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tv   Markets Now  FOX Business  March 8, 2013 11:00am-1:00pm EST

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>> people who do not watch this show are missing good tv. >> making the most obvious guess is out there. >> the wife. a mother and father, don't you. a mother and father. you do. okay. i am sensing we are in jersey now. stuart: a psychiatrist. man, you sound like you are really, you know, swallowing the kool-aid. >> i enjoy traveling alone. stuart: traveling alone. >> yes. stuart: we could get into some real hot water year. i'm going to resist the temptation. ambassador by an italian running an american company which sells mexican food. that's really pretty good. i've got to say. that was for the week. want to get back to something that was set on this program earlier today. we were talking about the mac to the unemployment report. he said government spending has declined at the fastest pace, last year, 2012.
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and yet the economy still grew. that kind of proves the point, doesn't it. you cut spending and do well. stuart: is in the right. he made monica's point in the point everyone has been saying. that think he wanted to brag, but he put himself in a box. some of this is happening, why stop the trend? continue less government spending and that the economy grow. venturi the cbo report. i think we are on to something. stuart: and the worst of what he is saying, not saying explicitly , the sequester is good, good for the economy. cut spending, you put, you know, bracket around government spending in the economy will grow and jostle wrote. >> he admitted, and did not tell on this show ready to, but he did make that. stuart: thank you. appreciate. it is yours. >> it is just me. i wanted to say, i'm going to mispronounce this. dagen: yes.
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dagen: that was a great segment. a majority weekend. i'm dagen mcdowell. the market pops on the latest jobs report. vertu under thousand jobs added in this country, and we need to see this every month to keep the economy on track. will that have been? and we are back. america finally regaining $16 trillion of household wealth lost during a recession. a big crop report due out in one hour from now. farmers, listen up. we are taking your comments on twitter at fox business. you want to hear from you. and the northeast gets the last leg of that frugal to febrile snowstorm the perry the midwest. the top of the hour, everybody. stocks now and every 15 minutes. adelle is on track, nicole petallides to offer another record close, perhaps. >> reporter: pretty exciting in a believable. for the folks you are waiting for the pullback, some of the shorts getting squeezed. there was a lot of anticipation that we would have a pullback
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more recently than actually break his record highs. we have actually broken record highs and and so again and again this week. today is no different. today we traded as high as 14,400. so it's cheap. we certainly have a lot of winners. payroll numbers came in better than expected. we are seeing people leaving the labor force altogether, just fed up and not even trying to get a job anymore. the main picture is that the job numbers are going in the right direction ultimately which has helped start numbers as well. as far as some of the winners on the dow jones industrials, names like mcdonald's came out with same-store sales numbers and strength in the united states. disney and caterpillar are among the other leaders. we have seen names throughout this week a multi-year highest all-time highs. today is no different. the fear in texas to the downside, and we will keep an eye on the bank stocks. dagen: thank you so much. to the jobs report. 236,000 jobs added last month. the unemployment rate falling.
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here is why. 300,000 people were no longer unemployed last month. 130,000 of them left the work force. 170,000 folks did find jobs. with more reaction and it the former chief of staff at the u.s.-led department. good to see you. first question, can this continue? this kind of job growth and this kind of drop in the unemployment rate? >> we hope so. the bottom line is, 82. it is to keep growing. 250,000 jobs per month in order to push us closer to six and a half% unemployment. here is a real question. what is a drag on the economy going to be? taxes and most importantly implementation of health care. that is the real question. in a positive environment with positive trends and the s&p now for the third month, responding to a positive trend in a plumber reduction, hopefully that will go in the right direction, but i think word is going to come to is the confidence of employers,
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especially small businesses as we start to implement things like health care reform. dagen: speaking of that, front page of the "wall street journal" story about companies sending a record amount of cash to investors. that is a large part of where corporations are spending the extra money that they have. what will ultimately it is in demand. it will lead them to hire more people, but with all of the health care taxes and all of the other hand lens, why are we to believe that we will see additional job creation, even in acceleration of that and wants to come? >> hopefully the cutback in government spending will also have an effect. although really when you take a look at sequester, the dynamic is there potentially. on earlier today trying to make that connection. of think it was intentional, but we appreciate it. really, government spending can be curtailed, i think that is a good thing. again, even the fed in their report that came out recently,
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the fed in kansas city and also in richmond is saying that the number one thing among employers of 50 or more is concerns about health care and health care cost and what that means and the reason why they're holding back on job creation. dagen: of the 12 million people who are out of work right now, how many, paul, do you think, will never work again, will retire? would give up permanently? >> that is a great question. i think the real challenges for older workers, whether or not they see a potential for opportunities to reemployed skills. the other underlying challenge is a long-term challenge for the american economy. for younger americans, the have plummeted today is 12 and a half%. it is even higher if you are factoring in those who dropped out of the work force. i think the challenge here for the economy is to try to grow their jobs and to try to make certain that young americans are given an opportunity for those people who can give it to them. dagen: correctly, you were chief of staff at the apartment of
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labor. did you like working for the government? was it easy? >> well, i think it's kind of a mixed bag. the opporunity to serve under four presidents and three governors command i can tell you this, it is not difficult if your discipline them work for pulp -- principal people to cut government and spending. had the good fortune to have done that. but it is a difficult line of work. if you're into exile, and security in trying to defend different institutions. by and large, federal employees as it employees want to do a good job. failures in and the feed of a president committed to actually respecting the taxpayers' money and cutting government you have to resort to things like a sequester to make certain you put a brake on the engine. dagen: a better answer than i expected. thank you for that. great to see you. thank you for being here. take care. while the dow is on track to continue its record run today, let's hope it keeps it up. my next guest says washington could break that winning streak. not just politicians.
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politicians there as well. joining me now from santa monica, california, chief investment officer. let's start with politicians. why in the heck are you worry about politicians? this is unique for you, would you say? >> well, it is. it is a big sea change because i think what has been driving the markets up to this point is of fundamentals. you know, i have been pretty bullish for the last four years. i am getting concerned now because the people that the market is thank -- ba to believe that market is on a sound footing, but all the noise we get out of washington and the policy makers in europe and all-around world is causing volatility in these markets to pick up dramatically. and with the dow now approaching or not a record high, the s&p approaching its former i caught around 2% above us, valuations are not the work. every time we get something out
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of washington, whether it is a discussion about fiscal cliff or sequester or never, volatility increases. but look at this. now we have the sequester issue off the table. the market runs. i mean, what the market is basically telling you is they want to hear a laugh -- i left side of washington and focus more on the real economy. dagen: but we do need to worry about what we year out of the federal reserve, do we not? you think it's policy is dangerously stimulative to the economy. in the way? we do see that in your yield above 2 percent today. that is still exceptionally low. we -- and we are not seeing inflation worries it you might think. >> right. well, you know, i have long believed that the economy is basically hopped up on easy monetary policy. that is the over policy of the fed. we have been living with it now for four years on and off. and if you start to look at the
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day, you see where we are in terms of unemployment and inflation. even by the fed's own estimates, its current policy of keeping rates low for another to get three years, we're falling behind the curve. and notice that in the last few weeks, whenever there was any kind of discussion about quantitative easing, the markets don't take it well. and the reason the markets don't take it very well is because they need all this money to keep going to new highs. the federal reserve and ben bernanke are making it clear there are to continue to give them what they're asking for, but at some point we have to stop printing money command at some point the fed will have to resort -- reversed course. dagen: even if the central bank starts tapering off on the bond buying, even in a small way, what could be the reaction? could it be, even if it is small, catastrophic to the market? >> well, look, it was really interesting.
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when you go back just a week or so ago, when there was just some discussion in the fed minutes about tapering. i mean, they didn't say they were going to do it. they did not pledge any progress they just disgusted. the market was off like 3 percent within two days. so we isn't going to actually take, you know, stopping or tapering bond buying for things to get set back here. just the decision to do it is going to be detrimental to the market. and it just shows you how addictive we have become to easy money. dagen: globally what asset class to you like the most? again, you make me worried about owning treasurys, even corporate debt. stocks, all of that if the fed tapers off could have a dramatic impact on all of those. >> it depends on the horizon. i've been available on goal of a long term.
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worst of our to go higher. we're looking at housing data and over the last few days. when you look at the inventory of new homes which as at a record low. the inventory of existing homes. the affordability of housing at levels that have never been recorded because mortgage rates are so low to mike is the housing prices in the united states increasing between five to 10% to year for the next three or four years. here in l.a. and was just saying at the debt we probably will see 10-15% per year. dagen: uc frenzies already, returning in the likes of miami and other very hard hit markets. it's great to see. dagen: take care. >> thank you so much for being on. recovering from the recession. household wealth is back. what does that mean for optimism in this country? the crop report at the top of the hour.
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some trading places. it to my twitter page. tweet us what you think about it. the has-crop report. take a look at how oil is holding a stake. again, down about half a buck a barrel. ♪ [ me announcer ] how can power conmption in china, iact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections
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dagen: it is time to make money with charles. this hour, turtles is here to weigh in on what he thinks about the jobs report. find some bad news in it. there is really not much. >> there is a little bit. i have to tell you. i said earlier that i thought this number was going to have a to handle in part because of the adb report. less talk about the good stuff. that construction number is
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phenomenal, and i don't think -- we have some obvious restraining it dovetails with the report. dovetails well with construction stocks and housing starts at things like that. i love that a lot. the bad thing, two things. almost 5 million people still unemployed. that number actually went up. i do worry about as having five, 6 million chronically unemployed , new class of people that used to be formally hard workers. howdy pay them and what kind of jobs if they get? what is the impact on the economy? that is worrisome. that just doesn't move enough. dagen: employers are in many cases very hesitant the people who have not been employed for a long amount of time. there is a stigma attached to it >> the longer you sit on the sofa less people feel like your skills have eroded and everything. and, of course images people leaving the work force, 130,000, but the interesting thing about that, ben bernanke is more less than six and a half%. and i know if we take at face
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but what if the unemployment rate continues to drop in part because people are leaving the market? does the fed taken artificial victory lap and jessica may, we did it? to this see what's wrong with eight : nine, 10 million people. we're still going tested a course. ultimately will be looking at, sort of a win-win. we have a great argument this morning. if you one of the people that think his only fed money printed welcome is not going to go away despite the fact that it came in well above the general consensus dagen: the day the fed decides to start taking. >> you're going to be surprised. work on that going back to wrap the differ recessions and fed reactions and you will be surprised at what i have been finding. i was shared with you next week. dagen: don't you dare take it test varney first. >> you got it. we want it here first. abcaeight.
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dagen: monday. you heard it. and you can see as together fighting. >> tomorrow morning. dagen: and gaspar reno will be a commodity? >> yes,. dagen: it makes for a good time. >> i don't know if i get a word in edgewise. think about the word you want to use. dagen: monday morning. stocks now. nicole petallides is watching pandora. good news. >> reporter: pandora is hot today. let's see what is going on right here right now. hitting a new high. it's up 1376, a gain of 17%. it traded as high today as 1470, about a dollar off of flies of the day. they came out with results for the fourth quarter which easily surpassed the analyst expectations for revenue and also earnings per share. also, the news of the new leader is under way. watching for that search for the new ceo.
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so so clear we are seeing pandora doing a stanley well. then there is facebook. it is to the downside, down percent today. shareholders are a little disappointed. they actually put out their new look. they will basically divided into several tabs, server tabs at user taps. you can see here. there is obviously some push back now. the 2798, nowherehicmpa/ bis. wf@ eiat xa, nowhere near that. dagen: thank you so much. a long journey across this nation is in the northeast. residents here now trying to keep warm in the middle of this snow sto you s. it is still snowing outside here in new york city. and the wealth is back in america. back to the pre financial meltdown levels. holmes, stock market, will it continue? americans feel better.
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first, take a look at how world currencies are holding up against the dollar today. ♪ of tsk
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dagen: said 23 minutes past the hour, i'm here with your fox news minute. son-in-law pled not guirmy to conspiracy to kill americans before a federal court in new york city. part of his inner circle. he was captured in jordan this week. gop ld 2makers are oppt is .ings prt is .ecution on u.s. soil. a military tribunal at guantanamo base. the tsa is facing a backlash over its decision to allow small knives and sports equipment like golf clull the new policy is set to begin april 25th. opposed by a coalition of pilots, flight attendants, and federal air marshals who are urging that the ban remain in place. venezuela leaves -- least 30 global leaders.
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chavis died of cancer on tck tsy and his body is lying in state. following the funeral his hand-picked successor will be sworn in this evening as an term president. tht is .e are your heamuines. what did you back. dagen: thank you. great to see you, as always. >> my pleasure. dagen: take a look at the snow. well, it is tapering off outside year of our studit is . in midte manhattan. not as bad as it was. new england now in the bull's-eye. some parts of massachusetts getting over a foot of snow. meteorologist janice dean has the very latest. i was shocked to see this note in here this morning. >> the forecast is new was going to snow. >> i include myself in that as well. suppt is .e a syllabus now yesty . we get it this morning. is all part of the sidde sas that continues to bring
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impressive snow totals to parts of massachusetts and connecticut take a look at that. that is southwest of the boston area, gt inches of snoes. let's take a look. i want to point out, our next weather maker that we will be talking about this weekend. this thing that we have been talking about for weeks now that brought of foot of snow across the midwest in the mid atlantic canal is just sitting in spinning just off the coast, bringing snow for philly in new york, albany, bt is .ton, up tod portland. thankfully this is going to push d 2ay the next couple of hours. here we are on friday. and then by 3:00, by the time people get home or about to start their afternoon commute it should be done. temperatures will be chilln th t as we head into the weekend and by next week we will see temperatures in the 50's. boston 47. dc 62. a quick shot of spring in any will be called again. want to point out that we have
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our next weather maker across the southwest. this is going to go into the central plains and bring in more winter weather. not over yet. a lot of folks are going, we are done, over, bring on the flowers dagen: i will point out that you showed stafford springs connecticut. a great race track. i no you're into that sreatff. later in the year. the race track. their race. how many inches it gets, 17 iordhes is something. thank you. household wealth returning to pre-recession levels. our upcoming guest is not throwing the confetti just yet. and don't forget that crop report. some of the hour. go to our twitter feet. trading places video. get on that. orange juice futures. and here are some of today's
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[ female announcer ] some people like to pretend a flood could never happen to them. and that their homeowners insurance protects them. [ thunder crashes ] it doesn't. stop pretending. only flood insurance covers floods. ♪ visit floodsmart.gov/pretend to learn your risk. before household wealth back to prerecession levels. the good and the bad in those numbers. the federal trade commission charging 39 people with spamming. 180 million text messages in play here.
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costing victims in myriad ways. the cost of bad jobs report, well, the cost is the upside. stocks now and nicole petallides has footlocker. nicole: i saw a note that said footlocker seemed poised for a slamdunk quarter. they completely missed the net. down 6% for footlocker. they did see a jump in sales. however, they missed analyst estimates. with that is, you are seeing the stock down. still remains higher. they did not exceed the analyst estimates as had been anticipated. as a result, the quarterly
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results are heading the stocks today. i do not know how they missed the numbers. back to you. dagen: and they must be ordering online from somewhere else. almost five years since the height of the financial crisis and america has finally regained the wealth lost during that period is it too good to be true or are we finally seeing some real signs of recovery quest mark. rich: here in d.c., the question is, are we back? today at about 66 trillion. households that about the same.
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we asked what some people in d.c. that. it is a mixed bag. >> the economy is good. >> i do not feel like we are back. my rent has increased more than my salary has increased over the past few years. rich: we spoke with folks in washington, d.c. where we have weathered the recession much better than other places in the country. take a look at some of the caveats we are creating. take a look at housing prices in december 2007. the low was last january at $154,000 during the recession and now back up to 173,600. look at industrials.
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both back to levels and highs we saw right before the recession. back to you. dagen: thank you for that. rich had said. enjoy that sunshine. let's bring in forbes opinion editor. use the rising stock prices. you feel better. you go out and spend something. >> the wealth affect is a major myth. they should really know better. they claim that if stock prices go up, individual cell, they go out and consume. what they leave out, for someone to sell, so one must buy those appreciated shares.
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people were borrowing against appreciated houses. for someone to borrow, someone must not consume. they must lend them the money. dagen: what about, do you believe this is in large part artificial and juiced by the federal reserve? how much gretel -- how much credit do you give them? >> it is the same idea there. for someone to buy into the stock market, somebody must be exiting. there is no real effect. i would say the big story about the fed is we see a record high in the dow. what we leave out is how much higher the dow jones industrial and s&p would be if the fed were less activist.
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dagen: you see so much money flowed out of u.s. stock in the last several years. does the new record on the dow have less of an impact among the general feeling of americans? >> without question. when we are talking about record highs for the dow, we are, for the most part, talking about levels hit 14 years ago. the dollar was worth substantially more than what it is today. measured in dollars, it is not that great. the fed would love us to think they are actually doing something to help the economy. the obama would love to promote this. there is still 12 million people
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unemployed. dagen: john, good to see you. thank you. charging nearly 30 people with that crime. the latest with the oil market. you have the snow, you have a much better than expected jobs report got you have the death of hugo chavez. much in play there. what will oil do? the ten year is about 2%. how high will it go? questions that the markets will surely answer in the weeks to come. ♪ >> meet bill and melissa.
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>> hi, everyone. i have your fox business brief. home sale inventories rose at their fastest pace. the congress department that wholesale inventory climbed 1.2% from december. topping wall street expectation. kkr is buying -- the company is
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expected to close during the third quarter. if you are baby stroller british buyer worthy? the price tag is roughly $3000. cars have been featured in movies. that is the latest from the fox business network. giving you the power to prosper. ♪ [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side.
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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 norwest. 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. dagen: sick of spam tax? soon, those sending may have to pay the piper. the messages offered deals on everything from free gifts $2000
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gift cards. sensitive personal information was divulged. some recipients were charged for the text. they are seeking restraining orders against the accused. let's take a look at the price of oil. so much to move these markets today and this week. down $0.40 a barrel. better than expected jobs report. the dollar is strong today. better than expected jobs report. snow. it is called a peer. hugo chavez dies. what to make of it all? >> the reality is, yes, the dollar is strengthening quite a bit. are the jobs pumping out more crude oil?
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remember, the u.s. is facing a significant oil boom right now with production. our inventories are about the hundred 81 million. we have quite a bit of oil. also, quite a bit of news coming out on the pipeline. you are seeing brent crude prices at the lowest level since 2013. dagen: should they be lower than they are today, though? >> i think crude oil prices will drop below the 90 level you mentioned hugo chavez is death earlier. i think the new political stands down in venezuela is they want to pump output on oil. it needs to be as much as they possibly can right now. they can boost their common being a little bit and have people look pretty good.
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i think that an oil supply will continue. also, remember that imports from nigeria are also at a five-year low. oil independence is starting to grow. dagen: love to hear that. thank you so much. it is great to see you, as always. take care of your self. let's just take a look at your markets right now. we are on track for a fourth day of record gains for the dow jones industrial average. nicole petallides has more of your top movers this week. nicole: that is right. let's take a look here at -- dagen: i do not know it was on or not, but you look fantastic. we will just put you up on screen and look at you.
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thank you so much. we will get back to you soon as soon as we get that audio issue fixed. the crop report about to be released. what are analysts predicting? jeff flock has more details for us from the cme. hey jeff. jeff: you have to actually hear me or i am useless. nicole petallides is a completely different story. world agriculture supply and demand. you can see the traders right now. take a look. we will see a real dichotomy in this market. still trading almost seven dollars. that is a tremendous price for corn. take a look at the december corn. it reflects the coming harvest.
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a huge spread right there. take a look at the december corn chart. use the kind of where those numbers started falling off. this report will be focused on what is around right now. listen to this, and order just came into the market. this is soybeans, by the way. we will get a lot of activity right at the top of the hour. i will be standing by here live. we will see what the supplies are like. it is a real dichotomy in this market right now. dagen: you should warm up. good luck shouting over those traders. i am sure you can holler with the best of us. jeff: i will do my best.
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i hope i do not buy anything by accident. dagen: thank you, jeff. up next, sandra smith with today's trade. right now, let's take a look at more winners for you. these are on the nnsdaq. ♪ ♪music plays 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.
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dagen: i refuse to let them wrap up this hour without going back to nicole.
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her audio issues are fixed. nicole: we want to take a look at some of the week to date movers. we saw this week. let's talk about somebody's names. i see bank of america pulling back. it is a name of almost 7%. lots of financials hitting almost 17% highs. hewlett-packard up about 4% this weekend. over the week ibm has gained about three and a half percent. dagen: love it. thank you so much for that. moving onto commodities. a better than expected february jobs report. sandra smith has today's trade. sandra: definitely there is a big movement in the commodities market. you would think you get this better than expected jobs report
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card that you would see improvement in the economy and you would see brought improvement prices going up. you have the u.s. dollar going up against the euro hitting its highest level. when you get that stronger dollar scenario, commodities go down. we are seeing across the board, a lot of folks still taking their money out of the commodities and putting them in the stock market. oil prices going down and we are also seeing the reflection in gold prices, silver prices. we are definitely seeing that money come out of the raw materials. a interesting reaction we saw. dollars spike in those commodities came down. back to you guys. dagen: thank you so much, sandra. it was terrific spending the morning with you. have a great weekend.
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it has been a record breaking week for the dow jones industrial average. we waited since october 2007 for this to happen. people look at the dow 30 and say why do i care. it is a small gauge. it represents roughly one quarter of the entire market value in this nation. these are the major companies. the drivers of job growth. you can take a look at how the dow is doing today. coming up, the crop report. that is right. jeff flock will be flexing his lungs shouting over those traders. cheryl and dennis will also be taking your comments on our twitter feed. ♪ friday night, buddy.
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♪ >> hello. we're coming up on noon eastern here on markets now. a lot of breaking news to cover during the hour. first, there was this. over 200,000 jobs added in this country. economists saying we need this every month to keep the economy on track. can we do it? >> the big crop report. farmers, listen up. we're taking your comments on our twitter feed. cheryl: comments already coming in from all of you, and there is this. naysayers be where. those of you concerned about investing in this market will get a dose of happy madison before the next break. dennis: we graywacke -- wrapup this week's cyber threat series. will we see a major cyber attacks? when will that happen? why are we doing more? we will ask our experts your questions, so it is up. it at the top of the hour, stocks every 15 minutes.
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nicole petallides on the floor of the new york stock keychains. >> reporter: water to take a look at the dow jones industrials. forty-seven points. 14,376, not quite an all-time high. enter day earlier today. 14,400. we are still seeing up arrows. major averages up about one-third of 1%. s&p 500 goes in that category, up about 1/4 of 1%. the dollar's stronger. we did see some good news out of japan and some of the traders talking about the fact we took that bar and kept on running. momentum that we have seen. there has not been tons of volume. the path of least resistance still remains to the upside. and they keep asking the traders about the big pullback. so many of them have been waiting. we don't seem to be talking about that. quite uncomfortable recommending shorting this market. we are seeing the bank stocks.
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retailers are looking good. should note that the jobs report this morning, the big picture, jobs are going in the right direction. the unemployment rate dropped. that does appear good. however, obviously a lot of that is contingent upon a lot of americans are stepping on the labor force altogether. discouraged. but we did see jobs added to the entrance. highs again tacking on to yesterday's gains. back to you. cheryl: we are certainly doing that. quite a week. thank you very much. we will see you, of course, 15 minutes from now. let's keep on this job report for a moment. february numbers came out, and they came in a lot better than anticipated. i'm bob rate dropping. chief financial analyst, the
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labor market is zigzagging in the right direction and he joins me now along with employment industry adviser. i want to start with you because getting -- the market has had some time to go through these numbers and like the details. in particular it is about job quality, the types of jobs that are available. seeing a big push for lower paying jobs. i in jobs that are not coming in. what does that mean? >> we are seeing is companies are still cautious about hiring, even though we have had a good jobs report. 200,000 tons being created. destruction came back strong which was a really great find. at the same time there is still a lot of opportunities for companies to add to their peril. i think we have seen ceos that have been a little cautious about doing so. starting to get some movement in these jobs are coming back. cheryl: some of these sectors. if you like a professional business services, construction,
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38,000. obviously that is tied to the housing market. health care, 32,000. retail. what does this say about the economy? do you think these higher levels jobs coming into professional services need more money put into the economy? >> what is important is that we are just generating jobs and we aren't generating them in sectors that we need to. as you pointed out, construction is telling back. much of this recovery we have seen in absence of hiring construction. as a really good thing. much of this cast to do with the fact that we are finally getting some clarity on the fiscal situation. they decided not to have the big spat over the sequestered. i think that's good. so the economy is resilient. i think that we will continue to get job growth, but it will take us about another year before we have replenish all of the jobs that we want -- lost during the recession and the lead market. cheryl: if you back up for a moment and look at the three
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month average, that is only the 195,000. i think it takes about 300,000 more to really get true meaningful job growth in this country. we are far from that right now. >> and if you break down the sectors and look at it, not -- manufacturing what nafta ad over one half million jobs to get back to the levels where they were at. we're seeing health care and retail and construction and a professional business services. even temporary labour which has been a lot of time and. that came back 16,000. i think it shows you that they are hiring differently, and they are hiring people on all levels in their organization, even on a contract based. cheryl: even if you look at the year-over-year numbers for wage growth average hourly wage growth and it's only about 2%. is that enough for us? >> not really. that is one of the unique features of this recovery.
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we have seen the unemployment rate come down by more than two percentage points. average hourly earnings remains wire at the low-end of arrange that tends to run from 2% to 4 percent of the course of the business cycle. but that is just an indication of the amount of surplus labor we still have out there. if you look at the private sector, for example, we lost almost 9 million jobs during the tough times. and we still have about two and a half million jobs to generate before we will have just replenished those, and that is not really even taking into account the people who are trying to get in the labour force, you know, the younger folks. cheryl: you want to fix it. go ahead. please finish. >> i was going to say. we should be happy if we have come a long wait. has been a knock down drag out fight throughout this recovery, both for overall growth and labor market. but what i think we should recognize, how far we've come and that i think we will see a return to normalcy sometime over the next one to two year time
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horizon for the labor market. cheryl: one to two years, yet here we are with the stock market that continues to hit new record highs. many have asked me why we are ahead, why is the stock market ahead. i'm saying, well, this may be six months. you're telling me one to two years. >> i don't think the stock market as it wrong. the stock market disconnected from the economy quite some time ago. in fact in the financial markets in general in my opinion did. that is because of what the central banks and in particular what the fed is up to. qe is all about trying to raise asset prices. i think on that fight you have to say that the fed has certainly succeeded. cheryl: last word tt you. you were talking about those high-end temporary workers, contract workers the making high salaries. those jobs are coming back. >> those jobs are definitely coming back. i think there's opportunity for people that are looking to get back to work, even getting a
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temporary job could lead to a permanent job in the future. companies need to start hiring. they cannot sustain. they have cut back, cut costs, reduced salaries. now is the time when any to start hiring. cheryl: i know that you are an economist. i do want to give you. if you look at the overall economy, and i go back to that wage quality issue, what is being set here is that the high end contract worker, the temporary the cfo is not getting a full-time job which to me says we are not complete confidence. >> i think you're right. we are not completely confident. what is a good thing is that we continue to hire workers on a temporary basis. for many companies they are doing that really as a way of feeling out potential knew hires so when you see the temporary health increase on a monthly basis, that is usually a pretty good sign that you're going to continue to see hiring in the business sector. cheryl: all right. thanks to both of you.
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breaking news. the usda releasing their crop report. let's get right to the cme. jeff flock joins us live as the numbers are just now coming in. what you seeing? >> this is always a tremendously vibrant place when you get a crop report. phil is with me. largely -- this is a bearish report for soybean. >> it is. the stocks that we're expecting to be smaller, there were larger >> behind us. come on in here. eddie van, biggest corn trader that any of this note. what to you make of this report? >> i think it is friendly for corn. a little bearish for both season for wheat. right now you see the beans and a we going down. it is kind of dragging corn along with it. i think the numbers by themselves a bullish. i expect the front months to gain on the bad months for the next few months.
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>> i was going to say, the lack of supply that we have got that is in the system. we are hopeful about next year still. >> yes. yes. >> that is why you have that big spread. >> yes. and i think that the users of corn are going to a bd sourcing in the upcoming months. >> have to go somewhere else. >> right. well, it south america has supplies, but they don't deliver on what we do. >> of is going to say to you can rely on that. i'm also hearing this corn report. very bullish in terms of the now >> is other register identification numbers for at the monitor record high. a lot of concern because there was a shortage of ethanol. if they don't take it up to meet deadlines, it's going crazy which drives up gasoline prices. you don't think about it, but green reports move gasoline price which is one reason there was one reason.
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overcharge right. not a whole lot of actual trading. go ahead there. you'll see soybeans. this is the soybean meal. this is ready action is ben. cheryl: i want to bring in a couple of things. i do you the features rising. the soybeans as you mentioned. we reached out to our viewers on twitter. we ask them what their thoughts were. this is that we we are getting. the usda soybean target underestimated final demand. fourteen of the past 18 years there has been a lot of skepticism about the u.s. a crop report from traders. watching the show. one of the -- what did they say about that? >> and talking to phil about this very thing. the underestimation of things
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like export demand. a historical problem. some people worry about washington manipulating numbers. is that about manipulation. >> it's about being conservative. a lot of these traders are going to wait for the quarterly number. and them what i call the granddaddy of them all, march intentions report, they don't want to unduly overestimate because if they do and they fall is going to do a lot more damage to the market and if they overestimate. >> a little bit like what we do with hurricanes. we overestimate the strength of our hurricane because you don't want to underestimate it or you cause a real problem. a similar sort of thing. cheryl: and you're right. we're getting more comments from our viewers and we want to get the voices. they're tweeting. the crop orders are good indicator, but the yields will be the deciding factor for feed cost this summer. he's saying or sheep, just
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saying, look at last year. here is what the reaction is there. >> and that is a guarantee. that is the whole thing about this. right now we look very bullish or bearish for prices as we go forward. we think there will be a good harvest this year, but we have no idea. we thought last year was going to be a big harvest. there is no guarantee. >> and at once you get a call from mother nature, you will none of this. you are out in the snow. we don't know if that will be enough to break the drought. more moisture in the mid west. a lot of expectations who will have a big crop. pricing in what should be. >> that's what the market is pricing in, and that's all we can do. cheryl: thank you. want to let our viewers know, they can tweet at fox business. we will read all of them. thank you very much. dennis: the dow up 51 points,
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continuing to sort a new heights. the last time dan schaefer was on our show it was downright bearish on the market. now he is back. the dallas is your last on. up nicely, as you can see. are you here to repentant recant? >> no, i am not. this is a fake rally generated by the easy money policies of the federal reserve. $2 trillion but in a the last few years to pump this market up, make everybody feel great. i say that we are still going into a deflationary depression. in the early stages. we saw that in the gdp coming in first at-1 where every analyst at the wrong. changed where every analyst on the wrong. i still believe the prices are going to start to collapse. people have changed their spending habits. the stock market is either wrong or the economic numbers are either wrong, i believe that the stock market has been wrong. happen in 1973.
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dennis: worrying along that this market is utterly disconnected. today's jobs number, private employers, 246,000 jobs. isn't that a sign of some kind of economic reality underpinning that stock-market? >> if you believe the numbers. you see, they changed the previous month down by 38,000 jobs. that number can swing 30, 40, 50,000. rita of the actuals. >> the negative number. >> i don't believe the numbers and all. lab believe is the velocity of money is not there. nothing that the federal reserve chairman is absolutely worried that this economy is going to deflate, trying to inflate it. he said in testimony a week ago, unconcerned. we will keep rates low, possibly 2016. think about that. think about that.
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everything that he has done is what you are paying. >> in april you and i made a bet. the snb was at 1400. finish the year . no up or 1500. misting -- missing out of a lot of tough creation. >> as a result of rising stock prices. is there not a felt. dennis: effect that is helping the. >> you would think that it would show up. but in all essen's the government is slowing down spending. the anticipation of slowing down and the fact that, again, people are not spending the way they used to, some of the earnings coming in from some of the major retailers are not looking very good. cheryl: overall are exhibited at mostar expected. >> the statistics are the 70 percent of the growth is from congress and the consumer. what does been thinking a people printing money in the stock market, make x amount of return, take the money and invest in
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this? how much major populations are actually in the stock market. dennis: mutual funds and retirement accounts. the journal has a story today that companies are buying back $300 billion in stock this year. isn't that kind of a private stimulus plan? when i put cash back? >> i can show you another report where insiders are selling the most that they have sold in two years. all depends on who you listen to something is at a disconnect. the dislocation in the markets because of the reserve. every central bank in the world. mexico just lowered its interest rate 50 basis points. dennis: at this connection. we like it for right now. thank you for being with us. cheryl: welcome more news that came out last night. the fed bank stress test results are in. all of the big institutions. allied financial past the fed test. news on the likes of citibank and bank of america fell on a
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list of top-rated banks. that's coming up. dennis: and a finalist. as cyber threat series. an expert roundtable on the threat and investing that you will find nowhere else. they will be answering your questions. ♪
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♪ cheryl: all right. time for stocks. that said to the floor of the new york stock exchange and nicole petallides. >> reporter: the crop report. of course we have to watch stocks that are related in the food manner to the crop report. excuse me. let's take a look here. the first thing that i notice here. i do see a mixed bag as far as chicken.
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kellogg. general motors. certainly think a lot of cereals and corn-related products. the stocks, largely unchanged based on the report. soybean on the rise. take a look. entered a. actually had a 52-week high and sold off. cheryl: i know. get some water. i hate when that happens to me. have been a victim of that on the air as well. we will see you at the bottom of the hour. the big stress test. the majority that a passing grade. how they raided after these tests is something you need to hear about because some of these stocks are not reacting in a positive light. dennis: we wrap up this week's cyber threat series with an expert panel. will we see a major attack? , let happen? why are we doing more to fix this problem? it will ask our experts your questions. it up on our twitter page. ♪
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cheryl: leading the way for bank stocks, turning around last year's a stress test debacle, but many of the industry's biggest names are in the red after finding themselves toward3 the bottom of the fed ranking. s&p capitol iq joining me now. i want to start. they came in at the high level. the ratio. just over 8%. so they can withstand 12 percent
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unemployment better than some of their peers. >> says. it is remarkably well, even after our projected severe recession. the ratio stands at just over 8 percent, which is well above what we saw for j.p. morgan chase or bank of america. cheryl: the whale issue back in 2012. many were concerned because of their trading operations. the large-scale trading operations. the thing that has a piece of the thinking today? >> i think so. with the losses that they had last year, it is clearly a more risky trading operation then with city. and so the fed, when they do there stress tests, they have to take that into account. cheryl: right now you have a buy. targeting $51. the stock, the best performer percentage wise. then the group. you did raise your target as well. talk about that. and i really negative. >> we have a buy recommendation because you're seeing, it's not
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just a stress test that we look at. it's everything. the leading investment bank in the world right now. so just because the stress test was not as great as people expected and because the return of capital is still likely not going to be $12 billion. cheryl: you are not worried, especially today about them. i don't want to be upon them to much, but this is a company hitting a year highs. especially with the market. and then kind of knocking off the front today. this one day movement. >> one day. i still think that the sharks will be 10% higher year from now cheryl: let's talk about looking forward to next week because the fed is doing this into releases. next week will be all about the buybacks and the dividends. these companies and banks still have to get to the fed. can i do a share buyback, the livermore dividends. they can say, yes, you can or no, you cannot. do you think the stage is set
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for more dividends being paid to investors? >> banks to return capitol either through share buybacks or dividends. the emphasis is on share buybacks because the bank could easily spend a share buyback program carries a dividend cut cents a very bad signal the market. most of the capital return this year, certainly over 50, 60%, will be from share buyback. we have only seen one and as the so far, which is city, and they will request a $2 billion share buyback. but the disappointment is that there are not going to be raising their dividend, which pays only 1 cent per quarter. cheryl: before i let you go, too big to fail, are we still there >> these banks are likely to big to fail. i know it is like a dirty. i mean, certainly they get into trouble. it's likely that the u.s. government would step in to do something. cheryl: enter all of this time and although we have been through. thank you very much. thank you very much. want to let all of you know at
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cheryl: 30 minutes post the albert. stocks every 15 minutes. nicole: we are taking you over to pandora. let's take a look at how the stock is faring right now. up 17%. yesterday, after the bell, in addition to the fact that they beat the street on both the top and bottom line and they gave a better-than-expected forecast for the current quarter, you
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have all the analysts jumping on board and talking positively about pandora. their target, what is interesting, the target is $13. it is that 13.81. take a look at some of the other ones. raymond james. a buy rating. we are saying that alice tried to catch up to, obviously, a better than better than expected quarter for pandora. cheryl: nicole petallides, thank you. dennis: the top technology firms in the world the impact. >> i have these problems migrate
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in american industry from the cio and cto up to the top deck. this is now a serious problem for ceos and ceo always. >> china is carrying out about ten times as of the whole rest of the world put together. >> this is a widespread pandemic. we are seeing war than 100 companies involved in this problem. >> we have gone from the cold war to the code war. >> this is like the wild wild west. this is your digital tombstone. dennis: these guys are good. that was a quick recap from our cyber threat. this week. we have the director of the nonprofit u.s. cyber consequences unit. he is here in studio, jon
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iadonisi. thank you for being with us gentlemen. we know from our series that clearly we are unprepared as a country and a business industry. what are we going to do about it start us off, jon iadonisi. >> we need to take a more proactive role, i think, and holding nation states accountable and sending a message globally that this type of warfare that is not acceptable and there needs to be some sort of concepts. i think that identifying this is no longer in the realm of, you know, something people do for fun. this is no longer a recreational activity. it is serious business. >> we have to innovate the bad guys. we are not going to win simply by more regulation and a heavy hand in government presence.
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that is my opinion. it has to be a combination. dennis: hasn't the pet industry failed us thus far? >> i think that much of the last ten years we have been in a black hole of cyber security and innovation. if it does not give me the check box, i cannot spend any money on it. dennis: our businesses spending too much time answering regulatory requirements and not enough time bullet proofing their system? >> they are finally stepping up and realizing they need to put something in place. they need to buy solutions now. they realize this is something they need to be responsible for. series like it's just make this
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more and more obvious that you need to take action. dennis: scott, one problem has been trying to figure out where responsibility lies. we have this kind of bermuda triangle. who is responsibility is this, scott fisher mark. >> the main thing determining our cyber security in every way is not actions and development in cyber security and it is not the government, it is the onward rush of business development. the business has not been doing all that badly. all day long, different groups are trying to do terrible things to us. dennis: let's go back to jon iadonisi. why have we had two dozen eggs hacked? why did keep in mcdonald's get hacked? >> i do not think this will be something that you can prevent.
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you are dealing with an issue that may have its manifestations in the digital safe. dennis: congress will use the cyber threat as an excuse to control and censor the internet. that is a fair question. our former government guy, why don't you start on that. >> i do not think that they will do that. they will put some more information sharing protocols in place. the debate will come in regards to standards. are we going to allow the government to regulate rfid industry and enforce standards around network security. dennis: we talk to a congressman who is leaving, leading
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businesses and government share more information about attacks. all we want to do is share information. >> it has been ineffectual. it has typically been a one-way street. in order for it to work, i believe it has to be truly information sharing. dennis: scott, when this started, you have the guy in his boxer shorts and his mom's basement, now it turns out the people's liberation army in china is doing thousands of attacks. should we attack this problem mainly by attacking the chinese? >> it would be great if we knew for sure when it was the chinese. it would be great if we could reach the people that are attacking us. we cannot actually do either of those things.
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retaliating is pretty much off the books. dennis: that is funny. we had an expert that said they are attacking attackers preemptively. let's get back to our twitter page. doing business online is utter fluency. nothing is safe in the cyber world. let's ask our panelists on that. brian, it occurs to me that the government break-in part of this is a rather persistent problem. who is worth protecting? >> both. they probably make equal mistakes. you cannot just stop doing business online. what you need to do is protect your data. protect what is most important. dennis: jon iadonisi, it occurs to me that if there was a
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litigation crisis going on, if companies were getting sued for the violations that were happening, they may do a better job protecting. >> i am not so much one that always likes to turn a litigation as a solution. i would say that i think, we are asking the government to work with business which is a significant shift in the last couple years. usually you have seen a division between government and business. we need to find common ground between the titans of industry and the cyber world. microsoft, apple, google. much like we did with carnegie and etc. dennis: nice historical reference. our expert panel will stick around. up next, the sars stock plays. let's see if any of these guys are buying them. ♪
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ah. 4g, huh? verizon 4g lte. 700 megahertz spectrum, end-to-end, pure lte build. the most consistent speeds indoors or out. and, obviously, astonishing throughput. obviously... you know how fast our home wifi is? yeah. this is basically just asast. oh. and verizon's got more fast lte coverage than all other networks combined. it's better. yes. oh, why didn't you ju say that? huh-- what is he doing? >> i am adam shapiro with your fox business brief. stocks modestly higher today following a better-than-expected report. right now the dow is up roughly 29 points. investors are bullish. the company said it would review a discussion to this companies.
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smithfield should also -- according to the "wall street journal," google's motorola mobility will begin layoffs this week and a plan to cut 10% of the smart phone makers workforce. this follows google's august announcement that it was cutting 4000 jobs at motorola. that is the latest from the fox business network. giving you the power to prosper. ♪
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cheryl:.com markets now. here are some cyber security picks. kathy on is a stock to watch. he also likes palo alto.
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palo alto is an open ended growth stock because of its next generation firewall. joseph firm holds both stocks. palo alto networks is down by $0.54. we will have reports on investing in the cyber security sector in just a moment. let's first go to nicole petallides on the floor of the new york stock exchange. all of this snow and rain is getting to me. new england getting hammered. nicole: i just asked a family how much they liked new york at what they liked the best and the little kids said the snow. you do see united continental, for example, of 6.5%. many are hitting 52 week highs. united, so that, jetblue hitting
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52 week highs. we have seen a lot of cancellations and delays. i was also thinking about the dow theory. now, all the market averages have hit the highs. that confirms all the dow theories. now it has all come together. cheryl: thank you very much. we will see you at the top of the hour. dennis: we are waiting for animation. usually they have this great fantastic thing. nevermind. we are adding one more to the roundtable. he is joining us from minneapolis to talk about the business of cyber security. robert, thank you for joining us. you like prefix in particular.
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why don't you start with symantec. >> it is up over 30% already this year. they have brought on new management. the company is going to be going under significant restructuring. we think there will be significant upside to the marketing margin. we think they can get the company back to him organic growth rate. the leading proactive messaging company, when you think about one of the quickest ways that hackers go after people, they really attack the e-mail inbox. the security cloud vendor, or they put the mailbox into the cloud, and then send it back to the organization it is arctic pack up 30% this year.
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we are not able to invest in stocks that we cover. dennis: talk to us about lifelock. >> lifelock is up 40% year to date. they are a proactive identity management. one of the most often talked about in advertised solutions. good job, robert. dennis: now let's see if we can pick you apart. any of you guys by any of these stocks? jon iadonisi, why don't you start. >> not in particular. i would say all my companies are private that i invest in.
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>> i do not invest in them and do not invest in the security sector myself. dennis: the guys who get rich in the cyber threat is the guy selling protection. what do you think of the stock picks? >> i think you and i have the same track record. i tend to put my energy and capital into private companies. i know that whether it is the government or large companies, either of them are very good at innovation. to be able to capture in a vision. dennis: let's go out to twitter. coty says: the greatest concern, mobile devices.
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step into a foreign place like a china airport. they have what you have. mobile is part of what has accelerated this threat. >> absolutely. it will continue to grow. we have stocks that secure your e-mail identity. what about the root cause, why are people doing this? dennis: the stock of video companies pop up. if we had some thought to think the stocks he just picked, with a pop? >> i think we are actually seeing them pop. out of the 30 names we cover, the best performing names, five out of the top seven are
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security. this is definitely in the minds of a lot of enterprises and a lot of vendors. obviously, they recognize this is a huge problem. dennis: thank you, everyone. all the guests that contribute to our series, thank you. coming up at 1:45 p.m. today, we will talk more about it. cheryl: star wars. indiana jones. pixar. just a few projects or to lucas has had his hand in. markets now will continue in a little bit. ♪ how could a luminous protein in jellyfish, impact life expectancy in the u.s.,
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cheryl: it is time for your west coast minute. metlife is expected to move several jobs from california to north carolina. overall 2600 jobs will leave, not just california that the four other states considered high tax rates. it also allowed that life to consolidate its holdings. average daily room rates in hawaii jumped a whopping 16% last week with the average room now renting for $227. the occupancy rate also jumped by 3.5%. take a look at the major hotel chains right now. intercontinental is the only room to the negative.
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star wars creator george lucas wants to open a museum in san francisco. the film legend submitted a bid for a "storytelling" museum. his is one of several proposals. it is right next to the golden gate bridge. that is your west coast minute. bobby, celebrity chef is growing his restaurant empire. there he is talking to fox business. he will be here monday speaking with me exclusively on his plans to grow his business even bigger in 2013. you don't want to miss it. that will be monday. ashley and tracy are coming up. dennis: defending his turf. oklahoma city general.
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he is up next on why he thinks dodd-frank is unconstitutional. ♪ this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.

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