky. and earning more awards than any other airline... to show for it. so rather than simply saluting history... we're out there making it.
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stuart: here it is, the highlight reel. roll it, please. stuart: you should have seen the fight between charles payne and dr. keith at low during the break yesterday. >> i want to be prepared for possible bad outcome here. >> there is no hysteria out there. stuart: you both have a very strong point. >> i am making you tons of money for the last several years. >> neuropsychiatrist and your friend would say man, you sound like you are swallowing the kool-aid. stuart: now here are dating and connell. connell: morning, everybody.
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dagen: north korean threatening. the impact, if any. connell: the death of hugo chavez bringing iran's leader to critical unstable roles. dagen: investigators to live in the latest report on what happened to the boeing 787 dreamliner. connell: a look at the money being spent on new technology to stop all of the hackers. dagen: stocks now and every 15 minutes, another day, another record. nicole petallides on the floor of the new york stock exchange. what is going on right now? nicole: we have had several days in a row, the last two days have been record setters, and now here we are once again setting a new all-time high for the dow jones industrial. 13,350.
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a weekly jobless claims and economic news was good enough, so have seen claims. a broad over in europe, leaving rates unchanged, so that is something that came into place. and yet another wedding day, the momentum to the upside. connell: coming despite news alerts like this. this is north korea. mass rally against the united states and south korea. a preemptive strike against the united states. in thin the last hour united nas security council unanimously approving new sanctions to tighten restrictions to crack down on the thames to ship and receive bad cargo.
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more with a former cia officer and senior fellow for national security at the heritage foundation. peter will join us later this hour. dagen: from north korea to venezuela. the president for hugo chávez planned for tomorrow but will be passing of the dictator lead to any changes in that country's relationship with the united states or iran? senior geopolitical strategist and kt mcfarland, former deputy assistant secretary of defense, two of my favorite people on the planet easily. you can't really beat that combination. we will start with you first. venezuela, even wearing that tracksuit recently in the colors of venezuela looking very much like hugo chavez, but we have had an okay relationship in terms of oil trade with venezuela, will that continue, do we know? >> oil, gold, uranium, they have
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exploited it and give it to people without developing anything sufficiently. so what will happen? will he be able to hand out the goodies? if he can't, will there be political instability? you're looking at that six-month down the road. six months down the road the music on the merry-go-round they stop. dagen: what do you think? we have to reall reiterate thatt affects around the world. >> our companies operate there like chevron, but i couldn't agree with you more. we're looking at short-term we are fine, no potential attack on the infrastructure. venezuela lost two-thirds from 2002 when there was a big strike.
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13,000 oil workers. so we are not looking at anything like that again. the oil union has been basically neutered by chavez. we've seen his political appointees put in place, so everything on the oil side will remain largely stable, but the situation deteriorates after six months, uncertainty, the market will be nervous about that. dagen: should we be more nervous about iran and the situation there? he will be at hugo chavez funeral and the nuclear program because we haven't really taken action. >> you have the secretary saying all eyes are on the table, talking about containment. but the politicians aside, the guy you should listen to his marine general head of the
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central command. american military officer in charge of what he would have to do with everything from egypt to the persian gulf. he says in testimony last week may have taken sanctions but has not stopped the nuclear program. and the timing that is interesting, when netanyahu was at the united nations, had the nature of a bomb going off and says a rail line will happen with iran this summer. so what might you have? political unrest as they come up return with the nuclear program. dagen: do you think iran has a dropdead date and i want you to get into africa, is that a greater flashpoint for us, do you think? >> that is the big issue, 40%, there's no bigger political story for the oil market then
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iran. an absence of progress. the iranians continue to spin. i think there is an optimism that because they will go back for more talks. these three round of talks produced nothing. a similar situation there minions make progress, spinning much faster. the iranians are making a decision to not reach breakout, they could easily do that. if we get to the summer you will have netanyahu at a minimum say i gave time for diplomacy and the do anything. if you want to look at where you have energy facilities that are insecure, extremist groups with a lot of weapons, it is north africa. dagen: thank you for that, ladies. a lot of things to worry about. >> nobody will stop us, so i
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think they made the decision. dagen: always fantastic to see you both. thank you for that. connell: some breaking news to get to at home, national transportation safety board getting a report after the investigation of the battery fire on the japan airlines boeing 787. rich: we expect the release of this report any minute now. boeing and customers are waiting on when and whether the 787 dreamliner can begin flying again. officials have been describing this release as a status update, not a determination of what cost batteries to catch fire. it is also unlikely the ntsb will recommend a timeline for allowing the plane's return to the sky. the ntsb is focusing on the process the government used to prove those batteries, last month officials received the batteries performed worse.
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boeing is proposing battery fixes and test flights in the "wall street journal" reported ray lahood as saying he has made it very clear that he wants a thorough review and he will ask a lot of questions before making the final decisions when the planes are allowed back in the air. we will deliver any updates coming through the report. rich edson, more to come out of d.c. connell: the dow has been hitting records, the rally may very well keep going. today up another 52 points, so is it time for you to jump into the risk pool? what have you been telling people this week? >> we have continued with the themes we have been talking about, valuation is reasonable, we will get another decent number tomorrow and ultimately as far as we're concerned, you want to be overweight equities
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and focused in the right area. little bit of a dividend stream doesn't hurt. we don't see any changes in the data. connell: we're looking at the dollar now. maybe the s&p 500, we talk about the fundamentals and reasonable valuation. they say the market really had a pretty good run, how do you kind of quantify or go through your valuation metrics which mark >> prophetess at or near record highs, the margins have been improved, they cut back, very lean and mean and you're looking at underlining earnings of $100, maybe $110 for the s&p 500. if you assume the market trades
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at average 15 times a number, that would imply the least fairly valued if not undervalued so we want to say to ourselves if fundamentals are improving, we want valuations are reasonable, we want to be long equities. connell: the economy keeps improving hypothetically and at some points whenever we talk to market participants they say we must be worried about something coming out of washington but more likely if you think about it realistically is the federal reserve or the central banks. if the economy keeps improving, at some point they will say that, right? >> i think that it's a good problem to have, ultimately we go back and look at others, when you have an improving economy, higher interest rates, the market can do very well during this period of time.
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the fed has been resolutely dedicated to continuing to stay easy, provide liquidity and supports the system but ultimately we have to get off of that. whawe wanted to the private secr doing better and there is evidence of that coming around as well. connell: thank you for joining us today. dagen: thank you. dagen: for the developing story in north korea. the communist nation as the threat of a nuclear attack on the u.s. connell: one benefit of the snow in the midwest, the drought stricken states are now getting relief. dagen: a look at the money being spent on new technologies to thwart effort.
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call the number on your screen now! connell: get another look at stocks now a quarter past the hour. one individual stocks, what happened to the gap? nicole: extremely busy. several traders waiting for it to reopen, was halted and this was on new spending. there are rumors circulating, if they are to be true, to be the kind of thing that would push us to the upside. old navy also banana republic, the latest numbers have been pretty good and the stock has
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been an out or former. you may remember it was a dog and out of favor but they have shown some improvement, the stock itself a winner year-to-date higher by 16% and over the last 15 weeks. they will continue to follow it, trying to get some more solidified information, but is halted after trading higher, maybe on the next hit we will get you into that crowd. connell: we just got a newsflash. dagen: dow jones citing a source of the early relief of same-store sales information. we were chatting about guessing what it could be. it is time to make some money with charles payne. a telecommunications service stock for us.
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charles: he may not have heard of it. dagen: i have heard of it because i am a loser. i have heard of the company. charles: sixth largest in the world, really a russian-based company and not too long ago i was heavy into the stock making some overtures of taking the overall company, so now, guys, they are really rocking on also understated it is a great way to get the independent states, africa you claim, a shift in the only holding them back is the italian play. a small company in canada and the fourth quarter they had 80,000 new subscribers. the biggest player had less than they lost.
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i really like where this has gone. getting mobile, cell phones, data, everything mobile, this is a great way to play. you guys had me all pumped up. i love what they are doing, i really do. dagen: you know what they are doing really well? piper line and the gap, they have some brands, get the main store firing. charles: they are really doing very well. connell: thank you, charles. north korea, threatening to put washington into a sea of flames. it all comes as new sanctions
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against the north koreans are announced today. dagen: dennis rodman's visit nothing to laugh at now. snow meantime in the midwest with a drought stricken state fair. more ahead. friday night, buddy.
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>> 23 minutes past the hour, this is your fox news minute. an italian court has sentenced former prime minister to a year in jail for his role in a wiretap scandal. in 2005 in newspaper legally published transcripts of wiretap conversations. he is expected to appeal it will not face jail time during the appeal process. at the vatican, they've received a briefing on the catholic church finances but after four days of meetings the cardinals have not set a date for the conclave to elect a new pope. in the study found people who eat a lot of processed meat are 44% more likely to have a premature death than those who don't. big bacon eaters have a higher
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cancer risk and 72% higher risk of death and heart disease. taking a diet of half a million people in 10 european countries over 13 years. those are your headlines, now back to dagen and connell. connell: maybe we should move on to the next story. dagen: with recent snow in the midwest easing drought conditions, might be seeing the high grain prices dropping sooner than you might think. connell: jeff flock in illinois with more on the story. jeff: there you go, i'm in a field they are very happy about right now. senior grain analyst. it is covered in snow, that is what they love right now. >> the ground recharged and get
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the growing season. jeff: look at today's chart form may corn. a buck and a half cheaper. already pricing in that it will not have a drought. dagen: that is pretty much what it is. with the moisture, the market taking some premium ou out of te market anticipating a better growing season. jeff: that is the corn that would be up to the harvest this year, the last month or so looking at the chart, telling us that is very lost it. >> that is pretty much it. started getting snow across midwest who lost $0.50 of value. jeff: you will see where the snow has fallen, in the upper midwest but the snow depths in
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the midwest encouraging performance. >> up to a foot of snow, equating to one to 3 inches of moisture in the ground and critical areas of iowa, minnesota, parts of illinois. jeff: a lot of money coming out of the market. we will be there tomorrow, a big run-up last year, a lot of people made a lot of money. they're not so much this year. connell: jeff flock in illinois. dagen: the latest on the threat from north korea and the response frrm other nations. connell: and also, the cyber threat, the big money being poured into new technologies to protect from cyber attack as our series continues today. we will get to that. dagen: i always love money counting. money printing and money counting. connell: and here are some of the winners on the market.
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connell: a breaking story we talked about earlier, the report from the national transportation safety board, it is now out. dagen: and rich has it from washington, d.c. hey, rich. >> some headlines here. ntsb has not found a root cause on the 787 dream liner in boston. the flight was on the tarmac at that point and it's also reviewing the battery review process and it's found that the voltage at one point had dropped to zero on the battery during
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this fire. it's still examining the certification and testing of the boeing 787 battery system here but as we reported about a half an hour ago, it was likely we weren't going to get a determination from the ntsb. we do not have one from the ntsb here. still going to the report. this is mostly a status update. still waiting on the f.a.a. to determine whether they can begin test flights, whether to get the planes back in the area. a very long process, this report coming out a half an hour late. perhaps the sequester delayed it. connell: got about a 3% boost in spot. let's go to nicole once again at the stock exchange. speaking of stories we're following up on, gap open now? >> the gap is open now. it was halted shortly. there was news pending and we've gotten the news. here is the gap right now. up 3 1/2%. it's actually off the highs of
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the day but same store sales came out and they were better than expected and there's multiple stories to the story. first is that this was supposed to be the first time the gap was to release their same store sales after the bell. they traditionally do so in the mornings. the release was leaked on the internet and then the gap had to come out and confirm the numbers. when you break down the same store numbers, the sales rose 3%. that was better than the 2% expected. when you break it down within the umbrella of the gap, gap, old navy and banana republic, banana republic was the weak link. it was down. gap was up and it beat the street. back to you. connell: good work as that and we hit a milestone. 25,000 reports, 25,000 by nicole from the stock exchange to congratulations on that. she began her career in either sixth or seventh grade.
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>> something like that. thank you. connell: back in middle school days. that's a lot of work. all good. dagen: very busy down there. as we told you earlier this hour, united nations voting for tougher sanctions for north korea after they added nuclear tests. will it with the nuclear weapon? joining us is peter brooks, senior fellow for national security affairs at the heritage foundation, a former c.i.a. officer. peter, good of you to be here. do you think these sanction will add up to anything and do anything? maybe it's not north korea striking us with a weapon but it's selling its technology to iran that we need to be worried about. >> yeah. there's a lot of reasons to worry about north korea and what a change from dennis rodman's recent visit. you know, threatening us with nuclear annihilation yesterday. the challenge with sanctions and
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these are the toughest sanctions so far are getting everybody to get on board and to hold that and china, which supported this resolution, has been one of the major problems in the past. in fact, there's a cable out there supposedly in wikileaks that i've not seen but heard about where we talked to china as many as 19 times about stopping north korean shipments to iran with missile technology and china didn't do anything about it. if china doesn't play a strong role here, it's probably not going to be that successful. dagen: what do we know, having worked for the c.i.a., what do we really know about what is going on within north korea? you know, dennis rodman was over there and everybody was getting a big laugh out of it. he seemed to not know what country he was in nor what planet he was on. what do we know in terms of the new leader, how far along they are with delivering some device
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via missile? >> you know, i think the intelligence community would tell you that north korea is considered a tough target like iran. they're not open. secrecy is very important to the state itself and once again, intelligence is kind of like -- the way i equate it, it's like a jigsaw puzzle but you don't get to look at the picture on the box so you're not sure what you're making. sometimes there's missing pieces and sometimes there's pieces from another puzzle. then you have to make policy decisions off of that so it's very, very difficult but because of the threat that comes out of north korea or a place like iran, we spend a lot of time and effort trying to figure out what's going on in there. it would be my understanding that it probably would be an incomplete picture and the fact that dennis rodman is the only american to have met with the leader there should tell you something else when you're trying to get understand and understand the motivations of a new leader in a place like north korea. dagen: eating a lot of pork and
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sushi over there. this dovetails with what connell has been talking about all week. what about waging cyber war with north korea? is that a way to fight what's going on in the country? >> you certainly can. we know north korea has defensive cyber operations because if you remember back to 2008, if i recall correctly, they actually got into the obama campaign and the mccain campaign offices via their computer. they're not well connected into the outside world. it's not very much penetrated by, you know, computers and the internet because they're trying to keep the people repressed. they don't want the free flow of information. i think in that way, the target is a bit tougher. it's not like the united states where there's millions of computer users or china where there's millions of computer users but in north korea, they try to limit outside access. people coming in or going out via the internet so it's
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tougher. dagen: thank you so much for being here. peter brooks from the heritage foundation. connell: we'll talk about athletes who bleed through cash. they get so much money at a young age so having the right money manager is everything and a former pro hockey player learned this the hard way. dagen: he had an epic hair cut and mustache in the day, too. very famous hockey player and the bush family. victims of a cyber attack? jeb bush talked about it this week. we'll bring you that and the money being spent on new technologies to prevent these attacks. ♪
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that's why, instead of looking behind... delta is looking beyond. pushing u.s. aviation to new heights. all 80 thousand of us. busy investing billions in the industry's boldest moves. it's biggest advances in technology. bringing our passengers the best, the most spacious fleet in the sky. and earning more awards than any other airline... to show for it. so rather than simply saluting history... we're out there making it. >> i'm diane macedo with your brief. the average rate to a 30-year mortgage slightly higher but still remains near the record low according to freddie mac, now standing at 3.29%. that rate fell to 3.31% back in november of last year.
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phenomena that has impacts all over the place. connell: we've been talking about the cyber threat all week. that's former florida governor jeb bush. he was talking about the well known hacking of some members of his family and email accounts but today we'll look at the cyber threat as it applies to new technologies and the volt c.e.o. joins us. it's good to have you. thank you for coming in, number one. we had conversations earlier, we talk all the time and i think people associate the cyber threat with their desk top computer but all of us have some sort of a mobile device and you think that's the -- not necessarily the next threat but the current threat. what about cyber threats to a mobile device? what do we need to know? >> no doubt about it, mobile devices are one of the battle lines in the current cyber war. connell: so people want to come at us on our phones.
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they want to come out at individuals on their phones or companies that are issuing the mobile devices to their employees? is it easier to attack mobile devices than other types of computers or -- >> it's both. remember, one of the phenomenons that happened was a lot of mobile devices were not developed with businesses in mind. they were developed as consumer devices. technology that was developed for consumers, for example, an iphone, is now being braced by people in businesses. connell: so you're right. a lot of us bought iphones when they first came out and then a few years later, slowly but surely, companies started issuing them to some employees. for years it was just blackberries all over the place and one of the reasons we were told is that it's more secure and the i.t. departments can keep you safer using a blackberry s. that still true? >> blackberry has some elements of security built into it but what's happened is that device
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has been to a very large extent relegated to sort of a second tier type of solution where people are using iphones, android phones and others. remember, these smart phones are not just cell phones. in fact, little computers. we also happen to use them to make cell phone calls, send text messages and communicate in a variety of ways and these devices never had the security built into them. connell: so how do we protect themselves or how do company protect themselves? are we doing enough or more needs to be done? >> it's a two step process. one, the devices themselves have to be managed and step number two, data has to be managed and that's voice, text, so forth. interestingly enough, one of the single most important vectors into attacks is good old fashioned eavesdropping.
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someone can go to radio shack, buy all the equipment they need to eavesdrop on your cell phone and it's not that difficult to do. connell: scary when you think about it. >> we know billions of dollars in corporate espionage are taking place through that attack and we hear about these things taking place in china. connell: that's why they're reluctant to give the president a blackberry. he has one now because it's supposedly safer. >> we're talking about innovation in cyber security. there are companies in full disclosure, i'm on the board of directors on this company called cool span that has a trust chip that gets inserted into a mobile device and that trust chip provides a hardware anchor that encrypts the data, the voice, the text on any one of these phones. connell: that would be on an individual phone, you put the chip into the phone. >> yes. two people had their phones, their conversations could be
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encrypted. connell: i want to ask you about the cloud because a lot of people now, and a lot of companies more and more, are moving everything they do into the so-called cloud and we know it's easier, we know it's great, we know the positives of it but are we at risk there as well? >> well, the cloud does come with a lot of promise, right? it's more cost effective, more sailable, easier to use. by the way, a lot of those things are true. the flip side, however, is one of ownership and control of our da data. what is the cloud; we take our data, corporate data and consumers, our data is sitting naked in someone else's environment under someone else's control. connell: how do we protect that? >> again, security and innovation is the key. i have a company but they're called volta so full disclosure
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on that. we've developed encryption technologies that let businesses encrypt their data before it goes to the cloud. it can be safer because the cloud providers, those that are advanced, are actually investing significant sums of money into protecting their infrastructure. the flip side is we as business people have to make sure that we maintain ownership and control of our data. connell: we've learned a lot here in the last few minutes. we have to go now but thanks very much. it takes awhile to get through some issues. >> it's a complex topic and this is just scratching the surface of it. thank you. connell: and as we've reporting all week, we've been passing along in this cyber threat series some regular market guests and their thoughts in terms of individual companies and stock picks in the area. today we go to brent and he gives us some names. in the small cap he likes source fire. helps manage cyber security and as we were talking about cloud
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based solutions, something we were talking about. he likes fortinet. it helps out companies and things like web filtering and getting rid of spam and the other is check point software technologies, helping corporations implement security policies on the network traffic between internal networks and the web. and finally brent mentions palo alto networks, specializing in providing next generation firewalls for companies helping them to integrate everything from various branch offices to mobile devices. quick check of some stocks in how they're trading today. don't miss our next installment. chairman of the house intelligence committees, the michigan congressman about the new push for a cyber security bill. that's continuing next hour on "markets now." dagen: this man was one of the richest professional athletes in the country to penniless and sleeping on park benches. now former nfl star derek sander
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dagen: here is a sobering fact. according to sports illustrated, 78%, more than 3/4 of nfl players will file for bankruptcy or face some financial hardship only two years after playing their last professional game. nba players are 68% of going broke into five years of
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retirement. the next guest faced that fate himself. he was on the bruins and played for the new york rangers but 35 years later, he's working to help athletes invest their money and teach them lessons that he learned the hard way. derek sander son, two time stanley cup champion, now managing director with bay state wealth management and i said greatest hair-mustache combination ever. i just tweeted a photo of you from back in the day but you know, people look -- because you have a book out and ed burns is working on a film about your life and people read your story and they look like everything that you went through. you owned a club with joe namath, flying playboy bunnies to hawaii. that's what they dream about. you lived a pretty god -- good life. >> yeah. and instant gratification in a sport.
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when it's gone, you tend to look for that. when i started the sports group 21 years ago, it was the first one, the first mission statement was to make sure athletes understand themselves and take care of themselves and secondly, about their money. the at -- athlete has to understand they're going to live 60, 70 years. they have to understand compounding and spending and taking principal down. that's the dangerous thing to understand. they can't just do things like that. dagen: when they're living in the moment and they're making a lot of money, how do you get through to them, though? how do you break through the wall? because it's very hard to, in your own head, acknowledge that the good times won't last even 10 years in some instances. >> what i usually say is when i was your age, i used to be 21,
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22 and i didn't listen to people then, either. i never got involved in the process. i left it up to the lawyer and have at it. never paid attention to it. i was intimidated by it. oh, my god. i don't know anything about it. i didn't want to embarrass myself but ask questions, get involved. now it's a matter of just getting to know yourself and trust very few people around you. probably best, your parents. dagen: because that's a lesson that everybody can learn because so many people want to advocate their financial responsibility because either they think it's too difficult or they aren't that interested in it. how do you get people excited about learning finances and learning how to manage their money? >> well, what we do is you get -- you have to get a scenario. you have a graph and the graph will start off. you spend $10,000 in your month. it's going to go like this. you spend $20 a month, it will go like this.
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it's going to be -- you spend $30,000, $40,000 a month, you're going to be broke when you're 47. which one of these do you want to live on? when i had my money, didn't seem like a lot, $2.5 million then but cigarettes were 35 cents. the cost of goods is just astronomical today. kids have to understand that you buy your brother a truck, that's a wonderful, beautiful thing to do. but it's a $65,000, $80,000 truck and when you're 65, it's really a $500,000 truck. you have to understand compounding. dagen: welcome back any time. we could talk forever. derek sander son, boston bruins and also played for the rangers. you didn't win your cup with the rangers. they could probably use you back. thank you so much. be well. see you soon. connell: that was good. time warner shares hitting highs. markets now continues.
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dennis and cheryl has an analyst with buy on that stock. dagen: and the cyber threat. what congress is doing about it. chairman of the house committee joins dennis as the week long series continues.
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now! dennis: hello. cheryl: and the dow heading for another all-time high close as jobless claims unexpectedly fall but tomorrow's february jobs support could be the bump in the road for the markets. we have the numbers for you. dennis: and taking the time out of time warner. time warner shares hit multi year highs today as they plan to spin off their magazines. big tuna ahead has a buy on the stock. cheryl: the sector is up in the last six months with one stock
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up 183% in the same time period. we have the c.e.o., tom warner of sun power speaking to fox business exclusively during the threat. dennis: and house intelligence committee chairman, mike rogers, on new legislation making its way through congress but does it have teeth? and john on the threat to your facebook account. cheryl: we begin this hour with some breaking news out of washington. the president's schedule filling up with meetings with republican lawmakers. rich is in washington with the breaking details. rich? >> into the lion's den wednesday at 1:30 next week when president obama will meet with republicans in the base of the capitol, 1:30 p.m.. this is continued outreach for president obama, last night having dinner with a number of republican senators and he'll meet with a mb of them next week as well so his congressional
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outreach amid criticism from those who say the president isn't active enough personal well congress, not enough congressional outreach. this afternoon he's meeting with the top democrat and top republican on the house budget committee. that's congressman pool -- paul ryan and chris holland. that's after criticism that he was not meeting enough and contacting lawmakers on capitol hill. next week house republicans, 1:30. that should be interesting. shape that's breaking news. thank you so much. dennis: and nicole is on the floor of the new york stock exchange and nicole, stocks want to take you higher. >> that's right. and so what we're seeing here after several days of trading to the upside and record highs as well, today another day on wall street and another record high. the dow jones industrials today traded at a level we've never seen before so traded as high as
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14,354. we watch every single tick here on wall street. banks are looking good today. we did have the gap stores halted for a brief time and reopened. it turned out their same store sales were leaked early. they were supposed to debut and release the sales after the bell which is traditionally they do it in the morning. this is the first time they were going to do that. didn't go very well because it was leaked early. the gap and old navy had up arrows but banana republic was the weak link. put it all together and the gap beats the street with the same store sales for the month. dennis: time warner founded as a magazine publisher streaming off. it was once the largest media and entertainment company in the world and they'll be packaged into a new publicly traded ink
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stained retch. we have an extended media minute. our parent news corp breaking in, too, spinning off print. but comcast buying the rest of nbc universal so the media entertainment business, is it breaking up or reconsolidating? >> i would argue that the spinoff we've seen the last few years have worked out phenomenally. i was very skeptical of putting the businesses back together as comcast attempted to do. however, they seem to be pulling it off and they've actually -- they're winning me back on their side so i think the jury is out as to whether spinoffs or consolidation is the way to go. the answer is, it depends. dennis: i.a.c. had a huge value and time warner cable spinoff the company did, up 220% or something since then and even a.o.l. up 60% since that was spun off. but why spin off magazines now
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at the bottom of the market? why do you think time warner didn't do this three years ago but is now? >> i think this has been a long time coming. as you probably know, this idea has been on the table for many years. i would think this is kind of the perfect storm of events in terms of timing to actually pull it off. the capital market, the stock market has been on a tier. a lot of them that were going to spin off has done really well. i would remind you that time has some of the most popular magazine titles in the industry, about 21 1/2 of advertising revenues so i think there's a lot of good things you can point to as to why this timing could be the perfect time to do it. dennis: and now what happens to what's left of the old time warner? some guys i talked to wonder whether time warner itself becomes an attractive portfolio
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of properties. what if viacom, what if some, you know, outside guy like net flix or amazon or apple? any possibles here? >> keep in mind right now even with the publishing, the television business is generally about 80% of the time warner's results so the core of that business is television. when you have the spinoff completed, that percentage will be even much higher so overall, i would think that this transaction is going to leave you with a company that, you know, has a much better growth profile. we look for sustainable, double digit growth for several years. you're going to have a much more pure content. are we in a company that's going to be leveraging a lot of this content across various platforms. we know that publishing is also benefitting from digital but that's not what we're seeing on television and on the film side. so you're going to have a much better company that i think investors will be more attracted to. dennis: breaking up is good to
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do sometimes. thank you very much. great job. >> thank you. cheryl: banking on the feds. the federal reserve set to release round one of the bank stress test this afternoon. marty joins me right now and marty, you say overall that all 19 banks should do well but let's talk about citigroup. the poster child of what not to do during stress tests last year. how are you feeling this year about citigroup? >> we believe that citigroup has kind of learned its lesson as bank of america did the year before and what we'll see is a more conservative posturing as they go in. really looking at being able to maximize the dividends that they can get in approval which we think is really the water set event of this year c-car to be able to a 1 percentage point yield to the &p 500 for the
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first time since we really came into the -- you know, out of the financial crisis and the recession. cheryl: i want to bring in matt mccormick. he's an investment portfolio investor and we're having satellite trouble with matt. marty, back to you. more time for you, marty. let's talk about this because overall, i was just looking at the secretary tore and how the stocks are trading and overall, all big names are doing well. but if you talk to matt who got satellite problems, he's saying he's taking profits and he wants to get out of the big banks and go into the regional names, marty. matt can't speak right now but i'll speak for him. what do you think of that? >> we have an investment not based on size but really based on two themselves we have. one is still the recovering banks like citigroup, key core, regions financial, those are banks trading at or below tangible book value. they've been doing really well
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so far this year. we think that key corp and citigroup would get some boost as they get their loss content and distress test reflecting better results this year in that we think we'll remove an overhang on the stock after last year's results came out. the other side of the thesis is related to the high quality growth names that haven't gotten the boost this year but we think the c car and the dividend yield you can see at bb & t, wells fargo or j.p. morgan can get their dividend yield up 3% that in and of itself could be a positive catalyst for the high caliber growth names that we think will do well this year as well. cheryl: i think that's the big fear and one of the reasons many analysts are saying we're going to get volatility in the bank sector the next week, because the fed is doing what they're doing and that's splitting it up. today we'll find out about whether or not they were weather a financial storm. next week we'll talk about dividends and capital cushions
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and all of that fun stuff but in the week of speculation, frankly, this could be bad for these names and we've gotten a financial sector that did so well from 2012, gained 30%. you know, all bets may be off in the next five trading sessions. what do you say? >> really when you're looking at today's announcement, it's really about the stress test losses. and last year we had about a 2 1/2 percentage point hair cut related to stress test losses. what we'll be looking for is did that number change meaningfully? if it didn't, capital ratios are up a half percent to a full percentage point for most of the banks and some of the more troubled banks like regions or bank of america, they've increased their capital ratios by two full percentage points so we're moving on the positive side. if we don't see meaningful increase in stress losses, quantitative side isn't going to have the teeth that it did last year because of the improvements in capital that the banks have
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been able to make. >> i know you're looking at each bank in particular and saying this is a bank by bank story where matt can't be here but was saying go for regionals and forget the big names but if it's a bank by bank story, give me one name you would be concerned about in the next week with these two rounds of stress tests coming from the fed. is there one name on your radar not in a good way? >> well, what we would say is that i'm going to kind of avoid the question and not answer it specifically because there's this wild card to this whole process. if you're looking at the numbers, there's no analytical side that says we're going to take a pass on all banks. it comes down to the qualitative side of the test and that comes back to the risk management expertise, the processes in place, the way they talk to their boards. these are very individual things they'll talk about and present to the regulators. so there's no way to handicap that, that qualitative side
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where we might see one of these banks slip in the mulligan that the fed is giving them but we think at the end of the day, the eventual results we won't see any banks involved this year. cheryl: you didn't want to answer the question but you owned up to it. thanks very much. >> thank you. cheryl: all right. let's go to a live picture of washington because to be a fly on the wall at the white house right now, president obama and former g.o.p. vice presidential candidate paul ryan are having lunch together during this hour. we just learned that the president will be meeting with the house g.o.p. conference next week. dennis: good luck, guys. cyber threat, what congress is doing about it. the chairman of the house intelligence committee joins us as our week long series continues. friday night, buddy.
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cheryl: look at bank of america, j.p. morgan chase, leaders now. stocks now every 15 minutes and we have team coverage for you. dennis: c.m.e., jeff flock is out in illinois watching grains and charles payne will show us how to make some money. first nicole. >> thanks, dennis and cheryl. take a look here at the major market averages and the bulls keep on running. if you're a a long this market, another day of celebration. we've been up five days in a row now with dow jones industrials, all three market averages are setting new highs in some way, shape or form. nasdaq and s&p 500 setting multi year highs while dow is setting an all-time high as much as
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14,354 so we're see ag lot of action on wall street. bank shocks are doing nicely. dow is weaker today as the euro is rallying and the big picture, we have jobs and multiple economic reports but the jobless claims today came in better than expected. tomorrow is the all-important monthly jobs report that everybody obviously eagerly awaits that number. that's the most important economic number we get and that's the latest here on the floor of the exchange on a record setting day. what's going on in chicago? >> you mentioned that dollar and that dollar is definitely helping the risk situation with oil today. oil is rebounding from the fact we have record amounts in the united states this time of year. what is really going on here, you have to look. we've had a lot of problems with production and when it comes back on line, that spread comes
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in. oil goes down in europe. while that's important for us, it's because it means our products go down. that's right. take a look at gasoline. they are down today. almost two cents. that's good news. now off to my buddy jeff flock in my home county in illinois. >> it's blinding out here, phil. i can't see you because of the snow and the sun. take a look at the snow in this field. this is braet for the farmers out here. take a look at the december corn. don't look at the front month. take a look at december corn. that's the corn for harvest after this growing season. it has really fallen off in the last month if you look at that one month chart. take a look at beans. same thing. if you look at the may beans, $14.64 last i checked. november contract is almost $2 less if you take a look at the november, the harvest contract. that's because they think there's not going to be a drought. this is great news but that's a giant sucking sound of market
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coming out of this market, right? >> pretty much. trade looking at better weather situation in the new season, the snow that's fallen across the corn belt has people saying no means anymore. >> take a look where the snow has fallen. great news for farmers and food prices. it's a warmer day out here, too, guys. dennis: thank you very much, jeff flock. cheryl: it's time to make money with charles payne. charles, u you have some thoughts on the bull run in general. >> it's amazing to me. who would have thought a new dow would make everybody mad? republicans think it makes president obama look good. and democrats are mad because capitalism wins. i've never seen this many people so unhappy and it really bothers me because so many people have missed this rally in the first
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place. dennis: that's why so many are unhappy maybe. >> that's one reason but this pessimism that continues to go and continues to go and all day long, you know, i had a debate with a doctor this morning that talked about the internet bubble. there's a woe is me bubble and i hear it all day long. i want to turn the tv off. the idea there's a mass hysteria and everybody is buying stocks. look at the newspapers yesterday. new york city, home of the stock market, do you see anything there hysterical about the stock market? martha stewart is looking better and better as she gets older. hugo chavez and the only thing here about making money was the powerball, $123 million. so this is not a main street rally but this is what bothers me. i've been saying and i've been bullish because of the long-term trends. the world is on fire. if you take the time to look at the top 30 stocks in the dow, i.b.m., america was up 1%. brit countries up 14%. asia up 5%.
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i know you've got to get me to wrap but i have to read one thing to you. this used to be america. this is from travel magazine. johannesburg where anyone feels like they have a chance of making it big. that was once said about america. that's got to come back. cheryl: we do have to go. great stuff, charles. dennis: and the next cyber threat. what washington is doing about it. i go one-on-one with the chairman of the house intelligence committee. so let's break down this play. charles?
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uh, charles couldn't make it. his single miles card blacked him out here and here. he should have used... the capital one venture card.
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he's coming to us from home. hey fellas... hey baby, you want mama to iron your undies? nice tightie whities. i didn't know mrs. barkley made quilts. really? looks like a circus tent. is that the best you got? now if you put this, with this, you have a sailboat. what's in your wallet?
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dennis: the cyber threat, there's a new push inside the beltway for a comprehensive cyber security bill and i went one-on-one with a congressman leading that legislation. chairman of the house intelligence committee, mike rogers. >> it would allow the federal government daib -- now, we have intelligence agencies that collect a our adversaries, things that might hurt the united states, including cyber threats that might attack the united states. we bring those back, we protect government networks. what we want to do is be able to share that information because government networks account for about 5% of all the networks out
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there across the united states. 95% are private sector networks but we do a good job of protecting the government networks because we have a fairly good understanding of what the bad guys are up to. we want to share that information with the private sector so they can secure their own net woshs. it's really that simple. dennis: a decade ago when i was managing editor of forbes magazine, we ran a cover story warning about the next cyber attack, to rail systems that none of them were bulletproofed against hacker invasions. it's a decade later and it feels like we still aren't nearly ready enough. now, here we've got opponents to your information sharing bill because it upset the government might get a hold of some person's name, yet i feel like washington isn't going to respond quickly enough until we have some major crisis, some major invasion. are you getting at all concerned we aren't getting the job done of protecting these networks? >> well, absolutely.
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we are in -- let me rephrase that. we've gone from the cold war to the code war. we're in this cyber war and we're losing. so we're losing intellectual property at a breath taking pace from countries like china, countries like iran who are aggressively probing u.s. financial services networks and others to try to cause that chaos, who are mapping out electric grids and nuclear plants and other things for that potential cyber attack. you can watch it happening and we have not done enough to act. the problem is, people don't see it. it's that unseen war. you're on the computer and the computer is working fine. you don't get the connection. that's the real problem here. dennis: we spend $30 billion, private industry does, on cyber security. it's doubled in 10 years but in the past year we had a 600% increase in mal ware so he get the feeling we're utterly unprepared.
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why hasn't the federal government come up with like a $50 billion stimulus package to start bulletproofing even private networks? seem like you're not agreeing on who should pay the cost and meanwhile, you're systems are unprotected. >> here's the beautiful thing of my bill. it doesn't need the cost. you have your upstream providers, providing to your business network. they already hundreds of times a seconds check for bad things going into your system. that's what you pay them to do. you pay them to try to stop that. all we need to do is share this malicious code with each other about really bad things that are happening to computers so you can stop it upstream so it doesn't mean that every i.t. shop in america has to get this particular information and apply it to their network. you want to get it as high upstream in the delivery process to the networks as you possibly can and therefore, you don't have to spend a ga zillion dollars. there are those who want to regulate and get the government
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hand into the internet. i think that's dangerous. this is really the one way that the high tech industry says they love it, the financial services networks in the east coast say they love it. some privacy groups, the ones who are really understanding of the technology say it's okay. dennis: i'm glad they love it. i just hope they get to a point where someone will start doing it. maybe it's time for a counter hack attack. thanks for being with us. good day, sir. >> thank you. dennis: and coming up next i'm talking to social media with former navy seal. it's the cyber threat only on "markets now." shape coming up, layoffs at t mobile hitting bellevue, washington hard. we'll have more in the west coast minute. dennis: and dream liner nightmare continues for boeing. new report from the national transportation safety board. sha cheryl: take a look at some winners and losers on the s&p
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cheryl: bottom of the hour. that's every 15 minutes. the culprrt back on the floor of the stock exchange. 25,000 hits on the fox business network. i do not know how you do it. nicole: let's take a look at jcpenney.
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up 2.5%. laying off 1500 store level managers. of course we know that jcpenney has been under significant pressure. ron johnson came over from apple. he was hoping to turn around the company. they have been fighting with macy's. trying to get some martha stewart products in their. they continue to struggle. a big loser year to date. it is down almost 65%. jcpenney is obviously one that is under pressure. we will continue to follow it. thank you again for the recognition. i appreciate it. we work hard altogether. cheryl: congratulations. see you soon. dennis: everyone is in on it and hackers have attacked it.
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we are talking about the cyber threat to social media. how vulnerable are we? joining us now is jon iadonisi. it is not everyday that i interview a guy that can kill with his bare hands. first question, who is more unprepared? >> i would say the social media networks in general. i think they have a very good amount of security. it is not their security that i get concerned about. it is the actual users sitting behind their desk or their laptop or ipod and etc. they show all these differing games and ads and things like that. all it takes is one click on one of those in a lot of trouble can happen in a result of all of that.
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dennis: what is the trouble if a hacker wants to hack onto my facebook page? >> we are dealing with one third of the earth's surface having a facebook can't. that is a problem in and of itself. the sheer volume of potential vulnerability increases by an order of magnitude. dennis: have we seen any legal liability cases where i am on facebook and my employer gets hacked because they came into my facebook account that facebook is liable? >> i have not seen any. that is a great question. furthermore, i am proud to see
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that congressman rogers was on talking about these issues. law and law enforcement and the average citizen can understand what their role is to help protect us. dennis: you saw on the computer. that companies spend the end of dollars on that it was not shifted with protection impact. >> the same rule that did not talk to strangers should be the same online. content that has a sexual tone on facebook gets broadcasted more to their friends and family. that is a good example how people can click on friends on facebook and it be open to a
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trojan horse. dennis: do not talk to strangers on facebook. i thought the whole purpose was to go cruising for women to meet. that is why zuckerberg invented it. we have government, industry and in the tech industry. no one agrees on who should pay for all of this extra protection. >> i hope that the leaders in d.c. in congress and elsewhere come together. i like your question in the last segment which is we need to do something right now. this is like the wild wild west. this is your digital tombstone. right now this is on you to protect until the federal government can get something in place. dennis: thank you for being with us. jon iadonisi. thank you very much. >> thank you, dennis. dennis: now for some cyber stock picks.
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eric is bullish on info box. also on his radar palo alto networks. here is a look at how those two pics are doing today. do not forget to tune in tomorrow with jon iadonisi. he will join us again as a panelist for the cyber security roundtable. we will also have a few other guests. cheryl: solar stocks moving higher. the ceo of some power will be joining us next exclusively. dennis: plus, why boeing shares are soaring. cheryl: take a look at the ten
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year treasury and, of course, the 30 year. we will be right back. ♪ [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find se good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. i honestly loved smoking, and i honestly didn't think i would ever quit. [ male announcer ] along with support, chantix is proven to help people quit smoking. it reduces the urge to smoke. it put me at ease that you could smoke on the first week. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation,
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investors are also hot for hot topic on news of a buyout. sycamore partners is buying the apparel retailer for $6 million. subaru of america were calling cars and suvs with remote starters because the engine can't start on their own. today on after the bell, david asman has a one on one live with richard fisher. that is the latest from the fox business network. giving you the power to prosper. ♪
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cheryl: breaking news. the national transportation safety board trusts issuing a new report on boeing 787 battery
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fire in january. rich: the ntsb has been looking into this. boeing want to get these planes back into air. the ntsb report went live online about an hour and 15 mins ago. basically, the ntsb still has not found the root cause of the battery fire on the 787. they are still examining. about a month ago they had reported that the test they had conducted, the results were much different than what they stated during the original certification process five or six years ago. the release of the ntsb interim report is a positive step in progress towards completing the investigation of the january 7
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event in boston. they have worked tirelessly to support the ntsb understand and develop the event. there is some thought that perhaps the faa could begin letting test flights, but still no indication of a timeline here of when the planes will be allowed back in the air. dennis: thank you very much, rich edson. cheryl: it is a quarter till. nicole petallides on the floor of the new york stock exchange. nicole: i wanted to take a look at something different. i wanted to take a look at one of the traitors who actually does a lot of charting. this is actually pertaining to natural gas. broken out to levels that we have not seen since 2008. we have our latest numbers. here is a look, by the way apache is up 6%.
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you can see the group is doing very well. clearly outpacing anything we are seeing on the big board. the s&p is up to seven of 1%. we had a bigger than expected drop. the index itself, doctor cholla that we are breaking out to hide that we have not seen since 2008. back to you. cheryl: we will see you at the top of the hour. the stock of 183% over the last on.
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tom warner joins me now. at one point did the type kind of change for the solar sector overall? >> first, thank you for having me. the change for sun power is we kicked off the year by selling a very large deal. we had that stamp of credibility from warren buffett. it gives us $3.5 million of revenue. that core piece of business, on top of a roof top business that is going mainstream, i think the combination of things brought back. cheryl: warren buffett. by one of your plants. this is a $2.5 billion deal. you have new interest in the
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solar sector. >> the last couple years the cost of solar have come down dramatically. sun power is leading up. you have someone like warren buffett and his team looking at economics. there is an opportunity for a great return. the returns are such that you have a bleeding edge investors like warren buffett stepping in. cheryl: we were talking about some of the risks. at this point, the reason he upgraded the sector, is they are finally fairly priced. the chinese solar panel makers
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are still going to negatively affect the u.s. solar power sector overall. how do you respond to that? how do you compete against the chinese still to this day? >> yesterday at the solar model was selling models. the solar industry in particular is becoming an energy company and an energy service provider. the price of a panel is no longer a business competition. it is becoming more and more how do you serve the customer, what is your cost of energy, what kind of services can you provide. that is what blue-chip investors are seeing. there are a number of analysts who are talking about where the industry is going. it is a perfect opportunity for a company like sun power. this is what we do well.
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cheryl: it was good to have you on the show. certainly, we will be watching the sectors. tom, thank you. >> thank you very much. cheryl: stock up 182% in two months. t-mobile merging. why is that not playing out well in bellevue. dennis: first check out the winners on the nasdaq. ♪
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cheryl: it is time for your west coast minute. t-mobile cutting a significant amount of jobs that the companies bellevue headquarters in washington. the seattle times has about 100 jobs are on the chopping block and could happen as soon as today. t-mobile one of the largest employers in the west with about 4800 employees just in the seattle area. silicon valley. how about silicon beach. putting roots down in southern california instead of going up north. the selling point is that investors can drop by one building to use several startups that once. those buildings are actually joining together. a big piece of the story. the tradition of beach bonfires will stay intact for now. the california coastal commission is delaying the decision.
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bh homeowners say they are tired of the fun and frolicking. how horrible. that is your west coast minute. dennis. dennis: be sure to tune in to the final day of our cyber threat series. it is at 12:00 p.m. eastern tomorrow. cheryl: lori rolfing will be joining dennis for the next hour. dennis: lou dobbs will weigh in on president obama as the president steps up his charm campaign. do not go anywhere. we are right back. ♪ ♪ [ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong,
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