tv The Willis Report FOX Business August 28, 2013 6:00pm-7:01pm EDT
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the season opener this saturday. learned a lesson; right? that's all we have for you today. i hope you made money. see you back here tomorrow, and charles payne is coming up next. ♪ charles: i'm charles payne, and thank you for being with us in the important hour, all about you. ♪ tonight, in "making your market," neighbors looking out for neighbors create one of the most successful media companies in the market. it began with their search for contractors, and now angie hicks is a familiar face in households across america. everyone should be inspired and empowered after listening to her here tonight. fifty years ago today, martin luther king's march on washington his historic "i havea dream speech," what it met then and today, and focusing on one word that comes from the realization of dr. king's dream, hence something that's not
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given, but can be taken away or sold. also tonight, cashing in on company profits without cashing out your shares. we're taking on the world of dividends and how to pick a stock in this market. one of the most successful financial take radio hosts in the business, steve crowley will help discuss and make this your market. ♪ all right. what a difference a day makes, stocks hammered yesterday by uncertainty in the middle east, and while the uncertainty did not go away, stocks bounced back ending higher which is why i say, you don't want to have day-to-day gyrations in the stock market, watch the fundamentals, and they will to the -- they did not change in the last 24 hours. news headlines in syria did. facebook down 5% yesterday, a bigger winner today, and the company, nothing changed with it overnight. it's just summer. we have light trading volume this time of the year, market
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volatility. take the dips as buying opportunities. be selective, not every stock is a winner. ultimately, though, to come out ahead. right to the panel. we have scott martin, market strategist for market advisers, s&p capital iq, and phil silverman from kings view capital. first, guys, to the session today. how do you feel about it, scott? the bounce back, what does that tell us? how are you feeling right now? >> well, charles, as you mentioned, i mean, with the stocks out there and indexes, i think we were due for a bounce because the point's well taken. the syria news is terrible. there's fear out there. it's not changed the economic fundamentals yet. the bounce back was good. we did get a little bit of a sell off in the close because investors don't want to go into tomorrow long necessarily or unexposed so they took positions off. a couple interesting other things going on today, charles, was the oil complex went up,
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two-year high, but gold and metals did not follow suit. seeing the weakness in the metals get strength in oil shows this trade is ending to me. charles: phil, scott used the word "fundamentals of the economy," what are they right now? >> well, we are still in an economy that's slowly growing, not as fast as we'd like to see, but, you know, it's not recessionary right now. charles: how does that correlate to the market. for a politician, that's okay, you get votes, but for a stock market up 9,000 points from the low, is that strong enough to justify the rally and to sustain the rally? >> well, i believe right now it's tough to see the market going up strongly from here with a couple of big things on the horizon, being, obviously, the syria thing, but, you know, coming into the debt ceiling in september. there's been a great year up until now. it's hard for me to think this
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economic growth will go to here. charles: political? >> a lot of political. the debt ceiling will be an interesting thing coming up. charles: and the continuing resolution. you crunched the numbers, s&p knows every single aspect of the number, crunched them all. what are they telling you? >> i guess we should turn it into a cereal, captain crunch of numbers. maybe today ended up being the bottom of the pull back or the most recent weakness because markets -- what we find is markets lead opportunitimentals, and as the first guest said, you know, the syria thing has been out for quite some time as phil mentioned, there's worries about the politicians -- charles: why do you say that? the volume, how we bounced back? why is today a point other than the fact we bounced? >> quoting our chief technician,
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and when he looks to trend lines, retreatmentment levels, charts of sentiments, he says because we went down, and we touched the 1627 level, that was important from a technical perspective that maybe if that was all that we got, that's probably the end for this pull back, and that the market then starts to go back to the higher level. charles: scott, i'll take what phil and sam said. phil acknowledges that, listen, the economy's got to get better, sam's saying maybe it will. listen, the market's played a role of a harbor telling us what's happening in the future. does that give you hope, perhaps, the fundamentals catch up with the market rally? >> some. i mean, the market or the economy, i guess, charles, the economy, what phil said, could be worse. we're not strong. i think the consumer certainly is on thin ice here so that's not really giving me a lot of confidence, but as far as the
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market goes, charles, look at other indexes, look at europe, the emerging market, look at bonds, they are getting smoked, and, in fact, commodities were terrible investments, and all the other indexes, charles, other than u.s. stock, have been as volatile as a miley cyrus concert, it's nowhere where anybodiments to be, driving dollars back because of the stability of the u.s. stock market. charles: everyone else is twerking and all that's stable is the u.s. target. got you on that. let's take the idea of stability. people say i want to be invested without the crazy gyrations, and people think maybe a smart way to go is dividends. i want to talk about that. scott, what do you tell an investor that the steady pace of dividend pace leaning heavily towards the stock? >> i think dividends are great because what's happening now, charles, is companies are sitting on record amounts of cash, trillions of dollars of it. they are trying to reward
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shareholders doing buy backs and/or dividends. again, look at bonds, the traditional areas where there's yield, like in bonds or high yield corporate, wherever, even treasury, you're not finding it there. you find a lot of price risk that hurts you. you are seeing dividends stocks as a way to get the yield and total return, and if you are looking at the 401(k) saying, well, dividends are over valued, guess what? money chasing then because of the other yield instruments do not provide good returns make dividend stocks go up. charles: sam, in this sort of period of anxiety, let's put it that way, a lot of people after watching the show, dividends might be the way to go for them; right? maybe just sleep a little better at night. >> absolutely right. one of the big concerns investors have with investing in stocks is volatility, and as scott just said, when you look back over time, actually, the high dividend payers have about a 20% discount in terms of
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volatility compared with the market whereas the nonpayers end up having a 10-20% premium so you end up with greater volatility with a nonpayers than you do with the dividend payers. let's face it also, it's hard to find a nonpayer, 80% of the companies in the s&p 500 now pay a dividend. charles: right, ailing though, phil, you know, you know some dividend payers are different than others. utilities used to be the safe haven bet, took off, got ahead of themselves, and, you know, was not the best play last year. >> yeah. charles: where do you find yourself in the world of dividend paying stocks? >> over the last couple years, there's a chase for yield. dividend payers have done really, really well. there's been a fear in the credit markets recently, dividend stocks are beat up good. charles: is that fair? should they trade like anything that's associated with yield, you know, the bond trade, you know, are -- do they have to correlate like that, you know?
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people get out of bonds and dividend paying, and equities hit as well? >> there's a lot of groups who do correlation trading, and so they are looking at what are things trading like? the dividends that have done so well, they are tending to trade off of their yields, and people chased them opinion. charles: yes or no, have dividends? >> absolutely. the volatility in the market gives you opportunity as people sell out of them because they are worried about interest rates to selectively buy one to give you opportunity. charles: great, informative, scott, sam, philip, don't go anywhere. the panel is back in 35 minute, and you will give us marching orders, the blueprint for tomorrow's investing. there's more to come in the special hour including how martin luther king's speech spoke of the component to be able to swim for americans in the ocean of america's prosperity, and there's an american success story starting
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♪ charles: we're continuing to "make your market" this week by showing countless corporate success stories in america. the goal is to inspire you to invest, to inspire you to look at what regular people have done with admiration and unlock your own potential. last night, we had the ceo of one of the world's thee largest equipment rental provider, and the secrets bind their success in the last few year, and, tonight, well, another company that 2 million people subscribe to it. that's angie's list, the home grown success and world of reviews. i'm a fan and admirer of yours and see where you started off called columbus neighbors going
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door-to-door. stair that with us. >> sure. we started angie's list in columbus, ohio, fresh out of college, his intern out of college, a we wanted a better way to share information on what blummer and electrician to hire, and we copied a small business in indianapolis since the early 70s and started from scratch in clean up bus, and the markets plan was me going door-to-door selling memberships. i can't say i'm a salesperson. it was a character building exercise. charles: how scared were you? i mean, door-to-door, out of college, too young to know any better? how did you get through that? >> oh, it was -- you got through each day. i would measure sales, you know, as one or two members a day, and, you know, had to give myself a pep talk every day. i'm an introvert that wanted to look at spread sheets versus
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trying to sell, and door-to-door in the 1990s was not the most fun experience. charles: i don't think it's ever a fun experience. i will tell you some of the most successful businesses in the world start that way, and i think the founders of the businesses develop a certain type of grit. you got the business. i would imagine with the classic hock ky stick sort of thing, flat for a long time, and it starts to have inflections take off. was that point as an interpret-based business? >> first was moving online in 1998, but, really, for us, we had to go out, get the local markets open, have all the markets open, and then we really saw our growth take off, especially when we could then scale to national advertising, really allowed the business to accelerate its growth to where you see it today. charles: you modeled the business to something that existed before, it was homey, and, you know, to play out on a
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national stage, and i talked about it earlier in the week, in this country, you're actually asking people to trust their neighbors' opinions, trust someone they never met, trust and pay for the opinions. i mean, do you sit down and think about like, wow, i'm -- are you shocked that it works? >> well, consumers are willing to pay for quality information. from the very beginning, this has been all about having the best quality reviews. we've never allowed anonymous reviews, and we really focus on what we call high cost of failure services. you know, hiring a roofer or plumber, i mean, you're investing in your home, and those transactions have to go well, and for that kind of feedback, consumers, you know, really want to invest to make sure they are making the right decision to get the best information possible. charles: you know, what we are trying to achieve this week is to not be afraid to own great american businesses, but once publicly traded and get a certain amount of success, there's a bull io eye in the
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back as realm. therethere was an earnings repoy of the estimate, and the stock came down a bit, and now the shorts, people are betting against you. is that something you think about or focus on at all? >> focus on the fundamental metrics of the business and long term growth of the business, and that is what we are focused on internally. charles: you know, because you had the success, a lot of people out there, not only admire you, but there's imitators. competition is piling up. what's the game plan to fight back to the new imitators, if you will? >> well, you know, when i think about this, we've been in the industry for 18 years, and there have been rounds of competitors many times over in the last 18 years. the local service industry is a huge industry. there's likely to be multiple players when it's all said and done that could have different types of models because, still, today, you just asking a friend, neighbor, or seeing a yard sign is a very common way for you to
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find local services, so we're still gaining share from the old-fashionedded way of finding service companies. charles: what else is old-fashioned? pulling yourself up from the boot straps. i admire you, and thank you for spending time with us. >> thank you. charles: see you again soon. i'll talk to a 46-year-old general contractor who never invested in the market. find out why, and 50 years ago, martin luther king gave his "i have a dream speech," but it was not just about race, but spoke of not just justice, but owning your future. my take on what it should mean for your prosperity, next. ♪ in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal
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and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a bettersafer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. charles: crowds gathered today to honor martin luther king. my interpretation of his very important message is up next.
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♪ charles: i would be remised if i didn't mention today being the 50th anniversary of the march on washington for jobs and freedom. that give martin luther king the platform for his "i have a dream" speech. these days, the words are used by various organizations with a variety of goals which seem more like his warning, quote, let us not seek to satisfy thirst for freedom by bitterness. he could get people off poverty stuck in material prosperity. these day, individuals fight to keep themselves that promissory note of life, liberty, and the pursuit of happiness, but it seems okay with others are denied the same thing.
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we want it for ourselves, but not for others because the words from the backbone of the nation really, ultimately, boil down to one word, and that's "dignity." the government can't give you dignity, but gives you the backdrop to exercise and share it. when i want everyone to own great companies, the word is "own," and when you own knowledge, ambition, determination, and compassion, that's when dreams came true. speaking of justice and opportunity, but if you don't own or give away your promissory note, dignity is lost forever, and the island of poverty will be your home forever. that boils down to the need to understand that character puts as much on the individual as it does on the right of others in society. you see, the speech was not a war on business, a war on successful people, or a plea to take and send the nation into oblivion. on the contrary.
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it was a rejection of the welfare mind set. he was not talking about a nation with limited opportunities masked as saul middle class, he wanted access to the prosperity in since 1963 #, doors opened and dreams realized shocking ourselves a little bit in the world with how quickly we elected a black man to lead the nation, black billionaires, corporate leaders, sure, a lot of work to be done, but the beauty is that we all have the power to kick open the doors by pounding them with firsts of skill and fists of desire. we can change our whole lives by owning great american companies. that's shared prosperity. that's true freedom. now, we want to get into tonight's quiz, all this week, i showed you pictures of international cities, and you've been tweeting and e-mailing me answers, and every now and again, you get it right. here's the point. i'm trying to show you prosperity in the portfolio, if you want to be prosperous, think local.
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invest in american companies with ginned pinnacles around the word because of the money around the world. he's the city, another great example of what i talk about. this country's middle class is growing like fire, one of the few places in the world where the united states runs a trade surplus. that's right. buying more stuff from us than we buy from them. they buy $65 billion of made in america products every year like boeing, caterpillar, one of the biggest users of facebook on the planet, second only to us. that's a lot of "likes" if you know what i mean. if you think you know where it is, tell you what, tweet me or e-mail me at charles.payne@wstreet.com. still ahead on "making your market," he remits too many of you watching the show, very successful in his own career, but never been in the stock market. we'll talk about the best strategies to secure financial freedom and prepare for a life
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charles: all this week, we've been introducing you to novice would-be investors, too afraid or too uncertain, and a lot of these guests mention all their interests, particularly in retail stores they frequent as shoppers. why not be an owner of the companies? i keep asking them this. we are following up with three picks they had this week from the special on monday as well. the guests reported, i can't believe this, blew away the number, up five bucks, that's a huge move. this stock could be up 20%, at least 15%. this is from mike's portfolio,
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mike the model, that was his worst performer, now will be his best. before the open, express, they reported their second quarter revenues up big time, online sales helping them a lot, retailer rates the full-year forecast, and that gave a solid outlook for the year, up 8%. mike, monday, he would be up huge. now, miss new york, she was rocking already, but her favorite, dsw, their net income rose 15%, reported on monday -- well, monday, when she left the show, the stock was at $80 a share. look at that spike there, spiked all the way to $88, pulled back is bit, but huge. in just 24-48 hours, kidding me? listen, here's the thing, it's never too late to become an owner of great american businesses. here with us today is richard weber, a 46-year-old builder and developer who has been stashing cash under the mattress, but maybe no longer if we talk about the right approach to retirement. richard, welcome to the show.
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>> thank you very much for having me on. charles: you're a builder, a contractor, do a lot of business face-to-face. >> yes. charles: that's what inhibited you from the market. you felt like it was an opaque sort of thing, a building, people, numbers, but you don't know the people inside. >> exactly. i just, you know, when i build something, the customer meets me, they see what i built, put it together, wow. there you go. with the stock market, i don't know what is going on. i give someone money, where does it go? [laughter] does he leave the country with it? pick up the paper the next day? charles: he seemed cool. [laughter] no wonder he was in palm beach with everyone's money. did you see the interview with angie hicks while you were waiting? >> yes, i did. charles: out of college, a regular middle american kind of young lady builds a business going door-to-door. that's the kind of person, if
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you knew, would invest? >> exactly. charles: like a female version of you. >> sort of, yes, very much middle class person, working my way through, going door-to-door, similar, so it's very much on the same page. charles: i got to let the audience know, i think wall street has done this deliberately. i do. they spent the last 100 years saying, hey, this is too spooky. you can't do it yourself. if you want to do it, send us your money and let us handle it for you. i think that's -- i think that's been by design. this is not as hard as you think it is. good thing is now, you don't have any kids. you are not worried about college, but you plan on having kids? charles: yes, had serious ups and downs. >> yes. charles: when good times are good, they are good. >> oh, yes. charles: said with a grin on the face, but the bad times bad as well. >> yes. we took it hard in the construction world, so that's why i want to learn more about dividing. whatever i bring in, i want some here and here.
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charles: what are you doing? for retirement, what have you been doing? >> planned on retiring when i was 55. that's not going to happen. charles: in the building boom of 2005. >> exactly. charles: just stashing money in the shoe box? >> stashing, other wheel and deals, but what happens, everything parlayed when it crashed and this property and that property lost value, and development deals went south. charles: had money in land and cash? >> yes. charles: they fell apart? >> yes. charles: starting from scratch? >> a lot of us are. charles: you said "a lot of us are," and almost everyone in the country took a hit. what came back first? what's come back the strongest so far? the stock market? >> exactly. charles: the dow back to all-time highs. why? because the corporations have a lot of money. stocks go down, but ibm, at&t, they weather the storm. that's -- think about it like if
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you're on the ship and it wrecks and you have lifeboats out there, most of us get in a dingy. they are boats the size of the cruise ships. in other words, they weather the storm. this is what people have to i think about in that respect, what are thing yows like personally, some of the thing you are interested being an owner in? >> oh, broad spectrum. maybe some, like, well, toll brothers, money over there, and -- charles: out of the land thing, okay? >> going to what i know. charles. that's a great point. i met doctors, they send portfolios, and everything is medical related. i mean, some people oh, the world's going to end, gold, gold, gold, silver. i'm diversified. no, you are not. >> back to what i know though. charles: fish or hunt? >> no. charles: what do you like to do? >> surfing. charles: travel? >> yes.
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charles: travelocity. orbitz, i mean, what i tell you is go home, look at maybe the top ten to 15 places you spend money or places you love a lot, richard, that you would tell other people about. have you found a service or product, and you told friends about it? >> yes. charles: that's an unpaid spokesperson. >> yeah. i guess. charles: if i'm unpaid, and i like something that much, i think i should, at the very least, consider becoming an owner of the company as well. >> that makes a lot of sense right there. charles: all right. you know, glad i met you, and 46, you plan on having kids, huh? >> yeah, well, i'm a late bloomer. charles: you're young, fit, and you surf. that's great, richard. >> thank you. charles: tomorrow's trading day, and, next, jumping into the market is overwhelming, but we'll have stock picking advice for you on how to pick the right
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charles: all right, now that we convinced you to invest in the market, next is choosing stocks for your portfolio, it's not as daunting as you think. you know more than you give yourself credit for. we realize that. getting started picking the stocks, steve crowley, we've known each other for a long time, and you've been at this for a very, very long period of time. people are intimidated and afraid. help them not be afraid. how do they go about this? >> i'm a believer in resources.
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this is your money. it's your money invested. subscribe to the "wall street journal," investors business daily, news letter like yours, wstreet.com, and take it seriously, but use resources because these people call it all down starting with thousands of stocks and call it down to the 50 or so stocks to look at. charles: talk about the structure of the portfolio, you know, what i tell people all the time, steve, you know, 450% of so-called investors own one stock. when you own one stock, it's a casino. that's rolling the dice, not investing. build the ports folio, what do we start with? >> five or ten growth stocks. i like growth and value stocks, those a little bit under valued, so i like to put together at least 10-20 stocks or etfs, exchange traded funds, and they should be stocks that have been on the move for the past year and have more momentum upwards and maybe you buy them in bits,
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keep the watch list in bits like right now; right? the market is flat and down, but keep the watch list, and when stocks move up, jump in and buy them. charles: nonbelievers think i'm joking when i salivate at the market pulling back. we're coming out of an earnings season. we know at least 10-15 companies that had tremendous earnings, gave phenomenal guidance, the stocks up, if they go down because there's an interaction with syria, that's down. they are not in trouble. is that the point you are making? >> well, making that point -- i remember years ago talking to peter lynch, he says look out in society of what is working, what people buy, and netflix is a great story because look what happened to netflix. it started low, and it's record high, and you mentioned this afternoon, something called sina corporation, s-i-n-a, and that's pointing out why you watch
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financial news and radio because look at sina recently. that's a good example. it had four pullbacks in the year, but it's a great company and stock. charles: right. i'm heavy in the dry bolt shippers. that's when you do extra work. you don't always have to do that. there's enough great companies out there for people to have building blocks of five to ten stocks. okay. i bought them, steve. i'm in the game. you sucked me many, my man, and now -- >> okay. charles: what happens? how do i ride out the wave? >> important to look for the downdrafts here because look what happened to dndn, stock blistered in three weeks. watch carefully. what i say in the notes today is that when your stock is down by, like, 6% or 7%, that's the caution light, yellow light, watch out, could be going lower, 8-10%, get out, limit the
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losses, and if you love it, buy it back when it's going up again. you can do that. don't be afraid to get out and reapply later. charles: we put them on the screen. steve, i remember two years ago, i think the stock was 40-50 bucks, out of the world, but i don't touch biotech stocks, and that's back to when you talk about what peter lynch talked about and the theme of the week, start with stuff that you know. it doesn't have to be rocket science or a biotech to cure the world or a computer chip making us invisible, but basic stuff; right? >> it can be. sir john temperature lton told me years ago he made millions of dollars because you get in at market at market bottoms. buy when the market is tanks. when everybody is running for the doors, that's the time you buy. charles: blood on the floor, and buffet made fortune with coca-cola. steve, you are one of my idols, appreciate you taking the time
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out. >> thanks, charles, you do a great job, thanks. charles: see you soon. my stock picking, pounding the table with my clients, sharing it with you too, and the all-star panel returns with a look at tomorrow's market and what you need to keep an eye on. we're making your market after the break. ♪ but i feel skinnier, you know? not really.
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orders for what you need to know before tomorrow's opening bell. scott martin, sam of s&p capital iq, and phil silverman of kings view capital. you guys, starting with you, martin, i think, scott, you talked about the retailers, i think, in the first part, but i got to tell you something. last week, the retailers were crushed, but this morning, express, after the bell guests, maybe the consumers' not tapped out after all? >> no, i don't think they are quite tapped out yet, charles. the question is, how much is left, though? the job market is such and hourly earnings such where they are not rising. we create 170,000 jobs a month, and that's not pushing up wages. that's a tough road to hoe for the consumer. the economic data, i'm there's a report tomorrow, charles, on gdp, the second revision. it's really a big look at look at gdp. it's the pivot point.
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gdp came out last month hotter than expected, look at the second pivot point here to see where the gdp's going, up or down, and it's got a big consumer number in there, buddy. watch that. consumers drive 70% of the economy, and if gdp's going up, it's because the consumer's going up. charles: handicap it for us. the number, if below, what's it mean for the market. if it's above, what's it mean for the market? >> yeah, so, listen, if it's below, it's not good news because we saw recent numbers on durable goods, recent numbers on capital expenditures that don't look good, but below the market, it's probably not going to like it, but if there's a number, say, you know, in the neighborhood of 1.5-2% growth, again, looking back at the second quarter, that's good. charles: this is the thing, phil. i don't know where you are with the federal reserve, you know, but, golly, i wish it didn't exist. it's on my nerves, the fed game the market's playing, good news is bad news, and bad news would be good news to scott's point. >> yeah. charles: what are we looking for
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here? i sense sometimes, guys, these days, the market moves up on bad news and rolls with or without the fed. >> people are trying to game the fed. if gdp's better than expected, maybe the fed tapers more -- charles: takes away the punch bowl. >> at the end of the day, a stronger gdp over the longer term, not thinking about what happens in the september is a good thing. charles: in other words, we actually should root for good things? >> we want to root for a gdp because -- over 2 #%. we don't want to see it get down into the single digits. charles: think about it, a good gdp of over 2%. i mean, this is america, come on, now. i mean, we've gotten, sam, i used to joke around the fact that we came out of the recession, we learned how to celebrate mediocrity. you remember the green shoots, that stuff, rationalizing the fact there's a sloppy post recession recovery. how long can we get away with that?
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>> well, we got away with it for tour years, it's a half speed recovery, only looking at about -- normally, we see six-plus percent in the first year, and only three-plus percent, treading at half speed pace in the subs qentd three years. the real question is, as philip mentioned, we want a number better than 2%, our guess is 2.3% because that, i think, can help define where the 10-year note should be yielding once the fed removed all that stimulus. charles: 2.3 tomorrow, your technician said today was to the upside. what stock do you look at? >> johnson control, ticker jci, in the auto parts area, and with 14.5 million cars sold this year, expected 15.5 next year, and also with 11 years the average age, oldest on record, we still think there's upside potential. charles: there's a home building segment, though, that for a while was a saving grace.
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do you think that holding them back at all, or you like the building boom sufficient enough? >> there's sufficiently position properly in our opinion looking for 18% growth. our target is $48 a share, trading in the high 41, about $42 a share, and let's face it. i go for both belt and suspenders ranked highest by s&p capital iq analysts as well as quantitative or black box system. charles: they survive the crashes. phil, you're not a stock guy, but give us a feel of what investors should feel going into tomorrow's session? >> what i think for people is to have ppotection to the downside in the event -- we don't know, syria could be bombedded tonight, tomorrow, and we also have, like i said, the fed coming up and the debt ceiling, have a way to protect the portfolio in the event the market comes down so what we're recommending to some people is to buy an auction on the s&p and finance that by selling a call option, a, you know, maybe 3% or
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4% above the portfolio so that, essentially, if the market goes up, you get 3-4% of upside and basically give that away beyond that, and so you're not paying any extra money for the downside protection. charles: at the same time, allows you to sleep better, particularly, as the market becomes volatile. >> absolutely. it lets you hang on to the companies that you like and the portfolio without making big changes. it's a little something you can do to withstand the potential volatility. charles: let's face it, it's september, a lot of anxiety out there. stock, what stocks should people look at in the morning? >> well, listen, i tie it, charles, to what we talked about earlier, which is gdp. face it, sports fans, why is gdp going up? if not because of the consumer, it's because of the exsports, the united states is better. exports a drag on gdp, and well, guess what? we're exporting more oil than we ever have, and so that's all the stuff that's going on in the
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dakotas, especially, so let's get exposure there. mlpa, charles, is a global x, an etf company, a global x etf, they do production, exploration, refining, transportation, the storage of natural resources like the oil and gas they are doing up in the dakotas because that business is booming, creating jobs, and there's, you know, tons of people moving in the area to work there. there's a lot of good spots to get money as far as exposure to the market, but an industry that's growing, not languishing like others out there. charles: guys, listen, tremendous advice, appreciate it, scott, sam, phil, you're the best. hope to see you soon. i'm back soon with my money making idea of the evening and the answer to the quiz today. do you know where this is? do you know why you should know? stay with us. ♪
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charles: time for making money with charles. cirrus logic, crus crusher. look at that move today, reporting records are phenomenal, operating margins 24 to 15%. company makes semiconductor chips but without factories they have thousands of patents. other people make them. in audio space for your cell phone, and smart tablets and digital television, audio for your cars, they tell you why you should invest in the stock, rare, i don't know if it is positive orb negative, they said they have great operating
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margins great strong cash flow, no debt, great execution, they are right, the stock makes as a technical break out through 23, then 26 and 30. now answer tonightly quiz. where in the world is this and middle class is double there in last decade, close to 100 million amazing growth story, brazil, third biggest city, bella rosa. it does mean beautiful bello horizonte . they love harley-davidson down there and whirlpool, this market ripe for student student, coming
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up tomorrow, question, are we headed for an inevitable crash? a lot of people saying we'll crash. kyle harrington is one of them his predict. >> good evening, i am lori roth man in for lou dobbs, president obama making silence on what his administration plans to do in response to syrian regime chemical weapon attack, president obama say he has not made a decision on a military strike but he had this to say to those opposed to taking action. on program bs about an hour -- pbs about an hour ago. >> we can take limited tailored approached not getting drawn into a long conflict, if we're saying in a
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