tv Markets Now FOX Business May 6, 2013 1:00pm-3:01pm EDT
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yet. not abiding by previous settlements. to dennis' point, seems to be never ending. we will get you through this hour for sure. i am lori rothman. melissa: i am melissa francis. this hour new york attorney general expected to get tough on banks for the mortgage meltdown in the 2008 breaking the details just ahead. lori: the market cooling ever so slightly after high street have pushed the dow and s&p to new levels. but there is nothing holding us back from new highs, her call, 1780 by next year. melissa: and airstrikes refocusing attention to the middle east? the energy impact, we are advocates of the sea me for that. lori: and hackers hitting twitter again? what could mean for a twitter ipo.
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now checking in today with lauren simonetti. you can say the stocks are searching for direction we had little change at this point. lauren: a little change. we had such a strong session on friday, so the market is relatively flat. i news that mbia had reached an agreement with bank of america. we're also watching one of the best performers on the dow united health care, jpmorgan reinstating coverage on the stock with an overweight rating essentially saying medicare advantage simply growing despite reimbursement cuts, so this is a dig winner today. back to you. melissa: record highs, many are saying to sell in may. but my next guest is advising the opposite. he says there are several
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reasons investors should be looking to buy. chief u.s. equity strategist at jpmorgan. you say one of the basic reasons is hedge funds are bearish right now, that goes against the position they have been in the last three times we have seen new highs. why is that significant to you? >> first of all thank you for having me. hedge funds are hugely important and rental player in the market. the positioning, the data is usually instructive of the market's direction. in the spring of each of the last three years that the markets top, hedge funds beta at the highest of the year. basically in the longest most leveraged position to the stock market rising. as of last week hedge fund data is at the lowest level since six months obvious to the lows for the year, but exactly opposite position where they were each of the last three years.
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melissa: the thing you care about is they are not levered as highly? >> hedge fund data is negative. they will benefit in the market falls rather than if the market rises. melissa: why are you so convinced they want to bet against them? >> i am not saying i want to bet against them, but it is indicative of positioning. each of the last three years, it was exactly as the market was registering its highs. there wasn't an incremental buyer left. the opposite is true today. they're negatively positioned in this room for the market to rise. melissa: the other thing you are focused on is gas prices. you'd think that has been a big stimulus in terms of gdp. they continue to fall and that will stay in place? >> that is exactly right. declining since february will pay dividends because it is a real hit to the wallet, true purchasing power as well as have a point of gdp in q2.
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again, we have to look at seasonally adjusted gasoline at the lowest prices in more than two years, already has had a huge drop. melissa: jobless claims another big indicator. you'you think they may maintaine indicator with how much it impacts the market. >> i think jobless claims are sohof the most reliable, undistorted economic theories. what you have to watch to make sure things are fine, i would watch jobless claims. jobless claims jumped 20% in the spring, meaning in april and may, we saw a jump in jobless claims and we saw weakness developing in the economy. they'vthey have actually gone tw lows. different then the last may.
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melissa: the federal reserve is in this market by virtue of being out there in the treasury market being so aggressive with qe3, so a lot of people think that unemployment falls, they're going to stop all of the stimulus and everybody is going to run at the same time, so you're rooting for the employment picture to get better, but that can be bad for the market. >> i think we have to weigh this against the time frames. i don't think anything is going to happen in the next month that will get the fed this asset purchases are ending, they have a very high bar to tolerate a move in unemployment from inflation. i think investors have to say the issue is the summer is anything going to happen in the next three months. melissa: so you're looking for a short time horizon. how far do you think it can go through the end of the quarter, the dow? >> i don't buy forecast for the s&p, but would you have
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investors minds, everybody is betting on a 10% decline. we were thinking it was possible a few weeks ago, but we have given it up. i don't have the market will have any meaningful pullback. it is a possibility, but to decline between now and the summer, we had 20% decline, don't thing that is happening. melissa: interesting, thomas lee, thank you for coming on. >> thank you for having me. lori: after years of attempts by buyers to buy the software, software maker bmc has agreed to go private. private equity firms have agreed to a deal worth $6.9 billion bond and $46.25 per share. a spokesman for bmc says the company believes one pilot will allow more flexibility in its investing in innovation. forgoing $200 million in lost revenue from april 2013 due to the groundings of those couple bowling dreamliner planes.
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the airline hopes to receive compensation for the losses after three months of being grounded, they have returned the dreamliner to service. and "iron man 3" came crashing to the u.s. box office this weekend earning more than $175 million. "iron man 3" posted the second largest opening of all time after last year's "the avengers" earning $207 million in its first weekend. it opened overseas last week hauling in $504 million, altogether in the first week "iron man 3" earned $680 million despite not so over-the-top reviews. melissa: is it a shot a edit" ad see it? people love the other ones, the third is just a gimme. lori: you cannot do any better. melissa: a look at how the syrian government is describing the airstrikes that have killed
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42 people. the conflict refocusing the energy market, let's go straight to the pits of the cme. phil flynn of the price futures group. the brent contracts are spiking on the news. >> it has been an unbelievable day for oil traders because we have had everything today. macroeconomic risk, geopolitical risk and the market has played both sides of that equation. reports that israel bombed military installations in syria allegedly, we saw the brent crude absolutely explode. sunday night we were up sharply. later in the session started the reverse on concerns europe is falling apart. the imf saying greece may need another bailout. so the market is back down again. more word about a slowdown in demand. as we start to heat up, says we could get another rate cut and concerns about syria go on. what is really fascinating is if
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you look at the heating oil spread early on in the brent crude was coming up we saw them leading the way. now it may be heating oil up higher. probably because there's going to be a lot of demand for diesel fuel as the farmers get into the field and start to plant. melissa: that is another one that caught my eye, what is going on their? speaker were supposed to have the cold and snow, warmer than expected, that came back down. they were very, very poor. we will not be exported as much as we thought. finally getting a break in the weather means the farmers can get caught up in the much delayed planting. but we will continue to have good weather to keep the market up right now. farmers are way behind. but they might be able to get caught up, but it will be cutting it close.
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melissa: what a roller coaster you are enduring. thank you for hanging in there for us. lori: a shakeup in the fortune 500. who is in, who is out. melissa: and four justin bieber. can't get enough. now even the syrian electronic army wants a piece of the biebs. lori: and liz claman wrapping up her weekend with warren. next. melissa: and gold trading higher, silver and copper lower on the day. we will be right back. it's monday.
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to get washington on board to cut spending. two minutes in everybody is speaking about reverse is that the faa, the flight situation, what did you make of the sequester debacle? >> it was put in motion, essentially congress said we are going to do something, we're going to put the prospect of doing something in that is so dumb we can't possibly let it happen. and then they let it happen. they designed it in an intentionally dumb way to attack a budget on the theory that was unthinkable and then they did the unthinkable. so now they're reaping the the rewards of that. liz: is it realistic to think the stock market will continue to go higher and higher? >> the stock market over time will go higher and higher. i don't know what it will be next week, next month or next year, but i certainly know over time it will go higher. liz: to the p/ p/e ratio is stil
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in place at this level or are they getting too rich? >> they are rich in some cases, but overall still buy it. >> have to look a little harder, don't you? >> some are more attractive three or four years ago. >> these one analyst thinks warren has it right. barclays is raising the target with an overweight rating. good start. lori: talking about big bucks, fortune 500 getting an update. the annual survey is out and annual names like wal-mart and exxonmobil are still at the top. the most notable changes are coming out of the tech sector. apple rising dramatically from a year ago breaking into the top 10 for the first time up to six from 17th. it is the highest ranked tech company. in less than a year, facebook also cracking a list coming in
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at 482. melissa: as would every 15 minutes, let's check the market. lauren simonetti onl on the flof the new york stock exchange watching some food names. lauren: yes. tyson foods, the biggest loser on the s&p 500 down four and a quarter percent. reported earnings and revenue both missing expectations and they cut their full-year outlook as well. two of the reasons tyson is struggling right now is they have higher costs they are facing in part because of the drought last year and also consumers and restaurants are buying cheaper product like chicken instead of beef. take a look at monster beverage, this stock is down more than 1.5%. dow jones reported services goes to attorney sued the company for the caffeinated drinks and marketing the drinks to children despite the adverse health effects. back to you. melissa: thank you so much. lori: plans for the google video
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>> 21 minutes past the hour, i am lauren green with your fox minute. in boston, prosecutors say robel phillipos, the third front of suspected boston bomber arrested last week, can be freed pending trial on charges of lying to investigators. the judge will have to prove conditions whic which include 24 hours electronic bracelet. the fbi is saying a terror attack was disrupted after they raided a home, a mobile home in montevideo, minnesota. 24-year-old is in federal custody after a home search found suspected pipe bombs, molotov cocktail. whose arrest on one felony count of possession of a firearm. and new towns dedicate six
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educators killed in december sandy hook school massacre are being honored by the congressional medal of honor society. they had courage, sacrifice and selflessness trying to protect students from the gunmen. those are your headlines, i am lauren green, back to lori and melissa. melissa: thanks so much. according to syrian officials, israel launched another set of air strikes this week leaving 42 soldiers dead over 100 people missing. more on energy trade, editor of the report. what impact do you think this has on the oil trade going forward? obviously don't get oil from syria but instability always makes oil traders pay attention. >> absolutely. as we all know, is pretty obvious syria is a puppet of cartehran. prices spiked higher, but it's
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more of prices were well off of those ties. you get the knee-jerk. what is important to take into consideration is the majority of volatility is taking part in the brent crude oil contract, so greater gain over the nymex. so why is that? that is a perfect example of what you and i spoke about last week with regard to the surplus of crude oil we have here in the united states. therefore we are less susceptible to geopolitical headlines with regard to energy because we are importing 5 million barrels per day fewer than a few years ago so the more oil we produce with oil flowing down from canada means w we're less vulnerable to these price spikes right now. melissa: that is important because stockton put a note talk talking about lower gasoline prices helping to offset some of the headwinds we have seen from
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fiscal restraint. my question to you, do you think that continues? do you think that trend is turning around? >> no, i don't. what has been really great about what we have seen as we all know back in january, february, gasoline prices spiked. the concern there was crude oil prices are very high, prices are spiking with gasoline, cheaper gasoline manufacturer. retail has been trending lower now for the last two months. they have been trending lower despite the fact putting higher quality gasoline, that is more expensive to manufacture onto the market. we are not getting the seasonal pop in gasoline prices. between now and memorial day, we
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are working firmness into the market but relative to where we have been over the past few years, this is essentially a tax break for consumers. melissa: is anything that can come along and turn it around in your opinion? could it spike higher? >> why and why not bearish? people ought to realize we have more crude oil in the united states today more than any other time other than 1981 in the post world war ii era. for oil will flow into an already collected u.s. refinery center. the only caveat is the headlines we just showed you, if you get any sort of escalation and israel and syria not oil producers, but certainly people that support syria produce a lot of oil and israel consume a lot of oil so if you get any kind, it is going to have to be a real
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disruption. none of the rhetoric because it was just headlined last night, prices spiked and quickly pulled back. you need to see an actual disruption to the flow of oil. melissa: great, thank you so much. lori: youtube could soon become you pay. as they launch a new channels of troops in service according to the financial times, the push to premiums has been in the pipeline for months according to the reported to be announced as early as this week. more than 50 partner channels may be in the works, subscriptions starting at $1.99 per month per channel. but youtube is not showing his hand yet. they have nothing to announce but are looking at creating a subscription platform that could bring even more great content to youtube. would you subscribe, would you pay for a channel? >> i don't think so. i don't have time to sit around and watch the good cat videos.
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i will not pay to see it. lori: that is the way to go, depend on the links. like enough, melissa. melissa: what? i have no idea what she is talking about. lori: stockton record territories. more room to run according to my next guest, katie stockton is ahead with her 1780 target. where she think investors can still look for profit. that is next. who is up and who's down on the dow. there are substantial gainers including bank of america, united health group, i'l alcoa. back after this. thiis america.
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melissa: time for stocks now. as we do every 15 minutes let's head to the floor of the new york stock exchange. lauren simonetti is standing by. we're watching google. >> have you guys seen the movement in google shares? new all-time high, $858.62. they are up more than 1% right now. this of course ahead of their developers conference which is next week. with the gains coming in spite of news that the european union regulators say that google, motorola mobility unit took advantage, enforcing an injunction against apple in germany. google a huge winner. one of the reasons why the nasdaq is outperforming the other averages today. back to you. melissa: lauren, thanks so much. lori: the s&p 500 holding above its record 1600 level but my next guest says she sees it skyrocketing as high as 1780 next year. joining me with a technical market perspective. katie stockton, chief market technician for mkm partners. welcome, katie.
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>> thank you. lori: you don't see any further resistance left for the stock market average and what will drive the s&p 500 from here to there? >> really, it is a momentum story. it is positive long-term analysis and positive short-term momentum that drove the s&p 500 to a new all-time high and really all-time high by definition means there is no resistance left for the s&p 500. that puts it in the same boat as russell 2000 index as small cap focused. the dow industrials now having gotten above that 15,000 mark which is very psychologically significant level. so these breakouts bode well for the uptrend over the long term. and we can derive a price target 1780. that doesn't mean that is where the uptrend ends but from a previous breakout we saw from the s&p 500 in 2012. at 10% above current levels i think it is attainable as early as 2014. lori: katie to remind our viewers your expertise is
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looking at these numbers and coming out with form last to determine where the next level that these markets, these indexes will hit. how are you able to determine with this research that the s&p 500 is not overbought, that it hasn't come too far too quickly? >> it actually is overbought. now overbought conditions can actually be sustained though at times when momentum is strongly positive. and to date we've actually had not very positive short-term momentum in what i believe was really a stealth correction in the market. while the s&p 500 managed to forge higher we actually saw a correction in quite a few areas of the market, specifically cyclical sectors of the market. industrials, technology, selectively within the financials. we did see pullbacks there. energy would be another example. it was some a narrow advance of the while the s&p 500 remains overbought by some measures these other sectors and a lot of individual stocks actually became very close to oversold. and that to me is where we should be looking for buying opportunities at that time.
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lori: when you put this far out target of 1780 of the s&p but you also characterize it as overbought simultaneously, what other end kitetores should investors look for periods of consolidation that you're describing? >> right. you need to consult the momentum indicators. moving of average based indicators are great way to do that. something called the macd-d popular tool among. moving average divergence under indicator. it is a very positive tool right now. to me to stay on the right side of these momentum tools is really what you want to do. it is a way of trend following. lori: let's drill down on some of these sectors. it is interesting there is talk of sector rotation out of defense into more cyclical second, to. we can look at staples, for much of the year staples have been outperforming the s&p 500 and perhaps that is changing. we put a chart together. pulled it from the research. hope we can pop it up for you. you see the staples industry, there, if you see you look at the far side of the
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screen coming closer to the s&p. is that a sell signal then. >> it is funny you say sell signal because we do have some signs of trend exhaustion or countertrend sell signals now in the consumer staples sector versus the broader market or versus the s&p 500 and so it is a little bit early to say that we've seen a turnaround in favor of more cyclical areas of the market but there is certainly indications that may occur. while consumer staples has had positive momentum on a relative basis it seems to be losing that momentum and i think it will become clear in the next couple weeks that we've seen some rotation out of these more defensive areas, including utilities and also health care. lori: industrials, i mean we can talk about this real quickly. i have to run quickly but the industry is climbing back toward the s&p line so in that respect it could be a early buy signal? >> that's right. so we do have signs of exhaustion on the flipside in the industrial sector than would boast well for it to outperform in the next couple months at minimum. lori: katie, always good stuff.
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thank you, ma'am. >> thank you. melissa: new york attorney general eric schneiderman rehe will having enforcement actions against u.s. banks. let's get new details from liz macdonald. >> good to be with you guys. this is a really important move by the new york attorney general it's a big push to get the big banks that signed onto the $26 billion mortgage settlement deal last year, that nationwide deal, to do more in the way of he loan modifications. melissa: right. >> the new york attorney general will sue wells fargo and bank of america for violating the terms of that mortgage settlement deal of look at this. 210 violations he is alleging at wells fargo. 129 violations at bank of america. what he is talking about here that the banks allegedly did not did loan modifications in the time stipulated in 304 different rules in the loan settlement. they had to be done in a certain time frame. they didn't come in fast enough according to rules so he is sue for injunctive relief. he is not looking for dollar
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penalties. he is saying you have to do it faster. whether here is this political? he has been saying to fhfa do loan more modifications. he doesn't like the dimarco, acting director. wants the new guy to do it. whether or not investors in those bond will be agreeing to loan modifications is big fight on wall street. blackrock, pimco and other investors including senior citizens and pension fund who invested in mortgage bonds. melissa: a lot has to do with principle write-down, right? that is what the chatter is. him trying to force banks to do more principle writedowns. >> who take as hit. melissa: right. >> will be for example, bank of america and loans sitting on the balance sheet? or the will it be the mortgage bond investors who take a hit who were innocent and didn't have anything to do with the meltdown? it is all tied together. again a big push by the new york attorney general to get banks to do faster loan modifications and he has always wanted, consistently
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wanted principle write-downs as you point out, melissa. this could be the leading edge of a big push on all the big banks to do principal write-downs of mortgages. lori: wasn't the time frame initiated in original settlement with the banks? is there overlap? >> rules stipulated for banks to do loan modifications. even people like a rock away couple hit by hurricane sandy. applied for a loan modification. didn't hear back, 30 days under the mortgage deal. heard back three years later. again you see more of the push from the new york attorney general and possibly other attorneys general as well. lori: thanks, emac. >> sure. melissa: president obama's nomination of hyatt hotel heiress penny pretty skier as commerce secretary runing into problems. we're live from washington on that. lori: states to retire and surprisingly florida is not one of them. we'll look at the list next.
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melissa: 10 and 30-year as we head out to break. the yield is rising two basis points on the ten-year. we'll show you the 30 and be right back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
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all on thinkorswim. we replaced people with a machine.r, what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. >> i'm jo ling kent with your fox business brief. apple extending the lead over samsung in the smartphone market share in the first quarter. from january through march, apple held 39% market share, topping samsung, 21.3%.
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the other makers, htc, motorola, lg, all saw a drop in market share. general motors is revving up investment in the u.s. they plan to spend $16 billion over the next three years on factories and facilities nationwide. that is more than the $11 billion that gm plans to spend in china, its largest market. shares of the haines brand getting a boost after the wells fargo tagged the apparel seller with an outperform. wells fargo believes the company's acquisitions and product innovations will support its revenue and margin growth. that is the latest from the fox business network, giving you the power to prosper.
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republicans on family's offshore tax trusts. rich edson joins us with more from washington, d.c. rich. >> republicans claiming hip pock chrissie -- hypocrisy on the president's pick to lead the commerce department. he has nominated. obama fund-raiser and hyatt hotel heiress, penny pritzker. this after the president's re-election campaign relentlessly focused on governor mitt romney's wealth and offshore tax accounts. in a statement, republican senator chuck grassley writes, this is the second nominee in a row, jack lew being the first, who is associated with the kind of tax avoidance activity that the president dismisses as fat cat shenanigans for others. it is hypocritical to overlook tax avoidance when it is convenient. pritzker claimed the family established accounts when she was a child and banks based outside the united states manage them. the white house failed to
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address pretty kerr's offshore accounts saying she is capable of leading the commerce department. pretty kerr's nomination goes through the senate commerce, science and transportation committee. fit is successful there it is up to the full senate. back to you. >> hmmms, interesting to watch. rich edson, thanks so much. lori: think ofing retiring. might think of moving. bank rate list best states for retirees. number five, mississippi. preceded by kentucky, south dakota. that is balmy. louisiana. number one is actually tennessee. where is florida in this list? melissa: forget it. lori: tennessee which evident bos one of the lowest costs of living in the u.s. earlier markets bank rate analyst chris kahn explaining financial benefits of these states, most retirees continue to flock to the beach. >> this is based on what people should be asking, where they're going, sun belt, florida, arizona, the places you see them going. i think, the lesson from all
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this to realize that a lot of folks may not be making that pure financial and medical and statistical calculation when they're going. they have a dream of where they want to be. they want to be in florida's beaches. they want to be in the deserts of the southwest. we're not saying don't go to those places. if you do go to those places prepare financially. they will be a little more expensive than some other places in country. lori: tennessee's cold winter, versus florida's beaches. sun city, music city. nothing coming into place. a lot of fun there. i could see that. melissa: that makes sense. all right, a little blue pill now available online. pfizer says it will begin selling viagra directly to customers over the internet. patients will still need a doctor's prescription but the move will offer more anonymity to men who are embarrassed about purchasing the popular erectile dysfunction drug. moving to internet will help pfizer to combat competition from online pharmacies, peddling phony versions of viagra. lori: that would be a bummer, if you get a phoney version.
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melissa: i wonder why they didn't have you read this story? i'm not sure. many internet pharmacies offer fake copies of the drug. counterfeiters cost pfizer billions in lost sales. lori: all right. let's check the markets for you. not a whole lot of movement. we're coming off some week. gray wolf partners analyst, mark newton on the floor of the new york stock exchange for us. mark, what do you think after flirting with the 15,000 on the dow last week, do you think we'll close at or above that level this week? >> i think it is definitely possible. the market has a lot of good short-term momentum. so we have gotten a little bit stretched. we see a couple of things that are actually constructive with money flowing out of the defensive sectors and back into big cap technology, into energy, into financials which obviously represents a big percentage of the market. lori: i'll tell you, mark? >> yeah. lori: earlier guest a technical analyst points out one week doesn't make a trend. she is not ready to call full-on sector rotation yet. >> there are a few concerns to be concerned about that
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is really an issue over past couple months and those necessarily haven't gone away with regards to momentum not following news to new highs. we're seasonally sensitive time of the year where the market essentially peaked out last few years this move up increased sentiment quite a bit. people are quite bullish maybe a lot of reasons thinking the fed will continue as a safety net, this and this. obviously price is the biggest technical indication tore. that is not turned down. that is something i'm watching closely. lori: you see a divergence between stocks and bonds right now? >> interesting you say that. we've seen a little bit of a reversion in that. yields had a big rally on friday. so that had been ongoing since march. but i do think it is possible to see yields inch much up a bit based on move we saw on friday, seeing follow through. lori: we're getting start this week. what are the key things to keep an eye on to determine the direction of this market? >> near term on the upside i look 1625, to 1650 which i think will be a level of
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overhead resistance that will be tough to break. on downside, 1590, to 1954 in s&p futures that is bit higher on cash. level we broke out of late last week. getting below that would put pressure towards 170, to 17 -- 1575. if you pick two levels to watch out for that would be it, you helped us with our research. mark newton thank you. >> thank you. melissa: justin bieber target ofed. lori: here is look at today's winners and losers on the tech heavy nas he can dark -- nasdaq. back in a moment. we went out and asked people a simple question: 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 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 much
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lori: twitter when it foes public could be the hottest stock offering since the facebook flop already a year ago. would hack attacks get in the way? dennis kneale joins us. we had the minute any flash crash what you call it. >> this is getting embarrassing. e network twitter feed was hacked. five million followers received this bulletin. breaking exclusive justin bieber to "eonline", i'm a gay. he also speaks with italian accent. it wasn't true. another profile hack after big brand account for twitter. associated press got hacked. remember the two minute terrifying stock plunge. they ran a logo for rival cadillac. nbc, "usa today", donald trump and even actress emma stone. she is such a sweetie. melissa: come on. >> these heartless hackers. in the case of the e twitter hack, group called syrian
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electronic army claims to have done it. these hackers have been busy beavers. the haggers staged seven attacks on twitter in three months. having their way with a service that hundreds of companies have entrusted their brands to. raising the key question, would you buy stock in a company that is so incompetent at locking the back door? and here's the other thing about twitter. once you put out a bogus tweet, everyone retweets it without checking. when they mentioned this bieber thing, 84,000 retweets of that bogus report, just like the ap account, over 320,000 mentions, fourfold increase from usual. retweeting this bogus ap account. there is real problem. lori: raise as couple of questions, first and foremost being security and what is going on to sort of protect yourself a little bit more. other side of it, quickly, when you tweet it is out there and know the risks you're taking on. >> i'm thinking account fault. ford, burger king and their fault they get hacked.
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if you twitter, want to go public, imagine what would happen to your stock when that bunge jump of $145 billion on the ap report, and at some point it is twitter's fault and it will be twitter that will be held accountable. melissa: it is their fault when they want to go public. you also wonder like sec it is fair disclosure to go on the site. >> legitimate site. melissa: and you see things with the boston marathon bombing, the police department, mayor's office using it for real communication, they have been entrusted with this responsibility. have we trusted them too soon? >> right. melissa: if they want to go public they better get it together. >> i think even twitter is shocked. they're bringing in 300 million a year in advertising and growing hugely. i think they're shocked how legitimate the medium became far outstripping the ability to lock the doors and protect themselves. whether it started hey i'm going to have lunch. it wasn't the use by media companies t has become that. melissa: everyone tweets and there's a class on it. >> great newsgathering site.
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lori: how far ahead do you think these hackers are than the technology that twitter has and some of these other social media sites? >> i find it hard to believe syrians are the greatest hackers in the world. i thought that was the americans or chinese. so it shows you just how lame twitter's security is. although apparently i read somewhere, sea, syrian guys are paying up to $1,000 a hack. might be outsourcing to far more expert hackers. >> outsourcing hax? that is hilarious. melissa: why would they target bieber? >> purely circulation. five million. melissa: okay. >> sent a eppatect for president obama and a curse word and sank praises of assad in syria. lori: thank you, denis. melissa: power battles money. attorney eric schneiderman war on wells fargo and bank of america. we'll break it down what he really means and what is he after.
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is proxy advisory services recommending that shareholders don't support three of the directors on the board that is all tonight at 5:00 p.m. eastern right here on fox business. huge wars going on there. lori: huge show coming up. a lot of stuff to chew on. i will sit in for liz tonight with david asman to wrap up the markets. i'll see you at 4:00. coming up small business, big ideas. a snowplow attaches to your car whether you have a suv. we have the owner of auto pro, tells tracy byrnes and ashley webster how he plans to take on the $800 million snow blowing market. stay here with us. money has to last longer. i don't want to pour over pie charts all day. i want to travel, and i want the income to do it. ishares incomes etfs. low cost and diversified. find out why nine out of ten large professional investors
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be good for the market. ashley: tech sector meantime has been lagging the broader market. we'll hear from one tech fund manager who says there are bargains to be had out there. find out why he is excited about apple but not so much microsoft. tracy: sorry, mr. varney. our special report, small business, big ideas. meet founder of a company that makes wanting to shovel snow a thing of the blast. s bless his heart. how to turn your car into a plow. ashley: move to arizona. tracy: that is kind of cool. ashley: it is cool if you like that kind of thing. tracy: time for stocks. lauren simonetti on the floor of the new york stock exchange. lauren what is going on?. >> we're at the high of the market right now. the dow is up 12 1/2 points. that is better than we've been doing all session. second sector up half a percent. we have a mini-rally on our hands. tech leading the way, financials are doing strong. utility sector is in the red. consumer staples are
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weighing on the market as well. that is being led by tyson foods disappointing earnings from the largest u.s. meat processor. they cut their outlook for the year. they noted consumers and restaurants are buying cheaper chicken instead of more expensive beef. that is one thing affecting prices. as you can see certainly down today. back to you in the studio. tracy: thank you, lauren. see you in 15 minutes. >> all right. ashley: stocks are fighting for gains after the dow and s&p hit the new record highs on friday. the question everyone is asking, can this rally continue after four years, into the fifth year? why not. legendary investor warren buffett talked to our liz came earlier and gave his outlook for equities. >> get to a bunch of records falling for the stock market. we have a strong investor audience here. is it realistic to think the that stock market will continue to go higher and higher? >> the stock market over time will go higher and higher. i can say that for sure. i don't know what it will do next month or next year but
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i know over time it will go higher. ashley: is his bullish sentiment warranted? many people think so. what about russ koesterich, from the blackrock, the world's largest money manager . what do you think, russ? if you're in bonds and fixed income you missed out on the party. you can't be wrong, can he? >> i think this case he is certainly right. the time frame is the key here. as mr. buffett said, this is no guaranty stocks move higher this month or this quarter but over the long term i think they will and one of the main reasons i feel comfortable with that. while the market had a big move valuations are reasonable by most measures. they certainly are not as high as they were in 2007 and not certainly as high as they were in 2000. that certainly gives the market breathing room over the longer term. tracy: maybe it will take the "oracle of omaha" to get the average investor back in the market because he is certainly not in it and certainly not taking advantage of all these gains, right? i thought something interesting in your notes saying that the rally is changing.
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started to change. large megacaps were outperforming. now it is the little guy. tell us about that. >> there are a couple of things going on, the first part of the year we saw a few trends which are now starting to change. one of which was the leadership of small caps and now large caps and megacaps are catching up. we're starting to see a shift in leadership away from the defensives. companies like consumer staple firms like proctor & gamble or utility companies towards more cyclical names. starting to see better performance out of energy. for example. that is interesting because i think one of the opportunities right now many of these cyclical companies including energy and technology look fairly cheap, compared to the more defensive names. ashley: you know, russ, it is interesting. those who say now is the time to harvest some of these profits rather than try to sow the seeds for more growth. as you said earlier it is all about timing. where do you see us going from now until the end of the year? >> well, i do think we'll hit some bumps along the way, particularly in q2 and arguably q3.
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not as if we go straight up. probably next challenge for the market as we begin to get more economic data and q2, economy will not grow as fast as it was earlier in the year. that means some earning estimates are probably a bit too high. some of the defensive playses, consumer companies, for example, may be a bit vulnerable in the short-term. if you look out six to 12 months i do think stocks go higher from where they are today. tracy: but we just actually as we teased you said that you believe a slow economy is actually good for stocks. is that because you believe more liquidity will keep coming then? >> yeah, there are a couple of reasons. this is a really important question. if you look at the economy and the mark there seems to be a disconnect. the economy is growing albeit very slowly, the market is charging ahead. i think the disconnect has to do with two reasons, margins and liquidity. a slow growth economy in some ways is perversely good for companies because their top line is growing but at the same time low rates and
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not much gains in terms of real wages are keeping their costs down. at the same time, liquidity remains ample because the fed is seeing some improvement but not enough to take their foot off the accelerator and that liquidity from the fed every month, 85 billion is definitely a very big tailwind for stocks. ashley: a lot of investors on the sidelines, russ. they have already been burned more than once and they're just hanging on, aren't they? now that we're into the fifth year of the bull market they feel like their timing is just not going to work out. what would you tell them? >> i think for the long-term investors very much in line with mr. buffett's comments, if you're looking out over five years i think you're going to be happy you were invested in stocks. again it may not be always easy over the short term. when you consider your alternatives, 0% yield in cash. ashley: right. >> bond market very, very expensive by most metrics. still looks like the best game in town. ashley: sure does. thank you so much, russ koesterich with blackrock. thanks as always. >> thank you. tracy: if you thought the
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fallout from the housing collapse was over, oops, think again. the new york attorney general is announcing a major lawsuit against bank of america and wells fargo over the housing collapse. liz macdonald is here with more. lizzie, this is not going to go away. >> yeah, this isn't going to go away and what we're talking about is the $26 billion mortgage settlement struck by the attorneys general and major banks last year. this is the first time we have an attorney general suing under that $26 billion deal, suing bank of america, suing wells fargo, for violating, get this, this is astonishing, 304 rules are in that deal. bank of america and wells fargo are charged with violating the rules in the deal, 210 violations at wells fargo. bank of america 129 violations. tracy is knitting her eyebrows over this. here's the deal. here's the problem under the mortgage settlement it stipulated different rules that say you have to do the loan modifications within a certain period of time or notify the borrower who
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faces foreclosure, in foreclosure, missing documents within a earn cerp period of time. the ag is saying these two banks didn't do that. here's the deal. the ag for new york has repeatedly said he wants principal writedowns. so this could be the leading edge for the attorneys general to use that settle man deal and say to the banks if we can't get principal writedowns fast enough through congress, if we can't get loan modifications through congress, we'll use the settlement deal to force you to use it. ashley: i see. >> viewers sit up and take notice for this. you will see more loan modifications pushed through under the auspice of this whopping deal. tracy: bank of america, when will they modify my loan? >> that is issue. should have told you within a month. in fact there is the case new york ag --. >> a lot of rules and eligibility to get through. >> banks could get tripped up banana peel of 304 rules could get tripped up by any one of them. tracy: maybe they're doing it on purpose. >> the ag says they're doing
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it to get their way. they want loan modifications and want principal writedowns. here is the important thing. principal writedowns could hurt bond investors, senior citizens or public pensions. they don't want them. that is the big fight under wall street. that is bubbling behind this thing. ashley: this is from new york. could we expect it from many other states? >> you could see other states jump on the bandwagon here, listen banks you're not doing it quick enough. you're violating one of 304 different rules in the investment deal, $26 billion investment deal. you will see more loan modifications coming down and pressure to do it because of this deal. tracy: better be me. all i got to say. ashley:. >> tracy byrnes. tracy: lizzie mack will be all over the story for a long time. ashley: welcome back, emac. >> sure. ashley: still to come, potential problems for president obama's commerce secretary nominee. thanks to her family, oh, yeah, offshore tax trusts. we're live in washington next. tracy: you can't make this up. investing in tech.
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a suite of online tools that lets you turn insight into action. tracy: president obama's nomination of hyatt hotel heiress penny pritzker as new commerce secretary is causing some republicans to raise questions about her family's offshore tax trusts. no surprise. rich edson joins from us washington, d.c. with more. rich, shouldn't they have figured this out in the vetting process? >> look, the same types of questions president obama's campaigns raised by his republican challenger, governor mitt romney, namely use of offshore accounts and investments. reports citing court filings, detailing pritzker family
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investments in caribbean accounts the type that can limit income exposed to federal taxes and therefore tax bills. republicans plan to make this an issue an penny pretty kerr's senate confirmation process to be the next commerce secretary. in a statement senator chuck grassley of iowa says this is the second nominee in a row, jackly being the first, associated with the tax avoidance activity that the president dismisses as fat cat shen nance against for others and. white house failed to specifically address the overseas accounts. "new york times" reports that pretty kerr told the paper in 2008 the offshore trusts were established when she was a chide and are managed beyond her control. white house says, penny pretty kerr is one of the most accomplished and highly respected business women in business today. she knows what it takes to build, grow and invest in business and will be strong advocate for policies that help grow the economy and create jobs. pretty kerr's goes to the senate commerce, science and transportation committee f
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it it is successful there it goes before the full senate. back to you. tracy: rich edison, thank you very much. he is right. we've been covering this stuff forever. why not come clean up front. by the way, my family has off shores trusts. i don't get it. ashley: tough to run for these positions everything comes out. tracy: you should know that by now. ashley: you should. quarter past. time to check on the markets. lauren simonetti on the floor of the new york stock exchange. lauren has a winner for us, don't you? >> i do. apollo global management, private equity company. shares at all-time high after q1 profits rose by more than 70%. the company is taking advantage of favorable capital conditions to sell shares in chemical and cable companies. so apollo, certainly up hour than 2% today. also cliffs natural resources. this is a miner. a dog this year, down more than 40%. it is getting a nice 5.75% pop today. essentially got an upgrade at fbr capital markets.
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fbr essentially saying that, cliffs natural resources has the ability to withstand week iron ore prices and higher domestic supplies. those are two winners my friends. back to you. ashley: lauren, thank you so much. we'll be back at the bottom of the hour. tracy: still to come the tech sector has been lagging the rest of the market. everyone is waiting for the big technical -- tech rally. we'll hear from one analyst who says it is time to play catch-up. find out what he is buying now. ashley: the dollar is moving right now. tell you what, it is up against all the currencies except for the looney, the canadian dollar. all things told, pretty flat line on the currency exchanges. we'll be right back. this is america.
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>> 19 minutes past the hour i'm lauren green with your fox news minute. the white house is saying it is highly likely syria president assad's regime and not rebel fighters are behind any use of chemical weapons in syria. the u.s. is still looking for conclusive evidence but it is skeptical about claims that it was syrian rebels who used the chemical weapons. the fbi is saying a terror attack was disrupted
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after raiding a mobile home in montevideo, minnesota. beautiful ford, was arrested on one felony account of possession of firearms. no details yet on any alleged terror plot. in boston prosecutors say robel phillipos, the third friend of suspected boston bomber dzhokhar tsarnaev can be free pending trial on a charge of lying to investigators. a judge will have to approve conditions which includes 24 hour electronic bracelet. those are the headlines, i'm lauren green. back to ashley. ashley: lauren, thank you very much. appreciate that. well, technology stocks have lagged the broader market over the past year but in the last couple weeks seems these tech stocks have gotten some of their mojo back but can the trend last? let's bring in joshua spencer, portfolio manager of the t. rowe price global technology fund. joshua, thanks for joining us. you think there are some
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bargains out there. i read your notes. which stocks look like good value right now? >> thanks for having me. it has been a tough time for technology stocks. i think some bargains have started to emerge. apple's one i think is a wonderful company that can rise from the ashes of its recent performance. a couple more that like are equal come, which really plays -- qualcomm, plays well into the broad base of cell phone and tablet adoption. and cisco, a larger tech stock, a blast from the past i think has its mojo and its project innovation back. ashley: talking about mojo, you liked linkedin a lot, don't you? what do you i can like about this particular company? >> i like everything about linkedin. i like the user adoption, the engagement, financial model and the management team. the one thing i don't like is the valuation. at about 15 times sales it is a very rich stock. so i own it in my fund and i love a lot about the company but i've been a bit cautious
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on position size of late. ashley: as for its price there on linked inn, 176 bucks right now, when do you jump back in on this stock? down another 10, 15% perhaps? >> i would love to buy it down another 10 to 15%. i think that would be a great opportunity. this will be a very durable company over time. i think professional networking will have stickiness and durability we perhaps don't see in some of the consumer social networking companies. ashley: you don't like facebook. you say it is not in your fund. you say consume irsocial network something faddish. so you're not a big fan of facebook? >> that's exactly right. i'm concerned the younger generation isn't staying with facebook. i think new services like snap chat and what's app, can capture the junger -- younger generation. they do plain vanilla texting. i'm concerned that facebook's valuation bakes in assumptions that might not come true. ashley: there was a bit of
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excitement last week, wasn't there, when it showed growth in the maybe ad revenue but you're not on board with that? >> i'm not. they made head ways with mobile and success with apps for ios. there is some things toe like the about the company. but at 60 billion market value it is a bit too rich for my blood. ashley: talk about microsoft, what is your feelings about microsoft? >> microsoft has challenges in the position in the pc market. i've been surprised by the stock's recent strength. i think it has been caught up into rotation into large cap. among large cap tech stocks i would rather be in cisco or qualcomm where you don't have the overhang of the pc market. i'm afraid that the pc industry will be under long-term pressure. ashley: microsoft's pretty strong in its software and services business though. they do manage to seem to get these long-term contracts with big companies. >> they do. so microsoft isn't going away anytime soon.
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but i think it will struggle to grow. and we may see some margin pressure as they pursue new initiatives. to this point we just haven't seen microsoft make any traction with phones or tablets. and i know that is top of mind for the company. so i expect we'll see more spending and maybe even acquisitions in that space. ashley: literally got about 15 seconds, joshua. you like service now. why do you like this company? what is this company? >> oh, this company is a cloud software company that, it makes its way into enterprises to displace the software that is used to run the i-t help desk. then it finds homes once it gets there. it is a very adaptable software that companies buy on a subscription basis. they grew revenues 91% this quarter. i think they have a long runway of growth ahead. ashley: excellent look at the tech sector. joshua spencer with t. rowe price. thanks so much for joining us today. appreciate it. >> thank you very much. ashley: good info. very interesting. by the way, microsoft has another xbox coming out for
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the holidays. so that will generate some, you know, got to love the xbox. tracy: i don't know. does it need to be replaced? ashley: probably not. tracy: right. take a look what oil is doing right now because it was up. trading this morning, man, well into the green actually. $95.61 a barrel i think we're looking at right now. this chart says 96.20 the reason you should watch this? well the situation in syria getting worse. today the syrian government publicly condemning israel for an air assault on military targets near damascus over the weekend. leland vittert is live in jerusalem with all this. leland, first of all, be careful and second of all, what is going on? >> appreciate it, tracy. we always try to be. a lot of people are saying try to be careful with israel. they seem to take calculated risks here. calculated risk in the middle east have times to spin out of control. the risk that israel seems to be willing to take they are willing to risk starting a war to make sure that hezbollah, the
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iranian-backed militant group in lebanon, doesn't get very sophisticated weapons from their friend in syria. >> smoke still rises from the rubble of a syrian weapons depot that once housed precision-guided fatah 110 missiles headed for lebanon in the south. sources confirm the weapons arrive on cargo planes like these from iran. they are transferred by ground to the militant group. [explosion] second time in a week israeli bombs destroyed them enroute. syria called the attack an act of war. despite their own civil war they will respond. this is israel's insurance policy. their tanks are forward he do employed, we're only five or six miles from the syrian border. while it is clear their rhetoric and terms of their actions today that israel is not looking for a war, they are certainly ready for one if it comes. and it could either come on the ground here on the golan heights or from the air. to that end israel has forward he do employed also
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their iron dome missile defense systems to protect from missiles that could come in from hezbollah or from syria itself. right now israel says that if they have the intelligence they will continue to hit these weapons transfers to hezbollah. many year equated pulling the trigger in a game of russian roulette in the sense that it is unclear when president assad is going to finally decide to respond to these attacks. today he told a kuwaiti newspaper, the next time he will do something, we'll see if that changes the israeli calculus going forward. tracy, back to you. >> leland, this will get scary. you be careful out there. thank you very much. ashley: all right. coming up the diy approach to invest something gaining popularity. find out why investors are shying away from professional help. tracy: as we do every day before we head out to break, we look at some winners and losers today. we're looking at s&p 500. cliffs natural resources up top. lauren simonetti was talking
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ashley: half past the hour, a take a look at the dow. more red than green. bank of america leading the way. the pharmaceutical sector, merck down on the bottom and of the trading today, and down 43.15. kind of gripping all the action. let's head down to the floor the new york stock exchange. lauren: let's talk about monster beverage. this stock is down, by volume the leading maker of the caffeinated energy drink here in
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the u.s. and the city attorney in san francisco suing the company saying the marketing teenagers despite the health risk by sponsoring youth tournament and things like that. monster beverage is saying the city attorney has no place to get involved in things like this. the other stuff we're talking about is what you were just talking about, merck. the number one loser in the dow jones industrial. the fda approving a cholesterol-lowering pill by merck. the brand name for it. thank you. ashley: thank you very much, appreciate that. tracy: stocks trading at all-time highs, a do-it-yourself approach to investing. apparently there is a twist. gerri willis is here with the details. >> they're doing it on their own. whether it is vanguard, schwab,
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they are having somebody look over their shoulder of their portfolio maybe once per year. they can see asset okay. they're largely doing it on their own and that has grown 10% since 2008 faster than the financial advisors growing at 9%, so i believe what this tells us is people are still not trusting the professionals, they want to do it on their own, be in control, which is not a bad thing. i think you see every iteration, some folks are testing it out for the first time, some folks are into their 50s and managing it seriously by studying the market, reading publications. tracy: there is enough if he wants to take the time to do it. i understand, but i will be the first person to admit the
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professionals generally n know more than i do. >> the interesting thing about this is women are more likely to get financial advice than men. men like to do it on their own. tracy: what is that. ashley: i got it. >> you know what you want, right? ashley: exactly. tracy: will you be talking about this later on in the show? >> we will be talking about it. tracy: i guess it is good. people know what they own. ashley: at least they are playing the market. tracy: there is that. gerri willis on "the willis report" 6:00 and 9:00 eastern on fox business. oil trading up. so today's close march the third straight day of gains for crude. ashley: coming up, although we are headed toward summer, the days of shoveling snow may be over.
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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 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 much is 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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>> this is your fox business race. shares are searching that reportedly reaching $1.7 billion settlement with bank of america. according to the "wall street journal," be of a took a 5% stake in the bond insurer and in the legal battle between the two companies over mortgage put backs. the chief executive will be stepping down after a spinoff of the business later this year. chief operating officer has been named his successor. and apple is about to record 50 billion wap download. planning to give the customer a $10,000 app store gift card. opening a year after launching the iphone in 2008 and reported 40 million apps downloaded in january. that is the latest from the
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tracy: in today's "small business, big ideas," our guest has an idea for a lightweight plow attached to your car. it took over 30 years to perfect, but one year after launch it is expected to rake in $2.5 million in sales and challenge the hundred million dollars snow falling market. founder and ceo of nordic auto plow, rich beehan joins us now. the first thing i have to say is kudos to you for sticking with this for 30 some odd years. i'm sure somebody said let this go already. >> my wife was the one who said that the most. said you are obsessed, stop. she finally said let's just do
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it already, so put our brains together and made it happen. tracy: the problem is needed to find a strong enough, proper shave, you launched it in 2012, how is it being received? >> it is great. it is low while factor. first they don't believe it, and then they see it happening and wish they had it. it is really novel. tracy: i watched the video, there's like 50 pounds and you bungee cord this to the hood of your car. tracy: have solid straps that go to the door and budget cards that go into this brings by the wheel well and it is all about leverage. we kept it really simple. like a shovel pushing down the sidewalk, that is what the car is doing. it is a beautiful thing. tracy: isn't it amazing nobody
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has come up with this idea in all this time? we're out there shoveling, and nobody has thought of this. >speaker that is what got me going. came up with this in college and made a prototype in 1982, failed miserably and gave up. every i kept thinking somebody will make it and i will be the guy that said i thought of it first but i didn't do it. and it still wasn't done three years ago, so we went after it and here we are. tracy: hitting the northeast and midwest generally for snow. you can move topsoil. tracy: we were at the first show, a riding mower, of course we can. we went about doing it and then the atv manufacturer said if he
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can put tha it on an atv, of coe we can. now we have hedged our bets. uses year-round. we can use it on lawns, gravel driveways, we can use anywhere without getting caught. tracy: let's go to the logistics. how much? >> $600 range, the riding mower in the high three hundreds, atv low fives. it is affordable, priced like a snow blower. tracy: let's talk about who you have deals with. i can get this at home depot, red? >> we just signed a deal, true value as well, and we are on a lot of websites, we hooked up with a major player in four
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continents, they will be our exclusive licensee. i give those guys a lot of credit pushing this in canada, europe. tracy: we all give you a lot of credit. this would be perfect because he gets out there and plows this is old parking lot. i think your heroic a lot of people should listen to your story. thank you for telling it to us. >> thank you for having me. ashley: here we are heading into summer. tracy: i love it. ashley: the biggest film of the year may have just premiered. "iron man 3" blown it out. >> off to a great start. it took in $175 million from the
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u.s. box office since it opened over the weekend. moving behind only if it is us or "the avengers" in which ironman played a lead role. the fourth time he has donned the cool suit, that is a point for disney super sequel strategy. using interlocking block list is to build on overlapping fan bases. "iron man 3" is a sequel to the second but also sequel to last year's "the avengers." one reason is outperforming the first two films. "iron man 3" at $683 million worldwide and a sure bet for the $1 billion mark they get one of 20 or so films to hit the 10 digit box office milestone in the history of hollywood. and then comes the sequel to thor. and "captain america" sequel in
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april. and then the first sequel to the avengers. now imagine the impact if disney can apply the super sequel strategy to other franchises that he has acquired. the pixar film and the "star wars" franchiss. no wonder disney stock is up so huge, continues to hit all-time highs. it shows you he has been a smart acquirer. returning great wealth to shareholders. going in and buying pixar. now he has bought "star wars." ashley: thank you. >> thank you. tracy: now let's go down to the floor of the new york stock exchange. mark, we have been hearing so many people including the oracle of omaha saying the market is
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going to the moon. does that make you nervous? >> it does. it has moved up pretty substantially given the move we have seen not only year-to-date, but 13.5%, or 18% since last november. it is natural people o onboard that the market can move up forever at this point. tracy: we are not seen that rotation are we? >> no, we are not. there are a few positives that europe is so much more stable, the euro against the dollar is in good shape, but the bottom line is equities still are overbought, starting to see at this time each of the last three years, sentiment has gotten extremely bullish. the bottom line is seasonality is very much in play and train may through october. to some extent there are some positives with earnings.
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we still see topline misses, middle east turmoil could be facfactor the next couple of months. the prices are resilient and acting well. the market in general should seek out and start pulling back for the first time since '09 lows. tracy: you can tell by the calendar where we are. thank you so much. >> my pleasure. tracy: again and again and again. ashley: still had the senate expected to pass the internet sales tax bill today but could face tough opposition including questions of whether or not they violate the constitution. the judge will be weighing in next. tracy: a look at the winners and losers on the nasdaq this time. we will be right back. you hurt my feelings, todd.
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they ashley: the senate is expected to file the internet sales tax bill later today which would make tax free online shopping just a thing of the past but the bill faces opposition in the house from possibly the supreme court. joining us now, senior judicial analyst judge andrew napolitano. is it a constitutional issue? >> yes, it is a constitutional issue. the congress has authority to regulate interstate commerce, the movement of goods or interstate borders from persons in one state to persons in another have basically said to the states you can start taxing this movement, so think about this, say i am in alabama in order to do something from
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portland maine. i typed it in alabama and they send it to me in portland, maine. you may see what difference is a physical presence? alabama can tax those goods. the answer is the supreme court interpreted the fifth amendment's requirement of due process to mean that states can't tax someone who is not physically present in their state. and has a serious presence in the state. you have to have some assets layer so it is fair for the state to tax you because you have taken advantage of the services the state delivers and pays for it with those taxes. in this scenario if alabama contact this sale from maine, maine can pass every bmw made in alabama driven to maine. is this what the congress once? tracy: isn't it a little antiquated?
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internet transactions are not really part of the economy and cannot be taxed as such. >> in finally purchase something we don't have to pay the tax man four. how do you think the internet has blossomed so wonderfully? tracy: is it fair? is >> fair to whom? >> the brick-and-mortar folks. >> most have done so by going into the internet. don't tax them. if you're not one to tax internet, do not tax the brick-and-mortar folks. not that long ago the states started overspending and came up with this idea of sales tax. what service does the state of new york gave you that you should pay them $0.10 for a dollar on a sandwich? tracy: i agree, but because we are where we are in the tech world, that is not going away. >> that is the answer.
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the answer is lower taxes, not more taxes because again in my scenario if alabama contact the purchase of a shirt made and sold by them in portland, maine, then maine contacted bmw driven to maine. that will raise the cost of everything and it is going to be prohibitively expensive. ashley: is this going to the u.s. supreme court? >> if they set passes it. they require minimum contacts between the taxing state and the taxpayer. the tax collector. what would alabama do if they refused to collect taxes? they are not in alabama. how can alabama go after them for refusing to become a tax collector? tracy: and 10 seconds or less,
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play this out. judge andrew napolitano. level playing field. i don't know. thank you. >> pleasure, guys. tracy: today marks the third anniversary of the flash crash. just about 2:45 eastern time may 6, 2010, the market lost 298 points, 9.19%. the largest intraday point drop in history for the dow. but it bounced back some finishing the day lower by just under 348 points at a loss of 2.6%. later found out a computer-driven sale worth $2.1 billion by single trader helped trigger the crash. the fat finger trade. remember that? i remember the day, and still to
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this day we have not fixed the problem. ashley: that is why we have some confidence issues in the market. coming up, "countdown to the closing bell." cheryl casone in for liz claman. they got exclusive interviews with warren buffett and three board members to speak with the economy, and if he is finally ready to hand over the keys for his company. it is all coming up next. with the spark miles card from capital one,
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we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur >> the secret to warren's success. we sat down with mr. buffett and three of his board members, including his newest. hear their thoughts on corporate taxes and why retirement is a dirty word. groupon's ceo is out, pandora's ceo is gone. what other titans of tech could be next? our guest picks five ceos he
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says could soon be looking for work. and iron man 3, breaking all kinds of box office records and powering disney shares in the process. we look at the biggest blockbusters you can expect out this summer. ♪ ♪ cheryl: i'm cheryl casone in for liz claman. it is the last hour of trading, and markets, well, they're holding on to those big gains that we got from friday. take a look at the three major indices, all of them higher right now, the dow higher by about four points, not a big gain there. the s&p, though, up more than four points and the nasdaq is higher by 14.5 points. so, again, all of the major indices holding on to that big rally we had on friday. bank of america, they are leading the rally. the company announced it reached a settlement with bond insurance company mbia. right now
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