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tv   Markets Now  FOX Business  May 8, 2013 11:00am-1:01pm EDT

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dagen: i am dagen mcdowell. mcdonald's is quite happy to be along for this ride. connell: congress on how we can protect our nation and our assets. the judge says it is not good news for the cell phone providers or you as a customer. dagen: "the great gatsby." those stories and more coming up on markets now. ♪ connell: away we go. dagen: top of the hour. stocks now. nicole petallides is at the new york stock exchange with more. nicole: we have gone back and forth. we have set new record intraday
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highs for the s&p and dow jones industrial. still above the 15,000 mark. disney came out with their quarterly report. it is selling off some. the tech heavy nasdaq is off. back to you. connell: another day, another record. 15,000 at the close for the dow yesterday. our first guest on markets now says, down. do not prepare 416k just yet. why the caution? >> this market since november is up 21% already.
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for the month of may, it is up a little bit more than 2%. the earnings, especially on the revenue side of it, we just do not have this kind of economy or earnings to support it. on the short term basis, we truly believe in this, we feel there is more risk than reward. at this stage, i really think we should be cautious. do not get too excited. connell: 15-20% pullback. some people say we are due. we have had a number of people come in recently and say a couple of things. look at individual stocks. i think the dow would be a pretty good example.
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>> no doubt. the fed has definitely been behind the market. there is no doubt about that.tio november, on average, it is only about three tenths of a percent. the so-called november to april. is up about 7.5%. we believe, over the shorter term basis, there really is a decent risk. connell: it is a topic we often address.
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we talk about the investment opportunities there. now, we will talk detail about these hearings in washington. the chinese government is behind some of these cyber attacks. to hear it publicly, does that change in your view? >> i think a little bit. the first time officially making these accusations. now, you are doing it to our defense network. hopefully, we will be sending a message to china. the obama administration will be stepping up.
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i do not think it will stop. i think our main problem is not only you ours by on us, but are using the information. connell: as always, thank you very much. >> thank you. dagen: china's use of espionage and threats from activist groups already feeling heightened concerns over our nations cyber preparedness. a senate hearing on capitol hill is examining just that. connell: peter barnes is with us on the very latest. peter: lawmakers trying to get some new cyber security legislation going.
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officials have called this problem the greatest transfer of wealth in human history. there are those cyber attacks on banks, of course. one senator suggest the fbi has more resources to stop old-fashioned bank rob like bonnie and clyde. >> do you have the resources necessary to deal with this problem? >> we are making do on what we have today. >> what we are telling you is do not make do. let's treat this like bonnie and clyde. nicole: they simply are outgunned in this fight. one expert said lawmakers themselves could do more. legislation could deny visas to
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government officials. another bill introduced woodblock imports. dagen: thank you so much, peter. peter barnes down in washington. as a result, a new report by cyber truth found that hospitals are losing an estimated $8.3 billion every year because of loss productivity and patient discharge time. the average physician waits 45 minutes each day as a result of inefficient communication systems. bad news for travelers in this country. according to a new study by mit, airlines cut by 14% since 2007.
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carriers cut more than a quarter of scheduled flights over the last five years. the nation biggest and busiest airports. some airports do not even have commercial airline service anymore like bluefield, west virginia. a report by the un says unemployment around people age 15-24 is likely to rise globally to 12.8% by 2018. that would wipe out games because of the recent economic recovery. connell: the numbers of neighbors you have on medicaid could soon determine the amount of money your state gets for the programs. a new bill on the steps of the capitol. the white house ready to pave
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the way. you can imagine how that will go over with judge andrew napolitano. ninety-six dollars a barrel, almost. one penny shy. ♪ everybody has different investment objectives, ideas, goals, appetite for risk.
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charles: you are behind the curve. everyone felt that way at dow 14,000. we are on top of it. i am seeing a lot of downgrades of stocks you have never heard of. we are keeping an eye on the market. there was a slew of them this morning. the point is, disney, will not be one of those stocks that is
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downgraded. i think for the people watching the show, they should take part in this. i think a lot of these analysts will take the opportunity to play catch up. do not fret. you will probably see the street come to the rescue. in the meantime, though, they are kind of dumping the troops. to catch up, i think, they will end up actually supporting some of these bigger names. dagen: just do not listen to them is what you are saying. [ laughter ] charles: i did not want to be that want. connell: we do not have a problem with it. charles: you are absolutely
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right. dagen: why are you here? charles: and may go sideways. we are kind of neutral. we do like the set are and that kind of stuff. dagen: make sure to tune in on friday for the business of real estate. we have some all-star names. connell: that will be good. you have seen every show. let's go back to nicole petallides.
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nicole: taking a look at disney. i have a list of all the analysts that have upgraded. you see a down arrow here for disney. it looks pretty good here. the stock is down 1.8%. what we did see here is operating income declined. less advertising. the rest of it is all good news. the movies, espn, the future with ironman three and star wars. today, the stock is pulling back. back to you. connell: nicole petallides, thank you very much. dagen: the last time medicaid was updated, the beatles were the most popular in america.
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we will talk about this next. connell: a little help on the currencies first. ♪ a dry cleaner, we replaced people with a mawhat?. 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.
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♪ >> 20 minutes past the hour. i am lori and green with your news minute. no human remains were found at the house where three women were found alive after ten years in captivity. the white e done more to prevent the attack on the benghazi attack. x south carolina governor one special election with 54% of the vote.
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sanford resigned in 2010. those are your headlines. dagen: thank you very much. accountability and medicaid. it would be based on how many of your neighbors are on medicaid and why. congressman, great to see you. the first version of your bill to reform medicaid died in congress. why will this one move, do you think? >> one, it is a different concept. there are principles that are common in every major private insurance program. this is washington. you have to change a paradigm. it may take a little bit for it to gain traction.
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dagen: be a little more specific about the way you changed the way dedicate is paid for. >> it is actually four different programs, if you will. very different cost structures for each. you get about $50,000 per disabled whereas if you have a lot of children, it is only 1500 there. it is breaking populations apart. dagen: do you think that in some way, though, it could encourage state to enroll more people on medicaid? >> no. the state still has a portion in which they are picking up. the state will not make money in the real sense. it gives the state a fixed amount. no longer is it what it is today the state gets paid as much as they bill. this is how much you get for
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this population, manage them like a private insurance company will. you can also focus on your budget. what has the state received in the past? that is what they will receive in the future. it does not account for the fact that populations grow and shrink. some have been gaming the system. some have been taking money for the benefit of the state with poor outcomes associated. this goes in the accountability. dagen: speaking of federal tax dollars.
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there is much of a fight going on, state of florida, one example, the governor signing off and the gop legislator saying, no thank you. are we entering a period where there will be implementing obamacare and people in the states if the states do not sign onto the medicaid expansion, the people in the states will go uninsured? >> these states are presumably already uninsured. many of the people who go on medicaid will be dropping their private insurance and getting onto medicaid. 65% will be dropping their own insurance to go on medicaid. medicaid is a broken system. no one would fashion medicaid now as it was back then. we would do it differently. the way states are approaching this reflect the fact that it is
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a broken system. you put in place forever a broken system and that will not be good for patients or taxpayers. dagen: congressman, good to see you. thank you so much. explaining something ever so complicated. connell: you are absolutely right about that. microsoft, you know, that is a pretty good transition. they missed the mark with windows eight. it has created some big-time third-party operations. dagen: charles ramsey famous now for his role in the rescue of those three kidnapped women in cleveland. he is taking mcdonald's along for the ride. we have more on that. here are some of today's winners on the s&p 500. ♪ ♪
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connell: mcdonalds is loving it to borrow the company's own slogan after the shoutout from the guy in the rescue of the three women kidnapped in ohio. great gatsby on the big screen. the start window for menus 8. this is the subject of disappointment from some uers. but we'll have some quick fixes for you. don't mist that.
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dagen: it's the bottom of the hour. j.c. penney, nicole? >> j.c. penney is a stock so volatile at this point. take a look right now what it's doing. it's up 7.7%. this is a stock that has gone all over the place on each headline. today's headline, i'll give you the headline first which is that the comp numbers not that good. those are going to drop 16.6% in the first quarter. same store sales disappointing. however, when you look at the numbers, one piece of good news for j.c. penney is that they burned through less cash than anticipated so that may be one of the reasons why you're seeing the up arrow you're seeing. don't forget that george took a nice big stake and it makes him one of the top five shareholders of j.c. penney. that brings confidence along from goldman sachs. that will help them along and change of management. we reported on that as well. stocks still remain down over
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50% in the last year. back to you. dagen: thank you. connell: while microsoft works to revamp the operating system after less than stellar reviews, third party companies are popping up. and they are complaining. dagen: in this week all things digital is the personal technology columnist at the "wall street journal." first i want to start with you because the beginning of your review talks about the face of windows 8 and how some people hate it. do you think people will eventually get used to it, though? >> obviously any time you do something new, it does take 3 1 awhile for people to get used to it. i think the problem here is microsoft built a tablet-type operating system with its own separate apps that only one in that start screen, that tablet area, but instead of putting it only on tablets, they kind of put it in with regular windows and then demoted regular
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windows. it's still there to just kind of an app on the tablet opening screen and this has confused people and annoyed people. the other thing is they took away the start menu which has been there forever in windows at the lower left of the screen and what that means is if you don't have an app already pinned as they like to say, that's the term they use to your task bar, you want to open a different or new app, you have to jump back to the start screen and the start screen really requires touch and it's just much more like an ipad or something. so you have two completely different experiences in the same computers and this has made a lot of people unhappy. connell: and it is an interesting -- i think dagen is right. it's funny when people have to adjust to something new, especially in technology. dagen: it is confusing, though. i have windows 8 and it's a mess. >> it's confusing and there's
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something else that i have to say which is, i do like the look of the start screen but they did not build apps for it that were first class. a lot of their apps are kind of weak and they didn't get a lot of third party apps. connell: you talk about in your column today about how all of this confusion and anger creates opportunity and companies pop up that want to basically bring you back to the future, so to speak, and bring back that experience. you have two that you highlight. one is free and one cost five bucks, right? tell us about them. >> one is start eight. it's the one that costs five bucks. there's a 30-day free trial and what it does is basically restore the start menu and gives you some options to, you know, change what the windows key does on the keyboard. you want it to jump back to the tiles or do you want it to open the start menu like it has done for many years. you can do that.
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you can change the look and feel of the start menu and you can do something kind of cool which is you can instruct the computer every time it boots up to go right to the desk top that you've been used to for years and skip the whole new start screen. that's start eight. the other one is called pokki. it does all the same things, although it doesn't really look exactly like the old start menu. it's a more modern look and it's trying to emulate the look of a smart phone with little app icons on the side. they have an app store that's their principal business. you do not have to buy anything from the app store. it's free. it's all -- pokki is free. you can just use it as a smart menu. if you want to, you can buy free apps, download free apps from them and so i made it -- both of them work fine for me. i didn't really have any problem with either of them. and i made it clear in the
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column, there are probably 10 or 12 others like this, if you just google it, you can find them. they install quickly and they do give you that comfort of working the way you have been working for years in windows. dagen: it was great to see you. i hope all is well. >> all is well. take care. dagen: see you very soon. be well. connell: breaking news now. as you're seeing on the bottom of the screen there, j.p. morgan voting in favor of fliting the roles of chairman and c.e.o. at j.p. morgan. jamie diamond wants to keep both. we've been interested. this is a non binding vote that took place but we were interested to see what the big shareholders would say. calpers voting in favor of splitting the two roles. have a different person as chairman and c.e.o. we'll have more throughout the day as sure. dagen: i was actually reading the story.
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connell: it just came in, "new york times." dagen: the hero from cleveland also bringing mcdonalds a little fame as well. connell: we'll talk about it coming up, mr. ramsey, and also the judge is coming in. he says your constitutional rights are under attack again. this time the government looking for easier ways to listen in on your conversations and check what you're doing on the internet. uh-oh. dagen: and living it up on the big screen. the lavish lifestyle of jay gatsby and weather dicaprio can cash in on it. we just showed video of him pretty much. come on. ratings winner. take a look at the treasury market. are people happy about treasuries today? yield down two base points. for seeing your business
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is connecting today's leading companies to places beyond it. siemens. answers. dagen: the whose is said to be on the verge of blocking a plan to overhaul surveillance plans on the country that would make it easier to wiretap people who communicate with each other using the internet rather than just by traditional telephone. connell: a lot to cover here
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with the judge. fox news senior judicial analyst is here to tell us this is dangerous? or what do you say? >> i think it's very dangerous for the federal government to require private industry to share trade secrets, client information and technical know-how with the government and every time they make an improvement to share that with the government as well. here is the back story. 1994, democratic president bill clinton, republican congress heyday of newt gingrich and the contract with america, the government enacted legislation that required telephone service providers to do the wiretapping for the f.b.i. so instead of the old fashioned f.b.i. agent and the basement of an apartment building connecting a wire to a piece of equipment in a van, they basically would just send a fax of a search warrant to the telecom provider and their technicians would do it. if they didn't do it, they were fined f. it cost money to do it,
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they had to pay for it. that's what the statute said. now what the government wants is a comparable piece of legislation for internet service providers who essentially didn't exist or at least exist as they do today. however, it's a little bit more complicated today. today an f.b.i. agent will show up at, let's say, google. they have a valid search warrant based on probable cause of crime and the search warrant authorizes the f.b.i. to tap into connell mc shane's email. they want to catch it in real time as you're typing. google says do it. the f.b.i. says, well, where? how? this building is the size of three football fields. we don't know where to find his information. google will say, well, that would cost us thousands of dollars in man hours to do it. the order has authorized us to make it available. it hasn't authorized us to show you and tell you how to do it. the government really wants private industry to do it for them. and if they do, the next step will be, well, why could we have
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to come here? how about if we have the button in the office and we just press the button, show you the search warrant, type in mc shane's number and then we're automatically connected to him? and every time you change or advance your technology, you have to tell us about it. this is a forced partnership between government and industry intended to invade the privacy of the industry's clients. dagen: is it just voice? it's not just voice. is it every form of communication? >> it's every form of internet communication. it could be voice over internet that a lot of long distance calls are today. or it could be typical old fashioned email. dagen: texts. >> correct. if the legislation and -- and it hasn't been written yet but the legislation leaked to the press last week and "the washington post" this morning, this will have doubling fines on corporations that don't comply fast enough. you could do the math.
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in a month even google could be put out of business if the fines just keep doubling, if it's not done to the f.b.i. satisfaction. connell: because i was curious, when you were outlining the history of it, and you were probably opposed to the law of 1994, maybe you weren't but doesn't that establish the precedent for doing it this time? >> yes. that's a great question. liberty is usually based on precedent. it was wrong and volative for this legislation in 1994. even though the republicans and democrats came together. since it did and since the f.b.i. -- and i understand the f.b.i. has become accustomed to receiving cooperation from the technical people in the feel. dagen: and we don't know if the law was abused in the first place. if people were aware of abuse from it, then they might be more opposed. >> in the bush administration, the f.b.i. was told -- excuse me. not the f.b.i. not the f.b.i.
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the n.s.a., national security administration was told, just tap into connell mc shane's wires and tell verizon not to worry about it. we'll give them immunity and deny it publicly. once this was revealed, they got the immunity so the crime was committed, the immunity came in so there was no redress. yes, there was this abuse and then there's the reliance on the part of the government, they'll do whatever we ask them to. we'll promise them immunity. here is the flip side. they'll do what we ask them to do. they'll have fines if they don't. you want them showing up at verizon? you want them showing up at google saying comply or we'll put you out of business? do shareholders want that? of course not. connell: we'll come back to that. dagen: you're the best. the judge. breaking news, we already mentioned this. calpers voting in favor of splitting the chairman and
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c.e.o. role at j.p. morgan. >> if the camera can find me, i'll tell you. the pension plan now is looking at the top roles, right? talking about chairman and c.e.o. roles and according to the "new york times," that they're looking now to vote in favor of the non binding proposal to split j.p. morgan's top roles of chief executive and the share man roles, both of which are held by mr. jamie diamond since 2006. it's not unusual to hear this. this had been proposed last year with 40% approval. it was a similar proposal but -- and it received 40% approval from the shareholders in 12012. argument is that you should split the top roles, they should be separated to maximize management accountability and all of this comes on the heels of what we saw where don't forget, they had the trading fiasco abroad that saddled the company with about $6 million in losses. jamie diamond's pay compensation was cut in half for punishment
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but this is something back on the table and big news. stock has up arrows. back to you. connell: how about mcdonalds? it's in the middle of the kidnapping case in cleveland. this guy, charles ramsey, the guy who helped to free the three captive women, he's made headlines for describing what his role was in the rescue. in particular, listen to this part of it. >> i went to mcdonalds. i was eating my mcdonalds and i hear some girl screaming. so my neighbor, he come across the street and i'm looking at him going across the street, wondering where he going. he goes next door to my house. and i look and i see this girl. she's just going nuts on the door. what's your problem? are you stuck? just open the door. she said i can't. you have it locked. connell: the way capitalism works, mcdonalds sends out the following tweet. we salute here the courage of the ohio kidnap victims and
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respect their privacy. way to go, charles ramsey. we'll be in touch. dagen: it was in the 911 call he goes on about mcdonalds. connell: he was telling the operator what he was doing and all of that. it's interesting to see the company, we'll be in touch. dagen: mcdonalds i say for life. better be. democrats and republicans are preparing for a fight as the deadline approaches for congress to come to an agreement over the debt ceiling. connell: hey, rich. >> may 19 is when the debt ceiling hits. the treasury department can use what is known as extraordinary measures to send that off until the fall time. right now democrats and republicans staking out their positions. we spoke with john boehner, got
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a good deal of information about what republicans plan on doing with the debt ceiling negotiations. he says they may consider tax reform and entitlement reform. >> 10,000 baby boomers like me retiring every day. 70,000 this week. 3 1/2 million this year. it has to be part? >> it's got to be part of it. i don't know how else you can balance a budget if you don't deal with the entitlement problem and these programs are important to millions of americans, tens of millions of americans and they're not going to exist if we don't deal with them. >> republicans will be holding meetings in a few weeks to determine how they'll perceive with the debt ceiling negotiations. white house is saying they'll have none of it. this from a statement of policy yesterday saying the president has been clear that he will not negotiate around whether to uphold the full faith and credit of the united states. congress must pay the bills it has already racked up. failure to do so will put the
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nation in default. john boehner saying that it's always been a football. back to you. dagen: thanks, rich. i started following rich on twitter. i never followed rich. connell: i've followed him. dagen: and he followed me back which is important. connell: that's what you want. you want the reciprocation or something. the great gatsby, it's been remade six times apparently already. but none of them able to grab hold of the critics' rave reviews. is the seventh time a charm? dennis will be here to report on it next. dagen: and some of today's winners on the nasdaq. what is it that makes a husqvarna?
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dagen: warner brothers is the latest studio looking to make a book from the classic "the great gatsby." six failed adaptations. connell: is number seven the charm? this is $127 million film and even though it's based in the roaring 1920s, it's got 3 d special effects going on and it's got songs from the rapper jay z and beyonce. but will it open? interesting thing here is that it's got in a very tough position. "iron man 3" opened last weekend. it's not going to do great box
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office but it might do better than the predecessors. we all remember -- well, not all of us, the 1972 with redford. this guy directed mulan rouge. 98% of fans on rotten tomatoes.com say they're going to see this film. and i've got a firm named general cinema and it tracks on line mentions of films and it had more buzz than "iron man 3." 108,000 mentions of the great gatsby. i think there could be something going on here. maybe a little surprise to the upside by not flopping horribly. connell: you'll have more coming up on this. dagen: the trailer is hot for sure. connell: more from dennis straight ahead. dow still above 15,000.
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new highs for the s&p 500. gold big winner, performing nearly 400% better than equities in the last 10 years. cheryl and dennis have a guest next hour who warns better have some caution when buying stocks. dagen: congress investigates attacks. one of the leading experts says the u.s. needs to be better prepared. that's all ahead with dennis and cheryl. are we? no. why? apparently my debit card is. what? i know. don't worry, we have cancelled your old card. great. thank yo in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announcer ] when people talk, great things happen.
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we're all totally different. ishares core. etf building blocks for your personalized portfolio. 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. dennis: record highs and stocks are still up. cheryl: let's just say it again. dow 15,000. fresh new highs for the dow and the s&p 500 today. but take a look at gold versus the s&p 500. the metal performing nearly 400% better than equities in the last 10 years. we have two different takes on what investors should be putting their money going forward. dennis: as congress investigates attacks, joining us next, one of the beltway's leading experts on
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the china threat. cheryl: and the street is tweeting about what many see as the next big i.p.o. and that could be twitter. coming up, a guest who says twitter will go public before the end of the year. dennis: top of the shower, nicole at the floor of the new york stock exchange is breaking last hour, "new york times" reporting that calpers will vote in favor of splitting diamond's role as chairman and c.e.o. >> that's right. to have calpers, the large public pension system now voting in favor of a non binding proposal, separating, that's what they plan to vote on, okay? it's a plan. but this is what it looks like it's going to be separating the chief executive and chairman roles that now jamie diamond currently holds and has done so since 2006. this is supposed to bring protection along with it. you remember what happened recently with j.p. morgan where they suffered about $6 billion
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in losses. jamie diamond's pay was cut because of that but you can see there's a head shot there of jamie diamond. it's not unusual. we've had a lot of regulation. this is go that goes in line with what we're seeing but this is big news to have calpers call for this and say it's a fundamental conflict. back to you. dennis: thanks very much, nicole. the china cyber threat. beijing's ramp ant use of espionage fuelling heightened concerns over the cyber preparedness. the issue making its way to capitol hill as the senate judiciary committee held a hearing last hour expecting the cyber threat to the u.s. and joining us from washington, we have a partner that's head of the law firm global security practice. thank you for being with us, brian. first of all, are the chinese really all that bad than everyone else in the world? we seem to point a lot of
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fingers at them. >> chinese are providing most of the attacks at this time. there's plenty of bad actors at this time, other rogue states, et cetera, but at least in terms of what we're detecting, massive volume is out of china at this point. dennis: what is china's biggest priority? to get hold of product designs and get use of them or something after infrastructure and prepare ways of attacking us momentarily some day should the case, need arise? >> it's more of the former than t latter. they're trying to get business strategies because china, like everybody else, they're trying to catch up to the united states, trying to seek any advantage they can. if you can find out trade secrets, how companies are building parts, what their strategy is to go after oil and natural gas, it gives them a leg up and increase their economic leverage throughout the world. dennis: they had that private
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firm's report indicting china a month or two ago and then -- or day or two ago and then the pentagon said china and i believe the pentagon has warned if a country hacks into our defense systems, we view that as an act of war. yet when you wag a finger at the chinese, they shut down. why are we being so public as a government and calling them out? >> first of all, you hit the nail on the head. this isn't a big secret that all of a sudden they're emerging at this point. people have known for years china is doing that. there's been lot of murmurs in washington. now, the pittsburgh comes out. so to your question, why are they doing that? there's a reorientation of defense priorities towards the pacific and we need to justify the dense budget for things like missile defense and cyber defense that's going to be huge. dennis: that's an amazing answer. i was playing checkers down here but there's arguing for funding
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going on here. the fact we're so sure the chinese, that the people's liberation army are doing these attacks, the firm said it traced the attacks to a doorstep of a building. that means they're not very good at hacking at all if we can find them so easily. how can they be good enough to hack into our systems of over 100 companies and systems here in the u.s.? we must be even worse. >> they don't have to be very good. just pretty good. if you look at a lot of corporations at this point, it's only in six to 18 months they're really waking up to the threat. for years it's been at the c.i.o. level where they've been concerned about cyber security. now we're starting to wake up to it, seeing more reporting so they are being caught more regularly but the danger here is that a lot of these attacks are simple attacks but when you have the more sophisticated, advanced threats as they're called that come in quietly, they're designed to know things about you, know who your boss is, what kind of websites you look at and
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quietly come in and attack and lay and wait like a larva egg and hatch at a different late and suck in the information, that's the attack to worry about and china is good at it. dennis: last question, brian. do we need some kind of manhattan project to fix this? should we have some kind of government industry effort and get going on this? >> you know, i don't really think there's need necessarily for massive government investme investment. the government needs to invest in itself to make sure it has the right kind of technologies like detonation chambers and private clouds to look back and forth and exchange information but the realitiy is that plenty of people in washington and new york are investing money in the private sector into new companies that come out. what really needs to happen, this needs to be a sweet issue. c.e.o.s need to look and make it a corporate priority. how do you know you're doing the right thing? there are programs out there
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administered by the government like the department of homeland security safety act. use that to say, hey, if you use this and it looks like a good technology, we'll make sure you don't get sued after a cyber attack occurred. dennis: you must be in the business of giving that kind of advice. thank you for being with us today. >> thank you. cheryl: let's take a look at the markets. we had a real global story on our hands. remember last night the dow hit 15,000. look at japan, together on hitting nearly a five-year high. germany hitting a fresh five-year high so really a big story. take a look what's happening here in the united states of america. in particular look at the s&p 500. the s&p 500, as you can see here, this is over the last year for the s&p 500 but we want to show you a couple of things here. s&p 500 over just the last four sessions, here's a one-week return. gain of 2.7%. these markets continuing to take off and then take a look at the year to date. look at the s&p 500. many say that this is the way to evaluate a market and this is what you should be looking at
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when it comes to kind of how all the stocks are preparing. now, there are a few things that if you look at the markets overall, there's a few sectors. many like energy and my next guest is one of them. darin, welcome. you say that despite the global highs, numbers i was just looking at, the s&p 500, you see we need to be a little cautious about the market. why do you say that at this point? >> on the overall market, one of the first things i learned on wall street, don't fight the fed. i'm looking around the world and to be in stocks, hard assets is the place you want to be. when i look at being cautious moving into hard assets, looking at ways to move out of stocks but be producing assets like u.s. energy infrastructure makes sense right now. >> let's go to some things that you like. master limited partnerships, very good tax advantages and nice dividend yeedz. this is legacy reserves.
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why do you like this one? actually, if you look at the year to date charts, it's a vulnerable chart. why do you like this one at this point? >> it's on the energy side of it. right now it's an energy producing m.l.p. which means it owns energy assets. instead of it being massive limited pipelines, it's on the production side of the business. it grew distributions in the first quarter year to year, almost 5%. that's below average for the overall asset class that grew at almost 8%. that just shows you broader what's going on in the united states right now. >> energy production. oil and nat gas. >> over the last two years. we grew our oil production by almost two million barrels. cheryl: that one is up 11%. all right. energy. you also look energy as well. a nice dividend yield on this one. >> we started to recommend it, you know, back here in the lows
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at 20, 24. we don't recommend. we started investing in it. it's moving into a mid stream play and the g.p. play, general partner, that's faster growing. what people are missing is it's an asset class in growth mode. pick up on income first but that's half the story. income plus growth and distribution. this is moving to the g.p. side. cheryl: this is a 31% gain right here. i want to point that out. finally atlas energy. i want to get to atlas as well. again, this is another story. same thing. again, it's domestic production oil and natural gas. mass limited partnership and the dividend yield is also strong and this is a 49% gain the last year. >> we have more to talk about
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but this one grew at distribution 24% year over year in the first quarter. so this is incredible. and again, it goes to my point and what we want to educate investors on. you focus on one thing. growth and distributions. as long as it remains in place, it's a hedge against inflation, it's protection against rising interest rates. historically the asset class has grown 7%. you're doubling your money every 10 years. >> look at that performance right there. toyed throw green on the screen and the performance shows itself on the chart. looks good. >> it looks good. and i keep going back to the assets. we think people should own hard assets right now, u.s. infrastructure. you're helping the united states. look at north dakota. and it's 3% unemployment right rate now. five years ago it wasn't producing any energy to speak
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of. cheryl: we're going to have to get you back and get your pencil out. we'll draw up more charts. >> i would love to. cheryl: you would love to do this. we'll have you do that on the show. thank you very much. dennis: next time, keep away from the chart. that's cheryl's chart. and tax pain. we have a guest ahead who says small biz will be hit hard if forced to collect taxes on internet sales. cheryl: the housing market continues not only to recover but turning double digit profits. right now as we do every day at this time, we'll take a look at the oil contract, just talking about commodities. oil and nat ggs, oil at 95.99. that's pushing energy companies higher.
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dennis: stocks down. nicole is at the new york stock exchange. >> we certainly have a lot going on here today. we've had our breaking news pertaining to j.p. morgan. that manages to hold on to up arrows as we're learning that calpers plans to vote fundamental conflict to split the roles. we're watching disney on the heels of the numbers. disney has been under pressure, down 1.2%. mcdonalds, same store sale $ on the move and at the same time, you have fed fisher saying that he would prefer to cut mortgage back securities. we did not see a sale off with that and actually blaming fiscal authorities for a lack of job creation. that's certainly headlines worth noting as well. we have a lot of headlines going on but we're still close to the 15,100 mark. back to you. dennis: liking that. thank you, nicole. cheryl: the salt conference drawing many of the most famous
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names in investing to las vegas. of course, charlie calls it the modern version of the ball. he's joining us with the good, juicy details. and i want to get to the salt conference with you, but i have to ask you about the breaking news with calpers, j.p. morgan, jamie diamond, they're recommending that he should not be chairman and c.e.o. >> that should not come as a surprise. they voted last year the same thing. i think if you want a surprise, read the column you wrote in the "new york post" that will say one thing. it comes down to whether larry fing, black rock votes to put up the role. i'll tell you, a lot rides on that. that's a very political choice. larry fink is close to the obama administration. i would ignore this. cheryl: talk about the salt
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conference. >> i'm standing here with one of the big fat cat predators, formerly of brand x now over at morgan stanley and it's -- i snuck into a private dinner last night with some of these guys. very interesting. cooper man was there and it was an interesting debate about the economy. i'm just run through some stuff they said. rabini, and this is interesting coming from doom and gloom. three plus years of market gain before the crash. that's pretty interesting. he's out obviously, very pessimistic about the global economy but he said because of the fed pump priming, we still have some time to go with the market and i'll tell you, what he says is when the crash comes, it will be hard. leon cooperman who was bullish last year at the dinner is basically getting less nervous. he said the market has more to go, room to run.
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as long as the fed keeping printing. at some point, and he can't tell you exactly when, you have to read the tea leaf, people will be speculating rather than investigating. i think the market could go as high as 20,000. i'm telling you, the fed keeps printing and that's what cooperman says. the one issue, though, they're going to have to stop at some point. cooperman was critical of obama now, the culture of dependency. i think he's factoring that now into his market play. cooperman, one of the best investors around, he worries about the culture of the tenancies and what that means for a market based economy. then one of president obama's economic advisers basically seeing no real catalyst for robust growth. that's interesting coming from an obama guy. what they're telling you in the white house is the housing recovery is fixing up. he looks at it differently.
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he doesn't see the housing economy going up in a major way to get us through a growth of what we're used to. 4%, 5% growth opposed to what we have now which roudini said is an average of 1.5% growth the past five years. another interesting thing, mexico. they're all very positive on the growth of the mexican economy. anything from energy to a work force and they really like it. they're here. they're big time on mexico. that's a common theme. david garst was just speaking now at the bigger conference. last night he was speaking. very positive on mexico. cooperman positive on mexico. i hear that more and more, that there's an economic, you know, semi revolution going on in mexico. it's a country that had massive prime problems. when you talk to mexican government officials, and i have, they will tell you that
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crime is located very bad but the rest of the country is -- it has the potential for tremendous growth. and they have lots of energy there. that's the basic themes coming out of here. this is a great place to meet people. cheryl: what a great time you're having. i love it. you'll have to call into other shows and give more details. charlie live from las vegas. dennis: bet black 31 for me on the roulette. cheryl: cleveland police are searching for more women near what locals are calling a house of horrors. latest developments from ohio coming up in the fox news minute. cheryl: and killing small business. we have a guest ahead who says that's what congress will do if the internet sales tax becomes law. first look at how the world's currencies are fairing against the u.s. dollar.
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>> i have your fox news minute.
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house oversight committee on the benghazi embassy attack is underway. congressman isa says we want to make sure our government learns the proper lessons from this tragedy. witnesses are expected to testify that the white house was wrong to not immediately classify the september 11 attack that killed four americans as terrorism. in cleveland a manned a barry, one of the three women held captive in a cleveland house for a decade before being rescued was expected to give a brief statement. instead her sister asked for privacy. the air force has stripped 16 officers from the authority to control and possibly launch nuclear missiles. action was taken after an inspection found that 91st missile wing of the minot air force winn in north dakota received a d grade for the missile operation skills. 150 officers are assigned to missile launch duty. and those are headlines. now back to dennis. dennis: thanks very much, lauren.
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tax pain. that's what some small businesses say they're going to feel if forced to collect sales taxes on internet purchases. thanks for being with us, deborah. we're hearing congress which already passed it -- or senate already passed it say that brick and mortars are at a disadvantage and therefore, it's time to put a sales tax on all internet businesses over a million dollars. just how bad of a burden would it be for your clients? >> they're calling it the marketplace fairness act. our customers are small business owners we have every day. they're saying they can't afford the taxes and it's really too much for them at this time. dennis: you point out that actually it's an extra burden on an on liner that a brick and mortar store doesn't have to do if the law passes. >> that's right. on line businesses are being taxed and bricks and mortars are not taxed for their on line
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shipments so i think it's a problem for on line businesses making over a million dollars selling out of state. dennis: don't you think we should have a tax on the internet to raise more money so the government can spend more? >> i think some taxes with reasonable but it's too difficult for small businesses to try to figure out 9600 different tax laws throughout the u.s. and figure out all the requirements. it's hard enough to incorporate or form an l.l.c., let alone figure out the tax laws in other states. outside the home state, it's difficult for them to come to a determination how much they owe. dennis: there's like 9600 different taxing agencies they would have to worry about. congress would exempt businesses with less than a million dollars in revenue but do you have any idea what percentage of small businesses have more than a million dollars in revenue? >> it's a huge percentage of small businesses that have over a million dollars in revenue. just over 70% of small businesses so it's a large
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percentage and the reality is those businesses are considered small. we're thinking about talking about amazon or the larger businesses and they don't realize it's small businesses often make over a million. a million does not make a huge business. dennis: this is like the two bullies in the playground at school teaming up together when you have wal-mart supporting the tax and amazon supporting this tax. amazon has a business that helps other on line businesses collect sales taxes so i guess both companies are grinding their own ax. >> that's right. and we're talking about smaller businesses that will be hit with the taxes when they're already having enough to deal with in basic filings and just getting customers in the door. now we're asking them to pay huge taxes and what we're hearing is that businesses are concerned. as small businesses are helping build the economy, that's where the businesses are going to be. they're getting nervous. dennis: thank you for being with us. good point of view. we appreciate it. >> my pleasure. thanks for having me. dennis: a tweet i.p.o. we have a guest ahead who predicts twitter will go public or file to do so by the end of
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the year. cheryl: as we go to break, take a look at some of the winners over on the s&p 500. the s&p 500 today, again, hitting a new intra day high. we shall see if we lose at a new record high for the s&p 500. ♪ [ femalannouncer ] from more efficient payments. ♪ to more efficient pick-ups. ♪ weless is limitless. ♪ but i see a world bursting with opportunity,ople nervous. with ideas, with ambition. i'm thinking about china, brazil, india. the world's a big place. i want to be a part of it. ishares international etfs. emerging markets and single countries.
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find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
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[ female announcer ] from meeting customer needs... to meeting patient nee... ♪ to wireless is mitless... dennis: stocks now, nicole at the new york stock exchange. >> it's worth taking names here on wall street. right now the dow jones industrials are holding oo to a seven point gain, well above the 15,000 mark. take a look at names on the move. we've been following google, and the other thing is they may be working for driverless technology. auto pilot for your electronic
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vehicles. so that's worth noting as google his ab all time record high of 873.51 and toyota motor has profit on the rise and solid u.s. sales, weaker yen also helping to lift the bottom line and whole foods, two for one stock split. they're wooing in the shoppers. they've toned it down a little bit. more locations as well. back to dennis: thank you. "new york times" reporting that calpers will vote to split up j.p. morgan chase's c.e.o. and chairman roles for jamie dimon. thanks for being with us, david, on such short notice. j.p. morgan stock is up 60% or so in the past 11 months. what is calpers problem, exactly? >> that's a good question. you would have to ask them, dennis. from my perspective, i think that many in the proxy world, it's considered by many that the
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best practices for large u.s. companies is to split that chairman and c.e.o. role and i think that's their -- obviously their vote with respect to j.m. morgan today. dennis: do you know any research that's shown a mrit role of chairman and c.e.o. that that company outperforms in returns or profits? most of what i've read over the years says there's almost no difference at all. >> that's an excellent question and that's something we've not necessarily run numbers on but in this situation, we were of the view that dimon should keep both roles. this is an extremely complex company, dimon has an outstanding track record in creating value for shareholders and has an incredibly good handle what's going on in every business and i don't think splitting the roles really makes sense as far as the future direction of the company.
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dennis: sounds like almost a politically correct argument. let's take away some duties from the jamie dimon and maybe the stock ends up heading down. do you think this calpers proposal to split the two roles has any chance of passing at all? >> i do think there are going to be a number of votes from proxy firms and pension funds to split the roles. i think that's been the general voting pattern of these institutions over the last -- really since the financial crisis so i do think there will be a meaningful number of votes. we're not in the business of forecasting votes but i don't personally think that there's going to be enough votes to make the change and furthermore, it's a board decision and the board is going to consider the vote but it's ultimately their decision. dennis: it's another opportunity to tell the banks how bad they are in the meltdown. thank you for being with us
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today. cheryl: let's talk about the mortgage market and the housing market. fannie and freddie are going to tighten next year. all of this head wind is going to hurt the recovery so you're very concerned about what they are either predicted to be doing or probably doing right now. >> well, you know, the loan standards across the board are at a high rate now. average agency loan has a fica score over 700. fannie and freddie will only buy roles for the protection amount. it's non baik bank lenders. cheryl: one of the things we've seen in this economy has been housing, whether it's home building stocks that have been
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great for investors, whether it's the fact that consumers feel better about the value of their homes. are you saying here that that is going to maybe going away or at least take a bit of a hit under these new conditions? >> the housing market metrics are all positive, going in the right direction. the headwind that could affect the housing market right now is if there's no money to loan. lenders not willing to issue lns because nobody is willing to buy the loans on the secondary market. that could pose problems for the housing market next year. cheryl: what could the government do here? the rescue of fan ni e and freddie a controversial move but is there anything the administration could do now, new programs that could prop up what could be a problem for the housing market? >> i think what we need is a regulatory environment that makes it safe for private capital to come back into the market. this isn't a fannie and freddie problem anymore. what we need to do is have
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programs in place to make it safe to invest in mortgages again. cheryl: where do you think that mortgage rates go by the end of the year? we're at all-time lows. 3 1/2, 3.3%. >> the people projecting these things say we're going to be at 4% or higher by the end of the year but the rates keep going down. it really is hard to kind of get your hands around a moving target. cheryl: you would know. you would know. thank you very much, rick. a good word of caution from you. thank you very much. well, if you were looking for a bigger housing fix, tune in on friday for our network wide special on the business of housing. i'm going to have an all-star panel with me for the entire noon hour and we want to hear your best and worst real estate experiences. send us your tweets. they may show up throughout the day so tweet us, we'll put you on tv. west coast minute, the top prize that california cities are not proud to win.
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the worse traffic in america. dennis: our next guest says he knows when twitter will go public. first take a look at 10-year treasuries. my mantra? trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatmen axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk
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>> i have your fox business brief. year offering digital reporting that yahoo's chief executive has recently met with executives of premium video service. he said that it's the key component for yahoo strategy moving forward. they've considered selling all or part of the company for months now. americans spend nearly $10 billion on their favorite energy drinks last year. it's a 12% jump from 2011. monster dominated with 36.8% of the market share. coca-cola is going global with an anti-obesity push. though coke already offers diet drinks in most markets, they aren't readily available in emerging markets like china. they want diet options available wherever regular versions are sold. that's the latest from the fox business network, giving you the power to prosper. [ man ] on december 17, 1903,
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the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪
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cheryl: we're comfortably staying above 15,000 on the dow. a few names are moving right now. alkoa along with united health. drag on the markets right now, coca-cola. dennis: there's a lot of buzz about the possibility of a twitter i.p.o. and now thee hired a banker that could put them on that track. sam, you say that twitter could file to go public by year end. what's your evidence? >> besides confirming from a source close to twitter, it actually makes perfect sense. number one is i.p.o. is probably most like a movie premier. they hear about it. 30 days before, it's on happy meals, billboards, tv commercials and builds up to the premier red carpet.
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once that momentum fades a little bit, you sort of lose it. now twitter is learning from facebook mistake. they took too long to go public. their growth rate dropped from 80 plus to high 30's. it missed that window. twitter is still growing at 100% annual until revenue. over $500 million this year, double last year. when they filed the fourth quarter, they'll be able to get 100%. that shoulding the last quarter people see, the fourth quarter that happens to be seasonably good for advertising. dennis: so we're far enough past the facebook flop so we're no longer stung by that. two other issues they might want to get out of the way. one is the hack attack. it's embarrassing the number of twitter accounts, famous accounts, e-entertainment, a.p. sent stocks on a bungie jump. what do they do about that? >> this is a good thing they're private right now.
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they have to resolve this. that's obviously very, very embarrassing but there's a real issue with quick fraud and advertising. twitter promoted tweets by their click. when google and yahoo paid for a click, they had a lot of click fraud. they had robots click it a thousand times. twitter has none of that. dennis: twitter has none yet. 10% of all their accounts could be fake. >> that but also the quick fraud problem. we've even played with it, tested it and we were hit with the robot attack as well. dennis: can twitter afford to stay private? investors have been in the company six years. they want a buyout within seven years, right? >> they've gotten so much cash outs. it accounts for at least $400
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million so far. that includes dorcy and includes early investors. dennis: 400 million paid out. what market cap would it have if it went public? >> we think 17 billion. dennis: that's taking less than $2 in revenue per user but $17 billion. god bless them. we have to wrap. thank you for being with us, sam. >> my pleasure. dennis: good day. cheryl: west coast minute. colorado state senate has passed a controversial measure that would make it illegal to drive under the influence of marijuana past a certain limit. by testing suspected drivers for t.h.c., police could issue a ticket to someone caught with five nano grams of t.h.c. they would be over the legal limit. governor expected to sign the bill. now to junk food in california. get it? a proposed bill would ban
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vending food from state offices. legislation would take all sugar loaded drinks and junk food from all machines on state property. opponents are comparing this to mayor bloomberg's ban on large sodas in new york city. we shall see. finally, according to 24/7 wall street, drivers in several west coast cities take the top spots when it comes to time wasted sitting in traffic. los angeles number one for traffic congestion. worst stretch of road is the 405, of course. yep, everybody is nodding on that one. honolulu number two. san francisco at number three. and that is your west coast minute. all right. yesterday was a record breaking day for the markets but in the last 14 years, gold is actually what has been hot. look at this chart. gold up 400%. who knows more about gold than phil flynn? what do you make of this? we were showing the viewers the
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chart. gold is the winner. >> it is. take that, warren buffett, right? the guy doesn't want to own gold because it doesn't pay a dif den. how about a 400% return since 1999? and cheryl, that's one of the reasons why i want to top the champagne on the new record high on the dow and get excited about it. when you compare it to gold, that shows you a big problem with the rally in the stock market right now. why are stocks going up in a large measure because we're devaluing our currency. you know, if you look where the dow is right now, you compare unemployment to the last time we were this high. the labor participation rate, you name it. we weren't anywhere close to where we are today. and look at gold. that is divergence and it shows the devaluation of your shares. cheryl: but at the same time, while it's good to have commodities line gold, you'll futures game, even silver, you
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have to have equity he can pose you're. commodities can be sensitive to the global economy. china, for instance. >> absolutely. i think the bottom line of what we're trying to say here, you have to have some exposure to commodities. don't buy oil or gold for your entire portfolio but look what you're missing if you don't have it in there. that's what we have to get across to people. talk about the big moves in gold, if you look at the big picture, you missed out if you didn't have exposure to the markets the last few years. cheryl: you always know about gold, oil, all the good stuff. thanks, phil flynn. and a lot more, we should also say. dennis: box office pressure facing the grate gatsby. cheryl: technology. apple, google, here are some winners over at the nasdaq on the heels of their earnings, whole foods is leading the nasdaq on the winner's category. it's a brand new start.
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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,
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dennis: in today's media minute, it's great gatsby time. warner brothers film premiers friday as hollywood tries to end the curse. first ever came in 1926, a year after the novel's debut. not even robert redford could pull it off in 1972. now, this is the fourth big screen effort. it stars leonardo dicaprio. 98% of fans at rotten tomatoes fans want to see it. on line it's getting more buzz than even "iron man 3" got. maybe the great gatsby will be a
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surprise. and reports are that yahoo chief is cozying up to hooloo. it may go up for sale but it's taken on $300 million in debt and worth far less than the video feeds provided by the three giant parents. how much do you trust matt lauer? hurting his likability ratings in the new poll out from reader's digest. only 41% of people trust him and seven anchors rated higher, even savannah guthrie. heightened concerns over our nation's cyber preparedness. cheryl: congressman garrett at the house financial services committee joins ashley and lori next with his plan to stop this all from happening again. dennis: lou dodds weighs in as
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whistle blowers weigh in on the terror attacks investigation.
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dennis: welcome back. lori: the data 15,000 still climbing. skeptical of this market. where the good deals are to be had. ashley: at preventing another flash crash. a plan to stop it from happening again. stockpiles climbed to the highest level in years. ashley: what three benghazi whistleblowers are saying about the attack. lori: letterhead down to the new york stock exchange and nicole
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petallides. nicole: the s&p is eyeing its fifth straight day of gains and is 11th record of the year. the data has been getting closer and closer to 15,000. it is worth taking a look at mcdonald's. april same-store sales. right now, the stock is down about 1%. they did note that economic weakness that is still looming they are in

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