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tv   Varney Company  FOX Business  January 7, 2014 9:20am-11:01am EST

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♪ imus in the morning >> it is absolutely freezing cold and income inequality week gets started today. good morning, everyone, now, the two are not connected, they're simultaneous headlines. the deep freeze, that is as bad and as extensive as forecast. airlines taking a hit and goldman sachs says the economy will, too. from the president obama, the political theater starts today. he kicks off his push to narrow the income gap, extended jobless benefits, a higher minimum wage and promise zones for inner cities, yeah, politics rules this week.
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but the samsung, ooh, a pr disaster. a hollywood star ruins their showcase pitch in vegas. so, sit back, watch your stocks rally and they will in a couple of minutes and "varney & company" is about to begin. [ cellphones beeping ] ♪ [ cellphone rings ] hello? [ male announcer ] over 12,000 financial advisors. good, good. good over $700 billion dollars in assets under care. let me just put this away. [ male announcer ] how did edward jones get so big? could you teach kids that trick? [ male announcer ] by not acting that way. ok, st quarter... [ male announcer ] it's how edward jones makes sense of investing. ♪ there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order.
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>> call it what it is, a meltdown on the consumer electronics show yesterday. michael bay the man behind transformers took the stage to help samsung debut the ultra high def tv. teleprompter failed and chaos ensued. >> what i try to do as a director. i try to-- oh. the type is all off, sorry, but i'll just wing this. >> tell us what you think. >> yeah. >> we'll wing it right now. and i take, i try to take people on an emotional ride and, um--
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>> the curve, how do you think it's going to impact how viewers experience your movies. >> excuse me, i'm sorry, i'm sorry. stuart: painful, didn't take twitter users long to take bay to task. jeremy saying, seems like michael bay went to the same acting school as the cast of transformers with the performance. from jonathan, wow, michael bay bombed harder than some of his movies. bay's meltdown may not be samsung's biggest problem. and today, 18% drop from last quarter and samsung says a slowdown in smart phone sales is to blame and maybe apple reclaimed the cool championship. to the weather, the so-called polar vortex is hitting you hard this morning. dangerously low temperatures across the midwest and the northeast and the big chill extends to everywhere, but hawaii. and lake michigan caused to freeze over and steam rising
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from the lake as the temperature plunges, look at that. air travel nightmare, 3000 flights grounded yesterday and jetblue canceled all flights out of new york and positive because of the cold and the backlog caused by last week's snowstorm. by the way, and minus 52 with the wind chill. and we're looking at a rally for stocks, there's a question for you about the morality of investing. one investor says don't put your money in apple, phillip morris, why? because it would be immoral. we'll explain in a moment. [ male announcer ] what if a small company became big business overnight?
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♪ i don't care what they're going to say♪ >> we thought that song was appropriate because it was from frozen called "let it go" and that video alone has been seen more than 30 million times on youtube. less than a minute to go before the opening bell on wall street and scott shellady of chicago, i wanted to ask you. do you consider morality when investing? and when they pay workers two bucks an hour, what does morality mean to you? >> i think it has to be part of your investment decision, but it doesn't have to drive the investment decision only. and some of the metrics that we
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hold the ceo's to and the short time frames make it difficult. they're there for the shareholders and sometimes it gets muddied in the water. it shouldn't make your sole decision. yes, it plays a role, but it's not a part, it's a whole. stuart: can i say that scott shellady goes for the money and profits period? >> no, but i can tell you this, stuart, we here in chicago were hoping it would get a lot colder maybe hell would freeze over and the cubs could win the world series so we're waiting for colder weather. stuart: that was a fine line, young man, and we like it. i'm sure we'll hear it again. and check the big board, where are we on the early going? tuesday morning, up ten points. 16450 and now 25 points should see a gain of 50 or 60 in the opening few minutes of trading. and all right, here is more on the money and morality debate. we've got one analyst who cut ratings on three stocks, apple, amazon, phillip morris, basically for moral and ethical
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reasons according to him. apple pays too little and amazon pressures employment and philip morris with black lung on its hands and we've got shah galani. first to you, shah. does morality play any role in the companies that you invest in? >> actually it doesn't. i look at them from a financial perssective and not a social engineering, not what i'm analyzing. you always have an opportunity to look at the product the company sells or look at labor charges or costs and make determinations based on that, but when i'm analyzing the company in terms of buying or selling or short it. it's financial and there's no social engineering involved at all. >> liz, would you invest in a company you think is acting immorally? >> probably not, but this is about high morals over the returns and high morals basically don't equate to high
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returns. they're normally low returns. and we know there is responsible investing and we know about the 400 index, but that's posted negative 2% over the last five years versus slightly positive returning for the worldwide index. and doesn't bring in the money. >> i would not turn down all the profit that's been made in amazon stock, because i think that it pressures its workers while jeff bezos is worth 27 billion dollars, i'm not going to do it liz: there are ways to get the companies to change behavior which is happening at the proxy statement level. stuart: jetblue, their shares, they took a big hit yesterday because of this deep freeze. that was yesterday, by the way. they're up a little bit this morning. the company canceled flights in and out of boston and new york throughout the afternoon and they will resume today. they did this because of the cold weather, the big freeze. liz, did they do the right thing? other airlines did not do-- didn't cancel across the board. they did because they said, we
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don't want to leave people stranded on the tarmac liz: in terms of jetblue's history of stranding passengers on the tarmac, they ddd the right thing and basically you have to listen to management. jetblue has a history of dealing with problems of stranding passengers in the past. i'll tell you something. with flights delayed. here is the bottom line and the reason. diesel fuel ices over and turns into jelly. the ground crews, they find electrical problems on the trucks, the servicing trucks with the food and equipment baggage and baggage basically turn styles there. and they're just like cars they have to deal with. when the cars have problems and same with the flight crews as well. stuart: i agree with you, i think that jetblue did the same thing, saved people the hassle. you know, we've been talking about twitter recently and we call it the horse race stock because it's wild swings, all over the place and right now, it's up 35 cents at 66 on twitter. and shah. do you have the stomach to invest in a twitter long-term? >> no, i don't.
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and maybe short-term to trade it up and down, sure, but long-term, to take a position here, and especially at the high levels, i don't think so. in terms of ad dollars, twitter has 30 million active users and facebook has has over a billion users and mobile users and the reach is better in terms of ad dollars and i think the revenue will be flowing to facebook and googles of the world and i'm not inclined to be a long-term investor. stuart: we hear you. the dow industrials opened with a solid game and we're now up 66 points. shy of 16,500 this tuesday morning. to netflix, the stock is down, i believe. and they've got a downgrade, nicole, how bad? >> it's to the down side. 4 1/4%. and this is the concern from amazon and hulu, h.b.o. go and others and that's why you have the analysts there over at morgan stanley cutting into 310 from 333 and make it an underweight. stuart: you know, we talk tech
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all the time on the show and i want to talk apple this morning because we've got new reports out of asia that the iphone tablet comes out in may and iphone 6 and i see apple down today. nicole: 542.17, maybe we need more information other than the names of the the fablet and something's that's going to wow. stuart: how about google. we've got another new high there? . nicole: it's unbelievable. as i read the reports from deutche bank, a must-own for 2014. and get there overweight with a 1305 target. new high for google, 1125. stuart: i wonder what would happen to the stock if they did say a ten for one split or split right down so you could buy 100 shares and don't have to have a second mortgage. i wonder what would happen. >> ala hathaway, have
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the next cheaper set. stuart: we'll see. and nicole, thank you. the dow is up 17 points. and the campaign chief is at it again. president obama pushes for the extension of unemployment benefits and on thursday roll out a plan for promise zones. that's poor communities that would get tax breaks along with extra education and housing spending. shah galani, if he gets this and a higher minimum wage, do you think it's enough for a stronger economy? >> i don't think it will help a whole lot. i think it's a function of how the programs are orchestrated. what is the end results and if there is efficacy in the programs and if there are additional handouts and expanding the welfare state they're not doing anything for the economy. the economy has structural problems and i don't think that the president and his administration are addressing them appropriately. stuart: liz? >> shah hit the point. talk of unemployment benefits
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or jobs is the fallout of bad policies not creating jobs. we have a record number of long-term unemployed and the average since 1948 has been 2 million and we're now double at that. 4 million people unemployed for six months or longer. so this is the fallout of bad policy not creating jobs in this country and when you talk about papering over the problem, yes, you want to help people and of course you don't want people on low retail, fast food worker jobs or mcjoos, that's the question. how do you create better jobs in the economy? >> it's such small bore measures, too, 3 million just on education spending and promise-- >> it's not even a blip on the radar, it's not a blip on the radar, you're right the amount pushed into the program is so d din-- deminimus it doesn't register. it's a sad state of affairs liz: when you take jobless benefits away and they aren't
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good jobs to give those people who are coming off of unemployment. stuart: next topic, we say that tech is king here on "varney & company" and in the financial times today, it says the global tech market will shrink this year because of a lack of new gadgets. are you buying that, liz? >> yeah, i am. this is a really eye opening kind of a statement out of the consumer electronics show, that the global tech markets will shrink this year, 2014 because there's nothing really to replace smart phones and tablets. warable technology does not have the mass market yet, the watches. so the thing is with thewarable watches andwarable tech, it doesn't have the cache yet because people don't think it's attractive as a regular watch or wearable technology. >> average price for smart phones, in the 200's rather
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than 400's. stuart: the dow is back above 16-5 this tuesday morning. there you have it, 80 points up for the dow. next case, we've been warning you about the coming chaos with obamacare. so where exactly is that chaos and confusion? where is it? after the break, one of the harshest critics of the new health care law brings us an update. ♪ nowhere to run, baby, nowhere to hide♪ ♪ got nowhere to run to, baby ♪ nowhere to hide
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>> i'm not going to say that wall street is hot, but we're heating up. the rest of the country freezes solid. 15-- i'm sorry, 16,519. looks like almost triple digits. the price of gold down, 1227.50 right now. how about the price of oil? $93 per barrel.
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and, please, look at netflix, down big, it got a downgrade. netflix is down 15 bucks at 343. we've been warning you about the chaos and confusion which was expected when obamacare kicked in january the 1st. all right. where is that chaos and confusion? galen institute president grace marie turner is here with the report. i'm getting scattered reports from nurses and doctors and hospitals, delayed treatments and are you covered, not covered. the big picture to me doesn't seem like we've got real chaos and confusion at this point? . what do you say? >> it's really individual. we have hospitals not treating people if they can't confirm they're covered by obamacare in virginia. it's difficult to cover confusion that's so diversified around the country, but i think what you're likely to see,
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stuart, in this next wave of obamacare problems, you're going to start to see just as last fall, when so many people were losing their individual policies, tens of millions of people are facing that this coming year as small business policies have to be renewed and many small businesses are going to say, you know, i can't afford this new expensive obamacare insurance, sending people to the exchanges, causing taxpayer costs to go up even further and so, i think you're starting-- you start to see the changes in waves, stuart. >> well, the people who support obamacare, the administration people, they say, look, give it a little time, things are improving. the website is much better. we've enrolled 2.1 million people by the end of the year, things are gradually improving and we can get over these little blips coming along with the confusion. you're not buying that at all?
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>> enrollment is not purchasing a product. it's like putting something in your shopping cart at amazon, until you pay, you do not own that policy. and i am worried that many of those 2.1 million people who have enrolled are not going to actually follow through, pay their premium and even more importantly, continue to pay their premiums month after month after month after year after year to comply with the obamacare mandate. i'm also worried that many of those who are signing up are actually older, sicker people, not the young healthy that we needed. and that many many of them are simply replacing the insurance that they lost when the-- when they lost their individual policies. stuart: i see where you're coming from, grace-marie, but none of this adds up to a meltdown, a spiraling down of chaos and confusion which means we just throw up our hands and somehow or other congress acts
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to repeal this thing. i don't see it getting that bad from what you're saying. >> well, when you're talking about a 2.6 trillion dollar part of our economy, it takes a long time for major changes to work their way through the system. health insurance companies have been doing their best to try to comply with this law. so have employers, and frankly, so are many individuals who are now mandated to purchase this coverage. they are trying to comply with the law, even though the president keeps changing it all the time, so, we're starting to see, of course, there are major changes in our health center, but they take time to really sink in and i think we're going to start to see the impact f these higher taxes, all of the mandates, the lost coverage, are going to be roll, a cascade of news stories throughout the year and really throughout the next several years, stuart. stuart: can i just ask a technical question? if i enroll on the exchange a buy a plan and i get a big subsidy from the government so it doesn't cost me very much, but i buy into a plan with a
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big deductible. even though i've got the subsidy, i still have to pay that deductible. is that correct? >> that's correct. it depends. there are actually are a second set of subsidies, stuart, for the deductibles, who people who are under 250% of poverty for the faly, they get help with the deductible. the average deductible for the policies is about 4,000 a year. a lot of people need help with that, some people are getting subsidies not only with the premiums, but subsidies for the deductibles. if you're over 250% of poverty then you have to pay that first $4,000 before your insurance triggers clicks in, as well as the premiums, as well as other out of network costs that you may incur, so, some people may wind up paying a quarter of their income for health insurance. i just think that's going to be very difficult to sustain,
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stuart. stuart: i think so. grace-marie turner, you know what you're talking about and appreciate you sharing it with us today on "varney & company." thanks very much, grace-marie. up next my take on political theater obama style. that will be after the break. ♪ you know, we almost didn't notice it♪ ♪ did it all the time ♪ on 42nd street [ male announcer ] here's a question for you:
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>> hey, look at wynn resorts. the stock hit a high and the company says steve wynn will continue as chairman and ceo of macao, that's the important word. and a book about steve jobs and jeff bezos. the smart car, turning your car into a giant smart phone. ford calls itself a new tech company. we're on that one. president obama is in a political hole. to get out of it he's going to focus on income inequality.
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here is my take. raise the minimum wage, expand jobless benefits and vastly expand medicaid and cities with promise zones and of course, tax the rich. that's the presi headed into the mid term elections 11 months from now. economically this absolutely will not work. we've had this tax and spend policy for five years and poor people have actually lost ground. so has the middle class. you don't magically solve the income gap by taking from one group and giving to another. it's never worked out that way. but politics, uh-huh, that's a different game entirely. if you win the vote, it doesn't matter what really happens to people and their money. you will see an example of this today. the president will push for extended jobless benefits. you will see several unemployed people behind him to put a human face on the issue. that is politically theater obama style. tug at the heart strings, portray your opponents as
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callus. win the vote. it doesn't matter whether your policies succeed, what matters is votes. what is striking is that this is a very small scale for the president's latest proposal. does anyone really believe that a higher minimum wage will put a dent in the income gap. will problems solved, no, it won't. the media will say he's trying and his heart is in the right place. again, it's not the success or failure of policies that counts, it's about claiming the higher moral ground. as usual, margaret thatcher got it right. the left, she said, doesn't mind if the poor get poorer, so long as the rich get poorer, too. there you have it. that's correct. cause i'm really nervous about getting trapped. why's that?
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[ male announcer ] this m has an accomplished research and analytical group at his disposal. ♪ but even more pressive is how he puts it to work for his clients. ♪ morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones makes sense of investing. ♪ open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state.
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move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. and. stuart: look what we have for you. ford's top sales guy is here. he wants to turn your car into a giant smartphone. okay. but you think you might be a little distracted perhaps? we'll see about that. did the obama administration's nsa spy on congress? they're not saying yes, they're not saying no. the judge is here on that. there's a new book on jeff bezos, a reviewer says it might turn you off amazon. the book and the reviewer coming
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up. the beverly hills cannabis club celebrates the pot smokers' victory. how long before it's legal everywhere? we have got it all. a keyboard for iphones, the deep tease report and -- freeze report and a morality debate with sandra and charles. here we go. ♪ ♪ stuart: wow, the dow's up 117, but this cold weather, that is not a joke. look at these temperatures, please. wind chills in the negative 20s and 30s this the midwest, negative 10s in new york, 25 degrees in central florida. look at boston. tear still shoveling out from the weekend snowstorm, clearly very bubd led up. in places like georgia, they're sure not used to this. charles payne, relax, charles payne is here. [laughter] you say, look, this intense cold snap is not going to have that
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big a deal for the economy, butgoldman zacks out this morning say, yes, it will hurt the economy. >> you used the right word, snap. it's going to be 50, 55 degrees in new york, new jersey and a lot of places. anybody who wanted to go shopping today will be out on the road, and it will feel amazing. it will feel like 70. people will be out there throwing tear money. now, if it was something that lasted a month, two months, maybe that would be different. listen, periodically these types of things happen. stuart: goldman sachs says that bad weather over the holiday period, that's going to cut into the job hiring numbers that we're going to see on friday. >> their point is specifically construction. i don't remember it being so abnormal during the past month in december where the weather was so abnormal that it would have a major, significant impact on hiring. i'd say that's maybe a convenient excuse for somebody who missed their numbers. stuart: you're such a tough guy. >> listen, when i lived this north dakota, i would wear a
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t-shirt in the winter. >> we're used to these frigid temperatures in bismarck, south dakota? north dakota? >> north dakota. >> this never happens. they're shutting down restaurants, they're shutting down stores. people aren't opening their doors. we nebraska see that -- we never see that. stuart: i think a minor impact, charles. >> minor but, again, it's one of these things that, again, when it's all said and done, it'll all come out even. stuart: the market is up 116 points on the dow industrials as we speak, 16,541. so not exactly hurting us today. >> not today. stuart: look, we have been having some fun with the cold weather and those climate alarmists, especially those trapped in the antarctic ice. but jon stewart, he's fresh back from a vacation. [laughter] he had a go at me again last night. listen to what he said. just a quick warning, however, he did use some offensive language. >> looks to me like we're
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looking at global cooling. forget this global warming. that's just my opinion. >> yes -- [bleep] your opinion! that's your opinion! it means nothing! [laughter] stuart: i'm not going to come back on this. sandra, you have a rejoinedder? >> i beg his pardon, your opinion means a lot. that's why people watch you every day. [laughter] look, he's having a lot of fun with you. this is the time to poke fun at all the global warming out there. coldest start to any winter in 13 years, blizzard-like conditions across the united states. come on. you gotta love it, stu, you love it, don't you? stuart: well, i just think it's time to ridicule the global warmers because it really hasn't turned out the way they said it was going to turn out, has it? >> today in new york i saw on twitter we matched the record low. now, the record we matched was established in 1896, so i sent out a tweet, what caused it back in 1896?
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i don't buy the hype. i think this is all a ruse designed to take money from western wealthy nations, redistribute it. it all goes into self-loathing, that's how we always feel bad, oh, you drove your car today, that's why it's cold, that's why it's warm. i don't buy it. stuart: i do not loathe myself. [laughter] >> well, stuart, the finish jon stewart loves you a little bit. >> yeah, he does. stuart: he loves me? [laughter] check the big board, please. yeah, we've got to say it, this is a rally. down for three straight days, but we're up today, up 313. we -- 113. we do not talk about about the all-knowing analysts very much on this program, but one of them cut his ratings on three stocks, apple, amazon, philip morris. he did this for purely moral and ethical reasons, okay? he says it's immoral to invest in those companies. charles, we talked about this before. >> yeah.
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stuart: does morality play any role in the companies you decide to invest? >> it does, but i wouldn't tell anyone to sell it. my problem with thhs, he should abstain from coverage. you don't downgrade a company because you don't like their politics or the way they pay their workers. you're not doing your customers any favors by saying don't buy because they're going to have extraordinary profits on the bottom line. when people start thinking, listen, it's the same argument with people who missed this rally. a lot of people think they should make money for the quote-unquote right reasons, but that universe might not exist. stuart: sandra? >> i think morality plays a role for pretty much anybody who invests in the market. i think stem cells is a good example, green energy is another good example of that. i think people who -- stuart: well, you would buy a green energy company because you believe in what that company is doing. >> sure. i think morality plays a huge part in the investment of any green energy company.
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stuart: would you sell amazon or not buy it in the first place because jeff bezos is worth $27 billion and is pressuring his workers? >> absolutely. i have to tell you -- stuarr: wait, wait, wait, i'm not clear. you would not buy amazon because you disapprove of the wealth of jeff bezos and the way he -- >> not because of the wealth of jeff bezos, no, absolutely not. if there was something about the company that went against my morals, i would not -- as charles is saying -- tell people to sell it. not that i'm in the business of that, but i think it's not my business to do that, and i don't think the average investor can rule those things out of their investment or company. i want to use an example from this program. you were showing a fisher price item that holds an ipad in front of an infant. stuart: yep. >> had a profound effect on me. thai owned by mattel -- they're owned by mattel, so i have abstained from fisher price products because i felt that was such a horrible thing. stuart: really? >> i'm not kidding, it tainted
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my image of the brand. >> that happens to me a lot, you know? i went to a restaurant this weekend, and i'm going to write a letter to the ceo. i didn't like the way my family was treated. i won't diss it unless the numbers are bad, and that's on a personal level. but this is a guy who owns a gigantic research firm, and he's telling people not to own these stocks. i think at the other end of the spectrum, is he doing his clients a service by telling them not to own this similarly because he doesn't like that bezos has a lot of money or apple makes these computers in a place where they're paying people $2 an hour. stuart: i saw him make this statement, and it looked like a heavily political statement. >> i've got to tell you, i get pissed off with these guys who have these epiphanies after they've reaped all the rewards of working on wall street for 40 years. now he's got a conscience? go fly a kite. [laughter] stuart: gotta move on.
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good subject though. dish network thinks it knows how to beat the so-called cord cutters, you know, the death of traditional tv. they've got a solution maybe? offer a free ipad with a subscription. all right, nicole, the stock leads. >> reporter: with a subscription, right? that's the key point, because there's always some sort of caveat. up a quarter of a percent, dish network, so they're extending this free ipad offer that they have with the promotion for a hopper. this is one of their services, 24 month agreement, and their whole idea is you're going to be on the go, and you're going to want to be watching programs and the like, so they're putting the ipad in there. stuart: would you sign up for this? >> why not? i don't know. you know, i don't like to be roped into anything, so i probably wouldn't. stuart: okay, got it, nicolement the dow is now up 114. the consumer electronics show, that is underway. we've talked a lot about the connected car. today we have someone from ford's lincoln division to give us a preview of the next generation of cars.
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lincoln's executive vice president and evp of ford's global marketing and sales. all right, jim, i've got a new car, and on my new car i've got a dvd, i've got blue tooth so i can use the phone, i've got the gps. what are you going to put on a new ford car that moves me forward technically? >> well, great question. there are we launched sync back in 2007, and we have about eight million vehicles with sync. sync allows you to run your mobile apps on your phone and connect to your car, and you can use up to 10,000 words to control the vehicle as well as those apps. so it's a lot safer way to drive. and we have some great apps. we're launching here an adt app that allows you to arm your house or turn on the lights remotely from your car as well as park mobile. it allows you to find parking spaces and pay for them inside
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your car without looking for that loose change. stuart: so you're putting a lot of apps on the dashboard, so to speak, and you're trying to transform a new ford car into a guy gabtic smartphone. i mean, have i got that roughly right? >> that's right. you know, most people have their smartphones and have their apps that they love. what we're trying to do at ford is allow those to run really easily in the car and just use your voice to control the apps. so it's a lot safer. and those apps are pandora, adt, the ones i mentioned. we have about 60 apps now. and it's great for customers. they love it. stuart: are you going to run into the problem of distracted driving? i mean, there's a big push to no texting whilst you drive. it occurs to me that you might run right up against that problem of distracted drivers. >> well, that's a great point. the whole, the well idea behind
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sync is to put your eyes on the road and your hands on the wheel so that you can interact using your voice and the controls in the car and not have to look down at your smartphone running that app. so sync is a great solution to, so that you can keep driving a lot safer. stuart: i take it the ford has a car that drives itself. the only thing stopping you putting it on the road is you need a whole bunch of new rules and regulations to get it out there. is that accurate? >> well, we do have a prototype, and the autonomous vehicle is certainly a hot topic in our industry. we already have a lot of features that help customers with a little automation now like adaptive cruise control. it's a spectrum. you know, really the challenges for fully-autonomous vehicles are not the regulations necessarily, it's really the technology. the cost as well as the
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reliability. a system has to be 100% reliable if you're driving down the highway at 60 miles an hour. and be really that's the big challenge for a fully autonomous car right now. stuart: okay. we look forward to seeing it in reality. thankthanks so much, jim farleye appreciate you being here. >> thank you, stuart. stuart: new this hour, it's one of the largest social security disabilitt fraud busts in history. the feds arresting more than former new york city police officers, firefighters and other city workers alleging they built the government out of $24 million -- bilked the government in fraudulent disability claims. all right, charles. any government program's going to be rife with this kind of thing. >> absolutely. and it's so rife that people, everyone knows. it's like as soon as you start working there, you start going, oh, by the way, bob's got three weeks left on the job, and he's doing this or this person's got that. we know about it. i'm kind of glad they're cracking down on this, but it's so known, it's nowhere even near
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like shocking to me anymore. >> part of the story that i thought was shocking was that there were four people that were arrested who were responsible for actually helping them navigate the system through the application process, they were coaching them on how to do this, and this was carried out in about ten states. so this is a vast problem, a vast fraud, and they weren't doing it alone. >> usually they also have a couple of doctors who get involved too. they had the whole network set up, and, you know, when you go in there, people kind of let you know who's the person to go to for this kind of stuff. stu stuart look at the dow, 118 points, 16, 543. controversy over the nsa's spying scandal continues. this time the agency is refusing to answer a sitting senator who's asking questions about you sighing on congress? next, the judge. watch out. ♪ ♪ welcome back. how is everything?
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there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex.
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stuart: rolling stone magazine's got soe advice for young people in its latest issue. they lay out the five economic
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reforms millennials should be fighting for. wait for it, here they are. number one, guaranteed work for everybody. [laughter] two, social security for all. three, take back the land. not my -- [laughter] four, make everything owned by everybody. what the devil is this? and five, a public bank in every state. charles, that's karl marx. is the left going even further? >> absolutely. why are today going even further? they're emboldened. they've got elizabeth warren in the senate. they feel like they've got the pope on their side. they've got the wind in their sails. are you kidding me? they're going in for the kill. anyone thinking that capitalism has got it made and that we're okay, you are absolutely wrong. they're going directly after the youth with this kind of stuff. it's 100% counter to the discussion we had yesterday about the tiger mom who talked about people who come here or and their so grateful for the opportunity, they'll work 80 hours a week, they'll start at the bottom,tail never complain, and they'll work their way to
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the top. we're telling kids worn -- born in this country, it's owed to you. just go get it. stuart: let the lady get a word in, charles. >> they're sitting at home unemployed. tsa the root the problem. >> the roots have roots. here's my big thing, when i hear the president say a lot of people are unemployed through no fault of their own, it is your fault! who do i fire? my ten worst workers. it is their fault. i'm tired of hearing a blameless society. there's root to the roots. i'm sorry, sandra. >> and guess what? they're still going to point back to the recession. >> they'll never admit that they had anything to do with it. sorry. go ahead. stuart: we love it when you're fired up. you're right. >> no, because this is my greatest pet peeve right now. i gave a speech on this not too long ago when i talked about what we're doing to young american kids and the poison in their minds. it's amazing. stuart: i thought socialism was dead and buried a generation away. >> no way. it's charging back. stuart: all right.
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>> expecting the form of a challenge to hillary clinton by the left of the democratic party which the center of the democratic party is much farther to the left than she is, whether it's elizabeth warren or martin mcnally, the goofball governor of maryland or some other leftest. stuart: you think that might happen? >> i think there's a strong constituency for the type of nonsense that rolling stone just printed. there are -- four of us it seems inconceivable, for most people watching us, there are a lot of people who believe that stuff, that the land should be owned by everybody, that the government should guarantee everyone a job. stuart: not your land, surely. >> not your land or mine or anybody watching this show. stuart: the nsa spying scandal, it's deepening. bernie sanders sent a letter to the nsa director last week asking this: has the nsa spied or is the nsa currently spying on members of congress or other american elected officials? an nsa spokesperson responded
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with kind of a non-answer. here's the answer. members of congress have the same privacy protections as all u.s. persons. is anyone, even our elected officials, safe from this kind of prying and recordkeeping? we've already introduced the man, pontificating on socialism, so here he is again, judge andrew napolitano. is it possible that the administration is spying on republicans? >> i think it's probable that it's spying on all members of congress. the back story is senator sanders' letter to general alexander followed an interesting back and % between senator rand paul and a republican from long island, congressman peter king. senator paul said, general clapper, general alexander's boss -- the one who rubbed his forehead and said, no, when he was asked by senator wyden if the nsa is gathering massive amounts of data about tens or hundreds of millions of americans -- senator paul said
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general clapper perjured himself and should go to jail for i. -- for it. congressman king says you're wrong, i don't care if they sigh on me. he doesn't care if it's perjury, because it's keeping america safe. put aside the absurdity and clownishness of that argument, it reminded the nsa that they could be prosecuted for perjury. so rather than saying, no, and lying to senator sanders, rather that be saying, yes, and telling the truth, they gave that absurd, middle of the road, meaningless answer. members of congress have the same privacy protection as all u.s. persons which is to say from the nsa, none. stuart: now, we've used the expression spying. is the nsa spying on members of congress? >> well -- stuart: that's a pejorative word. and be it dose beyond tracking -- it goes beyond tracking. if the nsa is tracking phone calls, not recording the calls themselves, but looking at who
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called who and when -- >> "the guardian" magazine -- stuart: is that spying? >> okay, good question. "the guardian" magazine, which i know you read all the time at the london school of economics, "the guardian" magazine which is one of the designated recipients from edward snowden reported this september that raw data -- now, that's not metadata, that's text of e-mails and digital recordings of phone conversations -- is given by the nsa to our allies among whom are israel and great britain. it also reported that raw data is given to the nsa's boss. the president of the united states. stuart stuart so you're -- >> so could you imagine, could you imagine general alexander going into the oval office saying, mr. president, guess what rand paul and ted cruz are cooking up now? here's a tape of them talking to each other yesterday. this is not fanciful. it's criminal, but it's probable. stuart: you say probable. >> well, yes, because they
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won't, today won't deny it. listen, the nsa works for the president. the president of the congress under our constitutional scheme are equals. the president can no more spy on the congress lawfully than the congress can tell the president how to maneuver troops in wartime. it is a serious constitutional violation, and they refuse to deny it. stuart: you have an issue, do you not? >> yes, i do. stuart: judge, thanks very much, indeed. >>/. stuart: gotta move. up next, a new ad for old spice going viral. some people say it's a little creepy. i don't think so. i think i like it. more on this next. look at this. ♪ ♪ old spice, now he's becausing all the women, and his chores aren't done. ♪ he was -- tiny fingers, hands and feet, now he's touching and feeling all the women -- ♪ old spice [ male announcer ] this is the story of the little room
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over the pizza place on chestnut street the modest first floor bedroom inallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where everygreat idea begins. and of those who believed they had thpower to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪
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it is a rally and it is holding with a gain of triple digits of 114. a new old spice's ad causing quite a stir on the internet is going viral as they save the company's line of male fragrances. showing moms following their sons around saying the
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fragrances are attracting too many women. ♪ ♪ stuart: i thought that was intriguing use of video. sandra: it is effective in that we are talking about it. it might be affected of, we all know axe spray was the target market for the young boys whose smell good when they go out so old spice is going after the and demographic. probably effective, always looking for the great things, not moving out of the house and getting a job. stuart: do you see anything creepy about that?
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interesting video and music? charles: the mother that won't let go kind of creepy. i am moving on. couldn't you leave the house? i am just joking. i know he is 29. stuart: i flew to africa on my own, lived there on my own, learned swahili. pipe down, young man, and you. the new poll shows 55% of us believe marijuana should be full week legal. recreational pot now legal in colorado. cheryl schulman is the martha stewart of marijuana, founder of the beverly hills cannabis club. good to see you again. i think you are winning. there's a lot of progress, legalization is spreading but it will be an awful long time,
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maybe decades before it is nationally legalized. what say you? >> what i find interesting is what is happening so far. this has been a tax bonanza for colorado when you look at the fact that these shops made over $1 million in one day and that 25% of all the money that goes to marijuana in colorado goes towards taxes to help the school system i think we are on to something. stuart: i take your point. i am just wondering at the national level do you think it will be a republican or a democrat president and administration which pushes for full national legalization? >> one thing i strongly believe is governor cuomo in new york his signing executive action to bring legalized cannabis to new york. president obama has the same
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ability to sign an executive order, executive action to legalize across the country. when you look at the fact that our approval ratings are soaring as more state every day are coming on board, the ohio rights group in ohio could be an important swing vote in the 2004 election, as those of ohio so goes the nation. stuart: in new york state governor cuomo is only prepared to legalize it in a very narrow way. you have to have cancer or some equivalent level of illness before you can have legal medicinal marijuana. heavily restricted in new york state. >> you are absolutely correct. governor cuomo is enacting legislation that was passed in 1980. he started the first initials stand. it is my belief and understanding from the activists i have been working with that most likely in they will sit down, this will take a full year to enact.
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what will happen is he will sit down with some people who are experts, doctors or scientists and those qualifying conditions will be enlarged and also with the success of the recreational campaigns in colorado and washington i think once these dates and even the federal government see the revenue between generated by this will be a game change your and a democrat or republican, i fink my gut instinct says obama may find an executive action to go out and leave a legacy behind and if not it could be a republican. stuart: it is a financial issue and that is a fact. we appreciate you being with us. my dream--a healthful product, physical keyboard i can attached to my iphone. the company that makes it after this. ♪
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i have got one right here, one of our consistent -- we have on the back of the iphone. it works exactly like the old blackberry keyboard. how much? >> $99, we are launching at the end ofanuary. stuart: i do like it. however i got to tell you i did get used to my iphone by using a microphone function and i talked into it and i dictate my message nowadays. not sure i need this any longer. you tell me how many pre orders you have taken in so far. >> we don't disclose numbers but we have been taking pre orders for a month and sold out of the first run. a very successful run for us on this launch. stuart: are you getting sued? your copying them? >> evidently.
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found out about that friday. we start developing this two years ago and did our homework and don't believe we violated any patents the we defended vigorously. stuart: this is your show room in las vegas where you come out with the stuff. >> that is correct. stuart: lots of crowds around your boots. >> the show hasn't opened yet so we will open today. so far people who play with and start using it actually loved it. and it is the greatest thing for the iphone. i hope you try it out for a few days. you might -- stuart: i do miss walking down the street tied in with my two thumbs. maybe i will get back to it. thanks for joining us. nice new product. good luck. it was an addict meltdown. at the consumer electronics show
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yesterday. hollywood director michael bay, the man behind transformers took the stage to help samsung debut there in to all for high-definition tv. he says the teleprompter fails, chaos ensued. look at this. >> what i try to do as the director is -- the type is all of. i will win this. >> tell us what you think. we will wing it right now. i try to take people on an emotional ride and -- >> how do you think it will impact how viewers experience your movies? >> excuse me, i am sorry. i am sorry. stuart: almost excruciating to watch the poor guy fall to pieces. pr disaster for samsung. charles: didn't work out the way he planned it. it could have used a director.
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you feel bad for him but it is shocking he couldn't talk about what he does. >> not like he was on the samsung product at that point. wasn't the product was running his name through but what he does for a living. stuart: all three of us use a teleprompter. if you are in trouble look to the prompter and it will tell you what to say. a live audience is different because you can feel them. charles: that is a very friendly live audience that wasn't there to judge him for anything but make movies and sometimes i hit and sometimes a bomb but always look on a good tv behind me great. stuart: it would be easy to say that. >> some people really have nerves. stuart: samsung took a hit on that. listen to this. the ceo of t mobile apparently
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crashed at&t's party in vegas allegedly then kicked out. t mobile has been taking some jabs at his rival at&t through social media calling their move is desperate. they were not happy to have him at that party and allegedly they kicked him out. the dow is up 130 points. a new book out on amazon's jeff bezos, saying he is ruthless likening him to steve jobs. is all of this accurate? that is next.
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stuart: morgan stanley downgrade's netflix, increased competition in the online video streaming market will challenge netflix's growth, lead to higher marketing and content costs, it is down 1%, google hitting another new high, jpmorgan raising their price target. the stock is $1,130 per share. another company in a high, wind is reporting steve wynn will continue as chairman where the action is. apple opening the store, it is
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bonet or partially owned by yahoo!. yahoo! stock is up again, $1 higher at 41. next amazon's jeff bezos blasted in a new book. does he deserve it? reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally.
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stuart: breaking news on not tech friend making your car to a mobile smart phone, tesla and at&t reached future tests for car models to at&t's network in
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north america. both stocks a little higher. charles will make us money with the sin isa corporation. charles: it is the twitter of china. and a new payment system, it has amazing potential. this is a stock on like a lot. last time mentioned it was november 11th, it is something with resistance at 93. will be $120 stock this year. stuart: this year? charles: the execution is cannot -- phenomenal. they will make a lot of money and it is not reflected in the shares yet. stuart: breaking news from capitol hill. the senate is about to begin voting on extending unemployment insurance, the first in a series of votes. president obama will push for this at a white house event in the next hour. a new book blast amazon's
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founder jeff bezos please the everything store paints amazon and its founder as ruthless, disingenuous, willing to do anything to undercut the competition. adam aleutians from fortune magazine reviewed the new book. anyone who reads it will feel the tee, his word, about shopping at amazon and we have adam with us. they are making out jeff bezos to be the next steve jobs. steve jobs was a very unpleasant guy on many occasions, very unpleasant to me on occasion, very unpleasant to work for. >> congratulations. stuart: he created an incredible company which was worth investing in which gave fabulous products to everybody. couldn't you say the same about jeff bezos? >> no argument with anything you set and interesting the word choice, eds jobs was ruthless when it came to product. he didn't care about anything but making the product as great
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as possible. jeff bezos's orientation is different. he is ruthless on prices for customers. you said they will do anything to drive down the competition. it is to drive down prices and that involves a lot of things. stuart: don't you support that? is and that basic capitalism where everybody wins? >> no. when you say everyone will feel eat, not everyone. i am guessing charles will tell me he doesn't feel the slightest bit -- charles: why is that not basic capitalism? >> i will tell you why. we have rules, not just rules and laws but ways of doing business. when i do business with you and i do not do business with you at least once a week, it is a good experience for you and a good experience for me even if we do disagree with you and so on and the jeff bezos way as portrayed in this book is we don't care if
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it is a good experience for you, screw you. not illegal but not necessarily of feel good experience for everybody involved. stuart: do you think capitalism is like that? isn't capitalism hard-driving? you want to beat the competition? by beating the competition on price and performance, all your customers win. isn't that the essence of -pcapitalism? >> no. i don't think it is. i am not huge on sports metaphors but if you want to beat your competition in an honorable way you want to play a clean game, you want it legally, you want to block without -- stuart: you give me one example from the book of where jeff bezos and amazon acted dishonorably. >> you are testing my memory. it is not a question.
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one example in the book is amazon decided it is not going to play by the nice rules that manufacturers had with retailers for decades so they take a german manufacturer set and far less than the manufacturer asked them to. everyone else is playing by the same rules, we don't care about those rules. the manufacturer says we don't want to sell it to you and amazon says don't sell to us anymore and they go away and come back. it is not a pleasant hon. experience. that is one small example. stuart: we are out of time that this is a fascinating subject because jeff bezos is an extraordinary character. we are very interested in the subject. two good year bosses held captive by their workers in france. we will explain all in a moment. does your mouth often feel dry? a dry mouth can be a side effect of many medications but it can also lead to tooth decay and b breath.
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lou: secretary of state john kerry hinting there may be a seat for iran alongside russia at the syria peace talks. ralph peters and angela mccarthy will salinas to tell us about the administration's highly criticized new stance on iran. find out tonight at 7:00 eastern, be with us. stuart: workers at the goodyear
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tire plant in france prevented two managers from leaving. this is just another protest from union workers who oppose all buyout and potential shutdown from tighten's chief morris taylor, the guy who blasted the same factory and its workers, said they were lazy and got rotten work habits. made quite a splash with that. charles: of course they are lazy. stuart: as you said in france, failure to impose vigorous capitalism and keep the bosses prisoner. charles: it is nuts but the reason he was upset is in addition to having these terrible work habits and being lazy he had to pay them, you still have to pay full salary, amazing salary, the price was right and the circumstances were right, and they are being aided
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-- stuart: think of the morality of this. the factory owner held worker by the workers not working very hard but must be paid a very strong wage. what is the morality of that? >> they were not able to keep an open but they demand larger severance payments. deepens the plot. charles: it is agreed proxy for france overall. 70% tax over a million euros, it is the place where they have lost their way and they can't get out of it. stuart: jeff bezos is the bad guy? your take on morality, money and investing is next. being your ow! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order.
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good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. of the dusty basement at 06 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall f roble avenue. ♪ this magic momt it is t story of where every great idea begins. and of those o believed they had the power to do more. dell is honored to be part of se of the world'great stories. that began much the same w ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ [ male announcer ] this m has an accomplished research and analytical group at his disposal. ♪ but even more pressive is how hputs it to work for his clients. ♪
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morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones makes sense of investing. ♪ open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no tax for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. stuart: yet if reality affect your decision to invest. here is what you had to say about this. if he did, there would be nothing left to buy.
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and says it makes a difference, i would never buy gm after the way they treated taxpayers and investors during the bailout. and another viewer says the stock market is a gamble, plain and simple. understand that and remove any emotions and you will be better equipped to play the market. sandra: most don't understand or know the morality behind the company they investigated there are a lot of things they don't know. charles: people use investing, don't invest in companies, i know liquor companies. my problem with this guy is he is using his own personal doings of morality as a gauge if something is a buy or a cell. stuart: thank you very much, indeed. dagen, it is yours. dagen: thank you, stuart. keeping many workers at home. from deep freeze to brain
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freeze, epic fail for film director michael bay on stage at the start of the consumer electronics show. sick of all the nasty germs on your smartphone or tablet? i now have an answer. stephen cohen in the spotlight of a piece on insider trading including his deposition and what he knows about rules about insider trading. we will have a hot debate on that very subject this hour of "markets now." connell: all right, like you said, a lot of good stuff coming up, this will be a good show. give me a second, is going to say from all of us to all of you, happy birthday to dagen. who starts a happy birthday to themselves on their own show? starts clapping. more festivities forag

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