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tv   Markets Now  FOX Business  May 29, 2013 1:00pm-3:01pm EDT

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all right. i think we have an audio issue as you can tell there with nicole. melissa: i'm sure it was great. we'll go back in a second. as markets go back and forth over the feds' plan, the former chairman is weighing in. he has been critical of the central bank's policies in the past, and this time it's no different. peter barnes in washington with the e details. peter, what does he have to say? >> that's right. about to start the q&a session with the commission club of new york, but he did, again, lay into the fed for its bond buying program, and three or four or forever, whichever one you want to count, take a listen. >> beneficial facts of the actual and potential monnization
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of public and private debt. the various qe programs and the old pushing on the string analogy relevant. >> he also says he worries that qe now just reading from his speech, risks encouraging speculative distortions and inflationary potential. he says he has no doubt that ben bernanke and current fed members have the tools and the ability to up wind all of this at some point, but he says they have to be strong and maintain the feds independence. melissa, lori, back to you. melissa: thank you so much. lore already we have the gremlins worked out with the microphone. let's check back in right now. >> hi, there, all right, guys, you i can't hear you, but whatever, we'll get it right. let's focus on the markets. the dow jones industrials to the downside.
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erasing, equal for the gaining saw yesterday, giving back some today, down one full point on the dow and the s&p 500. tech heavy nasdaq down nearly one point. one area a glimpse of hope ar s. the vix, the fear index higher, but here's a look at jpmorgan chase, downside, down 11 cents now, the chief information officer is departing the company. he was serving as that -- in that role since 2008 and left to seat the other opportunities according to the banks spokesperson, they had a large quarterly profit for the first three months of the year for u.s. banks overall, but right now, you are seeing some of the banks with up arrows, but let's see the other names. first quarter profit, and bank of america, morgan stanley, all up arrows. right u no, we're seeing gold higher and oil pulling back.
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>> valuable member there. probably, i would bet, following frank over to first data, but we'll see. will be an interesting story to follow. >> in the meantime, major averages there, pulling back despite another record close yesterday, could all the data lately have investors concern they slow down the bond buying program? jeremy, the chief equity strategist, and joining me more on why he's bullish and where the best opportunities lie for investors. wonderful to see you again. okay, the dow down 150 points today. considering the reversal, we saw last week, is it fair to suggest that the bullish momentum is starting to fade? >> i don't think the bullish momentum is fading, but the market is getting concerned about the inflexion point of the monetary cycle. from a longer term perspective, still up 3% this month and 15% year to date, and that's from, you know, looking out six to 12 months, i market is not overly
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nervous in tapering off as long as it's driven by stronger growth. if earnings come through, the economy and economic recovery continues to have reasonably strong momentum,icty markets grind higher. >> what if the fed tapers the bond purchase because of the own concern of creating bubbles in the massive balance sheet required over the years. could that be problematic? >> i think that is parole the biggest market risk that if the feds determine they taper off, not because the economy is gaining momentum, but because of the cost associated with the expansive balance sheet outweigh benefits, then i'm more concerned about the pros pelgts for equities, but i don't think we're likely to see ben bernanke led fed really ease off until he's very confident that growth, the growth trajectory and economic growth, momentum seen that improves over the past several months is on firm
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footing, especially considering that the inflationary data, more lately, has been fairly benign giving us a bit more cover to continue to, you know, maintain its current level of asset purchases. i don't an anticipate if they taper, first it happens at the first quarter of the year, and second, it's data dependent. >> okay. what does this mean for economic outlook? do you expect to to continue the 2-3% growth rate for the balance of the year and markets. you are bullish here. do you think we have room to run op the dow, more record highs? >> i do. i think the market, so far this year, we've seen much of the gaining come from multiple expansion and easing of the policy risks. the baton is handed now from, you know, multiple expansion driven markets to earnings driven, and from that perspective, the outlook looks good. the first quarter, even in a difficult environment for corporate earnings concerned about higher tax rates, lower consumption, still had 4.5%
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earnings growth. that accelerates as the year goes on closer to 7%. equity markets can continue to grind higher, more of that pace at the 7% annualized rate rather than the surge over the first five months of the year. >> bullish on the economy and stock market. industry break down, cyclicals, what's interesting are cheaper than defense while usually it is the other way around; right? >> it's interesting. the bigger call within the equity market, not at the aggregate market level, and within the equity markets, cyclical sectors trade at s 11% discount to defensive. normally, cyclicals trade to defensive. this month is interesting. what happened this month is that interest rates backed up 50 points, and yet the market rose 3% month to date, and you've seen a lot of money come out of those expensive high yielding sectors. the market rallied 3% this month, ewe till sighs down 9%. real estate investment down 4%.
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these areas still look -- still look relatively richly valued to me, and i think as the economy starts to gain traction, as interest rates continue to normalize, there's downside risk to some of the defensive high yielding sectors of the market. >> no kidding. utilities, tell comes, and you hit the nail on the head with the higher interest rates. what do you characterize as higher interest rates with where the economy and fed is. there's been dirty rates over the last few weeks as you know. >> i think it's going ton bumpy and uneven. i have a constructive economic view, i don't think interest rates back up meaningfully from here after the move this month, but expect rates to, you know, sort of back up another 30-50 # points, but over a six-12 month period as they get confidence in the economic recovery. >> covering it all for us, jeremy, thank you so much for your time. >> great, thanks a lot. melissa: other stories today,
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smithfield foods hitting a 52-week high in a deal to be bought for $5 billion. they are the largest pork producer and the chie cheese company hopes it satisfies growing demand for u.s. made pork in the home market. splitting into two, sallie mae plans to split into two publicly traded one, one an education loan management business. the other, a consumer banking business. if the board approves the split, they hope to complete the deal within a year. speaking of college students, today is may 29th or 5/29 having parents thinking of 5/29 savings plans. there's events to promote the plans with some offering insentives for families to create accounts. florida and washington waive the $50 enrollment fee, and utah matches $25 contributions for accounts opened today. money deposited in 529 accounts
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grow tax free as long as they are used for educational purposes when withdrawn. a threat the entire world, the new warning from the world health organization about a new sars-like virus. lori: oh, boy. paying up after the botched facebook ipo. the record fine with ill-fated decisions. melissa: this could be awkward. eric holder is planning to make the rounds with major news organizations. let's check the trade on metals going to break. keep in mind, equities down, so gold is climbing. safe haven today, perhaps? we'll see, 1250 the ounce, the gain, 1392.20. back after this. [ larry ] younow throughout history,
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>> a news alert, the world health organization warning a new sars-like virus is, quote, a threat to the entire world. three more deaths from the lethal virus in saudi arabia bringing the death toll to 27 # of the 49 known cases. like sars, it causes respiratory
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illness spread person to person contact. it does not spread easily in communities at large. with most cases origin nateed until middle east, they named the virus middle east rise pir tore syndrome, and warn travelers to the region to wash hands frequently and limit contact with animals. melissa: breaking news frustrate sports world, espn reports the new york rangers fired head coach. fired. from the rangers. lori: can't keep up with the los angeles kings. melissa: there you go. lori knows. me, less so. oil, i know a lot about. crude prices tumbling, and phil flynn at price futures group in the pits of thh cme. phil, oil moving in line with stocks again today. >> it really, you know, tell you, melissa, yesterday we were concerned about syria and other issues, but at the end of the
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day, it's going to be the economy that determines oil. you're seeing now all bad news about slowing demand it in china, concerns about the target, rising yield, record volume in the treasuries issue and then the oil market looks very, very heavy, and, in fact, it looks heavier when we talk about tapering from the fed. all of those issues are going to put downward pressure on oil. you're not going to get the demand from china, and it's the u.s. growth that's going to force the fed to act. it's going to lower the demand for oil, and we see that down in the price. melissa: can't help the effort in vienna now, and oil selling off. not going to make them happy. what about the pull back in gold? >> you know, i think, you know, the gold, it's still looking like -- melissa: sorry, i meant pull back in the market, how is that affecting gold? gold is, obviously, a lot higher. >> it's been hanging in there. two weeks ago, we had the bottom, but it's holding up. gold is a better investment,
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especially with stocks going down. one of the reasons why gold was hit hard, everybody bought into the target was going to go straight up, you know, and then, you know, selling etfs, and now the fed tapering story in play slowing global demand, for uncertainty, geopolitical risk with syria, gold is shinier than yesterday. melissa: i don't know. not buying it. may bounce back 12 bucks, still below 14 # 00. we'll see, phil, time will tell, thank you so much. lori: an update on the target with nicole. 159 point deficit on the dow, nicole. >> that's right. we look at a market that is selling off, indeed, down about 160 points on the dow. i want to look here at a couple names on the the move in the retail sector, one fashion and accessories, the other in the group realm, nevada group, in the watch realm. kors up more than 11%, and
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movado up little more than half a percent. they doubled the number in the stores over in europe, and all the sales are booming, so that's good news there. that came op the heels of tiffany yesterday that we saw tiffany on the move, and from movado group, third quarter profit improved 24%, and they boosted their revenue and benefited from an asset sale, and though the input costs rose sharply there for movado, up half a percent there, and it's up in the luck ri names, back to you. >> thank you. 2 00% return in three months, going behind the scenes of tesla with what's behind the meteoric stock rise, and can you trust it? >> also, well, can you trust this guy? attorney general eric holder set to make the rounds -- >> you said it, i didn't. >> i did. talk to some of the news organizations.
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he wants to talk about protecting the first amendment. too little too late, i don't know? melissa: the dollar fairing today, dow down 160 points. the dollar is weaker against all currencies on that board. we'll be right back. ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart tex i can quickly derstand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody.
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>> 2 # is minutes past the hour, in afghanistan, a homicide bomber attacked a red cross guest house. one guard was reportedly killed. two mill at that particular times entered the building beginning a guu battle with security forces. afghan police say seven foreigners working for the red cross have. rescued. the red cross provides humanitarian aide in afghanistan. near the afghan border, second in command of the pack stappny taliban has been reportedly killed as well as three others in a drone strike. it is the first drone stick in pakistan since president obama announced his new counterterrorism policy last week. in greensboro north carolina, animal rescue and wildlife crews
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working to rescue a baby bear. the bear was spotted about three hours ago in a tree in a residential neighborhood. those are your headlines here in the fox business network. back now to lee liz is a and lori. lori: cute, but fright ping. melissa: from a distance. lori: that's rights. meeting with washington bureau chiefs this weekend, and rich edson has the latest. >> this is criticism of eric holder grows as well as the protests of tracking journalists' communications. a justice department official says the attorney general meets with news organization here in washington as early as tomorrow including fox news channel as well as nbc, abc, cnn, print organizations, radio organizations, and department officials say they review guidelines for grorching investigations involving reporters and that, quote, these
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meetings begin a series of discussions that will continue to take place over the coming weeks. this as lawmakers question whether holder lieded to congress when he denied in a hearing this month that he was involved in prosecuting the press. house judiciary community goodlatte. s the testimony clarified as they testify later saw he okayed the search warrant to james rosen. in a letter to holder, goodlatte says regarding the search warrants for the e-mails appear to be at odds with your sworn testimony before the committee. congressional democrats argue holder did not mislead congress, but the letter says holder has a week to answer several questions similar my -- clarifying the testimony. lori: includes fox news? >> yes, yes it does. lori: first on the agenda would be appropriate, no? melissa: we'll see. what's the reception likely to
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be like. lori: warm. melissa: the rest of the media is lap dogs, really woke up to everything going on and have been on the attack. what do you think the reception is like? >> there's a concerted movement. there's a divide over issues in washington whether or not they represent true scandals, but because it involves journalists and them doing their jobs, this has become a clear cut case for the most part of folks on both sides going after the justice department and criticizing the way they handled this. lori: all right, thanks rich. melissa: new developments in a story we covered for you, investors in the empire state building approved a plan to sell the building as part of the ipo. the grime comes after a year of fighting which spearheaded the plan and a small group of investors. the proposed real estate investment trust with empire state building aims to raise $1 billion. own a piece of new york history there. lori: i don't know if i've got
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that spare change. melissa: i bet yyu do. lori: laying around. oh, jcpenney taking heat from a teapot that apparently resembles hitler, but see for yourself. what do you think? melissa: when it was by itself, i didn't see it, but then next to the picture, i don't know. >> i think they are just desperate. last week, the design resembles, and there's the side-by-side comparison. it's viral. there was a photo of the teapot on a billboard in california, and it's been taken down, and they call it slightness unintentional. melissa: yeah, i bet! lori: the $40 is now sold out online. melissa: poor thing, it's cute with the bell. maybe for decoration. i think people use them.
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anyway, debt pratt for a home? shocking number of americans that can't find a house to buy and why that's turning real estate into a sellers' market. i am suspicious of this. century 21's ceo rick davidson is brave and here next with the spring housing survey. lori: the dow gave up all yesterday's gain that put it in record territory, 15279 the price. most of the components on the dow are down at this moment. we're back after a short break. ♪ [ engine revving ]
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lori: time for stocks now. it has been 15 minutes since our last check in with nicole on the floor of the new york stock exchange. what are the drivers here? traders obviously pulling back today. >> what we're seeing here is
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a market down 119 points. there is not always drivers the market. sometimes they go back and forth a little bit. sometimes there are concerns about the fed and when ben bernanke may pull the kool-aid. we saw that in early the earlier show with connell mcshane. that is still looming. nobody thinks it is imminent or right now. we're seeing fundamentals improving lori. that is one of the reasons why we're seeing back and forth action, yesterday gaining and today pulling back. i want to look at a name obviously on the move that is nasdaq today. we're watching nasdaq and facebook very closely on a day where the sec is looking closely at the nasdaq. so much was lost on the facebook ipo last may you may remember where there were trades that were blocked up for hours. in the meantime the nasdaq will have to pay out $10 million to the sec and so obviously these are because of violations and poor execution of the facebook ipo the nasdaq has since made many changes as well. there is nice one-year
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chart. it is up one-third of 1%. back to you. lori: thanks, nicole. >> thank you. melissa: it is a good time to be a seller. a new spring housing survey by century 21 real estate find inventories are so low a shocking number of americans can't even find a home to buy. joining me century 21 president and ceo, rick davidson. the stats from the study are pretty amazing. 33% of those searching for homes say they have been looking over a year. 67% are looking up to a year. still haven't found what they want. 42% of those looking made an offer in the past six months. only 11% had their offers accepted. to me, this means, i'm a free market economist. this means they're not bidding high enough. they're trying to get a deal. >> to me it speaks for demand in the marketplace for home purchasers. what is interesting of 2058 respondents to our survey, 18% of those are actively in the market today. as you indicated 33% of those have been in the market for more than 12
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months. and 42% of those actually made an offer on a property in the last six months. >> say there isn't snuff enough supply for the appetite? >> i like to look at facts. the numbers speak to what is happening. >> okay. >> national association of realtors latest existing home report for the month of april, 9.7% in increase in the number of homes sold in the united states. you have a 5.2 month of supply of housing units. melissa: is that high or low? >> that is low. melissa: what i said, supply is low. you think that is the problem? >> we consider equalibrium is six months. melissa: if that is the case and all these buyers and pent-up demand and want a house wouldn't more people put their homes on market for a higher price? if it is great time to be a seller there would be more selling and that's why i don't buy this and it doesn't make sense. >> part of why we did the survey is to understand the buyer and psyche of the buyer to help our seller clients. if you think about the chasm
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between buyer around seller expectations for the last several years. melissa: right. home prices were falling. wait, my house is worth more than that. i will not sell it to you for that price. >> that's exactly right. as things are beginning to turn and sellers are more in control of the process but still many are thinking that they may want to wait until the house increases more in value. if you read corelogic's latest report they show that approximately 10 million mortgaged homes are still in a negative equity position. melissa: right. >> what that means is shows sellers can't bring their home to the marketplace. melissa: they would need a much higher price. what you're saying this laid groundwork for higher price. if there is pent-up demand, people could raise the price above what they need to make to pay off the mortgage and have something left over and go ahead and sell their house. is there a disconnect in the information that the people bidding just can't accept prices have risen and they don't want to pay? my mother-in-law is a real estate broker. she is seeing this a lot
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right now. where people don't want to pay more i'm looking at comps and comps are lower. she will say a house is worth what someone is willing to pay for it and what someone is willing to sell it for. we have a disconnect where buyers and sellers are not coming together because the buyer doesn't believe what the market will bear right now. have you seen that. >> you said it according to price increases. according to nar there was 11% price increase year-over-year in the latest report. i'm sure you saw the s&p case-shiller report that came out yesterday. melissa: yes. >> double-digit price increases across all 20 markets they recover. it speaks to the market demand. what buyers are willing to do today according to our survey is stretch, go above and beyond what it takes. melissa: if i'm sitting at home watching this and trying to get a takeaway, my takeaway would be, wow, if i'm a seller i should hang on and really demand top dollar for my house. if i'm a buyer maybe i should take action right now?
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>> there is lot of reasons why real estate is transacted, right. >> people relocate. people have a babe i b people get married or downsize because kids going off school. lots of things drive market activity on a day-to-day basis. what i would recommend to your viewers engage a real estate professional. get into the marketplace today. understand what the dynamics are in your local market. all real estate is all hyperlocal. melissa: right. >> once you understand the dynamics. if it makes sense for you to possibly leverage your equity in a buying position in today's marketplace as a seller. there is lot of reasons why you want to consider to get into the marketplace today. melissa: i think what you said you're fool if you market time it. life dick states when you buy and sell a house? >> life doesn't always dictate it but i don't believe in market timing. i believe in getting into the market and taking advantage of a market opportunity. melissa: rick, thanks. good stuff into thanks for having me. lori: former federal reserve
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chairman paul volcker is speaking about the rule named after him. three years later why are regulators still squabbling over its interpretation? charlie gasparino weighs in with his interpretation. melissa: look at 10 and 30-year as we head out to break. look at the 10-year falling there. we'll be right back. we went out and asked people a simple question: hoold 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 enjoyll of these years. ♪
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>> i'm jo ling kent with your fox business brief. it's a tough day for
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wall street just a day of a the dow hit another record high. worries that the federal reserve will taper its bond-buying program sooner than expected are pushing stocks lower. according to corelogic foreclosure fell 16% in april from the same time last year. from a month to month basis foreclosures held steady at 52,000, the same as in march. foreclosure inventory accounts for nearly 3% of all mortgaged homes. the headquarters to the new york stock exchange may soon have a new owner. cme group retained a company to explore the sale of nymex building. regardless whether the buildingis full, cme will continue out the nymex trading floor in new york. that's the latest from the fox business ne power to prospe.
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melissa: the so-called volcker rule that bans proprietary trading will soon be fully implemented by regulators but banks say squabbling over what the edict means continues. charlie gasparino has the latest. >> we should point the volcker rule was essentially a post-financial crisis rule to prevent excessive risk-taking. banks using their own balance sheet to trade in the markets. i don't believe that is what caused the financial crisis but paul stroller thought it contributed to some losses. since dodd-frank was passed in 2010 there was allegedly something in there called the volcker rule which banned proprietary trading. guess what it has never been fully i am meanted three years after the fact. we have an impasse. banks, interpreting volcker rule on their own without very little input from the fed and sec which are the two main regulatory bodies that are supposed to be implementing this. they are now at odds exactly
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what this means. here is sort of the craziness of the volcker rule, if you take it in its moan strict interpretation it wouldn't just end propry tear ray trading, using the balance sheet to make bets in the market. it would end market making. if you have a client and client wants you to buy yen, whatever, bonds, treasury bonds and you basically use your balance sheet to buy that for the client under strictest interpretation of the volcker rule that would be outlawed as well. we have a regulatory impasse. i'll tell you if you to know why we have a regulatory impasse you can point to the fumbling on the part of the fed and. sec you have to lay blame on paul volcker. that was one of the most idiotic rules i've ever seen way it was written t left so much to be interpreted i don't think they can ever interpret this. i know paul volcker says he is making, i saw some of the commentary coming out of this speech at the economic club of new york which is kind of interesting. he is betting that it is going to be fully
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implemented within the three-year anniversary which would i believe would be july. dodd-frank was passed in july 2010. i can also tell you that i met chris dodd at a meeting, at the white house correspondents dinner about a month ago and he didn't seem like he was too optimistic that this thing will be solved anytime soon. it is still a long way to go. it has been, if you, if you, you could probably drive a mack truck sideways through the interpretation of this. it leaves so much to be --. melissa: that would be hard to do. >> and guess what? that is why we don't have a volcker rule. melissa: all right. charles. lori: thank you. get you updated on the markets. mark newton on the floor of the new york stock exchange for us. we'll check back in with mark. nyse gremlins are back i suppose. in any event there is a look at the three benchmark averages. the dow is off 105 points, off the worst levels. still off triple digits as you can see. the nasdaq and s&p 500 were
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lower as well. and the 10-year note, everybody is talking about that. coming down a couple basis points but it is still elevated at the highest levels of the year. melissa: from managing to madonna to investing in the next big thing, guy asiri joins adam shapiro live from all things digital. that is coming up next. lori: a car dealership where you can look buu can not buy. a close-up look with jeff flock at carmaker tesla. melissa: a look at the some of today's winners and losers on the nasdaq. ange makes people nervous. but i see a world bursting with opportunity, 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. find out why nine out of t large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus,
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lori: is this a late session rally? some buying going on. let's see what the story is with mark newton from the
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floor of the new york stock exchange. the dow with a low deficit of 170 points. down about 100 points. it was better than a minute ago. what do you see happening here, mark? >> investors are asking themselves at what point could they take the decline seriously? this seems to be out of the playbook last weeks futures declined 1% after europe's close. we rallied late in the day. we have yet to see any weakness in u.s. stocks but the move in treasury yields over 2% is causing a lot of deterioration in utility sensitive groups. we're seeing selling in utilities and telecoms but consumer staples join the fray and measured weakness in homebuilders an reits for the first time in months that to some extent is interesting. lori: there are serious bargains in the cyclical industries overall. they're trading 10 to 15% less premium with stocks. would you agree with that? >> potentially. this market moved a long way. we were up almost 7% or so since april lows, up 3% for the month.
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we're a bit overdone. we're starting to see gradual signs of momentum weakness which happened based on last week. last week we saw for the first time a move to multiday highs and closing down 1% lower for the day. the last time that happened was in 2007 at market high. lori: yeah. >> prior to that march 2000. people say valuation is where it should be we never really got down to those extreme lows during those prior recessions to argue that stocks were cheap. if anything now, stocks are fairly valued but we've had one heck of a run over the last few years. lori: this is often welcome, catch your breath in a way. >> right. >> what is the best place for this session to wrap up where we would be in good shape on solid footing to set in for tomorrow? >> i still think you have to avoid the defense sieve sectors with treasury yields on the move. even with stocks sell off we've seen no flow into treasurys. yields are still up on the day. you want to stay away near term from utilities, telecom and consumer staples. i would look at energy and i would look at technology. look at some of the industrials.
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those seem to be better risk/reward at least in the near term. even next week if we see continued selling in the homebuilders those will still be attractive. a lot of groups have longer term uptrends. short term weakness is part of this overall trend. lori: got it. mark newton, thank you very much. >> my pleasure. lori: let's head back to the all things digital conference. from music mowing full to venture capitalist rock star, adam shapiro with guy asiri for the exclusive interview. adam. >> that is an accurate title, music rock star, capital venture and rock star. he was manager of not only madonna part of a-grade investments. you heard of ashton kutcher and ron berkle. guy is successfully with his partners raised close to $100 million now, the value of the fund for future investment. where do you put the money? are you seeing things here that might be the next big thing? >> we're doing exactly what we've been doing last few years. we done it with our own money. we're always looking for
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innovation and companies we believe we can help. >> but the topic we keep hearing this year is mobile first, the end of the pc. pcs are yesterday's news. how do people make money? for interest, you're invested in spotify. how do you make the amount of money that will make it worthwhile for you to be invested? >> spotify is valued at over $3 billion. spotify will this year already, people are just still finding out about it. they have 6 million people signed up. they will do, they will pay out to the music industry $500 million this year. and that's pretty big for a company that just started and you have heard a lot about the music industry is dead and it's in trouble and here comes a company out of nowhere that will pay out half a billion dollars to the music industry and it is just starting to pick up momentum. >> changing the whole landscape how the music industry operates. years ago you had to get the record label and they had to
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cut the album and you were marketed. an artist with a manager can do this all on their own. >> they can but you shouldn't discount record labels or even independent record labels. something about a team, and i came from the record company. i have maverick records with many years back and, you know, you need a team. you need people to help you with everything, everything from how to market your record, how to get it out to -- >> i mean i get with spotify which i'm a new member of spotify. i'm enjoying it. i understand how music on my smartphone and my ipad but what about air b and b and monetize the future applications that will all be mobile? >> air b and b, we're getting rid of things we don't need anymore. we can now actually go directly to the person who's renting me their apartment. i can talk to them directly without having a middleman be part of that, without
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having a two-week guaranty or all the stuff that comes, the clunkiness of trying to connect those dots. now air bnb makes it seamless. you can go on. you see 20, 30 photos of the place you will rent. you will see the person who is renting see comments about you as a person who will rent. this really makes it a very incredible way to pick where you want to stay. it is very cost effective. >> finally when you see a startup, what are perhaps the key traits you look for before you're willing to put your money on the line? >> the founder. we know from my record company background you want to see a rock star walk in the room. you want to see someone, you know it, they have got talent. they can carry themselves like they have got talent. i will bet on this person, right? we have to find the artists very early on before we ever heard on the radio. years before they ever heard on the radio. same feeling when you see a founder and they walk in a room and they share their
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vision with you, they are the rock star. they're sharing your music with you and sharing your album with you? i look at it can i help market the album and vision, in the same way i've been doing since i was a kid. >> guy, thank you for joining us. we heard earlier in the day smartphone penetration globally only 21%. when you talk about the upside for all of this not only for your firm or and people here there are a lot of money to be made. we'll three it back to -- throw it back to new york and we appreciate you being here. >> thanks. melissa: good stuff. lori: thanks for our own fbn rock star, adam shapiro for bringing it to us. at 2:00 hour, first on fox business interview, mark andreessen. he tends to be ahead of the curve. he bought skype for ebay and sold it to microsoft. his thoughts on the next big thing, 2:00 p.m. eastern. melissa: tesla is moving with shares of company up over 200% this year but can it continue?
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jeff flock is live at a tesla star in skokie illinois with more. are they flying off the shelves or the floor or however they're nailed down? >> i have never been, melissa, to a car dealership, it is not really a dealership where you can't buy a car. they don't let you buy a car here. you can't just walk in and hey i want to test drive it. you have to schedule it in advance of course if you're us and you can walk in and get a test drive. this is the model s. this is a wonderful car, i will say. motor trend says it has got to be the best car they have ever tested. that is pretty amazing. you wonder, can this stock continue? i want to make sure i put it in park here because i would hate to wreck this thing. look at sales, q1 of this car compared to its competitors? they say, are you really selling any of these things? no kidding, they are. 4700 of these compared to the mercedes s-class. they didn't sell anywhere near that. bmw 7 series. didn't sell anywhere near what the tesla has done.
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audi a8. why would you buy this stock even at crazy price it is at right now. this has not yet rolled out in europe and asia. there is a lot of interest over there. the orders are already way ahead of what they thought. they have streamlined their production process. there is reduction in temporary employees. their costs are down. they have a supercharger network about to roll out this week where you can charge this in 30 minutes. and, they have also got a lot of new products out there. real quick, the reasons you might not buy it other than its tremendous highs right now are, r&d cost real high. from goldman sachs. market cap is quarter of gm's. how can that be? emission credits are what drove profits. lastly, tesla trading 100 times projected 2014 earnings. it's crazy. hey, we know, melissa, don't get in the way of a run in the stock market on a particular stock because you will get run over. melissa: there you go. anyway you look at it looks
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dangerous to me but interesting story. jeff flock, thanks so much. lori: sexy. the car is not bad either. melissa: coming up tonight, how am i supposed to follow that, right? coming up tonight on "money," steve forbes joins me to discuss the pooer of money. a new trend of companies firing or retiring ceos and they bring them right back. that is tonight 5:00 p.m. eastern on fox business. we're seeing that a lot lately, right. lori: i'm glad you brought it up and talk about it. it is going on a lot. melissa: all over the place. jcpenney. apple made it work we'll break it down. lori: still a couple hours to go before the closing bell but watch markets now for excitement. the markets are trying to come back here. also one home improvement ceo is uping his target for u.s. sales thanks to the housing rebound. fortune brands chris klein joins joins tracy and ashley next here on fox business. don't this is america.
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tracy: good afternoon, welcome back. i'm tracy byrnes. ashley: i'm ashley webster. stocks cutting their losses but still deep in the red on new fears that the fed stimulus, well, it's going away. the dow is off 79 points after hitting north record close yesterday. we're of course tracking the selloff all hour. tracy: plus we have to start fortune brands home and security shares nearly doubled since last year to near all-time high. we have ceo christopher klein. he is here in a fox business exclusive. ashley: first on fox interview with silicon valley pioneer and vc giant and netscape cofounder, mark andreessen. he is will he will tell us what is tech's next big thing. if anyone knows he should. tracy: back to all the netscape days. that means we're old. top of the hour. time for stocks. we go to nicole petaalides on the floor of the new york stock exchange.
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what is going on, nicole? >> tracy and ashley, we're seeing a market that ever ared some earlier today. obviously we were down over that 100 point mark easily today. we recouped half the hoses. we were off a full percentage point. now down half a percent. down 82 points. retail index and drug index are lower. u.s. dollar is lower. watching the 10 year treasury yields today at 2.144. watching gold gaining up almost 12 bucks. i wanted to also take a look, obviously we're in the middle of deals here or at least potential deals, a better way of saying it. smithfield food on potential $4.7 billion deal on a chinese company and meat producing company, shanghai international is interesting purchasing smithfield for $4.7 billion. however it faces regulatory hurdles. quality control scrutiny. over in china they have a lot of issue with meats pertaining to bird flu and the like. you see smithfield foods up
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30%, off its earlier highs of the day but certainly a big gain. ties son foods at a multiyear highs. both. names in the food realm hitting new monument al levels. back to you. tracy: thank you, nicole. see you in 15 minutes. ashley: our next of the about says it could be a sometime for a summer rental, not a home in the ham tons. jeff klinetop from lpl financial. thanks for joining us. the beach house in the hamptons sounds great but from an investor point of view what do you mean? >> there are a lot of events at the end of the summer. the fed jackson hole conference where we learn from what is the next step from the fed. between now and then we may not hear things from the fed. german elections come in september. that will decide the fate of growth in europe and its policy flexibility. of course we have the debt ceiling battles coming up at the end of summer as well. for the next few months or so you may look to some rentals in your portfolio
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rather than a buy and hold position because everything might change come the end of summer. ashley: when we say rentals what do you like in that respect? >> well i think, a few securities you can hold over the course of the next few months, one might be higher quality bonds for example. we've had interest rates move up to the highest levels of the year. they're unlikely to break out of this range to the upside maybe until the end of, until the end of the summer when we get to the jackson hole meeting. between now and then you may be able to hold higher quality bond in the portfolio. look at u.s. stocks. continuing to outperform european stocks. in part the dollar is going up. in part better economic growth. better economic flexibility in europe until we get to those elections on september 22nd. those are two ways you can add summer rentals to your portfolio. ashley: today is an interesting day, isn't it? we were down big at opening. wasn't sure what it was all about. softness in japan after-hours. that spread to europe and moved to the u.s. markets.
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so many analysts are calling for a pullback of five to 10% but here we are recovering again. if we do see a pullback like that, do you believe that's a buying opportunity? >> ashley, i do. i think as you look at the summer here one of the other rentals may be a little bit of cash or a hedge. as we look at the markets we've gone 600 days without a 10% or more pullback the in stock market and 1670 days without a 5% dip in the bond market. we haven't seen much volatility lately. that may pick up as we go from a gallup to a grind higher in the stock market this suumer. that may mean dips come along the way. those are great opportunities to move out summer rental of cash and do real buying. ashley: with regard to sectors, do you think industrials, technology, financials they could pick up the slack a little bit here? >> i do. i think you want to look at the cyclical areas like technology, like industrials. some of those areas that you want to buy on the dips, that the high dividend payers have done fairly well
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so far this year. they may continue to do well longer term because they're income producing securities in an income-scarce world. we're more likely to see cyclical stocks. and those sectors you mentioned be the ones that bounce back the most. they are laggards. they have the most potential to rise once we see improving economic numbers as we move over the course of the summer into the fall. ashley: great points. thank you so much, jeff klinetop, lpl financial chief market strategist. we appreciate it. >> thanks for having me on. tracy: former fed chairman paul volcker keep enough of his criticism of the central banks current easy money policy in a speech earlier? he has been on the bandwagon for a while. ashley: he has. tracy: one current fed president is defending it. peter barnes following all the fed talk thankfully from washington. hey, peter. >> that's right, tracy. paul volcker ripping into the fed's quantitative easing programs in a speech from the economic club of new york. he questioned its effectiveness. >> beneficial effects of the
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actual and potential monetizaton of public and private debt, yes, so various qe programs. if you're limited and diminishing over time. the old pushing on the string analogy is relevant. >> volcker also said he is worried qe could encourage speculation and inflation. he said he does not doubt that ben bernanke and company have the ability tools and knowledge to exit from qe and all the other fed stimulus programs, but, he said history shows that central banks wait too long to act. triggering new imbalance in the economy and inflation. but one current voting member of the fomc this year, eric rosen again, president of the federal reserve bank of boston says he wants to wait for now before starting to back away from qe. he said it would be premature to stop bond purchases all together before there is stronger economic growth and job creation, but, he said the
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tapering qe is not off the table. he said, quote, it may make sense to consider a modest reduction in the pace of asset purchases if we see a few months more of gradual improvement in labor markets and improvement in the overall growth rate in the economy. and, tracy and ashley, as you know from the last set of fed minutes there are some fomc members have been talking about pulling back on quantitative easing, tape everying as early as the meeting in june just coming up in a couple of weeks. back to you. tracy: so many buts though. paul volcker is so tall. you see him standing over the podium. ashley: a tall man, do noubt about it. peter barnes, thank you very much. >> thank you. tracy: i've seen him speak before and the podium comes up to here. ashley: like a giant. coming up, talking of which a giant in the tech world, netscape cofounder and venture capitalist mark andreessen will talk about new investments live in fox eastern. that is coming up.
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tracy: money laundering charges for liberty reserve raising questions whether the old bitcoin is next. liz macdonald, no surprise is all over the story. as we head out to break, check out how oil is moving. dow is down 82 points. oil is down as well. $93.63 a barrel. we'll be right back.
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tracy: suspects are under arrest in what the government is called the biggest digital money laundering scheme in history. they are all from the online currency exchange hub bert reserve. they're charged with running an underworld digital bank for drug dealers, child porn percent and identity thieves. liz macdonald is here. this is putting the world of digital currency on edge, huh? >> we're tracking through
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law enforcement sources. they're talking about 100 plus basically virtual currency sites that move capital anonymously around the globe. attorney in manhattan says there are more investigations to come. basically what we hear from officials if you have a model that operated similar to liberty reserve watch out. here is bharara yesterday on the shutdown of liberty reserve if not the biggest money laundering operation ever. >> liberty reserve was intentionally created and structured to facilitate criminal activity. it was essentially a black market bank. >> he is law enforcement also telling fox business that what happened here was anyone could create an account and address at liberty reserve just using their name, using their birth date. using e-mail address. that is not the model that law enforcement says will fly with them. and they're looking at malaysia, russia, nigeria, vietnam as nexuses of
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activity for virtual currency operations they are targeting. what they also found in the liberty reserve case is blatant criminal use of accounts, fake account names. let's look at some names they were using. look at this russian hacker. hacker account. joe bogus, 123 fake main street and on. ashley: -- new york. >> that's right. we have other breaking news. ok pay suspended processing for all bitcoin exchanges. there is leeriness and fear now throughout the virtual currency world these individuals may be in the cross-hairs of the u.s. government. i'll tell you something, we% heard this two or three months ago that the u.s. government would use the patriot act and use the long arm of the law to basically stretch around the world to find these operators in the virtual currency of the world, drug traffickers, possible terrorist financiers and people who engage in drug trafficking are using sites to launder money. this is a hot issue for the department of justice and homeland security. ashley: that is insane, it really is.
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to look at the names. tracy: joe bogus. >> that's right. tracy: terrible. ashley: all right, emac, thank you. >> sure. ashley: it is coming up to a quarter past the hour, time to check these markets. nicole petallides down on the floor of the nyse. nicole, we're cutting into these losses. >> all right. tracy and ashley you are absolutely correct about that. we are in fact cutting into these losses. we were down over one full percentage point on s&p 500 and dow jones industrials. right now we're down about 69 points. we're seeing the drug index and retail index still under pressure however the banking index really turned around. a majority of bank stocks are posting up arrows. jpmorgan pulled back but many of the others have been holding on. i wanted to look here at some of the shoe companies in particular. looking brown shoe and designer shoe warehouse, dsw. they came out both with their numbers. here a look. both stocks, look at today's action. dsw up nearly 5%. brown shoe up 12 1/2%.
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both are hitting new 52-week highs as they both post their quarterly numbers and you can see impressing wall street to a certain extent. back to you. ashley: they are nicole, thank you so much. tracy: coming up, he's on the boards of facebook. hewlett-packard and more, tech pioneer mark andreessen is live in a first on fox interview. that is next. ashley: but first the u.s. dollar on a down day on wall street. let's see how the u.s. dollar is moving. for the most part it is weaker. pust up against the mexican peso but everyone else, moving higher, against the good ol' green back. we'll be right back.
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>> at 19 minutes past the hour i'm arthel neville with your fox news minute. near the after fan border four suspected militants have reportedly been killed in drone strikes including the second-in-command of the pakistani taliban. the u.s. has a five million dollar bounty on ramo. it is not in a position to confirm his death. major networks and news organizations over next few days, part of a review of doj guidelines for investigations involving reporters. the review was ordered by
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the president. in greensboro, north kaerl line, animal rescue and wildlife crews are working to rescue a baby bear. the 100 pound black bear cub was sported four hours ago on a tree in the north carolina at&t campus. those are the headlines in the fox business network. get you back to tracy and ashley. tracy: arthel neville, thank you very much. >> you're welcome. tracy: all things digital conference underway in california, kicked off last night with an interview with apple ceo tim cook. it was a long interview. our own adam shapiro is there now. he is sitting down with one of silicon valley's mark andreessen. i remember, feels like we've been reporting on this guy since, what, '95, when the ipo went. >> that was a long time ago. you're going back to netscape navigator what you're remembering. let's talk about the future. that is why mr. andreessen is joining it here at all
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things d, we're talking about mobile. we'll mach the discussion even bigger. he is known for saying everything they predicted in 1999 with the dot-coms back then has come true. everything they did on "star trek" in the late '60s we will one day invent. do you still believe that. >> i still believe that. one day. some things will take longer than others but we'll get there. >> jump into something that would seem right out of "star trek", for instance, 3-d printing. you just invested heavily into a firm out of new york which is at the forefront of 3-d printing. how will this change our world and how will people make money. >> this is literally new way of manufacturing. it is like a printer but prints stuff in 3-d. shape way, you can see hundreds of thousands to order up to have 3-d printed from gold and plastic to silver and you can 3-d print jewelry. >> we're talking about a day in the future where instead of my going online to buy something or going to brick-and-mortar store, i
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want this. i download the blueprint to make it into my 3-d printer. jewelry or something for the house, there it is and i pay online. all happens there on the printer. >> you can actually buy low end 3-d printers to put in the house and print in plastic it. want a new like, "star wars" action figure of the day. it would be downloaded and kid wakes up in the morning and there is the new action figure from the printer. >> it is more than toys for your kid. yesterday in the news was the story, some kind of valve they made for a newborn on a 3-d printer. >> they're doing artificial windpipes which turns out to be a life saving thing that is hard to do any other way. this whole field of manufacturing new organs. 3-d printers to basically print structure of a organ and stem cells. combination of 3-d printing and stem cells may lead to comprehensive original grand transplant. >> living tissue around a plastic or other material? >> exactly. >> got to jump thoughts from 3-d printing to drones.
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we always talk about the drones in the military sense. you invested, $10 million roughly for airwave for commercial drones. how do drones become a commercial and monetizing prospect for people? >> yeah, so the current drones used by in military are very expensive. 5, $10 million. the drones we're talking about 3,000, 5,000, $10,000. so they will be very wildly used for commercial applications, mapping, farms, literally watching cattle. watching endangered wildlife. german railroad will use drones to monitor gra feet at this artists. >> we have the technology. why don't we use drones on bigger scale for transporting cargo. >> it will get there. 747s, most big planes can't fly themselves. there is amount of theory you want human fall back and certain amount of superstition you want fall back. they can drive planes and cars better than peel can. we'll go through process of
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adaptation with planes and cars we figure out machines will do a better job. >> mr. andreessen, thanks so much for being with us on fox business. we talked about the future. "star trek" is still a bit off. closer than it has ever been. good to see you. coming up in the 3:00 hour we'll have aaron levy. he will talk about why now longer need to have a computer at home. we talk about the cloud. this is a firm at the forefront. they face competition from google obviously from apple and microsoft. but he is going to tell us why you might want to put your bucks in the box so to ssay. we'll have that coming up for you. throw that back to you guys. tracy: good stuff. adam, thank you very much i. ashley: interesting. a blockbuster deal in the food industry could be china's largest takeover of a u.s. company ever. also raising new concerns about food safety. gerri willis joins us with more on this story. interesting, gerri. >> this is very interesting because the company being taken over, smithfield foods, is famous in virginia.
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it is iconic. it is very well-known. they do ham. they do all kinds of meat products. they're having trouble with costs right now with the price of corn going you there the roof. now they are being sold to a company called from china. i'm told how you pronounce it. it is known as shine way. that is the english pronounciation out of china. they're paying 7.1 billion if you include a cost of pickup of the debt for this. smyth smithfield is an 87-year-old company, based in smithfield, population, 8100, folks. this company, the chinese company exports about 2.7 million tons of product a year. to be clear here, what the company itself is talking about in the deal today is not having the u.s. import pork products but having the u.s. export pork products to china. so we'll wait and see if that is actually what happens. i think lots of questions today, always concerns when china buys big companies of ours. people are always concerned about that.
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but i, for you, i came up with this out of a conference call on this the company says it wants to be a global leader in animal protein. hmmm. that was my reaction too. ashley: food safety problems, haven't they, this chinese company? they were the subject of some food safety issues. so obviously there's concern there. but as you say, okay. >> it is endemic over there over the weekend there was a huge story about heavy metals in rice. and this was impacting the chinese people. it was coming out of industrial output effluent into water. so very concerning. people always have issues with chinese products. ashley: if they can't steal a company's valuable techniques through hacking they can always buy it. they have got the cash. >> they have got money. we'll be talking a little bit about this tonight. we're also talking about a critical topic which is, what is better for you, eating a hamburger or running a marathon?
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we have a very surprising ashley: i'm hoping it is the hamburger. tracy: me too. >> it is. ashley: i knew it. my day would come. having chocolate is even better. >> dark chocolate. ashley: i've done marathons. not good for you. tracy: that is a bloody waste of time. ashley: it is. not good are for the joints. tracy: wine on the other hand -- >> be prone all the time in front of the tv set. life would be perfect. ashley: oh, why are you looking at me? [laughter] thank you, gerri. do not miss "the willis report" it night at 6:00 and 9:00 p.m. eastern time right here on fox business. tracy: all right. coming up, fortune brands spent the housing slump investing in new products while competitors cut back. now new homes are being built at the fastest pace in years the maker of cabinets, windows and more is reaping the rewards. ceo christopher klein is here in a fox business exclusive. ashley: first let's take a look at some of today's winners and losers.
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we've stopped the bleeding on the market. the dow is off 84 points. but on s&p we have wins as well. we'll be right back.
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>> 90 minutes until the close, the dow off 85 points. some are in the green today. bank of america higher as is cisco and hp, but we have a lot of laggards as well. big names, pfizer, proctor and gamble, and coca-cola lowerment nicole is standing by. nicole? >> pieces of news to follow, the
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markets off the lows of the tray, and right now, the dow jones industrials down 87 points, hovering at a 20-point range or so over the last hour or so, but at the lowest point, at 15229, a loss of about 18 0 points on the day. improvements from the lows of the day. worth looking here at sallie mae, hitting a new annual high of 2617, stocks up over 3% at the moment, 3.5%. this is because the student loan provider, largest in the u.s., announcing it's splitting into two publicly traded companies, seeking, obviously, better valuation for the lend business and separating the consumer banking business. this is big nudes here for shareholders, and you see the stock here a winner. back to you. >> very good nicole, thank you very much. >> okay, the housing recovery spreading the bets beyond the
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home builders. fortune brand home and security makes cabinets, faucets, and locks. joining us now in an exclusive, chris kline, and they make doors after i researched because i have one, and i love it, and i discovered i have a lot of things my house. >> leaders in the markets so across century doors and faucets and cabinets, they find products in the home so happy to see it's on the floor. >> i have them because i shop at lowe's so 30% of sales; right? through home depot and lowe's? >> yeah, they are important customers for us, wogging with them to think about long term trend, get the right products in the storms, entry doors, cabinets, faucets, windowsment they are doing well now. they are picking up. the construction side of the market is publicized in the
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growth, but the repair and remodel side is picking up and gathering me men tum. >> not seen that in a long time; right? the remodeling? what are you seeing? is there little projects, nothing big yet? >> starting to pick up, and they are getting bigger. the big change seen from the end of last year to the end of april and when we issued our earnings was that there's a pickup on the bigger ticket side of the market, and a pickup we have not seen in a while so there's a mix of product saying people are now starting to take on bigger projects and do fundamental work in the home. >> your outlook in the housing recovery? >> it's strong, both new construction and ever-increasing r and r markets. this year, new construction comes in 975 starts or so, the repair/remodel side, 4-5%. there's momentum building and continuing past this year into the next couple years. >> funny because i just the
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other day had a conversation about potentially doing work to my house. maybe the tides are changing, people are talking about it again. what could derail that, though? >> well, first of all, the increase in value in homes seen across the country is a terrific pos -- positive sign. the home prices have risen, confidence to put money in the house and equity in the home to borrow against or to really increase that value. overall economy, people have to be cautious. there's so much demand on the r and r side based on work we do that saas people, like you, think about, hey, should i just step in, is the time right now to do that project? i've been waiting to do the kitchen for so long. it's time. >> you can only try and try, but eventually, you got to. >> if you have not been in a kitchen or bath design shop in a long time, if you go in now, you're going to see a new array of products. we keep bringing new product into the market every year, and
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so the looks seen today are just different than 10-15 years ago. it creates a little bit of anxiety about your kitchen about how outdated it is, time to go, and we hope it causes consumers to step into the market. >> overseas, what countries do you see the most activities from? >> big in china. moen is the biggest import faucet in china, it there 15 yearsing built organically, and that market is active. peek talk about the slow down in china, but for us, they build 6 million houses a year in china. there's an inventory of previously built homes not yet finished the kitchens or bathrooms. they don't always put the showers in, and so there's demand there. there's network of 800 stores in china that are servicing that market. >> you are making shareholders happy. >> thank you. >> as i said, i love my front door. >> thank you. >> chris kline, thank you, sir. >> thank you. >> breaking news for you, oil
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closing down a 1.88 all the way down to $93.13 a barrel. today's loss of nearly 2% reverses yesterday's gains. oil, a big move down today. new concerns about the bird flu causing one u.s. bank to change its plans for a major china conference. fox news' dr. manny alvarez has the latest next. >> first, the ten-and 30-year treasuries, 2.13% and 30 year down as well; although, i don't know what. there we go. four basis points. dow eetion down 92 -- dow's down 92 points. we'll be right back. [ whirring ] [ dog barks ] i wa ttrt mo dogs. ♪ our business nee more cases. [ le announcer ] where do you want to take your business? i neehelp selling art. [ male nouncer ] from broadband to web hosting
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to mobile apps, small business solutis from at&t have the security you need to get y there. call u we can show you how at&t solutns can help you do what you ... even better. ♪
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♪ >> your fox business brief, a record $40 billion in profit in the first quarter, nearly 16% jump from the same time last year; however, despite strong earnings, half the bank reported improved earnings from a year ago. the fcc finds nasdaq omx group $10 million for the facebook's botched ipo, the largest amount charged to an exchange. they say they violated securities law resulting in poor systems and execution.
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jpmorgan chase says cio is leaving the company, he's the latest in the string of executive departures at the bank in the waib of the losses costing more than $6 billion. j pmorgan is waiting to seek other opportunities. that's the latest from the fox business network giving you the power to prosper. this is america. we don't let frequent heartburn come betweeus and what we lov 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
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>> dead's medical dollars, the bird flu strain in china. in tom sayses, the h7n9 bird flu is resistant to tamiflu, the main drug used to treat it. 36 people died from the disease, and another 131 infected. concerns over bird flu reportedly fronted morgan stanley now to move the major hedge fund meeting out of china, shanghai. how real is the threat?
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fox news health editor joining us now. doctor, that's the question. how real is the threat? >> well, it is real, 131 cases. it's very deadly when you get it the patients died mostly have been in the upper 60s and things like that, so there's app element of chronic medical diseases, but the big news is that it's -- it seems to be some aspects of it are resistant o tamiflu. it's been the silver bullet, if you will, for bird flu. you know, it's promoted, countries have thousands of this medication at hand, and what this clearly tells you is this bird flu, this strain, is very smart. it can adopt. it can change. tamiflu, an okay drug for me, not the silver bullet everybody hopes it is, but it doesn't seem to be working as effective, and i think this is a big warning sign. i think -- i mean, i concur, stay away from being around that because it's just a matter of
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time, i think, before it gets a little bit more spread. >> then what? >> then what? that's the whole key, you know, for years, tamiflu said, okay, it works, please, you know, have government buy, the who was involved, and critics came down saying, hold on. number one, it's an antiviral. it doesn't cure it, but slows down the progression of the flu so that you don't get it as bad and perhaps you have then a chance to recover on your own. >> oh. >> that's the way it works, but now we're seeing a lot of strains that are not effective, that the data is mixed, and so i think that this is a wakeup call for a lot of companies to get back into the bandwagon, come up with antivirals. >> once tamiflu came along -- >> critics criticizing the company that makes it, they said, wait a minute, the data was not crystal clear, and here we put eggs in the basket, and
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there's a lot of governments boy into it, and it's just not the case. it's just not the case. you know, these viral issues are getting a little more complex, so you have to tackle it from a different direction. >> it's getting worse. it's clearly getting worse. >> yeah, look at the sars problem we have in france. that's another major headache that's evolving. you know, -- >> that started in saudi arabia. >> there, and cases increases with a death reported in france, and, you know, the mode of transmission is clear now. that's just a matter of time before we see that here in america. you know, from a vile perspective, i think our strategy has to change completely. >> what do you do to protect yourself from this? nothing? >> right now, governments have to be transparent, china has to be transparent, keep it under control, report it to the who and the cdc here in america so we know what's going on. studies have to be made as to why are viruses infecting
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humans? right now, it's bird command, bird command, coming in from chickens, and you have to have better control of these conditions, which, in china, you know pretty well, some of the farms are not regulated, no data control, people stay in the homes, and they don't go out, so, to me, it's a global mess, but, again, warning, tamiflu, doesn't seem to be too effective right now. they better get to work. >> a wakeup call. dr.manny, thank you so much. >> you got it. >> scary stuff, though. quarter till, time for stocks, heading to the floor of the new york stock exchange, and mark newton joining us now. mark, what's everybody's talking about today? a pull back, nothing major; right? >> what's interesting is the u.s. remains incredibly stable when you look at what's happening in europe and emerging markets. the data this morning out of germany was much worse than expected. european markets closed the day
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down 2%. yet again the u.s. down 1% early recooped almost all early losses. it's incredible. look at treasury yields over 2%, it's continuing to see outflows from utilities, staples, telecom, intelligence sectors, but yet back to financials, technology, and as we've seen in recent pasts, the yield curve steepen, that leads out performance in the financial, and that's what we see over the past couple weeks anyway. >> and everyone hopes the financials lead us out of the mess, and maybe that's happening. mark newton, thank you very, very much. >> y pleasure, thanks for having me. >> a disneyland employee arrested after having possession of an explosive weapon. the 22-year-old employee, christian barnes, an outdoor cast member at disney land held on $1 million.
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%->> where the little peanuts g, the little ones, they love toon town. >> the arrest was made. >> that was intention. >> tesla shares plunging after a stunning run up to $100. we report on the growing pains from one of the unconventional dealerships. that's next. >> first, take a look at some of today's winners and losers on the nasdaq heading to break. wrangle resources up top. gold having a gold old time, up 2.8%. dow down 77 points. we'll be right back. ♪
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>> facebook has a hard time convincing a billion members it's okay to have a site, but there's a new problem with the advertisements. dennis kneale has more. dennis? >> hello, ashley, nissan and others suspended ads on facebook after a protest from feminist tent that glorifies is not violence against women. it shows how hard it is to create an environment safe enough for brand advertising without rendering content so safe and pedestrian that viewer, turn away all together. this began a week from women action and the media and the everyday sex itch project. the groups complain while there's a woman breast-feeding
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her baby, it leads up joke about rape, pictures of women beaten, and pages with title the like, quote, violately rapinggyour friends just for laughs, close quote, not funny at all. they use targeted ads that follow a user wherever he goes. when a guy goes to the sexist post, a nissan ad pops up. 5,000 e-mails to facebook sponsors, 60,000 twitter poseses, and 24,000 signatures turned in. that's a pittance in a nation of 300 million people, but today, it's more than enough to scare advertisers. facebook apologized saying they are toughening restrictions on hate speech, but yahoo just agreed to pay 11 pcht -- 1.1 billion to infuse with ads, and tumblr has content more
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appropriate than anything on facebook. good luck with that, guys. >> good point. that is the concern. no doubt. dennis, thank you. >> all right. >> all right. tesla shares pull back, but not before hitting new highs this week. the stock up over 200% this year, can it go higher? jeff flock, no surprise, at the store in illinois. hey, jeff. >> look at this thing. look at this thing. this is incredible. watch, watch the acceleration on this. isn't that something? out that. you can stop quick. watch me do this too. take a look. wow. that has got acceleration. that's one of the things that people are so excited about is when they come in and test drive it, the word is goating out on this thing. i want to get it in park. hate to run through the building there. this is the tesla store, and this is where many -- this is
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one of the busiest of the 37 stores around the country, and they are called stores, not dealerships because there are franchise problems with the states to say a company -- oh, i lost the microphone. i accelerated too fast there and lost the microphone. how about that. talk about acceleration being crazy, and there's no reason the stock continues to stay this high, but if you get behind the wheel of one of these things, there was a test drive out op the expressway, and it's incredible. the car does have tremendous performance. take a look at what elan musk said, and the regional manager talked to for tesla in the midwest, got off a conference call this week. they are expecting to roll out the supercharger network enabling the vehicle to be charged in 30 minutes which
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eliminating anxiety people have about how long it takes to charge the car. a mystery tweet from elan about what's coming. it's nothing but hot now, and in the four o'clock hour, inside the store, show you what that looks like. it's been quite a day, quite a car. >> i bet it's quite a day. tough day at work to drive cars around all day, jeff. thank you very much. >> they don't make noise either. >> blew out jeff's microphone. jeff, thank you so much. interesting story here. banks in long winter, florida impose a new dress code, but not for the employees, but for the customers. the new policy comes after a series of robberies in recent months, and the dress code, by the way, says no hats, hoods, or sunglasses. looks like the bank robber outfit while inside the bank. people refuse to comply are not turned away, but scrut newsed by
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security. there you go. >> go with the richard nixon mask. >> there's that. >> there you go. coming up, "countdown to the closing bell," joined by the king of the cloud business, and the startups just can't live without, all coming up next. ♪ everybody has fferent investnt objectives,
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ideas, goals, appetite for risk. you can't say 'one size fits all'.
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it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks r 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 aprospecs investment objective risks, chaes and expenses. read and consider it carefully before investing. risk includes possible lo of principal. >> am l chief, jim cook, talking about wearable technology, all things d in california to tell you the on-site gossip whether cook's comments were undercooked or just right. the ceo of one of these hottest silicon valley startups joins the countdown party. baht, the darling business tool with every fortune 500 company. breaking out of the box in a fox business exclusive. the fed shut down liberty
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reserve calling it a money laundering scam, and some wonder whether the government turns attention to another invisible currency up regulated, bodycoin. taco bell taking a page from beyonce's play book. ♪ >> tell you why a few lucky ladies are sporting taco bell rings. countdown to the closing bell startings right now. ♪ >> wait until you see the ring. i want one. i'm liz claman, hi, every, last hour of trading, what a difference five hours makes. the negative sparked this morning by weak german unemployment data couldn't hold u.s. markets. yes, we are down, but hardly out. let's drill down. here in the u.s., indexes well

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