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tv   Markets Now  FOX Business  November 19, 2013 11:00am-1:01pm EST

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learn the address initiative, every living president including president obama recorded it and it is online. kyle just reported it as well. carl icahn throws a cold, wet towel on a hot market. who is buying what he is selling? your private information on the obamacare website, some lawmakers want to know how safe it is. and adjustable rate mortgage save money on your monthly home. and selfie's word of the year for 2013. maybe we can convince connell mcshane to take one of himself coming up on this hour of "markets now." connell: you are sometimes here
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sitting taking pictures of both of us even when i don't want to. dagen: i am guilty of it on a rare occasion. but as somebody pointed out on twitter once, when a chick takes a self-portrait and posted on twitter or facebook, she has taken 50-75 to get that one good one. i posted some of it on instagram. connell: at the top of the hour, the dow back above 16,000, nicole petallides on the floor of the new york stock exchange. nicole: dial 16,000 is back. the s&p 500 at 1793, so not quite back at the 1800 mark. they are not a big deal to traders, they look at other things like resistance levels, those of the kind of things they are looking at, however if you are a bowl out there, six straight weeks of gains, a winning week, the nasdaq and s&p
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are down. overall the momentum seems to be to the upside, though the fix does have a slight up arrow. also watching campbell soups. look at what it is doing now. the stock is down almost 6% at 39.38. they cut their four-year product outlook, and they have pasta and pepperidge farms. dagen: activist investor carl icahn warning investors the stock market could soon take a plunge knowing low borrowing costs are taking a plunge rather than real performance.
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connell: thing it is tough to predict, but will be have a plunge? >> it depends on what you consider a plunge. the full-year target on the s&p is 1750, so at 1800 we are little extended. we told our clients given the physical policy issues, pulling back 5%. that would be healthy. i don't define 5% as a plunge. trading at $116 given the benign nature of inflation, it is a very reasonable multiple. within the multiple will grind higher overtime. dagen: in terms of what they have been able to do, they have been able to login debt at these incredibly low levels. that is something that will be a healthy thing for these companies longer run, won't it, not a short-term issue like rate spikes and suddenly a drain on their cash.
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>> it was a very smart thing.vz very pristine for their balance sheets. two to $3 trillion of cash on the balance sheets. if you look at third-quarter earnings season which is just about done, up on average 3%, earnings up 6%, that is decent performance. if you can get mid-single-digit earnings growth, modest expansion, that is a recipe for a market that will work higher. connell: some have sat here and said we are setting ourselves up for something catastrophic, something '08-like. you have a broken clock theory. others raising what might be legitimate concerns of the rates being too low for too long. what do you say of those people?
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is there is zero chance? >> lets look at that example, the top of the market as the technology bubble was bursting, treasury yields 70%. now looking at a situation stocks are trading 15.5% earnings. it is a completely different environment. the evaluation is reasonable. 165% move over the last four and half years, phenomenal moves. the easy money has been made, no doubt about that but all the money has not been made. the market will still grind up over the next four, five years, not 23% pace we have seen. dagen: what would make you change your mind? >> certainly washington is a huge concern in terms of fiscal policy. the fed has largely gotten the monetary side right, lots of issues with fiscal policy. three issues coming up that we
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will be watching very closely. connell: you almost forget about the debates coming up. dagen: thank you so much. connell: all right, to house committees holding hearings today on the safety of personal information on the healthcare.gov website. dagen: yo needed something else, here it is. serving it up on a beautiful platter in washington. rich: star witness here is a hacker. one company hired to hack into the systems and find weaknesses. david kennedy said he found 17 security weaknesses on healthcare.gov. >> the purpose of security isn't to say w we're 100% impenetrable all the time. can we detect hackers in the early stages of the attack, much of that and prevent the attack from happening.
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none of those are clearly being done on the healthcare.gov website. rich: other state could give hackers access to government records of america's personal information including social security numbers. in another hearing, they're referencing a doctor document warning officials of significant technical problems with healthcare.gov in april. subcommittee chairman right despite assurances from secretary sebelius and others that all was well and on track with the launch of the affordable care act, we now have documents dating back to april that call into question what they told us. in response white house says flags were definitely raised in the development of the website as to be the case for any it project that is complex. nobody anticipated the size and scope and problems we have experienced once the site launched. the administration continues improving the site and it will work for most customers by the end of this month. back to you.
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dagen: rich, thank you so much for that. connell: president obama meeting with key senators asking them to hold off on sanctions against the iranians. dagen: can a deal gets done to keep nukes out of their hands? she is joining us now. what kind of a deal? >> iran does not have any nukes, the other end of the deal is keeping the nukes from obama want the deal. they are looking for legacy. obama carries a pretty lousy legacy. they want a deal from iran and will probably have any deal.
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we have leverage over them, some other republicans in the house say let's add more sanctions. in the end i don't think you want to add more sanctions, but you want it cap-bad cop thing. right now the possible deals are as follow. we would pause part of everything so part of the program, part of the sanctions. don't go for that because it allows them to continue to build nukes. the other thing is to freeze everything in place. iran gets almost to be in nuclear weapons power but not quite, and they say almost as good. the best deal is if iran rolled back part of the system. dagen: you want to put odds on it? >> i am not sure how tough these guys are. freezing or pausing. >> there is a deal to be had.
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they are too eager. they say we baited that post, now we will reel it in. dagen: we are now producing more oil than we import in almost 20 years. the administration needs to be hammering that home whether they are allies or not of opponents of iran. >> we should sure up relations with our allies in the region. israel he seems to have tossed egypt away. we should sure up those relationships. we should build missile defense. we want five years down the road building upon itself. the real leverage is to to the iranians and say the game is over. we will make our own energy, we
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will not be as dependent. we won't need you as much and the price of oil will probably go down at which point you are broke and you have to worry more about keeping your own people than your nukes. connell: the different in the talks. >> united states energy dependent. the biggest game-changer since world war ii. dagen: it is kind of funny demonstration trying to take a good bit of credit for this. connell: was going to thank you for coming on but dagen has one more point. good discussion. dagen: we were discussing everything taken her interview talking but of it was wise to
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send back to iran. >> would be nice if we had some double agents. dagen: we turned him, is he going to send agent of the united states. connell: w we're out of time, thank you. you have given away the homeland plot only 12 minutes into the show. dagen: if you are that far behind this season, he had it coming. justin bieber has made most of his career out of it. selfie is the word of the year. connell: people trying to save money on your house in the economy. a good discussion, whatever it might be. dagen: catching on fire. they are under investigation, and another worry for electric company, it has new competition.
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dagen: shares of home depot hit new highs as retailers continue to see some weakness. what is going on, nicole? nicole: home depot hitting a new high, number one on the dow. watching the upside as well. these retailers, these are the bright spots, home depot and lowe's. in a time with very low mortgage rates and we have watched a lot of the home improvement type names doing well coupled with the homebuilders who continue to show some confidence as we have gotten a number this week which showed very much that. that is what we're watching for home depot overall. sales increased 7.4%. also not only did they see sales jump but also the transaction volume improve as well, so this group doing very well abroad overall. you did see some of the other
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names with down arrows. the big picture is home improvement and homes are often better. connell: fast food that may not be so fast. mcdonald's is now experimenting with a new concept, and it would be custom-made burgers. basically the customers design their choice burger on an ipad. they would be drilled to order these burgers meaning they would have to wait longer to get their special meals and it would cost more than a big mac. after mcdonald's announced plans to revamp the drive through next year. you don't have to settle for whatever they are making back there. dagen: this petty much makes no sense because the issue is the service is slow because the menus have gotten too complicated and this was burger king's entire marketing push in the '70s. have it your way.
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now mcdonald's, 2013. going to be a disaster, telling you. so optimistic. the 2013 oxford dictionary word of the year beat out twerk and bitcoin. the word is selfie. risen 17,000% in frequency of use in the english language since last year. first used in 2002 and became popularized by social media while rapidly being used in mainstream media. oxford dictionary noted that it was a runaway winner after making the word to watch list last year. connell: you took all of those. dagen: we were having a debate on set, if you constantly post photos of yourself on twitter, instagram or facebook, even if
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it is not taken by you, if you are posting them, it is the same thing. self promotion and it is annoying. connell: speaking of annoying. that discussion will probably continue into the commercial break. josh and dagen are both annoying, was face it. saving your home with an arm. how safe is that? dagen: how to protect your business from cyber theft. talking about buying insurance. more on that coming up. connell: okay, talk about selfie. 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. it's the no-games, no-signing up, everyday-rewarding, kung-fu-fighting,
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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?
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>> 23 minutes past the hour, this is your fox news minute. serious civil war spilling over into lebanon where two bombs went off outside the iranian embassy in beirut today. the attack was mainly in the shiite district in response to has belo blessed support of syrn president. george zimmerman spent the day in jail and will find out today if he will be released on bail. his arrest after a domestic dispute with his girlfriend. facing admitted assault charges. it is his latest encounter with police since his acquittal in
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the shooting of trade on martin. and tom brady almost pulled off a miracle finish against carolina. an interference penalty was called after his pass was intercepted on the final play of the game but the call was overturned by the refs giving the panthers 24-20 win. those are your news headlines on the fox business network. back to you. connell: a lot of people still screaming and yelling about that game last night. dagen: make some money. cashing in on china's new rules regarding the one child policy. connell: talking china yesterday a little bit, but ready to go here. >charles: this is a little bit f a domestic play. this is already there top market, but all of asia by the way including latin america, but this one child policy could have an amazing impact for these guys.
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thithe stock would have been a t higher earlier this year. i am calling it money grab against all of these western companies that sell things like food, nutrition, baby food, formula and it was really a shakedown. they are taking market shares. when we reported the numbers, sales were up 21%, north america and europe only up 2%. i think it will drive the stock significantly higher. connell: just do the math. are you a huge china bull? he thinks the new regime is so far so good. opening things up and here we go. charles: this is a different economic story now. not necessarily about exports or government spending on infrastructure, it is these guys taking their wealth and
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generating demand. it is going to be phenomenal. late last year the controversy up and rising politician wanted to take it back to more of a mild tradition. i know it is a crazy story and we'll make a great movie one day but they made a conscious decision not to go backwards and that is why he is in prison for life. there are good opportunities there. dagen: thank you very much. saving money with an adjustable rate mortgage. how tricky is it? it is going to be hot debate coming up. connell: tesla has some new competition on the roadways. wwe'll talk about that as well. hi honey, did you get e toaster cozy?
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dagen: at the half hour, here's is coming up on "markets now." the pros and cons of an adjustable rate mortgage. save money, but they are worried. we debate. the cyber threats to small businesses. there is a way to ensure your cash. and a new challenger. tesla is having troubles getting a bit scary for a couple of car fires. and the company should be worried. connell: a couple of retailers reporting earnings before the bell that we will get to before we make our next guest feel bad
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about the e-mails he has been receiving. nicole petallides joins us from the new york stock exchange. nicole: getting closer and closer to black friday. a couple of things are under pressure and hitting new all-time highs. of course urban outfitters is down nearly 1%. best buy is the big story of the morning down over 9% today. this as they talk about their margins and concerns of their margins. walmart will be matching competitors prices, a lot of promotional friends hitting best buy numbers. urban outfitters has a sales mix, that is not good they are. tjx the parent of t.j. maxx and marshalls. new all-time highs, you charge them all the way back and this is because of good news. they raised the lower end of the expectations of that is the winner as well. better-than-expected profits.
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connell: thank you, nicole bsp to the average fixed rate 30-year mortgages still superduper low at 4.35%. compared to an adjustable rate mortgage you still manned up paying a lot more than you have to. a homeowner using an arm would have saved more than $23,000. connell: we have not seen simon in a while, so we will read to you some of the e-mails they have written you. you get to go first, make the case on somebody using these adjustable rate mortgages. >> if you are sensible and don't stretch your budget too much, this is a way to save money. have a little less house and you can probably stretched too. connell: here is simon's mailbox. one comes from twitter, and other on marketwatch.com site.
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t taylor writes in, problem with this advice, the buyer has to be sophisticated, disciplined. and robert barnes wrote in on marketwatch the writer obviously was not alive or has ever written up on mortgage rates in 1981. unprecedented money printing is bound to unleash the inflation monster. dagen: he is really talking about when paul volcker hiked short-term interest rates. dagen: a couple of things, i was alive and look of adjustable-rate mortgages and went back to freddie mac data. adjustable-rate mortgages were not widely available in the 1970s, they just were not there. so the question is are we going to see massive inflation, would that be a bad thing in this case?
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if we see inflation, a general rise in the price level, it will mean the value of your properties going up and the value of your wages is going up. so it is a non-argument. the idea just inflation would go up, but nothing else would move is utter nonsense. connell: also this knee-jerk culture worth talking about is just because if you think the blowup and the crisis in '08 was because some of these mortgages that were risky, does that necessarily mean however many years later that everything in that category that is not a 30-year fixed everything to be ououtlawed or band. >> i think the real reason is people who bought houses they cannot afford. we heard about the ninja loans. no job, no down payment, no assets. a lot of people out there who
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are disciplined to see the value of the house or apartment drop who have continued to pay the mortgage and have not run into any problems. people who overstretched and some of them were stopping to make the payments before the reset. dagen: you are betting on federal reserve policy in some ways about where interest rates in the short run, and the old rule is you don't get a 30-year fixed if you're not going to stay in the property but just a few years. speak on average you will stay in your home eight to 10 years. if the mortgage rate was in increments stays low for the next four or five years, you have one. even if you hold it for 10, it is not going to outweigh everything else. you cannot take it out to infinity. connell: do you have a definition of a person who should avoid this type of thing, somebody who cannot afford the reset for however many months if
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it resets if it is allowed to. >> if your budget is so tight even an extra few hundred dollars per month is going to push you over the edge, you should not get an adjustable rate mortgage. that should be obvious but it is not for many people. what i suggest people do is find out what you can afford on a fixed rate mortgage and then borrow only that amount from a lower percentage and you have padding built in. dagen: kind of an in between between a 30-year fixed and an arm would be a nice 15 year fixed. you don't have the interest rate risk. >> or a five-year adjustable-rate mortgage. you can use that to pay down your principal. every time it is reset, you get the reset, it is reset on the new principal sleep aid on the principle a lot, even if the rates go up, you can end up with a lower payment.
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connell: it is good to see you again. dagen: we will continue the delicious articles like this. connell: there is a way to ensure your money against cyber threat. dagen: live from the cme leadership conference, talking with the head of the commodity futures trading commission. connell: the new challenger to tesla will be jeff flock, that story coming up. he is going to be back more often, you can count on it.
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>> i am jo ling kent with your fox business brief. made airline plans to cut cost by $2 billion by adding more fuel efficient aircraft increase employee productivity. the airline expects to add $700 million in revenue with more add-ons like preferred seat assignment. third-quarter labor cost increased, the labor department says the compensation cost for u.s. workers rose by three tenths of a percent while the cost of benefits like health insurance jumped by seven tenths of a percent.
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connell: all right, charles business today includes the cyber threat, something we talked at length about on "markets now." helping businesses to insure themselves against potential monetary losses at the hands of cyber crooks. we bring in mark kramer. thank you for coming on. we do talk about the cyber threat a lot, so talk about this insurance option for companies and what it offers. >> we insure small business bank
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accounts, cyber theft. a company with 10 or less employees, that is who we are covering and recover them up to $50,000. as little as $10,000 but we started this because it was really important that small businesses be protected by the cyber thieves against the cyber thieves because it is a huge problem. connell: you are right about that. yeah, of course they should, should every company have this? and if so, why is that? are you seeing attacks on different types of companies maybe then we would have seen a year or two ago? >> this is a billion dollars per year problem tripling every year according to the fbi. if your money is stolen, you have 67% chance of being out of business within a year. where they can send whole system is going to collapse with these
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ongoing cyber attacks that people get worried about the safety of their money and if they can get their money back. connell: i don't have as much to gain, and you sa said that is nt true? >> it is not true because what is great about, well what is bad about this for small businesses is that if a cyber thief comes in and hacks your account getting less than $10,000 they are really only attracting the local police. above $10,000 now you have attracted many governmental agencies because they are worried it might be terrorists. for these small businesses who have less than $50,000 it is a significant amount of money for them and could put them out of business. it is critical that have protections. right now most businesses don't realize the banks don't cover them, the banks aren't obligated to protect you against cyber
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theft and the fdic only insures you against tank failure. connell: is a really interesting points you make including about the alarm bells if it is below 110 grand, you are not setting off the alarm bells. should they be opting for this but it is okay to keep it at a low rate? how should they decide how much insurance makes sense for them? >> whatever the average bank balance is is what they should be ensuring four. a maximum of $50,000. you really cannot afford to lose it. for many small businesses, money that can never get back. they don't have enough revenue stream if they had lost that money that they could recoup it quickly or i at all. connell: definitely one of them with a chance of going out of
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business if you are a victim of one of these attacks. good discussion, thank you very much for coming on. something we will follow up on. dagen: perfect timing for a competitor to tesla. tesla is having problems, couple of fires being investigated and now a challenger. connell: that is coming up here on "markets now." the dow back below 16,000 but we have some winners will looking at over on the nasdaq.mebody sa? dagen: it is up 5%. there you go.
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dagen: the commodity futures commodity commission passing a rule requiring huge positions in government bonds to be backstopped with credit lines that can be converted to cash if necessary. connell: liz claman has a first interview with the commissioner since the rule was passed. there she is in naples, florida. liz: listen, to the controversial rule. if you take positions in treasuries and now are they not as good as cash? this is some people a stunning new rule put in place on friday. i am joined in the first interview since the rule was put in place the commissioner of the quantities futures trading commission. let's talk about that particular rule first. i just came from moderating a panel where they said this is stunning to me. are you saying u.s. treasuries are not as good as cash and
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people have to have collateral? >> part of the reform was to have a clearing happen between parties in the market if somebody goes bankrupt are strong and secure. they had to have sufficient liquidity, meaning cash, in case somebody goes down in a crisis. bring ourselves to international standards. liz: government u.s. treasuries have been the safest bet ever. you are not saying they are not. >> what we are saying is in this role and the u.s. treasury we've all worked together is international standards say in a crisis you have to be able to sell those treasuries or sell the corporate bonds to have cash the same day.
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liz: your punch through about 60 rules since he became commissioner to make sure we don't have the same hysteria we had in the financial crisis, but it has been said they are underfunded, slammed during the sequester and you don't even have the technical capabilities for the rules you put through. was it all for not? >> we have been successful bringing transparency into the market. that brings everybody together. no, our agency doesn't have the funding to oversee these markets. that is for sure. we need about 300 more people to oversee these markets. liz: showing up tomorrow for the subcommittee saying it is important. you don't have the staff to go?
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>> we really are short staffed. we work with the senate and the house on senate hearings. that was a bit of a challenge in the last minute. but we don't have examiners going into the clearing houses, we don't have examiners going into the deal. we have had had to shelve some cases, but mostly we have been delaying cases. in some cases they are not pursued. we actually have fewer enforcement personnel today then we had 10 years ago. dagen: look at what you have done with it. >> i wouldn't confuse it, we were given by congress what is effectively a legislative function. we finished five or six dozen of them. now that we have done that we have to go and oversee a market, different function.
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examiners to look at the clearing agencies, enforcement people to be like cops, and we don't have that. dagenliz: your outgoing commiss. what do you think of tim geithner, and what are you going to be doing? >> i have had long personal and professional relationship with tim and so i wish him well for any and never he moves on to. in my case i don't know what is next. absolutely not. i was honored to work 18 years on wall street, at really fabulous relationships and individuals and what i learned. dagen: we appreciate you coming here. he is brave because a lot of
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this crowd is saying ask gary why he is being too tough as far as regulations, but he did the exact opposite of what everybody thought, he was much tougher when it came to regulation and some people at least are appreciative of that. in the next hour from the other side equities we had a fox business network from the president and ceo of td ameritrade. he makes stunning discussions of what he expects to see the tapering of the bond buying at the federal reserve and how it will affect his 500 billion in client assets. back to you in new york. connell: you remember the fire of the tesla model s? the government is now investigating all of this. dagen: at into the challenges, a new competitor in the electric car market. santa monica, california, where
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we find jeff flock. jeff: could be a perfect time for gm to launch the cadillac electric. see how it stacks up against the tesla. it could be bad news for electric cars in general or it could be a great time for gm to get in there and compete. we tested the tesla as well. after testing both of them, i think tesla has got a real competitor on his hands. acceleration on this thing is good. >> it is excellent. the electric drive is the ultimate luxury experience. one is the instantaneous torque you get. the cool, quiet acceleration. things you would expect in a luxury experience.
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we test drove the tesla as well. that is the competitor. why am i buying a cadillac instead of a tesla? >> the beauty of it is you buy electrically most all the time that you have no worries, no range. that is the duty of the car, no compromise on the electric vehicle. >> you think that would really resonated with the public like the volt. but the sales have not been what you think on the volt. our people embracing that backup? to me it makes perfect sense. but is that being embraced, will that be embraced? >> i think it absolutely has been embraced good with the chevrolet volt we have had more satisfied customers. >> the question is, though, are
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people really going to embrace that? they have not with the volt. wish you were here. connell: jeff, good stuff. dagen: the headline from that is you don't wear a toupee. connell: that is right. dagen: love jeff. carl icahn dire warnings to investors. coming up. connell: keep it here. the battle over solar energy is heating up. cheryl and dennis will take it up next. keep it here. ould 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,
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>> i am accused of a lot of things but i don't sing, ms to be enough to go around saying this is going to be like shopping on amazon or travelowcity a week before the website happened if i thought it
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wasn't going to work. >> his advisers are learning kathleen sebelius and members of the white house knew before the rollout that the obamacare website had major problems. 9 dennis kneale with cheryl casone to take you through markets now. shocking documents just released on who at the white house on health-care red flags and when and how safe is your date on healthcare.gov? the latest of two hearings on -- carl icahn sending the market south with this forecast. should you listen? charles payne and oliver porche way in and a big battle over the future of solar energy taking place in arizona. we will speak with a key player. all this and more in the next hour of markets now. dennis: the dow clinging to its game.
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cheryl: and certainly those comments from carl icahn didn't help the s&p yesterday. weighing on market sentiment but we will talk about that. dennis: talk the stock prices down. cheryl: top of the hour, stocks every 15 minutes, nicole petallides on the floor of the stock exchange and also an added bonus, phil flynn at the cme and what you watching? nicole: looking at the market's overall, winning week for the dow, losing week for the s&p and the nasdaq. yesterday we saw the height in the s&p, the s&p 500 and you can see today it is a mixed bag, the dow is up not even one point, the s&p and the nasdaq are pulling back. the highest point the dow at 16,025 a few points shy of the record all time high today. the best performers on the dow jones industrials include home depot, jpmorgan and chevron which represent different groups. we have seen the retailers particularly related to home improvement doing so well, home
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depot hitting a new high, low is doing well, jpmorgan representation from financial and chevron winner in the energy rum. we have seen a run-up of record highs and now the question is what do you take off of the table going into the holiday season and there is a little cautionary tale on wall street. phil flynn, what we see in? phil: a lot of oil and so much news and so little time. we have relatively quiet move, frankfort going down because of iranian talks everything good and an explosion in belgium at everything to change. we saw a big spike in the products and big spike up in brent crude and that caused our products to rally as well. reports that two people were killed in a refinery explosion? shutdown accord which slowed things down as far as exports go
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but the market is coming down. the other thing that gave as a pop is in china, they will that their currency float a little bit. that caused the dollar to go down providing support but we're coming down after the initial reaction so back to you. cheryl: phil flynn and thanks to nicole petallides. dennis: two house committees holding hearings on how safe is your date on healthcare.gov. rich edson in washington d.c. with the latest. rich: the techies say healthcare.gov is not secure and won't be by the end of the month. >> i am very confident that we can see the basics, the basic -- it is very susceptible to attack and hackers could break into it. >> the security experts testifying before a house committee say there are significant security flaws that could give hackers to government red gingrich of personal
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information including social security numbers. some suggest the administration should have delayed the launch of healthcare.gov. sr. and administration officials including kathleen sebelius knew of technical problems months before the oct. first launch. continued to reassure lawmakers the construction was on track. of energy and commerce committee chairman fred upton rights the administration was on track for a disaster and officials refused to be honest with the american people and the white house right flags were raised during the development of the web site as would be the case for any project, nobody anticipated the size and scope of the problems we experienced once the site launched. the white house says the administration continues improving the site and will be working for most folks at an end of the month. dennis: no one waiting the final flag, surrender. cheryl: back to the markets.
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carl icahn issuing a dire warning on the stock market telling reuters markets could have a, quote, big drop and the company earnings are a mirage. joining us is the president barry goldberg financial services and fox business's charles payne. is he right? charles: the market could go down and could go up. don: carl icahn prediction. it is so funny when big guys like that come out of the woodwork to help the public, to warn us. i am a fan of carl icahn, to see how far he has come but you always wonder what drives that kind of thing. i would like to understand how the earnings are being manipulated. you can tell me stocks are attractive, and a lot of other things. i don't understand how the bottom lines become manipulated by lower interest rates. cheryl: the 22 too much credence to what he said but i will say
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his funds are by 14%. over five years and -- charles: markets by 20%. >> the nasdaq up 40%, the s&p cooling at 30%. activist investing is very dangerous and isn't particularly helpful. you need to distinguish between the ability of an investor going to the company's board and management saying this is how you should do it because as a shareholder i have that right. going into the press and trying to manipulate markets and influence overall direction becomes very dangerous and counterproductive. i look at yesterday's carl icahn and say so what? i really don't care about a broad market. give me something about a company and we have something to talk about, making general statements but if it doesn't stay the same or go down but goes up. cheryl: clothing, activist investors, in their mind doing the greater good for the shareholder. that is what they believe.
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they're own funds and carl icahn has a fund. charles: back in the day they call these guys green mellon's, some people think these are organized shakedowns and it is not like they buy and hold stock for the next five years because they care so much about the company and in that respect it is disingenuous to paint him as anything else. you are an opportunist, have your own way of doing it and all these masters of the universe over the last year we see where they had their comeuppance because for the most part they have taken a position, announced the position and let the market do their work for them. dennis: they are underperforming. so just as charles said it is dangerous overall and activist investing and i wouldn't be surprised if some regulator or somebody else says hold on, we need to take a look at this and see whether this could actually manipulate and when are they buying or selling and how are
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they cobbling that with the media because guys like carl icahn do markets. cheryl: republic about what he wants especially when it comes to apple, $150 billion, are you going to spend it or not? >> just because you disclose something doesn't mean you are violating rules. cheryl: what is that? if you were carl icahn in his head when is he doing? >> i am not in his head but he wants to share prices, which he says he does but there are better ways of going about it and i agree with any notion that any of these investors are really out for the greater good. they are out for themselves and that is perfectly fine. cheryl: out there warning the average investor that the markets will drop. we just had the best in flows into equities we had all year so finally had people i trust the stock market again and he comes out and says not so much. dennis: the market is up 9,000
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points. before the easiest production in the world so we now have not at legitimate pullback. carl icahn will do these things that move the market and be public with everything. i want to know what your short position is. how much these spend there is a sudden 10% correction in the market. let us know where your cards are. i would take it seriously if you said you sold everything because the market was frothy. cheryl: which is not. >> i am sure he didn't do. he is only doing somebody of favor if he can tell you when they get out or get back in. this is where individual investors get heard time and time again they miss one of the critical points because it is impossible. cheryl: i am sure we have to wrap it, the fact that they don't get to meet with tim cook or get a pay at the board meeting and have to have skin in the game. some of those are out there following carl icahn at least he is having discussions with the ceo but i cannot have.
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thank you very much. charles: you look stunning today. cheryl: thanks. dennis: what is bugging me is the government's $13 billion shakedown of jpmorgan chase. could be announced today and that is how much it will cost the nation's biggest best run bank to get the feds to take care. , dropped most of their investigations and leave the bank alone. a grab bag of payoffs here, $4 billion for the federal agency jpmorgan supposedly suckered into buying a bad mortgage bonds. the same bonds largely created to make the same agency's own policy goal of home buying for all who cannot afford it and $4 billion for distressed homeowners though there is scant evidence the bank did anything directly to harm them. chase is being forced to write off $17 billion for homeowners who owe more than their homes are worth at half a billion dollars more to reduce the
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payment homeowners make and $2 billion to write out principles for vacant properties and make new loans to low-income buyers which got as into this mess in the first place, and directly injured these underwater homeowners and why is bailing them out the bank's responsibility and not their own. tweet me at dennis kneale. should jpmorgan have to pay $4 billion to bailout homeowners it didn't harm. gained the latest crop of new releases. cheryl: solar energy taking center stage in arizona, to fight back against the industry. his side of the story as we go to break. let's look at energy and see how it is fairing, oil, brent down, $5. twins. i didn't see them cing.
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cheryl: home depot fiscal third quarter profit of 43%, about 43%. the stock hit a new high today, impact on the dow little more in eight points. that brings me to the sectors that you should be watching daily through the rest of the year, the retail sector. a lot of hits and misses from some retailers saying things are scary for the holiday season and names like macy's, especially walmart looking for a positive holiday season, home depot included in all that. stocks every 15 minutes on the floor of the new york stock exchange nicole petallides standing by. nicole: a big story we have been following for some time and now it seems the wall street journal sources are giving us a piece of news we will follow on johnson and johnson. johnson and johnson has agreed
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to pay $2.5 billion and this is in order to settle some losses pertaining to some replacements that they did to resolve these thousands of lawsuits filed by patients in which case they could be paying out $250,000 for surgery and you have replacing hips at 8,000 patients so this could be huge bed in the meantime if it gets done we will see if there's a sense of relief but in the meantime you have a judge in ohio who must approve the sentiment that the wall street journal has and talking about throughout the day and we will see, johnson and johnson agrees to pay $2 billion at least to settle those lawsuits. dennis: with six weeks left in the year hollywood still has a shot at a new record high with a little help from the hunger games and the hot it. the box office year to date is down 1% from a year ago but
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within reach of the $10.8 billion set in 2012. the strength of the last one$.5 billion begins friday. when lionsgate unveils the secret to hunger games with token $4 million in the u.s. and the sequel to the hot but out december 13th pending between them comes the opening on thanksgiving day of disney's frozen which could take in $200 million in the u.s.. breaking the all-time record is doable. this just in. total book sales down 5% from a year ago january to august in the u.s. including a 16% drop in children's and young adults and by format, sales of old-fashioned hard-cover books up 12%, adult fiction and nonfiction, take that, kindle, down 12% in paperback, e-book rising 5%. pretty tepid for new format that is supposed to wipe out old and big news in the world of business television after 20 years at cnbc, maria is leaving
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the network when her contract expires this weekend. several media reports say she will be joining us at fox business. stay tuned on that one. cheryl: things are heating up for it has as the fed's opener probe into the company's model s following reports of battery fires. dennis: are the batteries drained for the pc industry? we will take a look at h p and dell and how they might survive can here's how the world currencies are faring against the gold u.s. of a. ya know, with new fedex one rate
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>> syria's civil war spilling into lebanon, outside the iranian embassy in beirut, 23 people were killed. the attack was mainly initiate district in response to hezbollah's support of the syrian president. if the presidential election were replayed today mitt romney would have a slight lead over president obama. washington post-abc poll of registered voters shows mitt romney of 49% and obama of 49%.
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that does not mean mitt romney would win. is the electorial college and not the popular vote that elects the president. new england patriots quarterback tom birdy almost pulled off a miracle finish over carolina. the interview was called after the passing to the end zone was intercepted on the final play of the game. it was overturned by the rest given the panthers of 24 to 21. gerri: the u.s. government automotive safety agency of the investigation into the recent model s battery fires today. adding to the challenge to asthma is facing a new entry into the electric car market. in santa monica, tells more. jeff: could be a huge opportunity for the folks general motors introducing the electorate cadillac. this is not all electric, it is
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very much like the chevy volt, look to the sales numbers on the chevy volt in october, sales were down 31%. down 3%, not great news. the folks at cadillac, the gas engine makes us not worry about range. makes it a better car. >> 30 miles all electrically and the beauty is the on board generator, it is really a great story. and this extended range, a lot of sense. >> to arrange a electric alone,
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300 miles. >> this is a beautiful 345 total miles but again and limited, you could pick the route, the destination, and decide to go there at the moment's notice. >> explain this breaking, we know that elector cars regenerate when you put a brake on. >> a great new feature where wheat placed the ability to regenerate at your fingertips. as you have this great dynamic driving experience you can put control of the breaking get your fingertips and the beauty is with an electric car, putting energy back into the battery. >> the paddles come of too fast, i kick those panels and ended slows me down. >> amounts to what is
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essentially hand brakes on the column. the cool feature. this is a real competitor. lookout, tears. >> in santa monica. thank you. always very careful. >> do-or-die time for the -- they could find themselves trapped. cheryl: things are heating up in the solar industry, with utility companies coming. and take a look at winners and losers on the s&p today. we will be right back. [ male announcer ] need help keeping your digestive balance in sync?
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cheryl: stocks every 15 minutes on the floor of the stock exchange, nicole petallides with big movers today. nicole: let's start with retailers, t. j. max and marshall's actually talking about the fact they are all still a strong holiday season reporting better than expected numbers, all sold dick's sporting goods and t.j. mack hitting new all-time highs, to islam motors bouncing back to a certain extent. watching tesla motors bouncing back after it was down 20% this month and tough numbers as they have not seen the demand for soups and drinks down 6% and also watching one of the smaller companies with market cap, electronics new high for
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electronics. cheryl: good teams you are watching. thank you. dennis: for retail restaurants, many once renowned for companies and make a break it mode. companies like dell, a hewlett-packard and other pc giants found themselves at clear turning point. joining us for make it or break it, robert w. baird, jason bowlen and robert bendery. why don't we start with you. is the pc and laptop dead? nothing they can do to fix it? >> nothing about the mainframe computer, absolutely dead, ibm's most profitable server. it depends on perception. most folks still live on their
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pc but perceptions drive the market and the perception is the pc is dead and the market needs to change the perception to put life back into. dennis: bad numbers in the third quarter, overall sales down 9% despite the back-to-school season, the lowest unit sales. worse than that, you have a 14% sales decline in europe, africa, middle east, sales decline in asia. the be developing world would keep the business going, what went wrong? >> some of that is cyclical and some is secular. there are challenges for many other companies too but the consumer pc market likely stays under pressure for many years, the enterprise pc market, still room to go there at least not decline. they need to innovate more and make notebook pcs look and feel more like a tablet, instant on, text screen, safe and secure. the enterprise pc market is not going to die a quick death.
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dennis: you just heard jason say the pc guy have to look more like tablets but microsoft is taking a beating trying to make the surface laptop tablet and you think it is the wrong way to go. >> i think a laptop needs to trade on its strength, not necessarily try to chase a different market. certain aspects like make it stay later, given longer battery life and certainly embrace cuts. at the end of the day it is as good as a laptop. when you give up what your strength is to chase somebody else, almost always ends up in disaster. it has divided heart and center and find out why people love laptops and drive on that and make them better and more innovative. we have to get the cloud off of this market and get people excited about it again. dennis: it occurs to me tech just loves to eat the previous generation and it is always
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unforgiving. how much of what has gone wrong in the pc laptop market is the fault of about makers for not innovating and how much is just wasn't the fault of the horse and buggy guys when the car came along. >> hard to place blame but 50/50 smart phones, tablets, touch, very innovative devices. the ecosystem around those devices and the pc market hasn't transformed, hasn't innovated like you say in the desktop or notebook side so they are almost being forced to consider alternative factors at this point but these companies aren't just pc companies. they have datacenter to activities, software services. they need to tie those things to a go to market for a business that includes pc components. dennis: smart phonemakers ought to be watching this segment because they are next. is becoming a replacement market. not looking bully enough's.
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maybe h p ought to break up, del ought to sell off some pieces. >> i am not convinced you need to break the companies of but there's a problem with companies trying to do both use the basic technology and enterprise based technology. we saw the last decade apple by being very focused on the user did far better and there was a failure is their server where they didn't do well, microsoft focus on the back end and lost momentum on the front end and the thing we didn't talk about was windows 8 is not yet resonating in the market and putting a lot of pressure, negative pressure on it. it can be done but does require different companies to focus on who they are best at serving and driving through a solution. amazon is the biggest threat to everybody because they're so disruptive in back end. dennis: thanks for being with us. cheryl: time for west coast
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minute. report says sony pictures looking to cut $100 million from its budget. that will result in job losses in the los angeles area. sony hired other companies for the where and how to make all of those cuts. look at the tokyo-based company, 1878 last trade. alaska looking to take a multibillion-dollar equity stake in a large natural gas pipeline project that has been stalled. 20% to 30% stake in the project, the project is backed by exxon, bp and conoco phillips cable exporting the gas overseas. they have been asking a new company tax rate from the state as a guaranteed to proceed. we will keep you posted. the federal government has reached $1.2 million settlement for a farm in hawaii, they sued along with others over the working conditions of high immigrants. and an inevitable housing,
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insufficient food and adequate pay and in some cases abuse. that is your west coast minute. dennis: things not so grand in arizona. we will look at their ongoing battle with utility companies. cheryl: liz claman is going to sit down fred tomczyk. fox business exclusive interview coming up. ♪ [ 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. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently pped 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.
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your fox business brief. global drugspending will top $1 trillion next year according to a study spending and pharmaceuticals will increase 3% to 6% annually over the next five years. last year spending was $965 billion. best buy warning holiday price promotions from rivals could hurt its margins in the fourth quarter. electronic retailer beating for the third quarter reporting adjusted profit of $0.18 a share up $0.06 above the estimate, revenue of $9.36 billion talking expectations. third quarter labor costs increased by 0.4%. the labor department saying compensation costs for u.s. workers rose by 0.3% and the costs of benefits like health insurance jumped, that is the latest on the fox business
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dennis: the stock market made a stunning come back since march of 2009 that as up mom-and-pop investors spending the rally liz claman is live at the cme global conference in naples, fla.. with the man that stains but those with the average investor. >> we are at vote ritz-carlton at naples and a flush stock market over the past year, down 16,000, enables people to come back and fill this hotel was full capacity and in the past years it has been difficult in the financial crisis but what about the mom-and-pop investor. we have seen massive inflows when it comes to mutual funds that are equity base in the united states but the one man, president and ceo of td ameritrade, fred tomczyk, had an opportunity to speak to him to
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ask him about the health of the retail investor. listen to what he said. >> the health of the retail investor is mixed. we have seen the market go up quite a bit, the s&p 500 up 24%, 25%, 12% last year, we had a very good run but we look at our client base, we break into three segments, look at the are a, the independent registered investment adviser looking after retail, they have been fully invested and participating in this rally. they look at the more active investors, and 420,000 and investor movement which traps what you are actually doing, increasingly bullish and participate in a rally but the average mom-and-pop retail investor is very much cautious, people who talk about the great rotation we have not seen the great rotation for equity funds.
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>> why isn't the mom-and-pop investor engage when all they have seen over the last three years since march of 2009, with a few dips due to what is going on in washington. >> think about it from that perspective. you and i live in the markets. we watch the stock market everyday, the average investor is much more worried about basic issues, their home, their job, how much money they are making, they look at it, the world is different, what we are seeing in washington and the uncertainty caused by that is keeping them as very conservative and very cautious. cheryl: you were very outspoken during the recent debt ceiling battle. were you i can say please, i don't think anybody was how the outcome came about because there was so much strife, not seeing people cross the aisle to have a compromise, but do you think we are in the clear? >> we are back into it in
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december, january, february, hopefully j.c. the result of what happened with that discussion that we just went through and do start to come together but that is wishful thinking. people are waiting to see evidence. >> we have to talk about catering, td ameritrade is one of the most interest-rate sensitive companies due to the fact that a lot of your clients hold some of their money in cash and if interest rates, can't say titans, we are not there yet. if we see the perception that they may in capering you could do really well. >> lots of interest rates rise. we have seen them the past year, stock is up 89% if you include that. we have a good run with the yield curve steepening which is an indication the market thinks interest rates will arrive sooner rather than later. cheryl: the point on the calendar. is it the end of the year, next
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year? >> i wish i knew the answer to that question but i don't. i think it will be some time next spring. >> should we be capering sooner than we have? >> there's lots of evidence starting to question is working? >> they think it is? >> it may matter from a psychological point of view. i am a big believer that there is a psychology to the markets and you have to pay attention. my advisers in america would wait a bit and i would love to see them tapirs sooner versus later. >> spring of next year. watch for that. fred tomczyk with $500 billion in client assets watching that very closely but his stock up 89% and they only stand to do better if rates start to get the perception of moving hire. coming up in the next hour live from naples, fla. the cme global
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leadership conference, this is the guy who runs the computer and cybersecurity company, he is the one who had pinpointed the exact location in china to a government building where a lot of the hacking is coming out and to our government organizations. friday, the cme announced a cyberintrusion. we will ask about that and more in the next hour. back to you. dennis: thanks very much. cheryl: it is the biggest fight on record in the renewable energy debate. solar power producers versus utility company that is happening in arizona and getting ugly. arizona attorney general is investigating revelation that arizona public service, the largest utility has been secretly funding negative ad campaign end at solar power companies. let's bring in john bircher, utilities themselves sid but
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come out there were funding the negative ads but why do you think they are so against solar power generation in a state like arizona that has got 360 days of sunshine? >> it is about competition. for the first time u.s. customers, in this case arizona customers have a choice. that choice is going with lower-cost power which is taking on revenue away from but utilities to our government entities, so you think it is pretty natural the utilities are against losing revenues. cheryl: read you a quote from the new york times, the rooftop solar industry has been pushing along this mantra and no cost shift and increasingly in california and arizona is a real issue that has to be dealt with and the grid has to be maintained and paid for utility companies paying for the grand maintenance on it not the solar companies so maybe there should
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be shared take in all this. >> there is some truth to that and compromise for the telecommunications business and open access charges for the competitive providers of telephone services to business and consumers. cheryl: the capacity problem, this is a capacity and storage issue especially in arizona and california storage has become the problem. in arizona distribution is the real problem and utility companies are saying we are the ones that shouldering to make sure the lights stay on in arizona and they want you to pony up, don't know what that will be but is there a compromise? >> i think a small demand charge which the point commission put in place, $5 a month and that is the same on the telecoms side as well, $10 a month is fair, california is looking at the $10 range for everybody.
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that is fair. $50 to $100 a month is ridiculous. that does not reimburse them for some cost. you have to be levelheaded and have a compromise but in terms of what the real fight is about, it is not about reliability, it is not about keeping the lights on for everybody, it is about taking revenue away from them because we are giving consumers -- cheryl: they are the ones responsible for keeping the great operational, that is where their side of the story comes from and the revenues story as well. on the other hand with you completely unregulated utility industry? are we going in that direction to make it a free market so i can bring in solar from bob capsular company versus signing up? >> competition is great. i am a believer in capitalism and to be clear with utilities, particularly arizona public service, not capitalism period. this is government fiat, they come in and decide what we are going to pay, when we are going to pay it and how we are going
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to pay it and that is not the best way to provide the best service and cheaper price regardless of industry. cheryl: companies were certainly probably 20 years away from having it be dependable but it is an interesting story. thank you for being here. dennis: should jpmorgan pay for billion dollars to bailout homeowners it didn't harm? that is what is bugging me. your comments come the. cheryl: winners on the nasdaq as we go to break.
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dennis: should jpmorgan $4 billion to the on homeowners it didn't harm? here's what some of you had to say? match tweets no good deed goes unpunished, sheila bair, gunz, bad guys do well, good guys write the check. extortion? this is what can expect when you put a lot of criminals and lowlifes into an administration starting at the top. mike rights no one should have to do that. totally unfair and banks should fight it until last dog dies. t can our response those people who took out loans they couldn't afford to be paying of a fine to those who were harmed by their stupidity. cheryl: the 2013 oxford dictionary's word of the year, beat out work, shopping. 17,000% in frequencies since last year. since 2002 it became popularized
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by social media while rapidly being used in mainstream media. the phone calls why is it -- it was taken during a spacewalk at the international space station. future political aspirations of the mitt romney plan, and romney, mitt romney's wife, was heard by her 5 sons and 20 grandchildren about getting into politics. just what does she think of obamacare? that is coming up in the next hour. cheryl: the world's fastest car, 34 of the finest vehicles up for auction. we will be in the driver's seat coming up. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everyby.
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[ male announcer ] fedex one rate. 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.
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cme group: how the world advances. bny mellon combines investment management & investment giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon. lori: a very good afternoon. adam: on second thought, activist investor carl icahn walking back his comments helping to drag stocks to session lows. should you be worried the stock
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market is about to take a plunge? lori: and what about the economy that keeps on trudging along? a slow growth and high unemployment are our new normal. adam: the government launching a full inquiry into the fires in six weeks. lori: with two provincial campaigns behind her, and romney's turn in the spotlight. what they have been up to, what she thinks about the obamacare rollout and how to make the perfect sandwich. all that and more. as we do every 15 minutes, let's send it back down to the new york stock exchange to see what is hot. >nicole: i really am looking at the dow jones industrial bid number 40.

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