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tv   Markets Now  FOX Business  October 17, 2013 1:00pm-3:01pm EDT

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lori: what can brown do for you? try to the printing. looking to print engineering parts, prototypes and models. adam: first, we want to get a check out markets. we saw some run-up yesterday. today, a little pullback. >> the s&p above all time high right now. adam: let me ask you about goldman sachs. do you buy the explanation? >> all of the banks have been a drag.
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adam: verizon. pretty good road there. i read one analyst who said the new connection is good, but not as good as it could be. the mac that was kind of surprising. i agree with you. it sounded like a positive number when i first read it. adam: there was another positive there with verizon as well. 50% of their wireless base is now smart phones. >> smartphones are taking over. adam: i am sitting next to a woman who just got her 5s. lori: i have not even told my
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husband yet. i think you just busted me but i was entitled to an upgrade, though. shares of ibm are plunging to a two year low. ibm chief financial officer says the company will be dealing with the impact of the china slowdown for another couple quarters. adam: president obama says no shutdown caused completely unnecessary damage to the u.s. economy. peter barnes is live for us outside the white house where we go next.
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peter: we got a little bit of a preview of the future budget and debt ceiling battle to come. the president thinking democrats and reasonable republicans, that was the term that he used, in a statement this morning to welcome the reopen of the government. take a listen. >> there has been a lot of discussion lately of the politics of this shutdown. let's be clear. there are no winners here. these last few weeks have conflicted completely, unnecessary damage on our economy. peter: the president also laid out his agenda for the rest of that year. he wants to try to reach a deal
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on a responsible budget. that was phrase. he wants to finish work on a farm bill. we saw a photo op of democratic and republican leaders of the house and senate budget leaders who have they got together to try to get started on these negotiations. they talked about common ground. adam: all right, per barnes. this is on a delta website. the website, apparently got is down. that will be trouble for a lot of business travelers today. lori: a lot of government workers are back online today.
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it brings some relief temporary relief. nothing but a band-aid, at last. >> if you look at the two big issues, obamacare and levels of government spending, neither one of them was settled in this agreement that they reached. the issues, the problems have not been solved. it will come back the middle of january. they will be talking about a new continuing resolution or some kind of new budgetary device to keep funding the government.
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that will happen at the very time that a lot of these sequestration cuts are supposed to take affect. lori: the shutdown, according to s&p analyst, costs $24 billion. youth that will inspire lawmakers? >> we will do it again in january. a lot of them are bowing it will not happen again. on the other hand, it is not as if they have a lot of common ground right now.
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sometimes, they do not make it. they miss it. i am not saying that there will be another shutdown or anything, but we just do not have any solutions on horizon right now. lori: even the president set that there were no winners. you bring up the important issue of obamacare. i am curious how that will be interpreted among the republican party. >> they have a new strategy. their new strategy is to aggressively overseas obamacare and you will see hearings in the
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house. also, they will try to, i think, take advantage or get political advantage to what ever problem plagued obamacare in the weeks and months ahead. a lot of them believe it will be a rolling disaster. they simply cannot force their will with control of the house of representatives. republicans goal is try to extend those sequestration cuts forever. if not due back, trade some of those caught in exchange for long-term entitlement reforms some of those reforms president obama has actually endorsed.
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getting people to sign off on those is a different matter. my guess is we will see some changes in the structure. democrats will get a little more of the discretionary spending that they are looking for i think we will see at least tweaking with the sequestration structure when it all comes around again in january. lori: thank you for your time. >> thank you. good to be here. lori: we know he is a credible guy. glad he came back. the government is back in business. try telling that to the markets. maybe you can put that money you make to work buying it in one of these neighborhoods. adam: not guilty.
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the reaction from mark cuban's attorney. it is an interview you will only see right here on fox business. ♪
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adam: a breaking news story. the delta website is down. it will waive the $25 charge for phone bookings during the outage. still no word on the cause or how long it will cast. the it department is aware of the issue and is working to fix it. lori: let's make some money with charles eames. stocks down, old rising.
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charles: does have a couple big words. ibm have their own problems. the bias in the market iteratively to the upside. the russell 2000 has been a monster. we do not talk about it a whole lot. you can make so much money in a short period of time. adam: earnings per share beat $2.88. charles: the bigger banks will
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more or less trade sideways. citigroup was up today. i am not a fan of citigroup. this earnings season will be unforgiving. adam: we will get economic reports again. lori: a lot of analysts are talking. this whole shutdown is shaving six tabs off of gdp this quarter. sixteen it will be interesting. i think wall street will give it a free pass.
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adam: charles payne, give very much. we want to check markets with nicole petallides. nicole: we are looking at a mixed market. we are looking at some analyst calls. solar city is up 6.5%. then there is 3d systems. a vibrating there from piper jaffray's. the stock is up over 110% over the last year.
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they both sound like great quality. adam: thank you. lori: forbes releasing its list of most expensive zip codes. belvedere, california is number four. the zip code for the upper east side here in manhattan takes the third spot. number one, the most expensive home listed right now in the silicon valley is third $3 million. the cheapest house is a two bedroom bungalow, $1.2 billion price tag.
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adam: mark cuban getting out alive and stronger. we have an exclusive interview. eight the violin that was played to call customers on the titanic. this is a fascinating story. you will want to hear about it. that is coming up. ♪ [ male announcer ] imagine this cute blob is metamucil.
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lori: delta, we are understand has a problem with its website. jo ling kent has the very latest. >> i called the delta main phone number they are well aware of the issue. they sounded pretty frustrated. they do not know how long this outage will last. if you do need to book a flight, you can call them and they will waive the fee that they usually
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charge if you do not vote on the website. right now, delta.com is down. no reason for it. lori: thank you. adam: we want to talk about the big victory for mark cuban. nine years ago this happened. stephen is the defense counsel. he joins us now from dallas. welcome. thank you for joining us. it is an important case for all kinds of investors. it was thrown out in 2009. >> that is a question left best
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for the sec. we said that this case was not worth the paper that it was printed on. we pointed it out at every level from the beginning. they would not listen to us i think it has to do with a lot with mark cubans celebrity status. it took, as you pointed out, it took the jury three and a half hours to come back and give the right result that the sec could not do in six years. adam: this concept of private information or nonpublic information. in this case, that hinged on whether or not others may have known about the plan to dilute shares. that information was already out. the company had approached
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others. >> they did not do their homework. they did not look at the fact that there was a 9100 spike in trading. they paid in expert witness $200,000 give or take to research it. then, they did not use it in the court. there was no explanation for it. adam: were they going solely on the timing of market cubans trade? >> no dow on the celebrity status target. they did not look at the trading
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that took place on june 28, days before the press release. if they had, they would have came to the same conclusion that a three year old would have. something strange had happened in the market and the market had already absorbed the information. it was their witnesses out of the investigation that said they had not done anything to keep the information confidential. i do not know how much easier it gets. mark cuban did not get away with anything. mark cuban did not do anything wrong. adam: the ability to fight the sec. the $2 million fine he could have paid is far more less than what it has cost him to defend his reputation. what are the lessons for the
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sec? >> the sec is under no obligations to turnover what is called in scope with tory evidence in its investigations or trials. if it was a criminal case, they would have been required to. that has got to change. there is no reason whatsoever a regulator who is bringing an action claiming some on the fraud at the market can hold back information that tends to show the innocence of another. adam: will mr. cuban, will you be leading the charge to change that?
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>> if i am honored to get the call, i will be happy to do it. adam: what about mr. cuban? >> i am sure he will. adam: congratulations on your big three. all the best to you, sir. adam: thank you, adam. lori: what are you a lawyer or something? you have that subject down pat. what exactly did congress pass? digging through. adam: delaying the inevitable. we have the investment size for now picked. ♪ [ male announcer ] once, there was a man
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lori: get you up-to-date on the markets. it has been 15 minutes since we last checked in on the floor of the new york stock exchange. nicole petallides, nicole, stocks are cutting their losses here. >> they are indeed. what is interesting about these markets, you see the dow is to the downside, that is because of ibm, unitedhealth and goldman sachs for the dow but the s&p 500 has a gain. that is a better gauge of today's market, up one-third of 1%. jason weisberg seaport securities thinks the market is poised to run higher, because of low interest rates almost zero where else will you put your money? he thinks the rest of the year should be good. the vix, fear index is down again today, down 8%. back to you. lori: thanks, nicole.
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adam: congress comes together to pass a last minute stopgap spending bill to keep running not without appropriating $3 billion in questionable spending. rich edson, with the details. what are they up to? >> a little extra spending with this. it doesn't have to do with extending current government appropriations and continuing more space under the debt ceiling. look at other proposals in this made it through, now law. forest firefighting funding for $600,000. colorado flood relief for $450 million, and a death benefit to the widow of senator frank lautenberg. when you die in office, tradition, congressional life insurance policy they pay extra year's salary. this is continuing the condition, however lautenberg last count was worth somewhere between 57 and off million dollars. one other thing is the olmstead locks and dam system. something under construction since the 1980s. it had plenty of cost overruns.
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the appropriation was increased or authorization was increased in here. some people are looking at location of this. senate minority leader mitch mcconnell, this is kentucky kick back. those are those in mcconnell's office point to two other senators put it in. the other senators acknowledged they put this in. the senate majority leader says it's a good spending of money and defended the extra spending. >> this is not an earmark. saves the money, the taxpayers lots of money. enables the corporation of engineers to continue a project -- corps of engineers. had we not done this, so-called anomaly, the corps of engineers would have to spend before the last day of december $80 million to stop the project. >> one senate aide says there were actually additional spending items in here but a number of senators objected to them. so they took them out. back to you. adam: rich edson, pork is pork, as my people would say, not
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kosher. thank you very much. lori: talk about the bond market. we saw a spike in short-term yields with all of the concerns about the government shutdown and as we inch close toward debt deadline obviously we got a deal late last night. this is look at one-month treasury yield. it is already retreating to preshutdown levels signaling calm but with the fight simply postponed until january, how should you invest in treasurys orme overall? let's bring that question to mike schumacher, head of global rates for ubs mike, wonderful to have you join us this afternoon. what is your advice for treasury investors or fixed income investors? there is so much on the plate right now. we saw short term volatility in the treasury market and discussion about the fed and when it will commence the taper, correct. >> thanks, lori for having me. when you think about the fed, the fed meets next week. some people think the fed will not even consider tapering. we look for the fed to start tapering in january. that is relevant.
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because the enormous buyer treasury bonds more than market impact, think about duration terms injected by treasurys last self years. eventually that is going to fade. we think not quite yet. treasury bills are essentially zero. one month bill might yield 2 basis points, something like that. yesterday it yielded something like 40 or 50. it came crashing in. that makes sense. that is a good sign. it is hard to get excited about buying treasurys near term. lori: is that because rates are still vulnerable, because we haven't had key economic reports? we still have the fed and we're in earnings season too. nobody has a firm grasp much what this economy looks like. all the analysts are out downgrading outlook for growth because of shutdown. >> i think that is fair. some of might have colleagues are pilling their hair out with no data but look back at the fed. the fed will be main driver of the market, at least the bond market the next few months. it stepped aside briefly when
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the sir h circus in washington unfold. fed will be back in the front roy. people look at the fed saying what will ben bernanke do? how is janet yellen thinking? that will drive treasurys and we think that i will be the case for the next six months. our view at least is yields are bit too low. we think they will go up somewhat, not too crazy, 20, 30, 40 points in treasurys. 10-year today is yield is maybe 2.65. last month the yield touched 3%. to say it can't go up a little bit is crazy. lori: you're not predicting a great rotation out of bond into stocks as many were looking for like a couple months ago like a big blowup in the bond market? we're coming off a significant rally, really the best in a generation. >> that's right. eer not predicting a huge backup in bond. a little bit but not too much. if you look at yields they are back before qe2 started before qe3 started. if you look at ben bernanke's famous beach in jackson hole in
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2010, i shouldn't know the data point. but i do. it was 2.64. today it is 2.56. of the mortgage rates are the same. high quality bond market gone past qe and said, what is next, fed, show us the next act. lori: if you're looking for paper for protection where do you go as we wrap up here, mike? >> if you're looking for very safe paper in the relatively short term, go out to three-year, maybe four-year treasuries. they look comparatively attractive. not as much risk as 10-year. for bond investors in general we like the idea of high yield. we still think that makes some sense if you take somewhat long-term view. over a month or two who knows but over couple years it looks pretty good. lori: love to have you back. mike schumacher, thank you very much. >> thank you very much. adam: the shrinking staff. lori: fox business correspondent charlie gasparino, as former employees question lazard capital's survival.
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>> i'm jo ling kent with your fox business brief. a defense lawyer for ex-employee of convicted ponzi-schemer i had bernie madoff, that madoff duped the workers just as he did with everyone else. five former employees of madoff's investment business are on trial facing fraud charges. all pleaded not guilty. jpmorgan chase is denying reports it is adding capital controls on some accounts t will limit wire transfers for certain
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customers with chase connecting accounts starting november 17th. dallas fed president richard fish he is sighing signs of a quote a u.s. housing bubble. warning about the central bank purchases on bonds. fisher is a critic of the monthly stimulus but again he said he would not argue for tapering at the next meeting. that is the latest from fox business, giving you the power to prosper.
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adam: troubles abound ad brokerage firm lazard capital as executives flee the firm and employees question the company's survival. charlie gasparino is here with exclusive details. and we have to be clear who we're actually talking about here. >> remember, there is lazard the investment bank, famed investment bank. former finance s.e.e.r., helped bail out the new york city in the 1970's. that is part of firm.
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there is capital markets firm that has 200 employees. sources tell fox business there is mass exodus out of the firm by employees. they feel the firm will do one of three things and sell itself to somebody elsewhere they will do massive downsizing or look for refinancing which is very, very difficult. or shut down. that is what is going on right now at lazard capital. we do know last week friedman billings ramsey, poached about 30 of roughly 200 plus people there. that is big chunk of the firm left for another firm. they didn't buy the firm. just took the people. kind of an interesting thing here. this is brokerage firm that is rapidly deteriorating. you know, if you talk to people on the street, we should point out lazard tells us they're still open for business. there is no plan to imminently close, imminently close if you know the language. adam: this is familiar. we've seen this play out. >> if you talk to anybody that works there the place is basically on its last legs. why are we doing this story? you know, listen, wall street is a changed environment. remember jeffries a couple years
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ago? adam: right. >> you know, jeffries had to sell itself. john corzine, one potential problem that maybe they invested in some short-term debt issued by italy and spain, by the way that bet would have turned out all right, all creditors pulled their money. small brokerage firms and mid-sized brokerage firm are having difficult time in trading environment. volume is off. capital requirements. ratings agencies are skiddish. firms have a difficult time. adam: how do you know the firm is wounded before 30 top players get poached? >> we did reporting, couple weeks ago i was in chicago. i was attending a conference and we did report about the executives from the firm telling us, exclusively, that there was an issue there, that the firm was on its last legs. something is imminently happening. you know, listen, how do you find out? people that work there. how do i get a story like this? i get it from the people directly in the place. this is what lazard capital executives are saying both
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current, those that are leaving. it is a situation that they think is, you know, it is, you know, kind of sad, these small and mid-sized brokerage firms, are interesting players to cover. they have market clout. they have good analysts. because of waive the world is working in terms of volumes of trading being down, difficult to make money. adam: saw difficulty with goldman sachs. everybody is taking a hit. >> they're huge. adam: they're huge. >> it will be interesting to see, just deviating a bit, morgan stanley's earnings tomorrow. i do know james gorman, the ceo of morgan stanley, is waist and see how we match up with goldman. goldman is trading shop. we're more of a brokerage and advice shop. adam: before i let you go, any updates from aig and thing with bernanke? >> hank greenberg sued the federal government saying the aig bailout was unconstitutional, illegal. one of the major reasons why he is annoyed because it wiped out shareholders, virtually wiped them out. he was largest shareholder
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through starr international his private insurance company. here is what we reported bass night, bernanke as, bernanke is not going to be deposed until after leaves the fed. but, hank paulson, former treasury secretary at the time, tim geithner, former new york fed president, those were three involved in the bailout. they have been deposed. we're waiting for those depositions. i will say this, wall street is eagerly waiting. adam: everybody wants to hear about that. >> what was rationale for the bailout. they're underoath. they're deposed by none other than than david boies, one of the best lawyers in the country. he is greenberg's lawyer. when i get my hands on this, it will be fascinating reading. adam: charlie thank you very much. lori: a day after the debt deal, let's look at the markets and how they're reacting. let's head to floor of the new york stock exchange and nicole petallides. you're reporting names that report earnings this afternoon. >> let's talk names we know well reporting after the bell.
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chipolte mexican grill up half a percent. google which right now is down 9.5 -- nine 1/2 dollars, a real winner. google at 928. there was talk whether it was going to 1,000. chipolte, shares hit all he time high at 44earlier this week. make sure at 4:00 p.m. show you stick around and we'll have numbers and bring them to you. it could be tomorrow on the news as you've seen. we've seen earnings affecting some of these stocks and the overall market. there are other names as capital one and e-trade as well. back to you. lori: always good stuff. thanks, nicole. adam: talk more about 3d printers. they're capable of making everything from hearing aids or jawbones or this thing. lori: your new office sign. that is pretty cool. now, ubs is thinking outside the box bringing 3d printers to its
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store near how. how the latest technology could help your business.
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adam: all right. behold the future. the way you make custom goods is changing. you can see the 3d. it is in 3d. 3d print something opening new doors for individual and small business. ups stores are the first nationwide retailtory offer the service. they're doing it in six stores. we'll tell you more about that in a second. i visited the ups store in new york and spoke to them about small business technology and their leader dan, who showed me how all this works. >> we're watching the fox
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business logo printing with our 3-d printer. adam: the thing about 3-d printing, i don't know if anybody can see this it is in 3-d. you have six stores where 3-d print something available. who will use something like that? >> this is example after premium where we put a brand on to an item. it is used for engineering parts, prototypes. jewelers use them for design models. adam: take a look at this because all of these device, when you say engineering, these are bearings, ball bearings essentially. >> and they print with moving parts. adam: this was done inside after 3-d printer. these are not going into machines yet, could they? >> no. these are used as samples to make sure parts are sized properly and function correctly. adam: when we talk about this, for instance, this would be an example of a metal part being used with a 3-d printed part. they will come with metals actually printed within a 3-d printer? >> 3-d print something possible.
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ours uses abs plastic. adam: who do you think will use the 3-d printers at ups stores? >> at love our customers are engineers. and make prototype parts or parts for existing products. adam: this was printed within the printing within, the layers are in the process. this will be a huge business. it will be $3 billion come 2016. ups projects 5 billion by 2020. am i normal consumer using 3-d printing at a store or is it more designed for a entrepreneur wants to get a test product out for investor? usinessill be for small owners and startups. any user with a idea for invention can be start-up business. we hope they work with us to bring our design and get a file and get them started on journey. adam: i'm looking at things made in 3-d printers. this is working ranch. salt and pepper shaker. clearly a logo.
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i don't know what engine block this might be, when we look at 3-d printing is it kind of thing, say, 15, 20 years from now we'll all go to the ups store to buy all kinds of things? have a blueprint online to have it printed out at ups? >> that is possibility. adam: what do you hope to gain from the experiment? >> we hope to see the demand from customers. how many people are actually interested in doing 3-d printing. we want it accessible to the public so anyone can do it. adam: 3-d print something a new wave in lot of ways. ups is also willing to wait and be incredibly patient for something to catch on. as a timeline given to wait for 3-d printing? >> test is scheduled for a year. we'll see what happens over the course of the test. adam: what things do you expect to learn from the test? >> primarily the demand level. we want to see how many people are interested. what kind of industries do the most 3-d printing. therefore how we target and bring the most business.
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adam: 3-d printing industry generating $3 billion by 2016, 5 billion by 2020. this costs 50 bucks. if you have an idea, want a prototype, you go to the ups store. they have them in dallas, chicago, silicon valley, washington, new york city. you can print them up. lori: did you print a die ram ma in school. adam: no. lori: where you do 3-d thing in school. i think that goes to the wayside. adam: sorry about the nasty fingernail. lori: which didn't notice it at all. one more quick story before we say good-bye for the hour. how much would you pay for piece of titanic memorabilia? 650,000. the violin, which was famously used to help keep passengers calm during the sinking of the titanic has been proven to be authentic after undergoing a hospital ct scan. the existence of this famous piece of history emerged in 2006
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when the evener, son of an amateur violinist contacted auctioneers. the expected price for the violin makes it single most valuable pies of titanic memorabilia. it has two long crocs in the body caused by moisture damage. it is miracle is made it. adam: this is amazing collectors item. you can show, hey, i have the piece. next hour, all-star panel and are you more fed up with congress after learning of the spending bill approved last night is filled with pork? tweet us. tracy byrnes and ashley webster take you through the next hour of "markets now." [ male announcer ] need help keeping your digestive balance in sync?
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tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. you heard about the budget deal but did you know washington slipped a healthy helping of pork into it as well? outrageous. we have team coverage ahead.
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tracy: our twitter question -- ashley: oink, oink. tracy: are you even more fed up with congress after learning that the spending bill is stuffed with, well, questionable stuff? tweet us at fox business. your responses are coming up. ashley: billionaire mark cuban calling the government a bully after being cleared of insider trading charges. judge andrew napolitano is here. you doesn't want to miss what he has to say about all of this. tracy: and look, this can not be a good idea. ahead in your tech minute, we'll tell you about a motorcycle helmet with a computer display projecting maps on the visor. come on, now. how about two hand on the wheel? let's focus. ashley: oh, my gosh, accident is written all over it. time for stocks. let's get down to nicole petallides on the floor of the new york stock exchange. as we do every 15 minutes, the dow has struggled all day to get into positive territory but the other exchanges have done okay, nicole. >> right. almost has a feeling don't hold your breath for the dow, at least for not today. we'll get to ibm in a moment.
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that is something weighing on the dow heavily as well as goldman sachs and unitedhealth. s&p is the better gauge of the real deal market today. it is up 1/4 of 1%. it has 500 stocks and more balanced at least on a day like today and the tech-heavy nasdaq. jobless claims higher than expected ibm had weaker revenue than expected. so that was not good news. it hit a new annual low, 152. it is down to 174 and change. that is near under major, major pressure. back to you. >> nicole, we'll see you in a bit. they're open for business at least for now. federal workers are at their desks after washington got their act together late last night. it is far from over. congress kicking the can down the road on many issues. as you can see on the screen the
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countdown starting towards the next showdown. pretty genius. ashley: sad. tracy: we have team coverage beginning with peter barnes at the white house and rich edson on capitol hill. peter, start with you first. are you gearing up for the next shutdown? >> yeah. we got the, what cr, the budget cr expires january 15th, three months from now. the then the debt ceiling expires in four months. so the president coming out this morning, making a statement the day after congress passed this legislation, this compromise legislation, and we heard the president draw a red lines in the past. sounds like he was trying to draw a red line this morning, thanking democrats and reasonable republicans for the deal that passed last night. take a listen. >> so let's work together to make government work better. instead of treating it like an enemy, or purposely making it work worse. that is not what the founders of
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this nation envisioned when they gave us the gift of self-government. >> so the president taking a shot at conservative and tea party house republicans there. now for, he also laid out his agenda for the rest of the-year of the said he wants to try to get some kind of a budget deal with republicans, with congress. he wants to try to push immigration reform. and he also is looking to get a farm bill passed that has been stuck up on capitol hill in a fight over how much to spend on food stamp programs. tracy and ashley. tracy: peter barnes, i saw you talking to dagen this morning. she said everyone got a scolding. that is the appropriate word. thank you, sir. >> you bet. ashley: and a timeout. inching inching, now on to the -- oink oink, on to the pork in the bill. rich, what exactly did congress load in there we were not perhaps aware of? >> ashley, it is a time honored decision in washington, d.c.,
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must-pass bills, can certainly be defined yesterday as a must-pass bill, filled with things that don't have anything to do with the increasing debt ceiling or continuing appropriations at current levels until january 15th. we have a list of what with we have in the proposal the president signed last night. extra funding for fighting forest fires. colorado flood relief for $450 million. a death benefit to the widow of senator frank lautenberg. it's a long tradition in washington, d.c., if you pass away while serving in congress, congress appropriates almost a life insurance policy for you, your annual salary, to your beneficiaries or your family when you pass on, a one-year salary here. it is worth noting that the senator is worth somewhere around $57 million. and also, this is the big one here, the olmstead locks and dam. at $1.2 billion in extra spending authority. that is something that the senate majority leader says is actually a benefit to taxpayers.
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>> there is no need to point fingers at anyone other than we saved the taxpayers tonight about $80 billion. it does nothing to the, running up the deficit. >> so from here the bill is now law and as peter mentioned, we've got another government spending fight coming up on january 15th. we'll see what they put in that time. back to you. >> all right. cost of doing business i guess. rich edson, thanks so much. so are you even more fed up with that news that congress after learning the spending bill approved last night indeed is stuffed with pork? time honored tradition says rich. tweet your answers as we put that very same question to star parker, founder and president of center for urban renewal and education. fox news contributor. former communications advisor to senate majority leader harry reid, penny lee. now president of vin strategies. star, let me begin with you, is this a defeat for the
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republicans, the tea party in particular, and if we're going to be going through this all again in next 90 days because this is very divided government, what strategy will they choose on that time around? because i would say this strategy was perhaps a losing strategy, would you disdebris? >> i do disagree it was a losing strategy. in fact it was an excellent strategy because what we were able to do get the hearts and minds of the american people to consider why it is that the federal workers that were not here at their desk in washington, d.c. during the time of furlough, that are getting paid for that time are not in the obamacare law but the people in the heartland, the people in the private sector are forced to do this. no, if somebody is being dragged into a relationship they don't want, i'm not surprised they would fight not to enter that relationship and that fight will continue. tracy: okay. but, penny, i think from where most people sat during this whole thing, the republicans look like they got clobbered. now do i think the democrats did
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a good job? heck no. pox on both houses. so where do we start from here now? because we can not continue to go on like this. >> look, i mean congress right now drove their numbers down to about 5%. i'm not even sure who those 5% people are. maybe they didn't understand the question or -- >> i think it is their parents. >> exactly. i mean the numbers are low and it's a little bit of a pox on both hands. yes, republicans suffered more as far as what we're seeing in the polls but the democrats and president didn't come out well either. tracy: right. >> so we think what we need to do, there is healing that needs to take place and needed to take place immediately. i think the place to start is with constructive conversations on both parts to try to fix this budget impasse. the longer, if we continue as you were saying to kick the can down the road another time, the american people are tired and they need the stability to be able to make those investments as they need to make, to make hiring decisions they need to make to get the country's economy moving. that only comes from long-term
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stability. >> penny, let me follow up. there are philosophical differences between the two sides, and there always are of course but they same pretty extreme. it is the federal's government job to create good-paying jobs in your opinion. >> there is a part that the government plays. whether it be tax incentives, whether it be other mechanisms to open up lands, to be able to develop and our natural resources. there is a part that government plays. is it sole employment center? no. and needs to be more public and private partnerships that we have -- i mean to grow the middle or i mean to grow the economic sector. so i think there's a part but i also think there needs to be a play with the private sector. tracy: you know, star, actually set this up beautifully for you because you were once a welfare recipient, right? we have no talk about entitlements ever. i mean the system has gone out of control as far as handing out money to people. so why i get on one hand we should help, on the other hand,
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man it has gone wild, hasn't it? >> well i think that is what is going to drive the discussions as we go into this next opportunity, to have a real war. there are two different philosophies. some people in country, a large portion of the country believes government is too big and doing things it shunt do. so they want an investigation. they want to look into the different budgets. tracy: right. we're having trouble with your mic, star. one more question to penny. >> yeah, go ahead, tracy. tracy: let's address the entitlement issue if we can. it didn't come up at all during the discussions. this is part of the reason we have the amount of debt we have. no one wants to touch this. >> conversations going forward will be very, very difficult because as you were saying the two philosophical differences. we're spending too much and not taking enough revenue to cover that spend. that is the bottom line. painful choices are going to have to be made. where the priorities are placed will really set the discussion. but until we deal with medicare,
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social security and the defense department, we will not have touched what is really at the crux of this budget. so those three items have to be addressed. entitlement reforms, whether raising age, putting in means testing other things, it, democrats will have to compromise. republicans will have to come to the table with possibility looking at revenue raisers. both sides will have to give a little. i know neither side wants to right now. for the healing of this country and for the sake of its economic viability going forward it has to. entitlements have to be part of that conversation. ashley: let's hope they hear the message. star parker and penny lee, thank you for joining us today. we appreciate it. tracy: neighborhood targets may look a lot like the apple store. ahead in the tech minute we'll tell you why that is no accident. ashley: speaking of shopping, men, turns out more are actually pushing a shopping cart around the grocery store. we'll help you cash in on that trend straight ahead. first as we do at this time every day, let's look how metals
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are trading. we know gold, sandra smith, gold moving much higher 238 bucks a troy ounce. we'll she will talk about a big turn around straight ahead. when we made our commitment to the gulf, bp had two big goals:
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ashley: coming up to quarter past the hour. let's look at markets. nicole petallides down on floor of nyse, travelzoo. nicole? >> major market averages are top story. s&p is gaining travel zoo. big move, right. looking at that, down almost 13% today. online trans, information deals and the like. so, we have seen the shares tumbling. third quarter results are out and have been a disappointment. i should note, this is a big move. other thing we should note, this is not a big company in market cap. it is not near the billion dollar mark. contrary, around 500 million. year-to-date, it's a winner. up 11%. latest numbers have been a
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disappointment. as a result you're seeing stock reflecting that at this time. back to you. ashley: nicole, thanks very much. we'll be back with you at bottom of the hour. keep it right here on fox business, for complete coverage of fox earnings. a slew of them from google, chipolte, capital one, e-trade, coming up "after the bell." list claim, david asman will be here with all the details to dig down into those reports, 4:00 p.m. eastern. don't miss that. tracy: chipolte is serving drinks, right? charles payne with making money. mq mobile. i'm not wrong, right, you can get a margarita at chipolte. >> i think you can. that stock come roaring back. tracy: because of the margaritas. >> this is a chinese company that is making inroads into america. mobile internet services. they do security, which by the way, you know, the claims that they make with the security stuff is amazing. games, android boost you know, i don't know if you guys knew this. the average android user on
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phone had 65 apps. obviously more apps, the slower phone gets, quicker battery goes. they have something that would boost that up. they're doing the thing. some retail stores, will be in 1500 targets. metro pc with the crickets. numbers are absolutely phenomenal. we're chasing here a little bit, but the stock still has room to the upside. last time revenues were up 100%. operating revenue was up 300%. they're aggressive telling their story. shareholder meeting this week and investor meeting. have one on october 22ed in, one november 12th. the more they tell the story particularly in this country more firms may come around. they got a upgrade from second or or third tier firm. i don't want anybody thinking i'm dissing the firm. in this particular case people never heard of it because it is pretty good. claims they make with respect to what they can do.
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the games are phenomenal at least in china. number one on mobile platform and numb per three overall in smartphones. mobile security part i find extraordinarily intriguing. 438 million registered users. a lot of move to the upside. they're successful in china. they're making big inroad into nerc now. i think this will be a stock that goes up huge from here. i have been following it a month 1/2. it has been volatile. so i will add that as a caveat. tracy: that is 2:00 caveat, charles payne. thank you very much. >> you guys sigh the solarcity earlier today? up a buck 1/2. it was up 4 earlier. jpmorgan jumped on the bandwagon. their target is 68. ashley: look at charles. a victory dance. >> i can't help it. ashley: not a victory lap. >> see you guys later. ashley: you can't fly from there from here. you know why? delta's ticketing website and mobile app are down. the company telling fox business it will wave 25-dollar charge
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for phone bookings during the web outrage. still no word on the cause or how long it is going to last. the airline did tweet the following. our apologies for the inconvenience. i.t. department is aware of the issue and working quickly to resolve it as soon as possible. none of this having any effect on the stock as shares, i.t. partner delta try to get the site back online. up one and a 30% on the day. trying to make a flight on delta. tracy: $25 to book by phone. nice of. ashley: nice of them to wave the fee. tracy: cory booker winning in new jersey, is this the beginning of a trend. >> we'll have the story after your fox minute. ashley: we're live in venice, california, where smaller is better at least when it comes to homes.
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>> 22 minutes past the hour right now. hi, everybody, i'm jamie colby. this is your fox news minute. senator-elect cory booker is ready to go to washington and channel americans frustration with congress into energy for change. the newark mayor appeared on
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television after he defeated republican steve lonegan in a special senate election to fill the seat left vacant followed by the death of frank lautenberg. president obama left a message on his voice mail last night con great ring him on his win. father of he had nsa leaker edward snowden is not a fugitive and should stay in russia about the true story about why he released sensitive information. snowed den visited his son in moscow. edward snowden has been given temporary asylum in russia. brief it or not, russian scientists recover ad large chunk of a meet right that streaked across the sky in february and crashed in into a large lake in russia. 1600 people were injured by the shockwaves when it hit earth. those are the headlines on the fox business network. send it back to ashley and tracy. i'm jamie colby. tracy: thank you, jamie colby. >> take care, trace. tracy: teen nye new homes on
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tiny pieces of property are popping up. some of southern california's trendiest neighborhood. i like the idea of a small little house. adam housley joins us from venice with more. find me one, adam. >> well you know, tracy if you don't have kids or any animals and go out and about in some of the trendy neighborhoods a small home makes a lot of sense. we talk about trenddy, you mentioned california, in southern california, venice is one of the most trendy places you can come to. when you come here there is not a lost space in vin necessary -- venice behind me. it hughesed to have two homes the now is it is one home and they are attached at the walls. >> it is not your parents house. >> it's a small lot house. a tiny trend that started in los angeles and is now building up across the west. >> we think it appeals mostly to young professionals. a lot of college educated right out of college who probably don't have kids yet. >> the narrow homes are usually
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stacked two to three stories high and range in size from one to 2,000 square feet. while you don't pay high condo fees or share walls you do share lot space with several, to dozens of these hybrid homes. >> there is no per se, kind of traditional yard in the front because you end up with a smaller lot but, there is all these kinds of creative things that happen with the space because you can go vertical with it. >> while some oppose small lot houses saying they hurt character of older traditional neighborhoods, the supporters say small homes could have a big impact on the local economy. >> when you take one lot that would typically house one family and providing a place for three families, that is three more buyers in the community that can go down to the local coffee shop and local restaurant, local mom-and-pop retail store. >> so we know california is being, at least southern california being the thin culture. thin homes seem to be catching on here. in the next year-and-a-half there are 250 more of these units that will be built just
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here in southern california. other communities are looking at the same possibility. how much are they going to go for when they're built here in socal? you can expect them to start at half million dollars and go upward of 800,000 per unit. tracy? tracy: wow. we were saying like a manhattan apartment but manhattan prices too i guess. adam housley thanks very much. >> we have no taxis here in l.a. the problem is parking. >> you need a car to boot. ashley: yeah. tracy: thanks, adam. >> right. ashley: only took four hours for a jury to clear billionaire mark cuban ever insider trading charges. and you don't want to miss judge andrew napolitano's take on all of this coming up. tracy: a golden turn around? sandra smith who is quite golden herself at the cme where gold is heading higher. hey, girl. >> gold may be up today but losing its luster as this safe haven asset of choice for investors. it went down during the government shutdown. so what financial instrument is gaining in popularity as the
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safe haven trade? we'll have the answer coming up. stay tuned. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing.
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[ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day.
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12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. ashley: 90 minutes until the close. looking at the dow 30. the day after what could have been default day, the market certainly the dow struggling to get above the watermark. ibm with a bad earnings report probably in china. look at the impact on the dow down 80 points, and 80-point swing because of ibm. if it wasn't for ibm you could say the dow would be in positive territory. the stocks pull back from earlier losses, gold on the
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rise. complete coverage with nicole petallides at the new york stock exchange. sandra smith in the cme. let's begin with you. nicole: we have been watching the dow jones industrial down 53 points. one of the reasons you're seeing some pressure, of course ibm is the big le liger. goldman sachs down. weighing on the dow jones industrial average. the new dow component. you can pop up the other financials as well. overall financials have done well this year. outpace the major market averages. what we have seen is 24% decline in quarterly revenue. earning per shares the revenue fell short as i noted. fixed income decline is what really surprised wall street. starting to see a sudden surge in interest rates, that actually costs of the investors offguard.
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goldman to the downside weighing on the dow. overall financials have performed well and some folks continue to love them. back to you. ashley: thank you very much. now onto the cme where a new safe haven for the place gold. sandra. sandra: hey, ashley. if you do look at the course of gold over the shutdown. we put together a chart for you. many think of gold as a safe haven investment. it went down over that period of time by 3.5% loss there. it was the volatility index that is listed across the street at the chicago board options exchange that started the attention. the vix went higher and pretty heavy volume showing investors are sort of looking elsewhere outside of gold and silver and the precious metals for safe haven assets.
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not that any economist is saying a vix is a safe haven asset but they are viewing it as that. they want to own the volatility in the stock market. as expected volatility over the next 30 days using stock options. people would rather on the volatility than the gold or silver. by the way, the vix, the day the government shutdown began, it went from 13 up to 21 in a single trading day. we saw the spike in interest. the safe haven buying in the past two days. 27%. much more o the inverse relationship seen then there is with gold because gold is up on the same day the stock market is up. that is not what we typically see. it has a lot of investors and analysts questioning where it is going from here. back to you. ashley: 13.6. thank you so much.
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tracy: breaking news, oil trading down $1.62. today's loss of over 1.5% actually erases all of yesterday's gains. ashley: now that the drama in the city is settled for now, it is up to positive earnings reports to boost the market higher. earnings growth may be sluggish. joining us now, chairman and ceo. thank you for being here. now that we have the still behind us we can focus not only on earnings, but the economy as well. what are they telling us? >> we will see a sluggish fourth quarter as a result of the drag from this mess that happened in washington. we will recoup most of that in the first quarter of 2014. ashley: even though we have this threat of another showdown. >> i don't think it'll be quite as scary as the last one.
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we might have learned something from what they went to the wire on. there will be some back-and-forth in negotiations on washington, but the big picture is that we are in an inflection point in the economy where we have had this slow, sluggish growth continuing in the fourth quarter. i would look for gradual acceleration in growth into 2014, and a long runway for the economic expansion longer than most people expect. looking for an eight year extension. an eight year bull market in stocks. another three years to go. tracy: you are saying sluggish stock market. 1800 on the s&p at the end of the year. a trader said everybody chasing the yield between now and the end of the year. kind of like your last chance at
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bat. >> we have had this market this year largely driven higher by increasing price-to-earnings ratio, so the market up roughly 20% on the s&p. earnings up 5% so the difference is the increase in the price-earnings ratio which is now 15.5 times under the estimate for 2014, and i think the big expansion of p/e ratios is behind us although we might get a little bit more as a result of low interest rates and, native policy with continued economic policy. the big driver will be earnings. earnings will be overall 6% or so, 7% or so in the s&p. i think it'll be a stock pickers market, getting companies that are going to surprise on the upside. avoiding ibm today that disappoint on the downside.
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ashley: with that in mind, pick out some stocks in particular that you like and why. >> for areas that i think are benefiting from major transformations in their industry. the first is the airlines. airlines going through a transformation change to profitability from decades of lawsuits after the restructurings and consolidations in the industry. my number one pick is u.s. air. and so what we have had is the big consolidation industry, improved pricing, capacity reductions. the second would be generic drugs. we are seeing the generic drugs industry massive consolidation left with big players, my favorite is activist which was a company created by the acquisition of activist, the recently acquired another acquisition.
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the third one is tv broadcasting. 400 network affiliates owned by 60-70 owners around the country being rolled up by the biggest player in the industry which is sinclair broadcasting. ashley: 162 stations in some 77 markets. we are out of time. thank you so much for your insight. >> my pleasure. ashley: breaking news. delta's website is back up and running. the airline ticket site has been down for 90 minutes. they waved the fee. we are told it is back up and running. tracy: crazy. verizon shares heading higher after beating the earnings estimates. how they did it ahead on your "tech minute." ashley: the judge and his gavel
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has canceled the october crop report originally scheduled for release on october 11. two weeks of crop progress updates were also scrapped because of the government shutdown. usda employees did return to work today. coming up at 5:00 p.m. eastern on "money," the ceo of tracking point, making the worlds first smart rifle. turning an a novice shooter intn expert sniper. shows users exactly what is happening on an ipad. $22,000 for the low-end model, and they are already sold out. that is the latest from the fox business network, giving you the power to prosper.
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tracy: slamdunk victory as federal jury cleared him of insider trading charges on the sale of the shares. last our exclusive interview
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adam shapiro had the attorney on. he had this to say. >> is taken position from the beginning that this case wasn't worth the paper it was printed on. every level from the beginning, they wouldn't listen to us one bit. tracy: fox news senior judicial analyst judge andrew napolitano. ashley: is it all publicity? >> i agree entirely with what mr. cuban's lawyer just said. it is unfortunate the government can do this. the government suffers no sanction. if i were to sue both of you and there was no basis for it in a court were to find it frivolous, the court could order me to pay your legal bills. that happens everywhere in federal court in the country except when the government brings the case. the court does not order the government to pay legal bills for frivolous prosecution.
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this is the prosecution of a civil case which is very interesting because the sec usually brings criminal charges. but they had a much higher level of proof. you have to prove guilt beyond a reasonable doubt, 90% likelihood the person did it. in a civil case you only have to prove by a lower standard, preponderance of the evidence, something they can do like 41% evidence. consisting of an eight minute phone conversation, allegedly mr. cuban had the phone conversation with the president. did they produce the president to testify in the courtroom? no. did mark cuban even recall the conversation? he got on the witness stand and said no. when the jury was asked a couple of questions, was mark cuban and
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insider? answer, no. here's the definition of an insider. a person is confidential information and who by law is duty bound to keep it confidential or who agrees to keep it confidential. it was not duty bound to keep confidential and because the conversation did not take place, he wasn't an insider. tracy: they went in there with nothing. says i'm glad this happened to me because i had the financial means to fight back. summary ells would have paid the fee and gone away. tracy: even though the government has a bottomless pit, he has more cash than they do. ashley: he spent more on his legal defense and he would have on the fine. he was proven right. >> he is worth north of
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$2 billion. tracy: it is worth every dollar to clear your name. >> it is also worth every dollar not to cave to the government. make them realize the world knows, juries and judges know sometimes they don't pick the right targets and they go after people for the wrong reason. this is a classic example. tracy: you are classic. >> you are just saying that because i am another italian from new jersey. ashley: time for stocks as we do every 15 minutes. okay, we have gone past that the day, default day. we had not secure the problems. we are focusing on economy now. but there is still uncertainty, wouldn't you agree? >> absolutely. we may have alleviated a little
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of the pain but we have not cure the patient here. still not much enthusiasm in the market today. the s&p all-time high. ashley: where do we go from here? we have seen the six drop will the volume pick up? >> the volume has been low through this turmoil. i think it is going to continue. we really have no end to this right now. this uncertainty swirling around the market. why get involved? still seeing some, that is for sure. still have janet yellen coming in putting money back into the market. i think in general the market will trend up but maybe not with that volume. ashley: good point. we appreciate it. >> thank you.
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tracy: time for your "tech minute." shares of verizon soaring after third-quarter earnings. looking for $2.25 billion, u up 1.59 billion from a year ago. u.s. largest phone carrier build up the base of wireless and bios customers. agreeing purchase 45% stake in verizon wireless' with a $130 billion deal closes, verizon will have full control of verizon wireless. apple is in the bull's-eye, so target testing a new minimalist display in the electronics department, so the waist height right white table allowing customers to hands-on experience with products. no word how long the trial will last or if it makes it through the paper towel i'll. and get on your horse and ride preferably with bon jovi and the
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fine head of hair. introducing silicon valley to the version today coming with a google glasslike function that will work with bluetooth and smart phone to display gps navigation on the visor. way to come look at it for me if you're on a motorcycle. it comes with a rear facing camera that collects 180 degrees images of what is behind the bike and feeds it to a display about 18 feet ahead of them. hoping it will be available for purchase next spring with a price tag over $1000. watching stuff some 18 meters out. maybe we should just watch the road. i don't know. ashley: thank you very much. we do have some breaking news. blackberry shares rising quickly on reports from dow jones that lenovo looking to buy blackberry. lenovo has signed a nondisclosure agreement to look
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at blackberry's books. the stock moving higher on that news. tracy: facebook shares hitting new highs after a move that is not playing with some parents. me included. dennis kneale with the controversy. don't go anywhere. help the gulf recover and learn from what happened so we could be a better, safer 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.
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tracy: facebook often gets themselves in trouble with privacy police over its crusade to link everyone to everyone. on a new policy on teenagers it may do this again. dennis kneale with the story. ashley: the number one social network loosening restrictions on adolescence. previously facebook would not let the post of 13 to 17-year-olds be readable to anybody outside of the facebook
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circle. now this book says teenagers can elect to have their post put up on the internet for all to see and search. facebook already has over a billion users anyways. this book says teenagers are among the savviest users of social networks. a 13-year-old is only so savvy. while 20% of facebook users in the u.s. are under age 18, by some estimates of all kids on facebook, 20% are illegally on there, under age 13. wait for the children advocates to raise a ruckus over this. so far it is not clear with the financial upside is of facebook to loosen up on the adolescence. it may expand the audience for ads linked to a certain posting that could exact higher fees. ashley: it comes down to money, doesn't it? tracy: parents lie about the age with a sign them up anyway. dennis: the problem is how much
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privacy are you supposed to expect when your post in the personal pieces of your life anyway. this is a false issue. i will not let my 13-year-old daughter have an account on facebook. ashley: good stuff, dennis. thank you very much. beat it. yogurt is now being marketed to you. food giants like general mills and craft are trying to take male grocery stores. men aren't hitting the frozen yogurt. they created a protein fused frozen yogurt. larger portions make groceries a guy thing. watch out for the food laced with testosterone. tracy: sounds like some sexy spanish guy that is going to come flying in. ashley: whatever. now you are frightening me.
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tracy: and they get paid, what are they doing? ashley: coming up on "countdown to the closing bell." open for business. government workers heading back to work. the reputation of the united states. as the new proud owner of one of the coolest cars ever. i wish it were me. a young entrepreneur who has designed pretty cool cars himself. stay with us. it's a growing trend in business:
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♪ ♪ liz: good afternoon, everybody, i'm liz claman. it is the last hour of trading, this just breaking: dow jones is reporting that he novo, the chinese computer maker, is actively looking at buying blackberry. yes, this is a huge story because lenovo has just crushed it when it comes to market share in the smartphone market in
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china. apparently they've signed a nondisclosure agreement to look at the smartphone maker's books, but let's look at shares of blackberry, and anytime anyone's mentioned thai interested -- they're interested in buying blackberry, the stock has spike. this almost half a percent, but at $8.21, this is a stock that used to have 70% market share. pretty sad, but right now it's a happy day for at least anybody who got in recently on blackberry shares. now to washington where federal workers back on the job today, but the economy is expected to feel the cost of this budget and debt showdown for months. president obama speaking earlier said there were no winners in the government shutdown. >> nothing has done more damage to america's credibility in the world, our standing with other countries, than the spectacle that we've seen these past several weeks. liz: reputational damage aside, real cost estimates due to the

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