tv After the Bell FOX Business November 18, 2013 4:00pm-5:01pm EST
4:00 pm
>> wunderlich had downgrade. [closing bell ringing] >> we were up the 16,000 level. more than psychological than anything else. up on the day on the dow but lower. underneath the 16,000 mark as you can see. looking at numbers lori: let's get to the front page headlines. new york fed president bill dudley feels more optimist i can about the recovery. as growth picks up he expects to see substantial improvement in labor market conditions. that probably adding to late session selling today. >> exactly. homebuilder confidence stablizing in november after falling two straight months. national association of homebuilders says there are still worries about washington budget battles. lori: aren't there always. boeing geting a nice pop after the company announc
4:01 pm
aircraft deals worth more than $100 billion including new orders for boeing's 777x aircraft. we'll have a bull-bear debate on boeing. >> stores will be slightly less crowded on friday. nielsen says only 13% of the shoppers are planning black friday visits to the sore this year. compared with 17% last year. >> shares of discount retailer supervalu fell sharply after a downgrade from goldman sachs. the wall street firm cutting them to sell from neutral. lowering its price target to just $6 a share. >> washington post company is changing its name to graham holdings company on november 29th. follows the sale of its flagship newspaper and several other publishing businesses to amazon founder jeff bezos. "after the bell" starts right now
4:02 pm
lori: we have joe bell in the and scott bauer in the pits of cme. comment on the stock market, why investors didn't want it to close at6,000 today? 16,000. >> it was hovering just under there after we hit the high. quite frankly the carl icahn tweet or reuters report that came out 1:30 our time, 2:30 eastern today, that put a little black cloud over the marketplace. talking to the guys behind me, the last three, four times he came out and said anything, whether about the market in general or apple he mentioned this time, the market taken a hold to it. although we didn't see a huge selloff, i think it had something to do with the modest selloff. that 16,000 number,.
4:03 pm
hundred number in the s&p's, 4,000 numbers, frankly they're psychological numbers anything. ashley: count for something, scott. can investors still jump in at this moment of record-breaking numbers and still be confident they can make some money? >> you know what? i think they could. in fact, you know, you listen to what one of the fed governors said earlier today who made it seem like the economy is really getting there on solid footing and maybe perhaps we'll see the taper earlier rather than later. you know, in effect that is actually good news, isn't it? don't we want the economy to be good? we want companies to grow. we want revenue streams to grow. we want earnings to grow. yes a taper is out there and everyone is expecting a selloff when that happens. quite frankly if unemployment is down and we see earnings and revenue growth. at the end of the day that is really a good thing. lori: okay. >> if you're not in the market -- lori: i have to come in here, we do have breaking earnings news,
4:04 pm
scott. we want to get to jo ling kent in the newsroom with the number are urban outfitters. what is the word. >> eps at 47 cents a share which is a beat on 45 cents a share street was expecting. revenue is coming in at 774.05 million to be exact. that is nice beat over the 770.51 million the street was expecting. stock is up 2% right now after-hours. taking a look at what the ceo said, richard haines, despite the solid performance we remain cautious of the fourth quarter given a likelihood of a highly promotional environment and today's challenging holiday calendar. another executive coming out at a big brand saying we don't know what to expect this holiday season, certainly not looking very positive, lori. lori: what does a challenging holiday calendar? hanukkah following after thanksgiving? all right. interesting cautious especially with a retailer in the
4:05 pm
fourth quarter. >> jo ling just said, the concern they will have to be really competitive on the seas and margins get thinner and thiner. >> a crowded marketplace indeed. let's pick up our conversation. i want to send it to joe bell with schaeffer investment. i know you're bullish. nobody is willing to go out, except for "baron's" magazine and call this stock drive a bubble. you're bullish. s&p target at 1850. characterize the market as it closes today? >> i think the other guest mentioned it or described it perfectly. i think we're up near psychological round levels. you combine that with strong end to last week, the 7th consecutive positive week on s&p 500. a bit of strong positive momentum. i think short term here a little check back to 1775 would make sense on. s&p 500 or at least a little bit of a consolidation here but i think bigger picture we're in the beginning stages of all these institutions whether you talk about hedge funds, mutual
4:06 pm
funds, pension funds, retail investor is starting to get back in the market. there is the transition phase where all the money that doubted the market last few years came off the sidelines in 2013. as i mentioned think we're in early stages of that. i think we see continue ages end of this year into next few months of last year. lori: scott a lot of people say when the retail investor, mom-and-pop, that is time for smart money to run for the. >> its, no? >> it is a sign or warning signal to be on the lookout. one interesting thing like i mentioned, i think we're in the early stages of that. when you look at the previous few years, especially equity mutual fund outflows, the money put back in last stat i saw was seven consecutive months of inflows back into mutual funds. so the retail investor are dipping their toes back into the market. when you look at that, only 5% of the money that was taken out. so i think, the money is starting to be put in. until we see the, we sort of that see that overwhelming
4:07 pm
optimism where nobody see as feeling for the market and everybody is on mistake -- ashley: have to interrupt you quickly. we have a salesforce.com. let's go back upstairs to jo ling kent. >> hey, ashley. salesforce.com, met on eps coming in nine cents a share. meeting expectations exactly. revenue at $1.08 billion which is a beat of the 1.05 the street was expecting. look act what the ceo is saying at the top of his earnings report, citing third quarter revenue growth of 36%. given the strong customer response to our next generation technologies he is delighted to announce they expect to deliver their first 5 billion-dollar year in fiscal year 2015. so right now the stock is down about 3%. >> jo, thank you very much. salesforce.com. meeting on eps. perhaps a very slight beat on revenues. it's a cloud computing company. as jo ling reported just
4:08 pm
slightly lower in after-hours trading. lori. lori: back to you, scott. the week started out with a bang. if you haven't heard already we crossed the milestone of 16,000 a bunch times. it's a key psychological level. investors didn't want to close there today but how do you see the rest of the week unfolding and drivers within? >> we have all the retail earnings coming out later this week. i think the most important one is tomorrow morning and that's best buy. the reason i say that is, i think best buy of any retailer out there, the one retailer that encompasses our entire, entire economy. meaning you can go in there and buy batteries for 99 cents. you can buy a 50-dollars videogame and 10,000-dollars television. the fact they have now recaptureed the marketplace, walking into retail store and with stood online effects of amazon and some. other best buy is the key to retailing season tomorrow. how best buy goes tomorrow, i
4:09 pm
think near term is how retailers and the market is going. ashley: a new bellwether. we have to bring this in. we're almost out of time. sorry to rush you through the picks. you picked chipolte last time you were here, they are up 30%. pretty impressive. which stocks arr you looking at now? >> i think a lot of solar names look pretty good. solarcity, sun power. a lot of strong price action. really high-flyers in 2013. yet we see short sellers continue to target names. we look at that potential volatility with a strong uptrend. a lot of social media. they have sort of got a lot of negative flak in the news since the facebook ipo but we're seeing strong price action. yelp nice entry on pullback today and pandora. a the lost skepticism, strong price action that is bullish sign. lori: 236% up on pandora. dr. dre, haven't you heard, introducing his own radio program as well? competition. spotify as well as pandora and itunes radio. that is a crowded space.
4:10 pm
come on, joe. >> yeah, definitely is but, like i said, it comes down to expectations. at schaeffer's we have a saying, not low prices but low expectations that pretty much describes pandora. lori: gotcha. appreciate the argument. joe bell. scott bauer, we'll come back shortly with the s&p futures close. ashley: don't mess with dr. dre. moral of that story. boeing flying high with just about $100 billion worth of orders for the 777x aircraft. we have a bull and bear debate. lori: that will be fun. is the obama administration heading for another retreat? live to washington for the latest. ashley: our facebook question is about the bowing win at dubai airshow. we're asking do you think there is significant upside for boeing's stock through 2014. log on to facebook.com/afterthebell and let us know what you think. we'll be right back. ♪
4:11 pm
[ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.
4:12 pm
a research tool on thinkorswim. customer erin swenson ordebut they didn't fit.line customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, peat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics.
4:13 pm
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? ♪ ashley: cloud computing company salesforce.com reporting third quarter earnings. let's head back down to nicole petallides on floor of new york stock exchange. see how the stock is trading, nicole. >> it is not current quart
4:14 pm
they're is problematic. it is the view. let's start off what they came in for the third quarter. turns out earnings per share came at nine cents versus estimate of nine cents. so that was right in line. he then they were looking at revenue, 1.0billion, which surpassed 1.05 billion. however it is the outlook here that we're look at for the fourth quarter that is under pressure. earnings per share view misses. the quarterly billings did beat. the other thing we should note for salesforce.com, they announce ad strategic cloud partnership with hp. so that is something else we'll be watching. you can see the stock is not moving dramatically after the quarterly numbers. at least not yet. we'll watch tomorrow for sure. ashley: not a whole lot now. nicole, thank you very much. >> thanks. lori: let's check the all-important s&p futures. scott bauer in the pits. what do you see for the data? >> last five minutes or so there have been retail buyers coming into the marketplace. looks like the selloff we saw
4:15 pm
during the day today, maybe that is really short-lived. again, those psychological levels we hit earliers maybe not so -- hit earlier not so important but maybe buyers are coming in. in terms of sales force one thing i want to point out, now that they're going to a mobile platform, 53 on the downside there, if it gets there is some major, major support. as well as i was at indiana university with the kelly business school. they use sales force. it is really, getting geared not only toward the major companies out but also down into the education side. >> all right. scott bauer. >> among the tolling bells at cme. >> thank you. ashley: boeing 777x jetliner just got a huge boost with the launch in dubai. three persian gulf airlines buying jets worth around $100 billion but is this enough to push boeing past the dreamliner problems? lori: we'll look at both sides of the debate in our boeing bull versus bear showdown. joining us is our bull, eric
4:16 pm
siegel and s&p capital iq and bear, david strauss. u.s. aerospace and defense sector analyst. i will begin with you, eric because your price target is 156 on boeing and you have to be feeling pretty optimistic about news of this big order and really the trajectory of the stock overall. what is your thesis? >> we continue to like boeing here. we think triple 7 x is the one of the catalysts hyped the lawn of the 787-10. to sigh reacceleration of wide bored other at boeing. they have significant large orders to come over next couple years for this airplane and we continue to like that there. we like the global traffic trends seedespite tepid global economic growth. we're continuing to see strong traffic growth.
4:17 pm
airlines are improving profitability. we have strong demand, improving profitability. airlines want to order and have the financial wherewithal to order from boeing, we'll see profit boost for them in terms of pension tailwind that will also boost their cash flow. and in regards to cash flow, decelerating 787 sort of growth rates in terms of production, is going to be a positive with regards to cash flow, combine that with the cash from the pension and we think they're going to have a lot more dividend and stock repurchases. ashley: eric that is very impressive list of reasons why you like boeing. we have to go to david, okay, you heard all of that also, you know, david, in my mind boeing stocks have been remarkably resilient, given everything that happened with the dreamliner, it was one problem after another. then we have the huge order in the middle east, $100 billion. how can you be bearish on this stock? >> yeah. there are several names within the aerospace group we like
4:18 pm
better than boeing. a couple of concerns that we have, first of all we're concerned about boeing oversupplying the market. if you look at the amount of airplanes they're supposed to supply into the market over the next self years these are peak kind of levels, levels that the airlines over time haven't been able to absorb. second of all, we're also concerned about execution risks so on the 787. what we're speaking about the amount of cash they will burn on the 787. need to remember, with every airplane boeing puts out the door they're burning 50 to $75 million on the 787. third of all on valuation, boeing is trading at all-time peak levels despite the fact that 40% of the business is defense. that is something people tend to foreforget about. lori: david, only go airplane manufacturers right, in the entire world. economy and population around the world is booming. so, i mean there is demand to meet the supply some might argue, no. >> sure. if you look at the amount of supply coming into the market it
4:19 pm
is going to equal about 10% of the existing fleet per year. if you take global traffic demand of around 5% which obviously high-growth markets like middle east aree that but l markets like north america and europe are growing well below that, if you take 5% or so traffic demand per year and couple for replacement demand you're still short of 10% new supply that will come into the market each year. ashley: eric, maybe you can respond to some of the concerns from david. he brought up earlier oversupply the market, burning up cash. what are your thoughts? >> with regards to supply we would sort of look at, we wouldn't be too concerned with regards to the headline size of a lot of these orders. for example, the 77 x isn't going to deliver until 2019, 2020. but you know we think that, you know, the airlines have historically, you know, been adding capacity. we're seeing airline pricing
4:20 pm
power continuing to remain pretty solid. again airline profitability is increasing. so concern but not something that we're too concerned about right now. with regards to 787 profitability, yes i agree with what david said, but going forward as production rates ramp, we should see a diminution of amount of cash per unit as boeing moves toward break even. lori: it is above the 156 price target. so will you change the price target and boost it further. >> no. the stock is around 13. lori: okay. ashley: david, who else do you like, quickly off boeing, who do you like above boeing in this sector? >> sure on the large cap side we like presession cast parts which will benefit from ramp in production rates of 787 trades at discount to boeing at these levels and we think will have better cash flow going forward. on supplier side of things, like
4:21 pm
bav and spr. >> very good. good debate, folks. thanks very much, eric and david. thanks for joining us today. appreciate it. lori: so the obama administration's dramatic new idea to solve the problems with its troubled healthcare.gov website, it involves the private sector. we're off to washington for the latest. ashley: motorola's moto x smartphone is at the front of a full-scale assault on big wireless companies. we'll talk to a ceo who is challenging the whole wireless industry with a brand new business model. stick around. ♪ americans take care of business. they always have. they always will. that's why you ke charge of your future. your retirement.
4:22 pm
♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise financial does. that's what they can do with you. ameriprise financial. more within reach. you know how painful heartbur can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®. [ male announcer ] they are a glowing example
4:23 pm
of what it means to be the best. and at this special time of year, they shine even brighter. come to the winter event and get the mercedes-benz you've always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho! [ male announcer ] lease the 2014 e350 for $579 a mth at your local mercedes-benz dealer.
4:25 pm
ashley: time for a quick speed read, of some of the day's other headlines, five stories, one minute. first up apple reportedly planning to buy israeli 3-d sensing company prime sense for $345 million. the prime sense technology allows digital devices to map out 3-d environments. former treasury secretary tim geithner who helped oversee the bank bailout is about to take a new job at firm warburg pincus. geithner will become president in march. google is opening its own showroom called winter wonder labs in six cities across the u.s. the showrooms will allow customers to test google products just in time for the holiday shopping season. a new report shows honda is the top brand for maintaining best resale value of vehicles. audi toyota, having high resale values.
4:26 pm
qualcomm will release its talk smart watch on monday after thanksgiving also known as cyber monday. qualcomm will sell the watch on its website for 4 -- 349.99. that is today's "speed read." right on the buzzer. [buzzer] lori: well-done, practicing all day. lori: clearly. more turmoil for obamacare. talk about something that could use practice. white house getting ready to bypass the troubled healthcare.gov with help of private sector. rich edson joins us live from washington, d.c. rich. >> a botched website rollout means customers can not buy insurance and many are young and healthy will pay more in premiums than they will use insurance. administration and insurance companies need the customers. now the white house says it may have another fix for obamacare. >> we are also working to set up direct enrollment through insurance companies so americans could choose to enroll directly you there insurance company. that is another method which we can reach the same point that is
4:27 pm
the foal here. -- goal. >> this is on top of the fix president obama announced last week. for one year the administration is allowing insurance companies to reinsurance the plans obamacare is phasing out and a provision in the law could make the fix expensive for taxpayers. known as risk corridors the provision requires the government to subsidize insurance companies if they fail to enroll enough young, healthy customers. with the administration plans to allow companies to reissue the phased-out policies the american academy of actuaries says such an allowance would have two parallel insurance markets operating under different rules. cost to the federal government increase as higher than expected average medical claims will more likely trigger risk corridor payments. the cost? there is no reliable estimate. the latest congressional budget office says obama cuts enough from medicare around increases enough taxes to cover the cost of the health care law though cbo calculated that best website problems and administration's
4:28 pm
changes. back to you. lori: thank you very much, rich edson. >> all right. fed chair nominee janet yellen helped stock market bulls while strongly defending the fed's bond buying program but are equities in a bubble about to burst? some people say yes, others say no. we'll talk about it for you later. >> can you imagine only paying five dollars a month for your wireless phone bill? we'll speak with the ceo of republic wireless and how he is doing that and why carriers like at&t and verizon might be a little concerned here. ♪ ya know, with new fedex one rate
4:29 pm
4:30 pm
4:31 pm
than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account. ♪ >> breaking news. reaching an agreement, some 4 billion a consumer relief. of course this is just part of a much bigger deal that is being talked about. some $13 billion. consumer relief panda paving the way, if you like. although, business has been reporting, it has not been the main sticking point. this does kind of clear the way, if you like. the deal including mortgage write-downs, mortgage payment reductions, the deal, by the way, could be announced mid-week. again, not the whole 13 billion, but at least paving the way toward the final settlement.
4:32 pm
lori: back to today's market drivers. it was a record day for the markets. prompting the 16,000 level for the first time following this pullback the dow ending the day only slightly higher, still closing four consecutive record close. a at a ten s&p 500 sectors closed in the red. consumer discretion being the worst performer. and it was a down day for both gold and oil. a falling over 1 percent. fed comments that raised the possibility of the central bank beginning to taper its bond buying program. oil continued its losing streak. selling a $92.80 per barrel. learning that homebuilders sentiment for november held steady. sixty-four. readings above 50 mean more homebuilders deconditions as good rather than poor. ashley: believing that your phone bill should be closer in price to a cup of coffee rather
4:33 pm
than your mortgage. i agree. and it is cheap hybrid service that could give big carriers like verizon and at&t a run for their money. lori: the company is offering a smart phone for $299 with plans for as little as $5 a month. joining us in a fox business exclusive, david morgan, republican wireless co-founder and ceo. let's get right to it. how will you pull that off? >> thank you for having me. super excited about having the $5 a month plan. but this is really a story about getting smart about smart full-service. republic wireless, we use wi-fi when available and when not. the phone automatically moves over the cellular. able to offer service from $5 a month, as you said. if you want to just talk in text us qaeda wi-fi it is $10 per month, that said, unlimited talk in text. three gm limited is $25, 40 is
4:34 pm
$40. the only way we are able to do this is because the biggest network in he country today is your network, my network, all wi-fi, the home and office and school. ashley: you know, we have the republic moto x phone here. the price for this is $2,909. some of your competitors will offer the phone with the contract for 49 months. so that is a big price difference. >> it is commanded comes with a 2-year anchor around your neck. in this industry things change as rapidly as proof lies. we have no contract approach. i think that really resonates with people who have been spending, as you said guy second only to the mortgage our food budget. a family of four can approach $500 a month. that is just way too much. we think we should use the network that we have all around as most of the time, and that's why fine. ashley: all right. so let's talk about what the impact of this could have on
4:35 pm
your big rivals. what kind of reaction do you expect? >> well, it is important to understand that when you are not around wi-fi, that is okay. we will be using the sprint network. and that is an important point. from our perspective, listen, smart phones are magical, wonderful devices, but they have been out of reach for many people. this is a phenomenal moto exponent. we put the mojo in the motel. can eat is really about time that a service like this emerged for because most of the time it is better and faster than the cellular network. it has been 18 months of hard work, collaborating tightly. last week we announced that we had an enormous reception. at one point we were selling almost a fallen a second, 50 phones a minute which was just tremendous. thrilled with the response. lori: are you concerned because t-mobile also has an aggressive
4:36 pm
new pricing plan and the major carriers. they cover a much more vast area. ashley: i understand. >> you make a good point. whether you pay a regular carrier, someone who calls themselves a nine carrier off, you're spending an ungodly amount of money to be the biggest footprint in the country is actually wi-fi. and a billionaire. this is the only one that lets you walk into your home office where you may not have great sell signal or inside the tall office building that may not have gray cells signal but as good wi-fi. your phone knows it, naturally uses it. when you're on the phone and walk away, we cut you instantly over to cellular seamlessly. you don't notice it. best of all, five, ten, 25, or 40 month. ashley: this is an industry that is always looking forward. what is the next big thing?
4:37 pm
>> last week was our 18 months and waiting. we were thrilled to get to market with these plans. we may have more announcements down the road, but this week the team is celebrating. ashley: congratulations. we appreciate you joining us. lori: breaking news. the nomination for the next batter reserve chairman. thursday at 10:00 a.m. eastern. the vote will happen thursday. former fed chief. right now she is nominated for confirmation. the new police station for gaming council is flying off the shelves. ashley: they seem to love the idea of continued bond buying, but are investors setting
4:38 pm
themselves up for of all? coming up next. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. she loves a lot of it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms obph, like needing to go frequently or urgently.
4:39 pm
tell your doctor about all your medical conditions and medications, and ask your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or iyou have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. losing thrusters. i need more power. give me more power! [ mainframe ] located. ge deep-sea fuel technology. a 50,000-pound, ingeniously wired machine that optimizes raw data to help safely discover and maximize resources in extreme conditions. our current situation seems rather extreme. why can't we maximize our... ready. ♪
4:40 pm
brilliant. let's get out of here. warp speed. ♪ wmaestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrft. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing.
4:41 pm
bringing the power of investments to people's lives. invested in the world. bny mellon. ♪ lori: so close, yet so far. not that far. closing just under 16,000 today, but we did see quite a run. the rally got a boost last week when fed chair nominee janet yellen defended monetary stimulus in remarks to congress by the way, we just when they will vote on thursday morning at 10:00 a.m. on her confirmation. anyway, is there a bubble about to burst? ashley: it depends who you ask. oppenheimer funds chief economist. and so what is it, is this a bubble or is this more room to move fire? >> it is not a bubble. if it were a ball you receive valuations that look like, let's call in year 2000 valuations.
4:42 pm
valuations like we had seen in japan. this is an expensive market. but it is about average. if you look at price-earnings ratios, they are about average for the long-term. it is not a bubble, but it is a market that has gotten more expensive of the last year or two. lori: a long debate and a street. do you think that the economy is not catching up with the market? >> i think the economic fundamentals will have to do some confirmation. we have seen good earnings of companies. that has been fairly reflected in the stock market. the stock market is trying to look ahead. they don't care what happened last time. they're trying to look at next year. the stock market continues to say we will have at least to get is your next year as last year. yes, we will have to see a real economy, broadly based,
4:43 pm
employment, investment. mill at to see those things confirming what the stock market is already expecting 57 federal reserve president painted a very rosy picture. he did not say what is happening, these great things. he certainly felt that we were headed in that direction which would lend more to the argument that tapering could be sooner than later. is this environment commodities markets ready for monetary tightening of policy sumac. >> we live in september that the economy and markets are not ready for tabling. the fed will continue to do what it is doing. i would like to see them start tapering. day, i think, would really love to be reducing the amount of stimulus themselves. they will be sensitive to financial markets and sensitive to the real economy. it will come in here and blow things up because they said, oh, gee, december or march. a quick calendar. no, they will do it when they think it is safe to start pulling those training wheels up
4:44 pm
a little bit, seeing if the bicycles can really balance. lori: inflation data. starting to be talk of the threat of deflationary hitting the u.s. economy. obviously we just learned, senate finance committee will vote on thursday morning. but there is also talk. we know she is extremely dull this, but she might let inflation, but little bit. what do you think of a single? is that a helpful sign for the economy? >> inflation, i grew up in the first invest in the 70's. everyone hates inflation. the thing about deflationary is that it causes consumers, businesses as investors to defer doing something. whereas the fact that the price of raw materials, building, or even the stuff that we buy looks like it is creeping up. a spur to action. so a little bit of inflation. moderate inflation from a low level is pretty good for equimark its. at least it has been historically which is not surprising.
4:45 pm
a little bit of price increase, whether we are buyers or investors of plant equipment, software, a spur to action. think that is why the fed so much fierce deflationary and is willing to say a moderate amount of inflation is actually help the. ashley: would you agree, the key to getting this economy going is with the banks to are awash in all of this liquidity, this cheap money. they actually start to pass it on down the road. start listing just a little bit. god knows they have all this money. i don't think it has flowed into the economy as the fed had helped. >> the things that we paid a lot of attention to. the quarterly fed survey of senior bank lending officers. just in the last couple of quarters we have started seeing senior bank lending officers saying they are more willing to lend to small businesses in import may have more small businesses coming to them for loans for commercial industrial purposes. this is very slow to happen.
4:46 pm
if you really want to see what is going on, watch the thursday fed numbers. wheeze to do is back in the early 80's, watch and see what is happening. is there credit creation in the economy? so far it is picking up a little bit. lori: all right. thank you. ashley: a game changer. well it be a money machine? lori: across. this service. people who are attractive. this is the quicksilver cash back card from capil one. it's not the "limit the cash i earnvery month" card. it's not the "i only earn decent rewards at the gas station" card.
4:47 pm
it's the no-games, no-signing up, everyday-rewarding, kung-fu-fighting, silver-lightning-in-a-bottle, bringing-home-the-bacon cash back card. this is the quicksilver card from capital one. unlimited 1.5% cash back on eve purchase, everywhere, every single day. so ask yourself, what's in your wallet? everywhere, every single day. if hey breathing's hard.me, know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help
4:48 pm
if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. yother side effects include , dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva.
4:50 pm
4:51 pm
also good news for sony itself. the company has been struggling to turn around its lost electronics business. now it could help. the entertainment business has been having problems on that side of the house. software sales can help. so how good is it that 1 million mark in the u.s.? well, it could set an all new record. the predecessor sold fewer than 200,000 units in its first entire week on sale. microsoft took two weeks to a 326,000. the much cheaper nintendo racked up 600,000 in unit sales but took a full week to do it. the real tough one comes after the most avid fans. it is time for the rest of us to line up. sony aims to hit sales of 5 million units by march 31st. 40 percent better. a formal challenge this friday when microsoft.
4:52 pm
who priced at $500 in, $100 more than the sunny p.s. for. may be reading for each other's success. both the consul makers have a common and far larger felt. the internet, millions of players go on the net to play games. the big question is whether enough appetite is left. it will set you back 400 or $500. very soon we shall soon. ashley: but they are a loyal bunch. thank you for sharing. the pure gamers. lori: i tell you what, the candy crushers. ashley: that's true. lori: coming off the train every day. walmart hoping to cash in on the electronic games. an exclusive interview discussing holiday shopping, the economy, and the new health care
4:53 pm
law having an impact on consumer spending. >> it tends to dampen discretionary spending the affordable care act is the example of uncertainty. ashley: you can watch the rest. 8:00 p.m. eastern right here on the fox business network. lori: when company hoping to cash in. it will bring you the details in just a moment. @?? my mantra? family first.
4:54 pm
but with less energy, moodiness, and a low sex drive, i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to rmal in about 2 weeks in most men. axiron is not for use in women or anyone younger than8
4:55 pm
or men with prostate or breast caer. and children should avoido are contact where axiron is applied as unexpected signs of puber in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medication serious side effects could include increased risk decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; oblems breathing while eeping; and blood clots in the legs. common side effects include skin redss or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. ask your doctor about axiron.
4:56 pm
sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. 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? ♪
4:57 pm
when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ ashley: let's go "off the desk." would you drink wine from a can? maybe, if you're desperate enough of the just thinking bit. oregon's union wine company put their wine in an eight-ounce can like pabst, budweiser or miller light. while it change the company's 40% on packaging, cost versus bottles, the decision was as much about rebranding a the whole wine drinking experience. some people say the flavor of the wine is not affected by packaging in cans. we'll see once they release them. they are five buck as piece. >> would you drink wine out of a red solo cup?
4:58 pm
ashley: probably. >> i love it, ash. also "off the desk" for you this evening, the love room. if you haven't heard this is service for folks. rent your living space to other people but there is one key condition. you have to be a attractive. love room allows to you search by age, location, gender and sexual orientation just like typical dating website. the site uses facebook to verify identities of future rent is. only those who identify as single on the profile may sign up. while the beta version of love room is live they're still looking for developers. hoping for a full launch of course on valentine's day. ashley: awful if you showed up and close the door. number two thing to watch is earnings from best buy and home depot. both companies expected to report before the bell. they were expecting growth on top and bottom line for home depot but declining revenue for best buy compared to one
4:59 pm
year ago. >> number one thing to watch is the comments from the federal reserve officials. ben bernanke will speak in washington. charles evans will talk about the economy and monetary policy in chicago. this coming after a lot of fed speak today that certainly moved the markets. >> that's right. our very own liz claman will be live from the 6th annual global financial leadership conference in beautiful naples, florida, they will do it on the beach, right? talking to some of the biggest names in is b we'll have live coverage. it will start at 11:45 a.m. eastern with exclusive interview with gary gensler, chairman of the commodities futures trading commission. don't miss that. >> she will speak with terry duffy chairman of c-m. michael milkin and 3:00 on fox business. what a day, what a start for the weekend. dow up 14 points. flirting with the 16,000 mark. ashley: finishing up 14 points, below the 16,000 mark. as you can see the dow finishing positive on the day even though
5:00 pm
under 16,000. the s&p losing about a third of a percent. nasdaq also down about 1%. >> keep in mind after the bell we, urban outfitters beating on eps but shy on revenue. melissa: what a way to start your week with obamacare bailout talk? that's right. very insurance companies getting played by the government right now, will be turning to you to keep them afloat and the president said they could. you got to hear this because even when they say it's not it is always about money. melissa: the bailout for obamacare. taxpayers, meaning you, may now be on the hook for the health care law, all courtesy of a provision called the risk corridor? have you heard about this? no one presumably read this far into the bill. but this clause hidden in the
170 Views
IN COLLECTIONS
FOX Business Television Archive Television Archive News Search ServiceUploaded by TV Archive on