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tv   Markets Now  FOX Business  April 29, 2013 11:00am-1:01pm EDT

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want. stuart: dagen and connell, it is yours. connell: thank you for joining us. i am connell mcshane. dagen: i am dagen mcdowell. cofounder and ceo of the agency. connell: tim tebow waived by the jet today. anybody want to buy a tivo jersey? those stories and more coming up on markets now. ♪ connell: i do not want to buy in new jersey, but that is a whole another story altogether. my son has a mark sanchez jersey
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and a darrelle revis jersey. dagen: mark sanchez. guy help him. top of the hour. stocks now. nicole: my husband and boys say if the jets go to the super bowl, we go to the super bowl. so far we have not been. the dow jones you can see for 2785. the tech heavy nasdaq of nearly a full percentage. the dollar is lower. you are seeing commodities with of arrows. we have seen a lot of the names coming out.
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so far, so good for the bulls. dagen: thank you so much. dennis: to health insurance now. raising premiums more than 25%. dagen: peter barnes joins us now from washington, d.c. peter: health insurance companies are starting to submit their premiums. some customers should be prepared for sticker shock. blue cross blue shield has requested a 30% increase in premiums in tennessee for individuals, a 25% increase in maryland, as you mentioned, and 18% increase in rhode island. these are just proposals, just request.
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the industry says that customers in some states -- >> it is certainly important to make sure that the premiums are sufficient. that is how we ensure that coverage is going to be there for people when they need it. smack it is only a first step in the premiums process. it started well before the affordable care act was passed.
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the competition will help moderate cost. connell: thank you. peter barnes in d.c. for us. dagen: let's bring in jason riley. we have no idea what the ultimate cost of this law will be on the taxpayer and people who have to pay for their own health insurance. >> does anyone still believe that obamacare will lower the cost of healthcare? it has completely shifted here. how many times did president obama say if you like the healthcare you have, you can keep it. not even democratic members of congress believe that is true. it is going to be a train wreck. harry reid and others in the house were caught red-handed in
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a news report coming up with a way to exempt themselves and their staff from these exchanges that you were just discussing. right now, federal government subsidizes a lot. they are worried when these exchanges take place in the subsidy goes away it will increase the cost of their health insurance. even members on the hill are trying to find ways to avoid the cost. connell: how big of a political problem? >> i think it is a big political problem. one thing to look at are the polls. it found that 15% of the polls said they think obama care will help them personally. 37% said it would hurt them. dagen: how will they write this
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titanic? these health exchanges have to be set up by the state by october 1. there have been dozens of ms. deadlines by health and human services. they did not even covered nearly the number of people they said. >> they are out of money. they decrease what they pay providers. still, they are out of money. this foreshadows an estimated amount of people. dagen: it covered -- >> you cannot sign up anymore. connell: the one thing that i think is interesting about it, i
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wonder in the general public, if there is in eyes glaze over affect? >> well, again, i point to the opinion polls. the more people learn, the less they write. it is polling at about 41% approval rate now. i think it is a big problem for democrats. dagen: at the cost continue to rise in people's healthcare continue to change. i have been back since the tanning tax take in. [ laughter ] dagen: as always, jason, great to see you. connell: to the economy and a stock alert. a mixed picture of how the economy is shaping up. personal spending was actually
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up .2%. personal income rose. economists were looking for more. sam stovall says if you are in the market for stocks, history tells us not to expect much out of the markets anyway. as we talk about stocks, we give you an alert on the economy. where are we, historically, at this point of the year? >> may is the middling month. it ranks only eight out of the 12 going back to world war ii. it is okay. i will take it. it is positive. it is not typically something that triggers a rally. connell: april was a little weaker than usual. is that just because we ran up so much? are we setting ourselves up for this spring swooned?
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>> we have been of intent of of the last 11 months. investors in general, stocks are getting a little tired. they are feeling optimistic today. i would tend to side with the question, what is propelling stocks? i would say all of the liquidity in the marketplace is being positive. it is overriding reduced expectations. if you look underneath the surface a bit, first quarter gdp numbers were actually better than expected. if the government did nothing, there was no change in government influence, we would have seen gdp of 3.2. connell: if you are right, if that is really what is driving things now, how long can not
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continue to drive the market higher? what is your outlook for the rest of the year? >> they will continue doing it as long as it is needed. if pulses doubles output of twinkies, but nobody eats them, will we still gain weight? we will not be a big increase in inflation. certainly, this economy which is still in the hostel, if you will, requires its id in order to be sustained. once that gets removed, i think we can feel better. connell: sam, good to see you. thank you for coming on.
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dagen: the sec and commodities opening investigations into the marketing guys. the new york post reporting investigators plan to sort her big financial winners from the crash and trades placed right before and after the dive. the syrian electronic army claiming responsibility for the hack attack and phonies plead. $600,000. that is what the current bid is for having coffee with tim cook. it raises money. bidding is open for another 15 days. if you compare that with the auction to have lunch with warren buffett, this is pocket change. buffett raised $3.5 million last
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year. nissan recalling nearly 120,000 ultima sedans. between march 21 and march to six. there are spare tires could be over or under inflated. this can significantly increase the chances of a crash. you should not be driving around with a doughnut on your car anyway. honda, meantime, are calling fitz cars in the u.s. the recall affects 2012-2013 model sports cars. take a look at honda and nissan. connell: we should get one of those lunch with dagen pages. dagen: i would have to pay someone to eat with me. i am messy.
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luxury real estate market is back. no real surprise from a realtor. we will talk about how long this can last. connell: tim tebow was waived by the jets this morning. we will talk about all of this. dagen: he has big size. he will have a future so more. connell: let's take a look at oil. 94.14. we will be right back. ♪ it's monday.
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♪ dagen: stocks now.
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lowe's reporting a drop in its profits. nicole: we know it is a winner here today. it is under some significant pressure. the profit fell 34% for lowes. it is a conglomerate. you can see it is down about a half% right now. they came in with their numbers that are disappointing. they had higher charges, also, sharp fall in investment in coming. as far as the investment income, it came in out $5 billion. that versus 50 million a year ago. that is really dramatic. 92 million for exploration. these numbers are having a tough time. dagen: thank you caught local. connell: time to make a little money. charles payne is here.
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charles: maybe dagen would like this one. methanol. [ laughter ] this is a company that just reported. it is doing absolutely phenomenal. companies that are taking market shares. that is another thing you have to look for. it is trading at a time sale -- 343. it seems like a boring area. this is a very volatile stock. you can see the chart. the chart is absolutely amazing. methanol prices in the first quarter were $4.04 a ton. year-over-year $3.82.
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the prices are beginning to ramp up. wall street is noticing and they are trying to ratchet up earnings as fast as possible. i do not think that they will catch up. i think it will be a grand slam. connell: there we go. especially delivered for dagen. charles: you get into the ones that do not sizzle. dagen: thank you, charles. and in -- an israeli lawmaker calling for intervention. connell: goldman sachs. a huge lifeline thrown to jcpenney. we will be right back. ♪ [ indistinct shouting ] ♪
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♪ >> 23 minutes past the hour. i am lauren green with your fox news minute. in prague, a natural gas leak is the cause of an explosion. rescue crews continue to search for people that could be trapped. high above new york city, the final pieces are being installed atop the world trade center. the building will reach
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170760 feet. 82-year-old clint eastwood has no retirement plans. he spoke at tribeca film festival. he said it would be great to be 105 and still making films. those are your headlines. i am lauren green. back to dagen and connell. connell: thank you very much. goldman sachs purchasing jcpenney. >> sends ron johnson has left as ceo and michael has taken over, jcpenney needs to raise cash and needs to do it fast. first, they have secured a $1.7 billion line of credit. it is a loan in which they can
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draw to meet their operational needs. let's take a look at the quote the company put out earlier this morning. this will gistrength we need tor current financial requirements. they have to restock their stores. they have to get inventory and or. $850 million, and line of credit from jpmorgan chase and wells fargo. jcpenney seems to be back on track. take a look at their stock right now. it is up dramatically. whether they can turn this company around has yet to be
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seen. they put the problems regarding cash behind them. they had announced thht they hired a blackstone group to help them acquire some of this funding. they are using some of their vast real estate holdings as some of their collateral. it will be interesting to see what some of those assets are. dagen: thank you for that, adam. a crazy collapse. thank you. connell: luxury homes. the cofounder of the agency. we are getting ready for this interview. dagen: home -- these are like very expensive houses. connell: we will think of a different way of pronouncing that. ♪ @
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connell: we're back with the latest out of syria which has become a point of debate in this country. also news out of there today with the state media reporting the prime minister of syria is alive after a bomb attack right near his convoy in damascus killed six people. dagen: jennifer griffin is at the pentagon with the very latest. what could the u.s. military do at this stage about the chemical weapons there and what plans are in place, jennifer? >> remember, the pentagon and central command presented plans to the white house months ago. it's in the president's hands at this point.
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many people he painted himself in a corner talking about a red line. >> can't be a dotted line. can t can't be anything other than a red line and more than just syria, iran is paying attention to this, north korea is paying attention to this so i think the options aren't huge but some action needs to be taken. >> there are approximately 13 chemical weapons facilities with 40 other sites, many of them mobile, scattered around the country. syrians assembled about 48 chemical bombs, we're told, to be dropped from planes within the last few months. those are unaccounted for at this point. nobody at the pentagon wants to bomb the facilities from the air because of the potential they could create a chemical cloud. it's not easy to control these agents. i'm told that they could mine the areas around these facilities so no one from the regime could enter these chemical weapons facilities. i've heard estimates that even if invited in, even if the asad
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regime invited the u.s. in as the u.s. did in libya, it would take about 20 years for a defense contractor to disassemble and contain all the chemical agents that he has. that is what is taking place in libya right now but it would be very difficult to do in syria. the danger right now, according to the pentagon, is inaction. many military commanders i've spoken to say a window has come and closed and now they're asked to come in at a very late stage to try to contain what has become a growing problem in syria. connell: i understood, jennifer, but at the same time there has to be a lot of debate about what we should do in syria. that has to be the case in the military as well, too, right? there's got to be skepticism in the military. what are those people saying? >> there's a great deal of skepticism and frustration that the military is asked to come in at this stage. they've been presenting these options for some time. they can always do something. the military always has a plan
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for these things. one of the problems that we see is that, of course, don't forget that the russians created the anti-aircraft defense system that asad has in place. there are even, i'm told, russian soldiers manning those sites so they will be killed if we carry out air strikes from above and they're located in these anti-aircraft systems in civilian areas so there will be civilian casualties and the pentagon wants to remind the white house of that. they want to remind them that it is not an easy operation. connell: thank you. jennifer griffin at the pentagon for us. let's go to the stock exchange here as we shift to the markets and fickle, merck and fiez we are this diabetes drug, good news today. >> as we watched the nice on diabetes and obesity and all of that, this is important news. merck down slightly at 47.86. we'll take you over to pfizer as well but the two companies together, both of which are dow
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components and two leaders in the pharmaceutical industry are working together to develop jointly an experimental type two diabetes drug. and with this, late stage trials will start later this year. here's a look at pfizer, though. that's good news there, up 1.25%. pfizer has received $60 million up front for the milestones and will continue to receive money as this goes along. the revenue and the costs are going to share these both good news, the revenue and the cost as well. it will be used in combination with other diabetes drugs but merck will continue to retain the rights to the products. it's interesting news and obviously great news for americans and people around the world. back to you. dagen: thank you so much, nicole. recovery, recovery everywhere. pending home sales in march hitting a three-year high just the latest data point driving home the fact that the housing market is in full blown
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recovery. cofounder and c.e.o. of the agency in los angeles and just to tell you everything you would ever want to know about luxury real estate. good to see you. thanks for being back with us. >> thank you for having me back with you. it's a pleasure to be here with you. >> tell me how prices are in the luxury market, where you specifically work, compared to where they peaked in 2006. are you back above those pricess at this point? >> i think in many cases we're starting to see a comeback to those prices or even a little above, specifically on property that's really sought off due to the low inventory. for example, right now big views. you know, big views, modern, contemporary, that's one of the sectors that are tremendously -- everybody really wants or i think you're starting to see that really recover and go above the peak back in 2007-2008. >> you talk about the low
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inventory. are you starting to see more building activity among the luxury builders and high end builders or even buying of properties and people doing significant renovations on them to turn them over and sell them? >> well, i would love to see even more construction start to happen. i don't think we're having enough of it and one of the problems that we're having is that a lot of the construction that's happening is poor rent property so there's really just a lack of inventory and the lack of supply and a really high demand. we're going back to economics 101 right now. it's a basic supply and demand curve that's driving the prices up and we're seeing a lot of demand coming from national people as well as a lot of international people as well. dagen: why the rental market? is rental payment that you would get as an owner on par with what a mortgage payment will cost you, including the property taxes and the like? because i'm looking at cheap stuff but everything i've ever
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looked at in los angeles seems much more inexpensive to rent it than to own it. >> i think there's a combination of everything. i think the fact that the rental market is being fuelled by the fact that you don't have to come up with a big down payment, loans are still a little bit difficult to get. you're having to see 30%, 40% downs on the -- you know, a lot of loans so therefore, it makes it easier to have a lifestyle. you're seeing a lot of developers develop properties that are rental properties that are higher end and so therefore, giving a consumer a better lifestyle than they were used to in the rental market in the past so it's a nice fad that's happening and i think that's really what is driving the rental market right now. >> talk about the demand, where that demand is coming from. how much of that do you attribute to just the ultra low interest rates and the improving available of credit or cash buyers from overseas? are they increasingly driving
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demand? >> yeah. demand pool right now is extremely diverse. it's coming from overseas, asia, russia, europe, we're starting to see tax issues going on in france, london and that's starting to bring a lot of people back over here. i think people are seeing the real estate in the u.s. market as a hedge against all other mmrkets, equities against inflation. i think they're seeing it as a safe haven. we're seeing a lot of national people buying for their kids, they're buying for themselves. again, it's just a real safe haven and one of the other sectors we're seeing, a lot of international people coming in to buy is branded real estate. it's a new fad that's going on. ritz carltons, four seasons and it just gives a sense of security to the investor and especially the investor only spending three or four weeks a year on the property so there's just a lot of demand that's very divorce. >> so condo hotels is how we would refer to them. is that what they are? like the ritz carlton properties
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where you buy like a share? >> the condo hotels in downtown l.a., at l.a. live, ritz carlton in puerto rico. they've been doing a lot of that. the demand is just snapping it away. you're starting to see multiple offers. it's a fun time right now and i actually think it's still a good time to invest. i think it's still early in the game. i don't think we're late. i think we're having the conversation but it's right on time. dagen: who wouldn't want to live in los angeles? please. thank you. it was gret to see you. please come back very soon. the agency and go just look at the properties on the website because they're breath taking.
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thank you again. >> thank you, dagen. have a great day. connell: the next hour here on the fox business network, john chambers is coming on, c.e.o. at cisco systems. he'll be from the white house today where private industry is teaming up to offer computer and i.t. training for military vets. i'm sure they'll talk about a number of things. that's next hour. dagen: i-message overtaking the text message. connell: and then paying the price for mr. tebow. they had six quarterbacks and now tim is on the way out. we'll show you some money lost in this breakup and just what a disaster the whole thing was from start to finish from a business point of view. 15 jerseys in any color now. they're paying you to take it. first let's go to treasuries here on "markets now" and the yields today, 166 on the
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association of realtors, sales are up 1 1/2% from february. meanwhile, shares of jet blue are hitting turbulence today on news of a gown grade. bank of america slashed the airline's rate to go neutral saying lower fuel prices aren't enough for jet blu to overcome a tougher yield environment and higher maintenance costs. banking giant lowered estimates to 48 cents a share. on the flip side, shares of conceptus are soaring the buyout. 1.1 billion as it looks to expand the kinds of birth control it offers. deal is expected to close by the middle of the year and that's the latest from the fox business network giving you the power to prosper. hodo traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points.
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transportation secretary. announcement should come later today. connell: up and comer in the party and everything else. here is more on this. hey, rich. >> we can expect the announcement sometime after 2:00 in the afternoon. white house says anthony fox is the choice to lead the transportation department here in washington, d.c., perhaps a little bit of a shift in focus for what the transportation department sells basically to the american public and to voters. the white house is touting a number of different infrastructure products that the mayor brought to the city of charlotte and that certainly is something that the administration is calling for. ray la hood, the focus for him has been on safety travel, not texting while driving so this perhaps is -- represents a shift in focus here for the department of transportation. they certainly want more spending on the white house for infrastructure projects. this is actually for the 2014 budget. $4 billion in additional funding
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and spending at the department of transportation. $50 billion one time boost for infrastructure improvements around the country. $40 billion, that's a faif-year plan for rail transit around the country. this is a nomination that would have to make it through the u.s. senate and the commerce and transportation committee. that's something that we probably won't hear from those folks until the official announcement is made. again, 2:00 p.m. at the white house. connell: stocks are nearing new april highs. maybe a turn. let's ask mart at grey wolf on the floor today with the crystal ball outlook ahead for the summer. what do you think, mark? >> we continue to see resilience in equities. we saw one of the biggest misses on record from the dow's manufacturing activity. this on the heels of last week's g.d.p. and the durables number. prices are moving up to new highs. why is this? i think to a certain extent this
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reflects a certain amount of stablization in europe. a lot of leaders are backing from austerity. these are factors over the last couple of years have not been in place and present but now you're seeing signs of regulation despite the fact that maybe the deficits are deteriorating and on going uncertainty. prices don't seem to matter right now. connell: thanks for checking in. we'll talk to you soon. thank you, mark. dagen: in today's tech connect, mobile phone companies losing big money as people chat it up on web apps. apps like what's app and i-message have overtaken text messaging. that's bib implicati-- big impl from the telecom industry. mobile operators are beginning
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to fight back with their own bundles and voice text and data packages. check on shares of at&t, verizon and sprint today. add one quick thing about charlotte. charlotte mayor is going to be the transportation secretary, some of the worst traffic i've experienced ever in the entire country. horrible traffic. so there you go. enjoy. connell: he's not going to fix things here in new york and the cross bronx, for example. dagen: it's worse. the traffic is a dead standstill. it's the biggest city in the country. charlotte not so much. connell: thank you for that. tebow time. it's over in new york. so they released him today and we'll get to the business side of this coming up. we have the c.e.o. of a big sporting gods company. we're joking around trying to get rid of the tebow jerseys but remember when he first came to new york, they were selling like crazy. that made a lot of money. we'll see. we'll talk about the future in
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just a moment. good catch, tim. it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone
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who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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connell: the clock struck midnight for tebow time here. quarterback waived by the jets after one season. if you can call it that. a man here who joins us, he made a lot of money at first selling tebow branded merchandise but i think he's taking a hit now. the head of modell's, one of my favorites here. thank you for coming in. >> thank you. connell: i thought it was inappropriate for you to pay us to get the tebow jerseys.
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he hard lly ever played for the jets. it was a phenomenon when he came to work -- new york. >> the first week we sold 15,000 units. oh, my god. i can't believe it. this is incredible. and then, you know, the rest is history. connell: the rest is history. at this point, do you have to -- what do you do? from a business point, i want to talk about what else you do in terms of the jets and your store and everything else but how much did you get stuck with here? they would be covered. >> during the season which we've never done, we knocked down adults to 20. connell: $20? >> $20 from $100. connell: authentic jersey, they're $100 jerseys. >> for $20. connell: and they still probably weren't selling. >> that's correct. today kids' jerseys that were
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$70. we marked them down to $10. t-shirts that sold for $20 are sold for $3. connell: my son has a -- he has two of each, sanchez and revis. people get it for him for christmas. he's a big jets fan. i don't think he would be caught dead wearing them at this point. does anybody buy sanchez's jersey? >> people are probably buying it in the store, go to the corner, reselling it knowing we didn't take the markdown. it's the nature of the license business. when it's great, it's fabulous. when it's bad -- but look. we have the knicks and the rangers to off set this thing. connell: carmello jerseys are out of control. do you sell jets jerseys? >> no. someone wants to buy a tebow kids' jersey and t-shirt, they'll have a field day. a field day. connell: the new kid, smith, are
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you getting his? >> we ordered at 9:00 this morning. we're waiting to get a clearance nike to when they can ship it. hopefully by the end of the week. i have a joe namath t-shirts. we're bringing them back. broadway joe. connell: and broadway jeno you're hoping at this point. sanchez, that has to be a mess, too. >> it's huge markdowns but our fans and our customers will love it and that's the nature of the business. connell: tebow toronto jersey maybe you can have. that would be a good one. thank you very much. thank you for coming in. appreciate it. >> my pleasure. have a great day. dagen: my favorite sweatshirt is the jets. it's made to look vintage but it's not. you know what i mean. connell: poor jets. you don't care if you get
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anything on it, i'm sure. dagen: and you just wear it at night because it's so embarrassing. cisco stock up big time. connell: the c.e.o. is coming up and he'll join cheryl and dennis next hour on "markets now". and all of that ahead on "markets now."
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cheryl: stocks are rallying on consumer spending data and blou chip name i.b.m. we have a guest coming up that says now is the time to get out of the comfort zone and take some risks with your money. dennis: and netflix shares are soaring. analyst says much like that title of the original show, the stock may be a house of cards.
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michael is coming up. cheryl: cisco c.e.o. joins us live from the white house on the public private partnership to help veterans get ready to work in technology and we'll ask about his disagreements with the white house and a lot more. dennis: nicole on the floor of the new york stock exchange. we got ourselves a rally. >> we do indeed. we're seeing tech rallying, up arrows across the board. tech sector doing very well. the nasdaq the best of the three indices that we follow so closely, up nearly one full percentage point. for the bulls out there, 72 points getting closer to 14,800 and even closer to 15,000 and that's what you're looking for. the drug index, retail index, bank index all looking good. dollar is pulling back. asia, they were closed in japan and china for holidays and we're
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seeing the gains here. as far as the dow jones industrials, you're seeing microsoft, alcoa and i.b.m. lead the way. economic news with spending edges higher and home sales on the upswing as well. that's the environment we're in examine plenty of winners to speak of. back to you. cheryl: thank you. see you in 14 minutes from now and riding this rally, our next guest has stepped out of your comfort zone and take a little bit of risk. joining me, president robert lynn. god -- good to see you again. utilities, staples, that has really been portfolios. you're saying, okay. make some moves. why now? >> it's been a comfortable trade lately. like you said, staples, utilities, names like coca-cola, you know, these are all names that you've been able to participate in the rally for quite a while. not only participate but they've
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been leading this rally. what really concerned me right now is it's just a little too comfortable and hey, if you want to make money, investing in something that's comfortable is probably not going to get you there. so when you look at the valuations on staples and utilities right now trading at sustainable going forward.at's there's other sectors in the market that people have steered from with valuations right now that are just extremely cheap. areas like technology, industrial, energy and not only are they cheaper right now but they also have higher dividend yields. if you're an investor looking for income and the ability to have growth of the income the next decade or so, those are the areas you want to start moving in from, take some profits on the staples and utilities and start transporting your portfolio into those areas coming at the summer. >> you're saying technology fair enough and industrials and
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energy. right now we're looking at a low environment for commodities like oil and gas. what about the big energy companies? doesn't that make you think we're not going to get a lot of movement in the energy sector? >> well, you know, i think right now in general, when you're investing in this market, you want to be company specific. i wouldn't go and buy a broad based e.t.f. on energy, per se, but there's companies out there right now like conoco phillips. it's yielding 4.5% and what excites me with conoco phillips, they're making a move into china right now helping develop shale gas. the demand for energy is insatiable. sandra: look at the stocks. we're looking at conoco phillips and you just mentioned this but you're talking about china.
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conoco phillips a good play but also what about caterpillar? that's a stock that's had some rough times becae the overseas story, because of the china story. it's been very volatile because of it. what do you say about these guys? >> i think caterpillar is a great way to play china. china underperformed the u.s. market but i think that's going to start turning around. we're seeing early signs of that. er pi-- caterpillar, every time you get an opportunity to see it 25, 30% off the highs, the chance to buy a best in breed name like caterpillar, yielding over 2 1/2%, this is an opportunity to step up and buy stuff like that. cheryl: you also like cisco. >> i had no idea that john chambers is coming up. we started purchasing these about a month ago and point being technology is a cheap
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sector right now. john chambers has committed to the dividend. what i really like about cisco is they're going the i.b.m. model right now. they're increasing services business, software business so i think the opportunity to increase the dividend that's important for us will continue to play out. cheryl: the big reason the dow is rallying today and the cisco stock up 17% year to date. we have joe chambers coming up. john chambers is going to be joining me later on from the white house where private city is teaming up to offer computer and i.t. training for military personnel that could easily transition into the corporate work force. that's coming up later on. dennis: congress is working for on line retailers to collect sales taxes.
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joining us now, we have former special assistant to president george w. bush and current managing director. thanks for being with us, dillon. do you think that this internet sales tax is going to pass? >> well, i certainly think that it's got momentum. you know, there's been a couple of votes last week in the senate that suggest it may enjoy a bipartisan support on that body, legislative body. i think that house is a different animal altogether. you already alluded to in your opening that there are certainly disspirited voices in the house on the republican side as well as democratic side. you know, i remind your viewing audience that it was the supreme court that spoke to this issue in 1992 which has brought us to this point where they did notal will you for the states to tax.
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this bill would give authority to the states to have the ability to tax and so, you know, it's been an open question. we'll see. dennis: it's being positioned now as an issue of trying to make the level playing field between the on liners and the poor little retailers. i pay a shipping cost for on line. since when should we use tax policy to help the local mom and pops? why don't we just pass a special tax on wal-mart so the local mom and pops don't go out of business? >> i tend to agree with that sentiment and i think that this is a tad bit of the wolf getting his nose underneath the tent here and for those of us who feel like, you know, perhaps the tax regimes are difficult in and of themselves but also the onerous measures of compliance
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with this bears deep consideration. so i think we're going to have a robust day. my sense is that this will be a close call and so -- and i'm hesitant to wager which side wins, carries the day. dennis: it will be a mess for on line retailers. they would have to collect taxes on 9,000 different taxing entities they would have to worry about and it could certainly hurt sales from taking over. >> in addition to sort of the built-in discrepancy and i would say just unfairness for states that don't have sales tax and small states as well so i think this is a -- it's a measure that's come up time and time again. cooler heads prevailed in the past and we've managed to escape a onerous tax that has potential to hurt small businesses but it seems to have momentum this time. we'll have to see.
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dennis: is this a trojan horse or value added tax? >> that's been concern. certainly bears reason f concern. you know, i think this is more driven by the fact that states are cash strapped and looking for resources however they can find them. my sense is that that's more of what's driving this argument today. dennis: perish the thought they should cutback a little bit. thank you for being with us today. >> thanks for having me. cheryl: for more reaction on a possible sales tax going national, retailer in wisconsin tells us what that means mean to him. >> this is the company called p.c. name tag. nick has founded this company, loves this company, doesn't even mind paying taxes but 9,000 entities? how are you going to pull that
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off? >> it will be like giving birth to an elephant. now we're talking about -- i think this acts as all 50 states must provide software. i don't need 50 more software >> talk about your business here. this is not a huge business. it's ant -- not a mom and pod business but now it's a medium sized business that you don't have staff to do this. >> we'll have to hire another person book keeping just to be a sales tax person because what we're talking about is we're talking about 9,000 different entities that are going to be charging sales tax. >> tell me what you think is behind this. we put up our friends at ebay and amazon. there are two sides of the issue on this. and both companies are doing well but what do you think this is all about? >> i think that ebay is trying
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to protect our -- the smaller businesses and they have an exclusion there for businesses under a million dollars. well, a million dollars isn't a lot. >> how much is that a day? >> about $2700 a day for a business. >> what do you think amazon has in mind on this? >> amazon, if main street retailers thought that wal-mart was a threat, they haven't seen anything yet. amazon is moving into states promising, we'll collect sales tax. give us some land and give us some exemptions and amazon is going to come in there and they're going to deliver and going to hurt the me day retailer. >> i leave you guys with the top on line retailers. you obviously know all about
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amazon. take a look at other ones. staples, wal-mart, dell, office depot. a lot of business done on line. big ones don't seem to mind collecting the sales tax but medium sized businesses, it's going to be a mess. >> stakes are high for a lot of businesses. thank you very much. dennis: health insurance is blaming obama care for the push for a 25 cents increase in the cost of premiums in unone state. we'll tell you what it means for the health insurance cost and the health stocks. cheryl: and netflix shares. look at the one month. but we have an analyst ahead who says be careful. what goes up almost has to come down. we want to take a look at oil. we do it every day at this time and crude is actually higher. 93.91. we'll be right back. [ indistinct shouting ]
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cheryl: dow sitting near session highs. up 9 on points. 14,80 14,809. good news out of italy, on the economy, housing, consumer income coming in pretty strong. we'll take t. leading the way, microsoft, i.b.m. and alcoa. stocks every 15 minutes. nicole is standing by on the floor of the new york stock exchange with what she's watching. >> that's right. important to take a look at some health services, hospital services to be more specific. you can see hanna health care is up 7%. throw h.d.a. in there. that's an $18 billion company and the same realm of hospitals and the like. there's a proposal for the government.
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morning star analysts look at this saying it's as expected or better than expected and there's no real bad news in this proposal. we'll learn more a mths anme, both stocks are moving higher. h.c.a. at a new multi year high. cheryl: and i stand corrected. we're at a session high right now. thank you very much. dennis: 195 points. the dow 15,000, baby. time to make money with charles payne. solar profits with shares of memc. >> electronic materials. this is a semi conductor play so a few years ago started making serious acquisitions in the solar space. there's a big introduced in the senate. got bipartisan support that would allow the solar companies to become -- i wasoing to say multi levelling marketing. this has been tremendous for the
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oil and gas industry. absolutely tremendous. to tell you how interesting in it, jack gerard who is critical of a lot of things, particularly solar, thinks this is a god idea. it takes government taxpayer money out of it and put more real investment dollars into it. this particular company, i think, really looks like they're coming on strong. earnings for fiscal 14 have been ratcheting higher. what i like is in the insider buys, 3 -- 4.3 million shares. de.re's a lot of room to the si i think this clde a $10 stock sometime this year. dennis: 88 cent stock five years ago. if you paid that, you would never do this again. wow. thanks very much. >> thanks, charles. cheryl: cisco c.e.o. live from the white house on a public
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private partnership to help trains veterans to make the transition into corporate live easier and ask him whether his stock continues to rise. dennis: and blame obama care for wanting an increase in health policy costs. first the world's currencies preparing the u.s. dollar.
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>> i'm lauren green with your fox news minute. in prague, rescue crews continue to seven for people who may be trapped after this morning's explosion. up to 55 people are injured in the blast that collapsed much of the first floor of the office building in the center of the czech capital. natural gas leak is the suspected cause. damaus,yrianister is alive after a bomb attack targeted his convoy. state media is reporting six people were killed. the united nations is urging syria to allow a team of experts into the country to investigate allegations the syrian regime used chemical weapons. in new york the final spire
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species are being installed atop one world trade center. it will provide a broadcast transmission antenna to restore the one that was destroyed september 11, 2001. the completed building are reach 1776 feet. now back to dennis. dennis: thanks very much, lauren. obama care was supposed to bend the cost of care downward so why are some insurers seeking 25% increases as they gear up for the changes in the health care law? >> that's right. some customers should be prepared for sticker shock here. individuals will be able to start buying policies through the health insurance exchanges under obama care starting next year. the nation's biggest health insurer is predicting a 30% increase in premiums in tennessee for individuals, a 25% increase in maryland and 18%
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increase in premiums in rhode island. regular lat -- regulators are expecting this high but blue cross needs to cover higher health care costs in general and mandates to provide access to uninsured people. >> also policies will have to meet a minimum set of benefits that's far broader than what many people are choosing to purchase today. as a result, the cost of that coverage is going to increase the costs of those receiving. >> rate increases will hit people differently in different states. vermont is smaller because vermont already had tougher health care mandates and increases will generally be smaller for businesses that provide coverage for their employees. a pro reform group, families u.s.a., said the rate proposal in maryland is only the first step in the premium process and
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at the end of the process, the premiums will be considerably lowers. blue cross has a history that started well before the care act was intact. families u.s.a. says the competition should help control costs and that some customers will get government subsidies to help pay their premiums. back to you. dennis: government subsidies. thank you very much, peter barnes. >> keep it here on fox business. in the next hour, blackberry c.e.o. joins melissa and lori to talk about the company's turnaround plan and what is really going on with sales of the z 10. that will be a great interview. dennis: and netflix stock a house of cards? analyst next worries that may be so. cheryl: and cisco on a terror lately. the stocks up big time. up 17% year to late.
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john chambers will be joining us and whether his stock can continue. up close we're going to have details from shame -- chambers to help veterans get the benefit of a healthy life. @ [ shapiro ] at legalzoom, you can take care of virtually
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cheryl: netflix sharing are soaring but we have an analyst that thinks much like the title of the streaming service original show, the stock may be
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a house of cards. michael from web security is up next. security networking company cisco on a terror lately. cisco c.e.o. is coming up on whether his side can continue that rise. details on a public private partnership to help train military personnel for the transition into corporate life and don't count out j.c. penney just yet. we'll tell you who is jumping on their bandwagon. nicole is on the floor of the new york stock exchange looking at big movers. >> i certainly am. bringing it over here. love the challenge, all right? delta up 1%. this is one of those kind of day where is you're seeing up arrows across the board. how about e.v.s.? it's up a half a percent and then my piece of resistance. that's disney, up 2%. disney is one to watch. they had the iron man 3. that came out over the weekend. it was up by u.b.s. to a buy and
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also updated it to $72, up from $55. disney is a momentum player, constantly hitting all-time highs 22 times this year. now, i shouldn't leave out on a day where the dow is up nearly 100 points that we're also watching the nasdaq. techs are doing well. apple has been gaining. we watched blackberry. we have news on that in the 1:00. it's doing very well. face bobbing up arrows, google, microsoft is the top performer as well so you certainly have a lot of win he weners today. look at this one. all gren. okay? that tells you what kind of day we're having. back to you. dennis: when netflix announced subscriber growth over the past quarter, many cheered but michael doesn't think this house of cards is the saving grace for
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netflix that many others believe to be so. house of cards came along and they had one or two ne why are you unimpressed? >> you know, i think that netflix is gret great at spinning metrics. the 80,000 was the number of people who signed up for a trial and then spun out before their two-week trial was up. that's kind of an insignificant number and kind of a meaningful number. i actually think the people who joined for house of cards probably numbered about 500,000 and they didn't all join on february 1. so people joined in march when they heard the buzz. they probably stayed. they may be staying around for the rest of development. i think those people were pulled toward. i think they borrowed subscribers who found a couple of shows they want to see in the first part of the year. i can confidently tell you that
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no one is going to rent it three years from now. anybody who care $ going to know about the show. it will get more buzz a year from now. you might get a little boost in time but after that, they only signed up for two seasons. no one is coming back to hear from house of cards for the first time three years from now. yet they're advertising the cost of the show over three years. net income goes down when they have to take a charge for the show three years out and revenues aren't going to go up. it's not illegal. they're doing gap accounting, spreading their costs over the length of the deal. remember, they don't own this show. they only have leased the rights to show it in the streaming window for three years. dennis: that was the thing that shocked me. i thought they were putting up more than $50 million for 14 episodes of that show. then you see it on d.v.d. in only a few months and it's coming out from sony. they don't even have the dvd rights. i was surprised by that.
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>> you've probably gotten some bad numbers. i believe thespent $2 million per episode. they committed to 26 episodes. they'll spend $52 million total. total production cost of the show was over $100 million, probably $125 million so they helped to fund a part of the cost in exchange for the first tv window. meteor rights capital garnered the rest. that's completely different from the way hbo does it. hbo pays for anything, they own energy, they manage all windows to make sure they maximize the cost. it's made for commercial tv. it's going to be on broadcast tv sunday. i would bet right at the end of the three-year window, another reason never to join netflix again. so it's a god thing now. it's not a long term thing. dennis: awfully painful when you have a $55 price target on the
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stock and it's up there at 200 and change now. good luck with that. thank you for being with us today. >> pleasure. cheryl: watching shares of j.c. penney today as they announce goldman sachs will provide the company with five-year loan t. may be used to fund working capital requirements. take a lock at the one-year chart. here is what's happened to the stock. it is well above, decently above the 15 -- 52-week high. last weekend as you'll remember, george bought big shares of the company. he's making the bet. today investors are making the bet. today j.c. penney is getting the loan from sold man sacks. i want to show you the retail sector to give you a sense how the group is performing. a lot of these names are big rget's, macy ort least .
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kohl's. that's how the group is performing. sdeebt news over here for j.c. beeny today. dennis: and i'm liking the grown arrows. iron man 3 is already 21 in 27 markets overseas. moore on head. cheryl: and john chambers will be on tv with us to show us how to put returning vets back to work. here's a look at the 10-year treasury and the 30-year as we go to break. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they'rnearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody.
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>> i'm diane macedo with the fox business brief. amazon could be facing the first strike in germany. warehouse worker there is looking for better pay and benefits have already voted to strike in two cities and the union rep says the work stoppage could come become weeks. comboir state building may soon be turned into a real estate investment trust. supreme court judge will issue a decision by the end of the day tomorrow about the malcomb holdings for the building. according to a study from ucla and rutgers, intra verted employees actually come on top and sally, the former president of glebal wealth and investment
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management at bank of america will be with liz at 3:00 p.m. herein on fox business. don't miss it. that's the latest from fox business, giving you the power to prosper. you can't say 'one size fits all'. it doesn't. that's crazy. w're all totally different. ishares core. etf building blocks for your personalized porolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
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dennis: disney stock with another all-time high thanks to iron man 3. it took the number one spot. $185 million, better than even the "avengers" did in the overseas bout. and that film did $1.3 billion wor worldwide. intelligent life magazine tells how a firm in london uses an algorhythm so talk about odds and based on 12 years of box office data, they accurately predict 83% of the time.
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they make no difference at all except for these three. will smith, brad pitt and johnny depp. they rule. the new cable network axf-tv will post huffington post live on the channel to allow comments from yahoos w aren't famous or interesting enough to get their own. cheryl: after last week's gain of almost 6%, oil continues to rise today. let's head to phil and on the data today and more on friday with the job reports, that has to make oil traders a little nervous as we go into the new week. intl >> it does. it does. the market is convinced we'll see more stimulus out of the euro this week. that is the play right now. that is why we're buying the oil. we're following the euro up. we're following the dollar down.
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makes oil more attractive. what's very interesting, if you look at the oil and look at the spread, it was never supposed to come in again but right now it's under $10, the different above wti. wti could regain its momentum as the global benchmark because the united states is going to be the world's biggest consumer as well as the biggest producer. so that's really a big thing in play today. but if you look at the spread, what it's also telling you is that there's more confidence in the u.s. economy than the european economy so right now, a lot of nervousness but right now, you have to go with the flow. oil up big today, cheryl. cheryl: and we'll continue to watch it. thanks. >> thank you. dennis: and it's almost a quarter till, time for stocks now. markets just hit a session high for the day. >> we're closing in on april
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highs, actually. nasdaq 100 is set to make the highest closing level since the fall of last year. so equities are certainly resilient and part of that stems from the dollar hitting new lows. multi-day lows that's actually driving a lot of the euvo versus the dollar today and that's been helpful to a lot of commodities. crude oil moving up and also a big gain in precious metals. grains are seeing the highest levels in almost six months. april could be the wettest on record for illinois, indiana and iowa so that's interesting when you're seeing the grains, commodity obviously strength today and a lot of the top line has been missing with regards to earnings is only of that was attributed to the fact that commodities have been weak the last couple of months. now neutral signs of commodities bottoming out. cheryl: getting soon to be returning veterans a job.
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white house unveiling a new program to help military personnel train for computer jobs while still serving their country. joining me nowro the white house, cisco chairman john chambers. d to see you today as always and i'm curious if this is a signal that cisco is going to be hiring this year and if so, how many jobs will it be hiring? >> it's a pleasure to be with you today and it was a pleasure to be with the first lady where we solve one of our toughest problems. if you think about it, there's going to be a million servicemen and women coming back who protected our country and to ask them to go fight the battle for a job by themselves is just wrong. we've got to come together in public private partnership and really think about training these young people and enabling them to connect to the opportunities and get jobs and that's what we're about and that's what the announcement was today. is cisco hiring? absolutely. if you look at where we are, 10%
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of our u.s. base is from -- are veterans themselves. so i apologize. we're getting wind and rain from the side here. forgive me for that part. cheryl: we can do a lot when it comes to business and you yourself have been leading the charge and one of the things we've seen in 2012 was u.s. companies. you know, about 1 1/2 trillion has been sitting over seas and technology has been the leading sector. you and microsoft and others have been putting a lot of money overseas and parking it. doourng now is the time to have a meaningful conversation about corporate tax reform to bring some money back to the united states? >> well, cheryl, i think if we don't allow the companies who have the huge accumulations of money overseas to bring it back, that money will be invested overseas and we've been working on this for four years. this is one that i think we're still apart on in terms of the party views, et cetera. what i'm excited about is the
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immigration plan that you're now seeing take shape. if we can find bipartisan support for that and get a meaningful plan through, then i think you might find that the group will have the courage to find a compromise for tax policy reform. if you look at the u.s. economy, i'm an optimist on it over the next one, three, five years. part of the reason that i think i'm optimistic is the ability of this country to reinvent itself. whether it's how we handle our returning men and women in the services to give them an opportunity to do a great job when they come back for which they earned or how we think out of the box to have our job creation into the most x competitive on a global basis. cheryl: i have to ask you about the stock and we're' business network here, john. stock in 17% year to date. up about 50%. one of the things that happened in the summer of 2011 was you kind of became a value stock and
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not a growth stock. and i know at the time you weren't thrilled with that but you've got to be thrilled with the performance of the company. can you become a growth company once again, john? >> well, my view is you've got to do both in this market. as many peers have found, if you just value alone and you're not netting growth, it's hard to continue the earnings. what cisco has done is we've been on record quarters both in terms of revenue and records in terms of profits with profits sharing more than revenue. so i would like to be the one company who does both. and if you watch over the last year, we gained probably more market share across our top 20 product lines than we have in any year before. it's how you execute during the tough years to determine the market growth later. i want to be a great company as well. we'll see if we can do that and anything i say today should not be interpreted about the
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current quarter. cheryl: i have to ask, you've said in the past you want to double the revenues of the software side of the business. wall street would love to see you make an inization. b.m.c., are you going to make some acquisitions this year? >> if you watch what we've done the last 15 months as the market has taken off and we parallel our optimistic comments the same thing the stock marketed market reflected. we bought 15 companies. you'll see more on the acquisition market. not necessarily with the large companies but the small and medium side of the house and you'll see what we've done before. a lot of software, a lot of security, a lot of architectural plays and how these play together. we're starting to win deals now where the customers say we're buying you because you have the best software to find network strategy, the best silicon and
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you're going to combine those thing. cheryl: the chairman and c.e.o. of cisco, thanks for being on fox best. good to have you. >> good to see you again. dennis: billions of dollars on the line as the trial gets underway in the michael jackson wrongful death lawsuit. note snoet ♪ ♪
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cheryl: time for west coast minute. in october the hawaii space flight laboratory will launch a satellite designed from faculty and students from the university of hawaii. the goal, to educate students and give small companies a low cost launch option for
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satellite. arizona copper mine and railroad for $650 million. global miner has been on a terror when it comes to selling mines as the overall market weakens for commodities. cap stone lining will double the output. take a look at the stock today. $67.26. and finally, the michael jackson wrongful death trial gets underway in los angeles today. the defendant, a.e.g. is being sued by jackson's mother and his children. family is suing for earnings the singer would have made on comeback concerts and royalties if the doctor a.e.g. hired hadn't given the singer a lethal dose of medicine. like national, it led -- live nation, excuse me, is the company to watch. and that is your west coast minute. dennis: five words. the trade, gold, sandra smith.
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>> i'll take it from there, dennis. look at gold after that spectacular runnup last week. gold up 14 bucks at $1467 an ounce. low levels we've seen the past several weeks but finally gold snapping a four game losing streak, finishing higher last week. we're seeing that bullishness continue today. last week was the best weekly gain since 2011. however, year to date, all you gold bugs, gold prices still down 13%. but what's happening today, what's building up over the past week in this bullishness is that there is expectations that key central bank will continue this easy monetary policy. if that happens, you get a weaker u.s. dollar and you get strength in other currentry $ that allows other currencies to boy more gold. gold and silver way up today in the face of hsbc and ubs cutting
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their 2013 gold and silver forecasts. so just to give you an idea of how much the buyingers really want it right now. back to you. dennis: thanks, sandra smith. cheryl: u.k. debut phones went off the shelves this week. many committees rem u.s. launch. dennis: melissa and lori are going to the blackberry c.e.o. when we can expect it here in the u.s. don't go anywhere. why are 8 million people sleeping better tonight?
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♪ >> oh, back to work. happy monday. i'm lori rothman. melissa: i'm melissa francis. the key for blackberry's turn around in the world full of iphones and android phones, they pin hope to the keyboard model to lure users back to the brand. the man driving the come back is
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here in minutes. lori: jcpenney with a 1.75 billion dollar lifeline. you can bet george soros is miling today. melissa: another member of dimon's inner circle leaving for one of the clients, and questioning washington's priorities, congress acting quickly to remedy long waits at the airport. what about the unemployment lines? the "wall street journal's" steve moore is here on that. >> again, a very good afternoon, everybody. get you updated on the marks. nice rally underway. like every 15 minutes, to the floor of the new york stock exchange. what are the drivers, nicole? >> just about everything. a weaker dollar, gains across the board, names in utilities and financials and consumer names, lori and myless is a, whether it's multiyear highs or all-time highs, plenty of up arrows, momentum doing well deit

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