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tv   After the Bell  FOX Business  December 2, 2013 4:00pm-5:01pm EST

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highs. we had eight straight weeks of gains. [closing bell ringing] liz: i don't know what happened to the markets. some blame the 3:00 -- david: the dow did end as bells are ringing on wall street, slightly above 16,000. i think it will stay there. looks like it is off its lows. the lows were about five minutes ago. a little bit of improvement. at least we end the day on the dow at any rate above 16,000. the dow, by the way, of all the top indices has deepest loss percentagewise, but the russell 2000 is always worrisome trend when we saw small and mid-size caps go down over a percentage point as they did today, liz. liz: let's get the front page headlines right now. factory activity surging to a 2 1/2-year high last month. institute of supply management manufacturing index jumping to 5.3. that's well ahead of forecasts. david: bank of america agreed to pay freddie mac $404 million, not just jpmorgan, to settle
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claims related to the mortgage mess. over the past three years that bank has promised to pay more than 45 billion over claims from the housing and financial crisis. liz: the supreme court decided to stay out of a fight over internet sales taxes between amazon and overstock and new york state. it means that new york will continue to collect taxes from those online retailers. david: shares of dow chemical jumping after the company will sell the bulk of its coring operations, its oldest business, part of a plan to shed assets worth up to $4 billion. liz: managed care giant, unitedhealth group forecast estimates that fall short of analyst expectations following changes in medicare and other bought health programs. david: commuters heading home from new york this even being will face more disruption after the crash of the metro-north train in the bronx yesterday. four people were killed and dozens were injured. workers are still working to clear some of the weakage. "after the bell" starts right
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now. liz: on this first trading day of december let's break down today's action. we have david lutz, still nicholas managing director. he will tell us the top places to put your money right now, and lincoln ellis in the pits of the cme. lincoln, start with you. a little bit of retrenchment to the downside at the last second of the markets. tell us what the real feel in the pits today as we look at the last month ever trade. >> david hit it on the head and it is risk reversal. if you see equities sell off on good news, that is one piece of the puzzle. two, small caps outperforming to the downside veries is large caps that is a key trader risk reversal. three, when you see people squaring up or not squaring up actually on the close like we saw behind us in the pits you really get a sense normally on the first day of trading you get stocks higher with new money coming in from 401(k)s with
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that kind of buying. when you don't have that positive momentum it, could be further downside in weeks ahead. david: david, we have to remember, december is usually a terrific month for a market particularly if it had a good year. however we enter this point with kiss couraging things -- discouraging things. interest rates spiked that might be a harbinger for the month. holiday sales, granted more people were out shopping but they spent last money. >> absolutely. one thing we need to bear in mind, the first full session after thanksgiving, monday after thanksgiving averages 40 basis point loss. we're tracking a little better than history is concerned. yet, december is usually a fantastic month for the market. it is usually the best month for the market overall, averaging a 2% gain over past 30 years. it has been positive 80% of the time. a lot of traders feel this momentum will continue throughout the year. you're dead right about retailers. retailers gave some back today. you know what? maybe that is the reason market
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is underperforming after monday after thanksgiving. there is so much hype around holiday sales. that is all we think about aside from turkey and football it is bound to be disappointing. look at amazon. closed in the red even the fantastic pr episode last night on "60 minutes" and talking about all the retail sales. liz: hold on one second, david. as we look at amazon we need to switch from turkey and doughnuts to krispy kreme. those numbers are out. dennis kneale has them. >> yes, krispy kreme's stock is down good 10% or more after hours. it came in with the slightest revenue miss. earnings per share came in 11 cents, that's a penny better than wall street wanted at 15. then the revenue number came in 114.2 million. wall street looking for 114.62 million. that is shortest shortfall but wall street punishing the stock and sending it down 10%. the stock was up 175% in a year. here is a positive note that traders haven't noticed yet.
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same-store sales for krispy kreme up only half a percentage point in the second quarter. same-store sales up almost 4% in the recent quarter for krispy kreme, that's a nice big number. liz: it sure is. remember with the first initial spasms after numbers come out, they could, listen to what dennis was saying and see same-store sales were not so bad, lincoln, but nonetheless this was a high-flyer during the dot-com era and crashed. what a nice move it made over the past year. >> affordable luxury items across the board made a decent comeback since 2009. you saw significant uptick in price. when the momentum stocks miss on revenue line, we're talking about a large component piece of the momentum of the broader market, you start missing on revenue on the top line you will see the market punish these stocks at five to 10% very, very quickly. david: by the way, we should mention this is a stock, krispy kreme, which moves dramatically based on just, an earnings or a loss, one cent over or under the
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estimate. the stock fell 15% in a day after the last earnings release in august. that just missed two cents. so it may balance out after a couple of days here of trading. but david, i wanted to ask you about what bob schiller said today because it is in the back of a lot of traders mind, the question whether the whole stock market has become a bubble. he of course saying this could end badly, talking about the current bull market. what do you make of schiller's remarks? he is a smart guy, a nobel prize-winning economist. >> putting a guy with university of marylander education against a mow bell prize winning economist. that is tough argument. to be perfectly honest with you, i understand a lot of people are frustrated that the market is moving away from fundamentals. the market is forward looking mechanism. we're looking for solid earnings expansion that could come up next year. a lot of times some of the best moves -- david: that's a very important point because we do mention the
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fear attached with rates going higher but some cases, as long as it's orderly there are some industries, particularly small regional banks that could do very well if interest rates kick up a bit, right? >> we saw the yield curve get very steep over past couple months given what is wrong in the rate pits. that is tailwind for financials. you hit the nail right on the head, small cap banks, regional banks, they're heavy in assets this is big earnings catalyst for them having higher rates. that is another nice tailwind. that is why we saw a lot of regional banks outperforming their big bank brothers. liz: don't undersell the university of maryland. you have the turtle. i say that legitimate. >> what? liz: as dr. robert schiller came out today and said he was very concerned about a global bubble due to our equities being inflated, this is nothing that marc faber hasn't said more than a year. again he has been wrong. david: mark has been saying for 100 years. liz: time something everything. and right now he has garbage,
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not salad. lincoln, at some point, maybe the fifth anniversary of this unbelievable bull market. that comes in march i believe. what do you think happens? do you think people really need to be preparing for that in some way, shape or form? >> they should be preparing themselves. i think david's right though. the key component of this is whether or not the rate hikes happen in an orderly fashion and whether or not the economy can actually adjust. if you get these higher rates, and incrementally higher rates, not only does that help small and mid-sized regional banks, it also helps a huge amount of savers out there been yielding zero. liz: not all bad is what you're saying, not all bad? >> exactly. that puts more money back into the economy from consumption from a place where we haven't had consumption for quite some time. you probably get a plateauing. maybe not a bubble popping or huge plateauing for 2 1/2 years as rates adjust. david: david lutz, because i'm maybe i'm a stock holder in apple but i look with great
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interest how they have been selling the ipad. what is very interesting to me, there are a lot of choices out there on the market but people keep going back to something they trust. the word trust and retail is a very important component. if you don't have trust in retail you will not have customers. >> no. you're absolutely right and you know what? apple just listed i want to say by forbes still having the most valuable brand worldwide. it is an absolute machine what is going on there like you, i'm a stockholder of apple as well. you know what? finally up on the year again and money looking at it, the money chasing tesla, chasing facebook, chasing a lot of these names. apple is massive e-tailer. i saw a statistic, 40% of the all the e-commerce buys were going over an ios device, mobile buys going over an ios device. not only is apple representing a lot of people in the economy, it is representing people that are spending the money. liz: that is exactly right. think these online numbers have been great.
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we had kevin rhine of guilt group said his numbers are up 45% year-over-year when it comes to unique visitors. great to see both of you. david lutz, and lincoln, we'll check with you in a few minutes when the s&p futures close. david: more consumers went shopping over the thanksgiving weekend but as he said they spent less money as a whole. so how strong is the american consumer? staples founder and former chairman and ceo, tom stem per will weigh in. he knows everything you need to know about retail from the inside, still on a lost boards. this is a fox business exclusive you don't want to miss. liz: swarms of drones unleashed. okay, not yet, but maybe eventually to revolutionize the package delivery business? guess what? we have a entrepreneur already testing delivery drones even though they're not yet legal. we ask him if bezos's idea will ever fly with regulators when it to amazon. david: that takes us to facebook's question, would you
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feel safe receiving a drone-delivered package. could drop on your head, who noise. log on to facebook.com/afterthebell. your messages on this will be read to everybody at the end of the show. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or n? what if they embrace
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david: doughnut and sweet maker krispy kreme reporting earnings just moments ago. let's go back to nicole petallides on the floor of the new york stock exchange to see what the details are. nicole? >> we're watching krispy kreme selling off after the bell. take a look what it is doing with the bid ask. krispy kreme came out with the quarterly numbers. it closed at 24.55. the bid ask is in the $22 range. when you see revenues a slight miss. revenue came out 114.2 million. the estimates were 114.62 million. so a little light on the revenue. and the earnings per share, 16 cents versus estimates of 15 cents. that was good news there. same-store sales for krispy kreme donuts, those are on the rise, 3.7%. also talked about expansion, opening 85 international franchise stores in the full year, fiscal year of 2015. so they do intend obviously to expand and one other thing. they boosted forecast to the
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lower end of their earnings per share view, which also would be good news. wouldn't it be great if they raised the top end of the forecast? that would be really great. at least they picked up the bottom. that is one piece of good news but you are seeing krispy kreme selling off right now. david: thank you, nicole petallides. liz: s&p futures are closing. we need to get back to lincoln ellis in the pits of the cme. big selloff in the last hour. what does it look like for tomorrow? >> not too much here on the close actually but it is interesting to note that this is actually 25, 26% up on the year in the s&p 500. that is only the fifth or sixth best performance for the s&p of a double-digit gain. what we would be interested to look at whether or not when you have a 20% plus gain whether or not you get that christmas rally, whether or not you get the santa claus rally david was talking about. particularly get the pullback on that first full trading day what does that mean for a market that is very much near 12 and 10-year
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highs. liz: that's a great point. watch out. just one little thing can spook the herd. lincoln, good to see you. lincoln ellis. >> thank you, liz. david: the national retail federation says there were more people out shopping holiday week owned but less spent leading overall cash drop in cash spent. what does that mean for retailers and coming earnings? we have fox business exclusive, founder of the retail giant, staples, how many times have you ordered from them, tom stemberg, who served as chairman and ceo. tom, thanks for coming here. >> good to be here. david: start with the holiday sales figures we got. more folks are spending but they're spending less. do you think that trend is going to continue throughout this season? >> no i think we'll be up a little bit. if i had to pick a number, i would say somewhere between two and 3%. i want tome emphasize there is tremendous variance between firms. could you see some firms, particularly those selling commodities, affected by amazon being negative.
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we've got companies, high land consumer fund in our portfolio like david's tea and jim mcglothlin, affordable luxury items up meaningful double digits. david: do retailers ever act too quickly to these numbers in a knee-jerk fashion and live to regret it? >> you know, retailers are not very smart. i hate to say, because i'm one of them. but the fact of the matter is, the term black friday came around because that is when you used to break into the black for the year. when you're selling stuff below cost, you can't make it up for volume and red friday and red cyber monday. you're selling everything at 30 off you will not be very profitable and unfortunately a self-fulfilling prove if i. david: one company that epitomizes that, amazon. jeff bezos was on "60 minutes" defending his policy. stock owners love amazon's stock -@so they have been bidding up e stock price of that company. let me play a little sound from
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the interview and get you to comment on it. >> in the long run if you take care of customers that is taking care of shareholders. we do price elasticity studies every time the math tells us to raise prices. >> why don't you do it? >> doing so would erode trust. that erosion of trust would cost us much more in the long term. david: so, tom, bezos is saying customer loyalty is worth more than what pencil pushers and accountants are telling him to do. what do you make of that? >> jeff bezos been selling a lot of manure for a long time. david: manure? you said manure? >> i did. and sometimes, at some point in time, the shareholders will request that jeff show that he can make money. not some other crazy project, whether it is drones or whatever else, replacing the kindle where he will lose money. at that point in time, we're going to find out that his business model in fact with all
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these fancy distribution centers and everythhng which are terrific, can in fact sustain the kind of price structure that he is putting out there. my suspicion is that he can not. he is going to have to raise prices over time. secondarily at some point in time, congress is going to get its act together and pass the main street fairness act. when in fact people in places like new york are not paying the 10% sales tax they owe when they buy from amazon or amazon marketplace and people are not charging the sales tax, as that advantage goes away, i think you will see further compression on amazon and i think they have to raise prices to make money and that will change the world exyou did, i can understand your comments on that, on the price modeling but the efficiency of that company is just beyond belief. that came out in that "60 minutes" report. when you see that kind of efficiency, and you look at something like healthcare.gov for example, and the way that was rolled out and everything, does it make you concerned about
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government program that is taking over 1/6 of the economy? >> you know i was guy gave mitt romney idea of universal health care in massachusetts where it has worked. when i read the obama plan, even if implemented perfectlyan, can't work. needless to say implementation has been anything short of perfect. so you got a bad plan, badly implemented and now what you got is an absolute mess and i have no idea how the president the administration will get their way out of it. david: and you look at some of the stats, by the way, walmart.com processed nearly 400 million page views on thanksgiving day. whitehouse.gov is bragging about the fact that they have 375,000 in a day. again, the more hits that healthcare.gov has, the more screwed up the whole system is going to become. how does it end? >> wealth fact of the matter is,
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people get there, they think they have signed up. weeks go by. they don't get an insurance card. they call up the carrier and carrier has never seen an application because the link to the carrier's site doesn't work. among many other things that doesn't work in this whole thing. the worst thing is going to be, you will have a whole lot of people who badly need health care signing up for this. and, could soon have huge amounts of claims whereas the young healthy people who you need to have sign-ups to subsidize the elderly people are not signing up that will be economic disaster and lead to higher taxes. david: meanwhile efficiency and innovation and private sector when it comes to retail is just remarkable. you guys have you said, retail guys are not that smart. i beg to disagree, tom. you are that smart. you are ruling world as far as retail innovation. congratulations on that. by the way, you want to stick around, may not think about much in the pricing system of bezos, this drone delivery thing is incredible. liz has coming up a segment with
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a guy making those drones. i'm staying tuned for that. i think, tom, you should too. tom stemberg, thank you very much. liz is coming up. >> don't want them flying near my kids. david: yeah. i don't want to be dropping on my head either. thank you, tom. good to see you, appreciate it. thanks. >> bye-bye. liz: jeff bezos is talking about it, one of our guests is testing these things right now. the obama administration trumpeting its success in fixing at least most of the problems on healthcare.gov's website but how much work still needs to be done to fix every problem on the site? and also, not just about drones at amazon as we mentioned. online retailing giant is also throwing down the gauntlet in the tablet wars. we'll tell you how it is targeting rivals like apple with the ipad mini. oh, yeah, two of the minis, what are those kindles? they arrived at my house, courtesy of my sister danielle. they're adorable and kids are obsessed already.
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david: they're selling them underpriced. what is not to like? liz: here come the rivals. edward snowden. ♪
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david: time for a quick speed read in fact of the day's other headlines. five stories in main. hit technology worldwide said the initial public offering could raise a bill dollars. could be second biggest ipo in the year. the company didn't say when it plans to launch the ipo. amazon cutting price of two kindle fire tablets for cyber monday.
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kindle fire hd 16 gigabyte for $119. kindle fire hdx, 7-inch for $179. sony is looking to hire at least one new director. the "new york post" said the media and electronics giant approached several u.s. based media executives in order to join the board. instagram reportedly working on a new messaging feature. report by techcrunch much said several users have been given personal instagram.com email addresss. >> saab launching the first new sedan in 2 1/2 years. the new 93 arrow will go on sale in sweden next week, price tag of $42,757. that is today's "speed read." [buzzer] liz: saab lives, who knew. liz: we know saab owners are be obsessed. david: they are totally obsessed. liz: get to the obama administration. it says it met its goal for healthcare.gov work for, quote, vast majority of the users but
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is this sufficient enough to meet the target of seven million enrollments next year? david: to do that they would have to have 50,000 enrollees per day by march. peter barnes with the story from d.c. they're pretty far from that now, david peter. >> david, i don't think that will happen. white house said that came from the congressional budget office, not the administration. this goal assumes everything is working right on the federal website? which it is not. according to health insurance companies, our own attempts to sign on and the administration itself, still, hhs says it's working on it, fixing more than 400 software bugs, adding 12 large servers, just on friday, to help with all the traffic. and with this, the website can now handle 50,000 simultaneous users per hour or 800,000 users a day according to the administration and it announced
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that it had gotten 375,000 from midnight, from, from midnight monday to noon. so, today. so that's, in 12 hours. they say the website is up now more than 90% of the time. about double the time a month ago. >> the vast majority of users we believe are able to use the website and have it function effectively for them. that does not mean and we never said it would mean there would be no problems moving forward. that there would never be an error message or a delayed response for a page to load. >> now, health insurance companies are still complain they're not getting all the information from new customers, people enrolling on the website. hhs is still working to try to fix those bugs t announced that one of the bugs it has fixed accounted for 80% of these customer data problems because it deleted the social security
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number. liz: oh, my gosh. david: like a turn signal. it is working. it is not working. it is working. it is not working. liz: tough thing to do is go through the whole process and all the information you put in was either lost or can't be located. david: there is also a question of cyber security too. peter, thank you very much. >> okay, guys, thanks. david: it is cyber monday and a huge day for retail stocks. so who do investors think will be the big winners and lose officers we'll talk to stock twit's co-founder, i love the site and the chairman when we come back. liz: also delivery by drone. we'll look at the brave new world that is not so new for our next guest. yes, amazon just started talking about it but the man who already developed a prototype that has been tested in another country. he has got the whole story exclusively with us. stay tuned. ♪ ya know, with new fedex one rate
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will power us all... into the future. ♪ liz: time for a look at today's market drivers. all three major indices closing in the red as investors speculate ad strong u.s. manufacturing report did indeed come to fruition could prompt the federal reserve to taper its bond buying program a little
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earlier than expected. telecom was today's worst performer. we had u.s. manufacturing activity rising unexpect he hadly in november. the ism manufacturing index rising to 57.3 last month. that is the highest reading since april of 2011. it was mixed day for commodities. look at gold though. gold dropped 2.3%. by the time all said and done, $28 close, down to the lowest since july but oil rising 1.2% to settle at $93.82 a barrel. highest level in a week. david: i bet george giros was buying. he said it was bargain at this level. he knows gold. people surf the web for this holiday's hottest deals, what stocks are they talking about on the stock sight, stockwits. liz: i did so much. it aggregates all the comments and helps figure out where certain stocks are goingings up or down. david: great site. liz: joining us in fox business
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exclusive, stockwits founder and chairman. nice backdrop. no storms there. >> san diego. liz: we love it. as we look forward, we'll spin this forward not just this week or today. what stocks, which stocks are looking particularly exciting going into 2014? >> okay, great question. it is, all depends on your time frame. we've had a massive run in retail especially. so you know you have this divergence. people complaining that the middle class is disappearing. proof is in the pudding. it does feel that way. that is not just going to be a short-term trend. one company i light the most of and sold the least amount of on way up is nike. nike is so well-positioned. they're not thought of as retailer. they're thought of shoe company, and manufacturer in china. nike is so well-positioned, 10-year-old boy picking out shoes for his birthday, making
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shoes for themselves and wristband i don't wear keeping track of your steps. i took 10,000 steps. i will go into the nike store and get rewarded with 20% off my goods. there are in the position being one of dominant retail force next 20 or 30 years. that is the way i like to invest. i want to find companies at intersection in all that. obviously amazon is right there too. it is awfully expensive and very hard to value because they don't focus on profits. david: howard let's talk about that for a second. we just had tom stemberg on. he is the founder of staples. he called amazon's pricing policy, dunk, manure. would you go that far? >> i mean listen, look at staples price performance since 2008, since the bottom versus amazon. i think he can't compete. nobody thinks about staples anymore. i used to get all excited when i started a business. i fund startups for a living as well. used to be nothing more exciting than walking into staples either
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at beginning of school but -- david: amazon, i want to focus on amazon. their pricing policy. bezos defended it. we heard his defense earlier. do you think it is defensible? >> pricing policy is genius because amazon can afford to do this. staples is dead. they don't know it yet. obviously that single box concept to buy office supplies is in lot of trouble. i don't understand why anybody in their right mind would own that stock unless they get outside of doing what staples has done for the last 100 years. they're dead. they're over. just a question of when. liz: merger and acquisition activity. >> yeah. liz: what names are you seeing increased mentions on stockwits? all the people on your site, what are they chattering about? >> deckers is a great run. i'm a big fan of uggs. it was a terrible stock that crashed over last couple years. it had an incredible run over the last, six, seven months. deckers obviously has been a stock. maybe cold winter. amazon is the talk of the town
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because we blend technology with new wave. high-end retailers. tiffany has done well. a lot of high-end retailers still have the people talking about them. they have those margins. but boring old box retailers, best buy is always focus of intense scrutiny just because of the experience of the stores. a love-hate type of stock on the web. but in terms of the one that gets the most attention i think deckers is really snuck up there. with a cold winter and the uggs brand and new running shoes i think they have been a sneaky quiet winner here. david: howard, just a something a little out of retail box for the moment. you just host ad q&a with the cfo from ford. >> yes. david: anything pop out at you from that? i they are probably frustrated is with amazon's, tesla's valuation. there is lot of question who will be the ceo of microsoft. that question came up a lot. but they seem to be executing. in the end ford's products are good, right?
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younger people are interested in the ford product. that is a generation that people got to nab. that is where valuations are. you look at snapshot, people talk about snapshot even though they don't have money. tough capture the imagination of the younger generation. ford is starting to do that cheers to them. a tough business. liz: on stock twits, when twitter was $45 the sentiment was very bearish. today twitter was down 1 1/3%. stock twits, check it out. david: howard, when is your ipo coming about? when will you have a ipo? >> we're a private company. i don't think we're big enough. thank you for thinking about them that way but we love that kind of conversation. thank you. david: you're welcome. god as long as you invite us to san diego to take in some sunshine we'll give you all the compliments you want. >> anytime. anytime. liz: stock twits. david: good stuff. liz: amazon's future for package delivery, we've been talk about it all day, it does sound like science fiction.
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jeff bezos says deliveries by drone are just a few years away. but next we're speaking with an entrepreneur already testing drones for good, meaning deliveries of things like medicine in other countries. david: fascinating stuff. you want to stay tuned for that. this year's cyber monday will be busiest day of the year for fedex. we'll head to the company's shipping center in bronx, new york, to see how it plans to handle all those packages. ♪ [ male announcer ] here's a question for you.
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[ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. liz: amazon getting all the attention today simply because jeff bezos mentioned drone delivery on "60 minutes" last night. he basically said these drones could be in operation in four to five years. so what would a world filled with commercial drones buzzing above us be like and is it even
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feasible? well here's a guy who is making it feasible, not in this country. but he is a matter net ceo and cofounder out there in silicon valley, already experimenting with drones for commercial or at talk about us you're doing and whether you're very close to making this reality, not necessarily in the u.s. but maybe overseas. >> hi, thank you for having me. liz: sure. >> indeed we are already filing the technology. we've been on this idea for about three years now. we believe that is going to be the big paradigm of transportation and our core belief it will happen first outside of the u.s. and then come here. we see a big, big opportunity here to create a next, the next generation transportation system that somehow simulates the architectural internet but for physical internet, for transporting small packages and transporting mater. >> in fact delivering medical supplies to places in need was
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exactly what got you into haiti. you have apparently tested it. we have some video of your, and let's not necessarily call it a drone. drones tend to have a negative connotation but uavs, unmanned aerial vehicles. this is camera attached? did you have a, tell us how you did this and how heavy is it? how many propellers? there it is. >> that's right, yes. so, what you see is a video on board of one of our prototypes. it is october to copter which eight propellers. this sends tin kilograms over 10 kilometers. we pushed that to 20 kilometers. the weight of the vehicle is three kill low grams. this is really the-kilograms. this is why this make as a lot of economic sense. very light vehicle supporting lightweight load. so for places and transportation
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problems, so-called last mile transportation problem where you don't have the ability to aggregate loads, this type of technology makes the most economic sense. it is most cost efficient, most energy efficient, the most flexible, the one that requires least amount of up front infrastructure investment. that is why we believe it will be -- liz: some areas that don't have roads or there's impenetrable gridlock for example. i can see the possibilities, getting from point a to point b is not the issue. i think more of the regulatory environment certainly is. did you have to deal with the government of the haiti to make sure it was okay to be doing this? or did you go with the flow there? >> that's right. we have to basically get clearance from the local air traffic control authorities in all the jurisdiction that is we want to operate. typically the way we approach this so far is that, you know, we bring a new solution to a burning problem. so, the local air traffic control authorities are willing to talk to us and open their
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doors. liz: sure. >> and give us permission to run a trial. liz: that is not happening here in the u.s. just yet. what must you have thought when jeff bezos brought it up last night on "60 minutes"? were you jumping around saying i'm ready, i can make this happen? >> i think it will take us a few years to get there. the key thing we have to get right is extremely high level of reliability for attractive economic proposition for the vehicle. we have to keep the cost vehicle down while -- liz: of course. i'm not going to into people will shoot at it. energy sources in rural areas or third world countries especially when the weather bad, how will you charge them? there are so many logistical issues? >> yes, there are many of them. there are many challenges. the way that we are building our network is have having ground stations on known traffic locations. >> okay. >> we at matternet. we don't operate networks. we sell the technology to local
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operators that know how to operate in those conditions. if you have organization like, let's say, doctors without borders having extreme problems getting diagnostics for hiv/aids, for instance, they know to how to operate in those locations. we want to quip them with a new tool. liz: so good to hear your story. always welcome in new york. bring one. love to have you show it to us. great to have you. the company is matternet david. he already has a twitter handle. check it out and more. thank you so much. david: if i had done that segment i would have mentioned "the hunger games." it is used in "the hunger games." they used one of these things to bring medicine in. liz: from the original "hunger games." david: this time as well. as consumers scour the internet for cyber monday deals. fedex is gearing up for the biggest shipping day ever. look what happened to the stock. it keeps zooming up.
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we check in with jo ling kent watching all the action at a fedex shipping center. liz: one college student made some major big coin busts despite waving this sign-on television over the weekend. we'll tell you how much he made and how he did it when we go "off the desk." ♪ this is the quicksilver cash b it's not the "limit the cash i earnvery month" card. it's not the "i only earn decent rewards
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david: fedex, you saw the stock today, once again hitting new highs. it expects today will be the busiest shipping day in its history, thanks to growing popularity of cyber monday. liz: jo ling kent, at heart of it. fedex shipping center in the bronx, with details how the shipper is handling, what jo, i can only imagine is massive rush? >> that's right, liz and david. it is a massive rush. if you're a fedex driver you have 100 single stops every single day. 200 packages on average. a lost packages headed across the country. this is part of the second shift today of the trucks coming back and shipping out packages across
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the country. what is really interesting here. even though this is historic day for fedex, you can also check online, take a look at paypal and see how they're doing. as of 2:00 eastern time, their mobile payments alone up 109%, a huge increase compared to cyber monday, 2012. and here at fedex they're certainly feeling a lot of that pressure as they move packages. they expect it is only going to get busier as the month continues. thousands of packages here in the bronx being processed as part of 22 million packages going through the entire fedex global system today alone, their busiest shipping day in history, liz, dave. liz: wow. david: $140 a share. that is how much fedex is going with. it is not one of these high, fancy stocks that tend to zoom up way beyond the price range. but that stock is doing gangbusters and likely to say there a while.
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>> fascinating to see that thank you, jo ling kent. 12 days of christmas have gotten more expensive. you will have to dig more deeply into the wallet for something like lords a leaping. details whether we take you off the desk. ♪ she loves a lot of the same things you do. it's what you love about her. but your erectile dysfunction -
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david: time to go off the desk. the price of lords a leaping and ladies dancing has spiked this holiday. according to pnc wealth management's christmas price index, we always do this every year, it's going to cost now more than $114,000 for all the 364 items repeated throughout that wonderful christmas carol, that's a 6.9% increase over last year. liz: okay. david: a little bit of inflation. liz: also a college student quickly made more than $24,000 just by waving a sign on television. the kid was shown on esp, this' college game day holding up a sign that read: hi, mom, send bitcoin. the image made it onto the front page of readit and quickly spread across the bitcoin community, and so the student received 120 transactions, turns out more than $24,000. david: i can't believe it!
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we asked you if you'd feel safe receiving a drone-delivered package, one said: i'd be worried that the drone wouldn't exact the package in exactly the right place. melissa: it's a bird, a plane, it's the cat food you ordered from amazon. amazon is planning to use drones to make deliveries, flying robots used to sound far fetched but not anymore. what does it mean for life and your money? because even when they say it's not, it's always about "money." ♪ ♪ melissa: in the skies and across the airwaves, drones are on everyone's radar today from amazon's flying deliveries to the latest plot twists on homeland to video of the violent protests in thailand. if you've been watching tv in the past 24 hours, you know that

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