tv Markets Now FOX Business October 7, 2013 11:00am-1:01pm EDT
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thank you, gentlemen. $140 billion on disability insurance in 2012 alone. senate hearings on how much fraud is going on in this system. a nine-year-old boy who jumped a plan for minneapolis to vegas, the tsa is blaming the government shutdown. general motors targeting younger hip shoppers allowing you to buy a new car online. getting back to the community, a new show focusing on home renovation for heroes in our communities across the country. all that and so much more on this hour of "markets now." connell: here we go, monday morning. sit down, have a seat, be comfortable. would you buy a car online? dagen: absolutely.
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now gm's getting in on that. connell: top of the hour. maybe a little upset about washington. nicole petallides on the floor of the new york stock exchange. nicole: definitely seeing a sense of frustration on wall street got into the second week of trading that the government hasn't come to some sort of resolution. in the meantime the market has just been drifting lower. we are down 81 points, however it is just that kind of sentiment you don't feel like testing the market all 10 sectors are to the downside, still uncertainty looming about october 17 that silly and our credit rating and economy, not getting economic numbers into even get a gauge of how things are going so really the whole thing presents a real wild card. breaking into key support levels selling upon selling.
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connell: thanks. to the ticking time bomb of social security disability insurance fund is front and center again. "wall street journal" reported this is from the journal for years now, the fund would need to make cuts in benefits just in time for the 2016 election. connell: just today the senate is holding a hearing on this very issue. the corruption on this program. something the senator talked about on "60 minutes" last night. first listen to this. >> i want them all. we had to figure out how we're going to fund it. my investigation tells me and my common sense tells me we have a system that is being gained pretty big right now. connell: jason riley joins us now to talk more about this. you journal folks have been on this for a long time. >> some people call it the disability industrial complex and the right to do so.
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talk motives driving our national debt people talk about medicare, medicaid and obamacare. these disability payments should be part of that discussion. there is a lot of fraud and the main reason fraud is a big deal because money being spent on people who are not disabled the left money are people who really need it. dagen: this has been talked about by you, people's unemployment benefits expire and then they go apply and get on disability. it's unfortunate that is not why this program was created in the first place but that is how the states have been using it. >> particularly since elfare reform in the '90s. bragging how may people were off of the welfare. partly because they're pushing them at the federal disability payment. what is driving this is the baby boomers retiring, older americans, lots more older americans but that is only part of it. a lot of fraud and abuse.
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part of the problem as congress has continued to expand the definition of who is disabled over decades and it encompasses a lot more people than it used to and a lot more people than it was intended to. you have a whole legal industry around this program pushing people into the program, lawyers who is in fair practices finding push on to disability. doctors who spent all day diagnosing people. connell: it sounds like a very important and get them at issue next statement the sound strange, we obviously think it is important but we could argue the republican strategy in the current debate is a mistake because it distracts from issues like this, i am sure there are others where if they went forward and approved the current government shutdown that we are in the middle of and fought over the debt, these issues would have come up more.
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>> what we see in this program affects disability claims rise when unemployment rises. there has been a lot more claims in disability because under obama unemployment has been so high. economic growth has been so slow. the short-term fix is economic growth. fewer people make claims for disability. dagen: this has not fallen in lockstep t a number of people disability was the decline in unemployment becaus. it topped out at roughly 10% and that had been falling. it has not been shrinking. the problem of a federally funded program that is administered by the states, so basically individual states in control of money that is taxpayer money. is that part of the problem as well? >> i would think that would be part of the solution.
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you want states to make it work. a lot of governors would welcome that. a lot of state legislatures would welcome that rather than top-down management of this program which is only going to drive cost up. connell: final thing by the way, you are optimistic this can see some reform here? >> i wouldn't go that far. i think we have to bring down unemployment in the short run, that is the short-term fix so long as we have a president, this president, i'm not optimistic about that happening anytime soon. how these claims, it is as somebody said in the report on "60 minutes" last night, have the people in america would be outraged and the other half would go sign-up if they knew how this system works.
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connell: thank you as always. two well said. thank you so much. at washington the list of ongoing uncertainties facing our economy. the associated press in a survey of households in the world's 10 biggest economies revealed people are hoarding cash, spending cash, cutting borrowing for the first time in decades. all of that creating a very worrisome environment all five years after the financial crisis. joining us now is charles payne and in philadelphia, jack mcintyre, portfolio manager. is it surprising to you and worrisome to you as an investor this is ill going on some five years after the collapse of lehman brothers? >> it is actually not worry some, i think these are all kind of deflationary pressures and it tells me there is still some value in bonds, that is an under owned investment asset right now because everybody seems to hate
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bonds. dagen: you would buy treasuries right now? >> i still think there is still some value in treasuries. better value outside the u.s. or into emerging markets. what was the catalyst for the selling we saw from may to august. backed with the fed was doing about maybe they would start to taper, but everything you just pointed out tells you we need to keep global monetary policy, the fed is not going to be tapering this year. some of the higher yielding bond markets should do well. dagen: you had 3.8, almost $4 billion coming out of u.s. stock funds, money going back into the debt fund. >> investors have been holding onto the very end even when there are warning signals, they have been so impactful, they
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could have gotten out of the housing market or whatever. putting aside investment opportunity in bonds or wherever else can we idea people still this long after the great recession began, still this reluctant to participate. they are not taking the fruit. how do you trigger this virtuous cycle where people actually believe what people are buying homes, people actually on stocks were people open new businesses, people get married or people have kids. making is great in the first place. some of these countries are on the way out anyway. they have albums i think will not be visible per se. but can be the leader and have to be concerned of why people aren't taking it. dagen: is it fixable? are we japan? it looks and feels that way.
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>> there are some similarities. we do have population growth and ultimately economic growth comes from population increases and productivity increases but having said that the fundamental problem is still too much debt in the public sector and don't have enough growth to support that. until that changes, we will see the angst out of washington. negative or flat real incomes, that ghostly consumer psyche. it will keep them in the capital preservation mode as opposed to putting a lot of money to work in equities. everything is bullish for day where there will be a lot of firepower to work into equities, but that is not today's story. charles: we have talked about it for a long time now, but i think you have two different things, the fed like to see some inflation, some enthusiasm and
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then you have fiscal policy that hampers growth, these two things coexisting and we get a relatively flat economy. dagen: you will need to be or wants to be a business owner as a stock investor rather than a lender to somebody or the federal government frankly. charles: it is all about confidence or lack thereof. >> they're sitting on a lot of cash as well. dagen: thank you. nice to talk to you. gentlemen both. connell: here is an easy thing to do, blame it on the government shutdown. the tsa says it was not staff enough to stop this nine-year-old runaway from minneapolis to vegas. we will have that story. coming up for you. dagen: and landing a deal that has bowling investors pounding the table. connell: general motors trying to bring in younger customers with a new app.
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dagen: blackberry getting an upgrade and a few more buyers reporting interest in the company. nicole, what is going on? nicole: where takin we're takin, connell and dagen, at blackberry be it bucking the trend. on the news there may be some other potential suitors at least four parts of the companies. we talked about fairfax and servers having interested now we are hearing cisco systems, google and they could be in talks with blackberry at least about parts of the company. other names thrown around including intel and asian companies and samsung. we will see, actually writing in a note to clients you should hold onto the stock until some sort of a deal is done. right now about $8, but don't
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forget it is down close to 50%. cisco systems and google to the downside much like the major market averages. back to you. connell: thank you very much. you have this nine-year-old boy all over the headlines, he manages to get through security, no ticket, the flight crew becomes suspicious during the flight, supposed to have intended minors on the list. the staffing is currently low because the government shutdown. they missed it. so the staff became suspicious and went back to minneapolis, get through security, no boarding pass, nothing. dagen: did they not see him? it is also the airline.
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the airlines fault not checking boarding passes at the gate. have a seat. dagen: they do have that list, they are supposed to keep an eye on. was on a flight, the flight attendant come over to take good care of them. got them to the next spot. dagen: they did all that. just awesome. another airline story for you dealing a blow to bowling. when in the first ever order from japan airlines. over nine and a half early in dollars. they come after 787 dreamliner was delayed for a few years and grounded this year with battery faults. the breakthrough has proven huge for airbus whose japanese deal
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came mainly from lower-cost carriers leasing their planes. the new order plans are expected to enter service in 2017. connell: luckily everybody in business news communities are out of dreamliner jokes. such a long run to get them up in the air. dagen: i have not had any dreamliner jokes because it is not funny. connell: that doesn't usually stop you. dagen: tornadoes a concern for the northeast, namely new jersey. we will have the details from the fox business weather center. connell: general motors online. saying she would buy a car online. gm taking this new play for tech savvy. people like dagen. a look at world currency today against the dollar.
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this weekend, one in libya was successful but another in somalia was not captured a target. in libya snatched off the street but american commandos, on the fbi's most wanted list prior to the next 98 embassy bombings. firefighters are gaining ground at a wildfire at camp pendleton. valuation orders have been lifted alone about 230 residents to return to their homes near lake o'neill. the blaze that broke out saturday is 20% contained. total containment possible by tomorrow. and in sports, three times in annapolis 500 champion was involved in a horrific crash in yesterday's grand prix in houston. he suffered a concussion and 13 fans were also injured. those are your headlines on the fox business network. now back to "countdown to the closinconnell and dagen.it is hd
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not think he was even more injured than that. dagen: it is incredible the safety measures they put in those cars. thank you for that. one thing if you watch the capsule the car sits in. that was the ultimate protection. if you watch that, the rest of the car comes apart. instead of just bursting the energy of the impact. that is one thing that will save lives over and over again. got killed actually two years ago this month or next month in las vegas, so they have come a long way. connell: wild weather across the country this weekend a tornado that ripped through nebraska, millions of dollars in damage but thankfully everybody in that area has been accounted for. dagen: tornado watch in effect on the east coast. fox news meteorologist maria molina has more detail. nicole: good morning. the same storm system, this is the same storm system that
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produced the tornado cross-sections of nebraska and the same storm system that don't more than 2 feet of snow cross-sections of the dakotas. looking at incredible activity with this storm system moving eastward producing a risk of severe weather across upstate new york, parts of new england like the state of vermont and massachusetts, connecticut and all the way down into the mid-atlantic and putting parts of maryland and the state of virginia. the two main concern today are damaging wind in excess of 60 miles per hour and isolated tornadoes. you can see already pushing is word through pennsylvania and parts of upstate new york. we do have a tornado watch you mentioned, this one includes portions of upstate new york into the city of washington, d.c., in effect until 5:00 p.m. eastern time. we have very warm conditions, humid conditions and that will help the thunderstorms that could produce severe weather in the form of tornadoes or
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damaging wind is. wins. some of these could reach 75 miles per hour. so stay alert. and he tornado warnings issued for your county, seek immediately. back to you. dagen: thank you, maria molina in the fox business weather center. connell: home renovations coming up. home renovations with a heart because we want to make you feel good on a monday. they will talk about what helps out community heroes. dagen: gravity making one giant leap putting up an october record. sandra bullock and george clooney in space. does h it get any better than that? here are some of the day's winners the s&p. @??
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your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing. dagen: why am i smiling? i was talking cars. that is part of what is coming up on "markets now." general motors going online to bring younger customers, but dealers getting left out in the cold. renovating homes for heroes. lending a helping hand at home literally. putting up a record at the box office. 3d, baby. 3d. connell: we had to go back to nicole petallides. nicole has two stocks bouncing back after heavy selling last week. nicole: you may remember the
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dramatic fire video everybody looked out the tesla model s on fire that stock dramatically sold off and try and recover all of the losses. you have anil is coming out, raising the price targets $210 up from 160 with a buy rating. the ceo talked about the fact this is a large oddly shaped object that hit the car causing the fire, there is no risk compared to gas cars. and looking at the largest shareholder now, they took a stake in the company and were watching to see what happens. up 6% now, so that is a real winner. dagen: general motors looking to boost sales among tech savvy shoppers using the internet. but will local dealers get left out? joining us now with a preview.
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the local dealers are somehow involved, right? >> a new online service. a platform the dealers can opt into letting a buyer browsing the website already complete a purchase online. sign up for the financing program they want, even get an update on the trade in. for the dealers themselves can add accessories and warranties and that kind of a thing. dagen: has this worked for other car companies? tesla has been at the forefront of attracting buyers. >> tesla is selling directly. all this is is a platform gm is providing for his dealers. transactions are still happening at the dealer level. a free service unlike other referral programs, so this is another technological platform they are offering the dealers.
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dagen: who wouldn't want more traffic to your dealership? >> right now it has only been a pilot program. only live in eight states but they will be rolling it out. all of the dealers will be allowed to join in with the program right now only a handful are rolling out. one of the new dealerships in the country, and number of dealers still doing that sort of thing. it actually works very well for them. right now there is no advertising behind it, not getting a lot of traffic from it. it is not necessarily going to be the driver itself. dagen: are other car companies on board with this? >> this is going to be all of the dealers in america. they are going to be able to opt in. the one thing about this, you
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get a guaranteed price not necessarily the best price. there is still some negotiating available. you can go through the entire process online, do this, i will pay you $1000 less. and the trading aspect as well. dagen: any problem with the franchise laws and the natural platform? >> they have been certain about not violating. this is an online platform for the dealers to use. none of this goes through general motors themselves. i am the son of a 1970s car salesman, and i hate negotiating on anything. going shopping for mattresses is a nightmare for me. so i love this idea. maybe won't get the best price unless you go to the dealer or give them a call and start negotiating a little bit, but for the negotiation, i always
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end up paying a lot more than i probably should in those situations. dagen: how much would you really save truly in the negotiations? so you're buying even an escalade, how much are you really going to save? >> you can literally log on, go through the entire process online and they will deliver a car to you. you never have to leave the office, never have to leave the home. if you say $1000 or $40,000 car, was it worth the trouble or easier to do this and not deal with the stress? dagen: always going to say something that was horribly sexist but to avoid having a male salesman talked down to you. what cars did your dad cell? >> he went through a number of brands. he sold cars as well primarily commercial trucks. dagen: are you still afford loyal? >> no.
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dagen: shame on you. just kidding. connell: speaking of general motors. this is the section of the show talk about cars for an extended period of time. this next story is very interesting involving gm, one of the few automakers having a driver less car by 2020. skeptics question of gm keeps up with the competition. so we sent jeff flock to michigan to take one of these cars for a ride or best to be taken for a ride in one of these cars. it is all yours. jeff: i have a good one for you today. you're looking at the first live broadcast from inside gm driverless car. he has his hands on the wheel about to engage the end there you go. look mom and dad. how is this happening? >> it is a feature called super cruise, combination of adaptive
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cruise control and lane following. it uses a series of sensors to detect the markings, vehicles ahead and the infrastructure. it takes all that information, synthesizes it together into center fusion determining the proper path for the vehicle, controls the brakes, the steering. jeff: we could be playing cards right now. >> that is correct. it will work at highway speeds as well as in traffic jams, stop and go situations. jeff: you come up upon a vehic vehicle, this will slow down, this will sense another vehicle is there. >> a friend of mine is driving in a vehicle next to us, she is going to come in front at 48 miles per hour and she will pull in front of me and we will see an icon that she is detected and she slows down and we automatically detect her, we know she is in our past.
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we will slow down. the hands off of the wheel. jeff: if she were to swerve in front of you, you would stop? >> that is right. we would detect her and back off. if it were a collision sort of event we would go to full braking to try to mitigate the crash. jeff: google wants a driverless car. he put the in and it takes you there. this is only on controlled roads, correct? >> this feature is working on highways, not a replacement for a driver, the driver is still required to be in the driver's seat and attentive and take control of the vehicle in case of encounters a limitation. jeff: first-ever demonstration of the so-called driverless car. there you go. we will be back next hour and put this thing through its paces. one of the developers of this at
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gm. it is coming, folks we had connell: cool to watch just like every jeff flock reports. dagen: when you say we will put it through its paces i expect a the helmet and the racing harness because when you say that you better make good on it, jeff he had i mean that. you are mocking the car segmen segments. because we drive and you don't? connell: i drive 400 times more than you. don't remind me. i think i have a car pull right now i have two check in on i am sure i am responsible for. dagen: one thing we can all relate to, your home and giving back to a community giving community heroes a helping hand with surprise renovations. the guys behind the new hg tv show. connell: a twitter story coming up. that is straight ahead.
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dagen: all the movie watchers thought "gravity" would be a hit, and oh, it was, set a record for opening this past weekend. why? dennis kneale will be here. and take a look at treasury yields today. you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪
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>> i am lori rothman with your fox business brief. united technologies is canceling plans to furlough 2000 workers today after the defense department reinstated the employees. the company makes black hawk helicopters. and lockheed martin reporting it cut its planned number of furloughs by 600 workers. 2400. walgreens granted banking services. largest u.s. drugstore chain introducing balanced financial prepaid mastercard in test markets. the prepaid card can be used at in-store atms with no fee and/or check-cashing. marriott international moving a listing to the nasdaq. trading october 24 under the same ticker symbol. a lot of action on fox business. that is the latest from the fox business network, giving you the power to prosper. give me more power!
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dagen: our next guest are all about giving community heroes a helping hand and did they really write that? they're not too bad to look at either. connell: let's put it this way, good they did not say more. dagen: her fiancé is operating the camera. so there you go. connell: maybe we can talk about it. they have no comments on how they look. dagen watched it on hg tv last night. so it is, construction to help people, how did you get involved in all of this? how did they pick you two guys to do this? >> it is our third show. i think it was kind of a natural progression, we hooked up with the ellen degenerate show early on and we did a few helping
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iterations with her. they feel great, be able to give back like that and to do big projects and help people know that we can accomplish something for them that they can't get done for themselves in a short period of time and it feels awesome. dagen: it does feel like extreme makeover home edition. right? >> we are definitely doing huge projects, but the big differences we have a whole community and friends involved. when we show up, we have a twin 5100 volunteers that are directly involved. they are not standing by watching us, they are cutting with us, demoing with us, raking leaves, they are doing every single project and when a homeowner comes home they can say i took apart in making your home.
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connell: how does the process work when you pick someone? >> we need our inside men. we have one that goes away with the person that we are surprising to keep them away from the house for three days and we had the on-site person because we don't know these people so we are learning a lot of the design and their likes and dislikes through our accomplish the many volunteers around. once we get in there, it is go, go, go. dagen: how long with the project that you worked on in the premiere episode, how long would that take normally? >> that was a full home. dagen: you did everything from the roof on down. >> that was a full home landscaping and all we were there for six days, we had to stage it and new furniture. the person will do that in their own, we're talking at least 4-6
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months. connell: a contractor would you three months. that brings up our next obligatory business question. anything you can tell us about the economy for the home construction business? >> in jersey city specifically where we are based, you walk i guess not real technical, but when you walk in the building department and waiting online sc people pulling permits, you see contractors with plans in hand, a lot of people are starting new projects. within the last three months it has been incredible. we're looking at projects to restore, the existing brownstones, warehouses to convert into units, they are very hard to find meaning all these properties are getting chewed up. our vacancy rates are under 2%, the lowest we have had in over a decade. >> it is really renovation work. what we don't see is new homes.
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i am seeing a new home in north jersey, there is a ton of land but builders don't want to buy that landed because they cannot sell it. you see homeowners saying i will send my house for another five, 10 years, i will not buy any more. dagen: the biggest mistakes people make doing a renovation. >> they don't plan enough. the process that takes a lot of planning. if you want to avoid the big three months to six months, do your planning, ask the questions. dagen: the completely screw up the layout. connell: we trust to the contractor, he was great. thinks he knows more than we do. dagen: quick comeback. any time because you are just across the river. >> absolutely.
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connell: and nice to look at, as she pointed out earlier. dagen: i had a conversation of how you two were hot, so that is why she put it in the intro. >> aren't we out of time? thank you. dagen: it did not come out of nowhere. you are feeling out in the cold. connell: with everything we have coming up. new systems, please move on. nielsen twitter tv ratings launching today. and the service the company says will measure the activity on twitter about different shows. nielsen found in the second quarter of the year 19 million people, 263 million tweets about live to the events of 38% from a year ago. that is how people watch tv now. nielsen expects to promote twitter tv ratings on their show on hg tv the same way broadcast ratings are promoted.
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dagen: a friend of mine e-mailed me in the subject line is those guys are hot. want to talk about interactivity. connell: measure it up. dagen: record the weekend box office. "gravity." dennis kneale coming up with more details. did you see it? connell: no, do not see any movie. we will see you right back. weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next.
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most riveting thing is maybe the onslaught of startling utter silence. watch this. >> you need to detach. i cannot see you anymore. you need to do it now. >> in a movie theater, when the cuts to silence like that, it is just ugly the most quiet moment iin the theater i've ever heard, cannot believe how respectfully audience was. new box office record, vastly better than $40 million expected, 80% of sales, 3d and a lot of 3d has been fizzling at the box office. time warner stock up in the past 12 months. it ought to benefit.
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$11 million imacs. you had clooney and sandra bullock. no backs recommends instantly in the spacesuit from the start. the thing is never a belly laugh or a misting up moment. i cry at everything, but it's never got me. it never quite got me. dagen: is that necessary? >> yes, it is. i don't want to hear about the special effects, he said did you care about the characters. there is a good back story for the sandra bullock story you hear them talk about but overall didn't quite get to me. those effects are pretty amazing, some say it is every bit a big leap the way avatar was in '09, the pull it off on the effects, it is a good film,
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i'm glad i saw it. didn't make me cry. we like that. dagen: you big marshmallow. he is coming back in the matter of minutes with cheryl casone. all over the nine-year-old boy boarding a flight from minneapolis to las vegas. they are all over that. connell: blame everything on the shutdown. pointing out how apple is a mess. come it bears and apple the best of tv ads getting sucked up by your vacuum. dennis and cheryl are next.
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>> there is no way we will pass. the president is risking the fault by not having the conversation with us. >> it is kind of like this, someone goes in and takes your wife and children hostage and says let's negotiate over the price. cheryl: dennis kneale and i are here to take you through the next hour. i am cheryl casone. nearly half of disability claims may be fraudulent. it takes a lot. how do we fix that system?
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dennis: thank you very much, nicole. cheryl: welcome to government shut down weak to. a 10-year-old boy boarded a flight without a ticket. the tsa is blaming the shut down. we have your monday had lines. do you think it is fair to blame the shut down? charles: it is ridiculous that they would do that. it is like when they blame the
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prevalence of disability fraud. cracking down on scammers. >> last year his staff selected disability files and found that 25% of them should never have been approved. >> my common sense tells me that we have a system that is being gamed pretty big right now. cheryl: do you think that house republicans should focus their energy on this? dennis: look at some of these numbers. 11 million people on it. 1 million new sign-ups every year.
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i have been talking about this for two years. go to a gas station. a lot of people call it the crazy check. you say i am mentally, this economy that it is so rough, i cannot think. cheryl: one of the things that they blame was the lawyers. 80% of these claims, they have representation. they have lawyers attached to the claims.
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>> this one area in west virginia had a lawyer there in 60 minutes was reporting that that lawyer had doctors or allegations that the doctors were practically on the staff. the point they were making is you were exhausting your regular unemployment benefits and turning right to disability. that has actually caught the recession by surprise.
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charles is this a boy? charles: the prettiest girl at the ball, if you will. i do not think it is a ploy. twitter wants to make the right decision. dennis: there is no speculation that they will double that. i wonder what the impact of that would be. cheryl: even the sec is looking at the debacle. >> all of these glitches.
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cheryl: i am surprised that the valuation is so far apart. rich edson, thank you for being with us out of the sea. charles payne, of course. dennis: furloughed civilian employees being called back to work. cheryl: driverless cars, they are coming. let's take a look at how energy -- speaking of gas. ♪
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dennis: it is the control freaks nightmare, the driverless car. will google be it to the punch? jeff: i tell you, i do not know what google has done. gm is ready to show this. i wanted to show you from the outside and then get inside and show you this in action. go ahead and kick it into high gear. what is going to happen?
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>> what i will do is set our cruise control and engage super cruise. i am able to take my hands off the wheels. jeff: how does it do this? >> this uses a combination of radar and cameras. it detects the lanes and objects and other vehicles. jeff: can we get the car behind us to a go ahead and cut in? >> sure. jeff: you have tested everything. it goes the vehicle of you.
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when people employed the first cruise control, people were concerned. people would be speeding and blame you. are you worried about that? >> not really. it is not a substitute for a driver. it does require a driver to be attentive. jeff: i cannot go on the backseat and make a sandwich or mess around? >> no. we are taking actions to mitigate everything. jeff: it is interesting to see this. a driverless car. imagine that.
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cheryl: i wanted to look at some of the transportation stocks. look at hertz. there is a one-year for you. what if you had someone by kurds start to offer these. i will say, a lot of these do fly on autopilot but if you will. i want to bring in nicole petallides from the floor of the new york stock exchange. nicole: i am taking a look here at tesla. the stock was beaten down. tesla is back.
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>> welcome back to fox business. twenty-three minutes past the hour. more violence in egypt today. the latest attack growing and security. an indianapolis champion was injured yesterday after his car went airborne. he fractured two vertebrae and broke his right ankle. thirteen fans and an official were also over. tornado watches have been issued for a huge part of the east coast until 5:00 p.m. eastern time. severe thunderstorms and thus of up to 45 miles an hour are also
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possible. that is your fox news met. cheryl: i did not see an umbrella this morning. >> i have my hat. cheryl: if you wanted to track that tornado, you cannot do that on nova. that website is shut down. chuck hagel is recalling 400,000 defense department workers over the weekend. elizabeth macdonald has been following this story for us. you are telling me it is not quite settled yet. >> united technologies were first out of the box. now they are canceling. they have reduced the number of furloughs.
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so is boeing. they have given us a statement because they have not received specific detailed information on who exactly is being and stated. what it may mean, again, they are still not commenting. what we are seeing is a wait and see approach. what they need is the guys to be there in their seats to sign off on military hardware and things like helicopters. cheryl: we are still reeling with threats overseas this is part of defending our country. >> we are seeing mixed trading.
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they are now coming back but what this means, you know, the states across the country -- dennis: this thing that you talk about last week was the affect on global economies. i think that is the bigger concern here. this shut down, especially when you have such tepid economic data, it is the local economy that will actually suffer. >> you are exactly right. certainly with these megacompanies, you know, getting furloughs, it does put pressure on the local economies. cheryl: thank you very much.
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dennis: one commercial point out how much apple stocks and another has gummy bears getting sucked up by hondo's car vacuum. we have the list coming up. cheryl: can we rely on earning results to get these markets higher once again? we will talk about it after a quick break. first, take a look at some of the winners on the s&p today. ♪ [ female announcer ] who are we?
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dennis: time for stocks now. nicole petallides is standing by. nicole: frustrated with what they are seeing in washington. the dow is down 106 points. blackberry continues to remain in focus. cisco remains to be one of the interested parties. blackberry get them out there out today. up 3.8% right now. ralph lauren, amazon right now lower. apple looking good. they want to focus on the hi and
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line. back to you. cheryl: my ears perked up. thank you very much. the government shutdown is putting more pressure on earning season than ever before. with an all-time record high of 90 companies already issuing negative warnings, are the headaches really starting? you have to wonder if we are going into a new round of earnings. they are all that we have right now. >> the private data is what everyone will zero in on. when you look at the earning estimates, they have been coming down pretty materially.
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certainly, we will kick it off this week with a lot of companies. cheryl: i have to wonder sometimes if the market is disconnected from earnings. they have been jumping on a sequential basis each quarter since 2012. the s&p and that same timeframe is up 24%. >> that is right. earnings toward back half of the year have been backend loaded to hide. we are seeing earnings revision ratios, and at a negative ratio. i do think as we look into q3,
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remember as he came through q3 we started talking about a summer slowdown and that we had cereal. then at the end, the government shutdown. cheryl: you are also telling me that these companies will have an international of merging market business. we have these huge names coming out. they are all global names. i do want to say, as far as sectors go, you are saying telecom will be good. >> telecom will have the strongest earnings growth.
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the weakest will probably in the financial sector in the energy sector. no surprise. all in all, i would expect the quarter to be pretty good. we are watching three things. international is improving. cheryl: they have got to do that. what is interesting is the financials could be -- i am curious what the banks will come out and say. >> the banks had a strong second quarter. that is natural. we will hamper them a little
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bit. japan's gdp is running close to 4%. anything with that global footprint will put some decent numbers together. i think that is important. we do have to watch for a fax on confidence. we will be watching that closely, as well. all in all, i think it will be much of the same quarter. cheryl: thank you for being here. dennis: we have the ace metrics list of top ads for the third quarter coming up. cheryl: "gravity" taking a jump to the top. i go to break, take a look at these. ♪ [ male announcer ] once, there was a man
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who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. get live squawks right in your trading platform ♪ (train horn) vo: wherever our trains go, the economy comes to life.
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norfolk southern. one line, infinite possibilities. so i can reach ally bank 24/7, but there ar24/7.branches? i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. ♪ >> i have your fox business brief. time warner cable has agreed to acquire duke back and tribulations. it operates in the carolinas and five other southeast states.
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peter, let's take a look at the top in the third quarter. it starts with the number one. listen to peter talk about exactly how they go about measuring what makes a good at. >> this is scientifically measuring 500 unique people every time. we look at every single ad that breaks. dennis: it is likability. >> attention, persuasion, etc. don a great ad. they are building on their theme of cleaning wildlife. these are about building brands. you want an emotional connection.
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it is a 152nd ad. very rarely does that make the best at. dennis: i was kind of surprised that microsoft had the courage to make fun of one of the most beloved brands in the world. >> it is a role reversal there. it also pointed out a lot of features. dennis: i aren't surprised they did not bring some sort of lawsuit. these are by far the best ads. you have guinness at number one. >> you think of beer ads. a lot of beer ads are very polarizing. this ad is very touching.
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an emotional story. it wasn't about the beer. it was about friendship. dennis: i think beer advertising has been in a bit of a slump. that one performed 29% better than the average beer ad. talk to us about the netflix add the mac netflix has really changed the game here. they had great music. dennis: 45% say that they do watch those original shows. let's go to the last one. honda is only one that made it onto both of your
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>> one of the best ones ever. mom's wedding crazy. they know what is under the seats of their minivan. they thought that this was a great innovative theater. dennis: ads are very clever. this was both clever and affective and touching. >> we measure both. dennis: you turn out to be pretty good. i guess you have done this before. great stocks. cheryl: that was good. time for stocks now. we are coming off of two straight weeks of the dow and the s&p.
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>> what is interesting is, right after the chairman came out with his press conference, we caught a lot of momentum inside the market. we thought we would trade a lot higher. the longer the shenanigans in washington go on, though more people should be concerned about the market trading lower. cheryl: the change will be earnings. all of these companies have been doing well quarter after quarter because they have been cutting costs. this may be the quarter that it is over.
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>> as you are pointing out that they can get their earnings practically to whatever number they need to be out. it is really about topline sales growth. cheryl: thank you, keith. >> my pleasure. dennis: lots of things working against oil today. let's head to the trading pits of the cme. >> we saw a big selloff earlier today. there was some damage. there will be some supplies lost because of all of the shutdowns in the gulf of mexico.
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we know in the gulf coast that supplies will be hit hard because of the storm. gasoline and heating oil futures which were down big reversed and went higher today. louisiana will be down. that also brought gasoline down. we are also worried about the stock arc it. back to you, this. dennis: thank you very much, phil flynn. ♪ cheryl: time for your west coast minute. a new law in nevada aimed at helping underwater homeowners may end up helping no one. the critics say the law is
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confusing and open to much interpretation. colorado state officials want a thorough review of the oil and gas administration. the state asked energy companies to follow basic regulations. much of the response was actually voluntary. 3000 federal workers are back to work today. a majority of work at the pearl harbor navy shipyard. that is your west coast minute. dennis: coming up in my meeting in it, a backlash against the miley backlash.
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dennis: how is that for fear of open spaces? "gravity" setting a new october box office record. the most stunning moments may be the sound of silence. dish chairman under fire again. he personally had acquired a lot of debt. a dish deal could wreak back profits. the "wall street journal" says a fund has sued siding his conflicted ties. now, a backlash against the
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miley cyrus backlash. give it good marks for herself parroting appearance. enough already. enough of using of miley cyrus as a punching pad. cheryl: she said she will not be talking about hannah montana because she has been murdered. we will never discuss her again. there you go. fox business on whether watch. we have tornadoes expected along the east coast today. dennis: that is not the only storm brewing in washington. senator scott brown joined adam and lori.
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>> no sign of compromise did i am lori rothman. adam: and i am adam shapiro. the latest from washington. : house republicans to bring up a clean government funding bill. lori: all talk and no action. are americans done with it all? former senator scott brown on the job opening in d.c. and why he says everybody is to blame. adam: despite the hot air coming out of washington we cannot blame washington for this one. the latest from the fox weather center. lori: tv guide called the show one part antiques roadshow, part of l.a. ink and a -- of cops.
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we take a look with pawn stars. adam: we had to head over to the new york stock exchange and our own nicole petallides watching the doll with triple digit losses. nicole: we continue to see the market trending lower, that has been what we were seeing up to the government shutdown. a little bit of a pop starting the new month, the new corridor, and back to what we have been seeing, this nervousness, wait and see mode. it is a holding pattern. some of the serious investors say already made 15% of my money, they are taking their money out altogether. talk about the fact just wait and see pattern not yet the buying opportunity, but we are watching the fixed fee or index. while they'r we're not seeing dc move in the market
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