tv After the Bell FOX Business January 13, 2014 4:00pm-5:01pm EST
4:00 pm
well. [closing bell ringing] taking a pop because of cold weather. we did go down. intraday we did beat the october third 186 to the downside even though market may end a little above that i should say. we did go down 187. that beats in a negative way the worst decline that we've seen in three months which was october 3rd. bells are ringing on wall street. not a good way to start the week, folks. we have red signals particularly on nasdaq. we've been focusing on the dow where there was signs, but saw nasdaq much worse declines percentagewise than in the dow. liz: "after the bell" starts right now. liz: it is not exactly a massive correction david, but when you see a triple-digit loss close to
4:01 pm
losing about 200 points it makes you wonder if the market is seizing upon downward momentum. let's break down the action. joe bell, schaeffer's investment research senior equity analyst thinks the market has a lot of steam left. we have christian magoon, yield shares founder and ceo. he see as lot of volatility ahead and has the best way for investors to play in. bring him in. lincoln ellis from the pits of the cme. lincoln, is anybody worried in the pits what happened today or do you have a reason? >> i think that the outlook here is really around uncertainty both produced around the jobs number that will be around the producer prices number we get later in the week and inflation, the cpi numbers. once you put that all together with the complexion of the labor market we got from the bls, one has to wonder whether or not profit margins and sales will continue at the pace that really justifies the kind of multiples that equity markets have been
4:02 pm
trading at. certainly in terms of not just the price but the trajectory which we saw coming out of 2013. the guys behind me today voted no. david: well, joe bell, there is no question that a lot of money coming back into the market from insurers, from pension funds, even from retail investors who are getting back in but could today's loss spook the investors getting back in the market? >> yeah, it is all about the time frame really. you look at from a short-term perspective we finished 2013, december, incredibly strong. from a technical perspective maybe we're a little bit overbought in short term. this consolidation starting january was not a real surprise. we actually broke the january lows. check back to 1810, that is the previous december high or november high, rather. perhaps that is a buying opportunity. bigger picture i agree, there are a lot of retail investors, mutual funds, cash levels six-year highs, a lot of money waiting to buy the pull back api think it will eventually result
4:03 pm
to the upside. liz: christian, give me a word. what word is describing your investment strategy right now? there are many crosscurrents, whether it is worries about the economy or belief that the economy will do well, opportunities in emerging markets? what best describe what is you're telling clients? >> liz, i would say cushion. have some cushion or margin of safety right now given all the uncertainty. you do that a variety of ways. perhaps through dividend income with your invests. perhaps it is buying some investments below their net asset value but have some cushion, some margin for error as this indigestion works itself out in the marketplace. david: i'm looking down at my belly when you mentioned cushion and indigestion. i couldn't help going there. lincoln ellis, third quarter, number, spectacular by recent standards, not historical standards, was that 4.1% figure a complete fluke? >> i don't think it is a complete fluke but you have to
4:04 pm
remember what it was made up of and most of it was inventory builds. what you mead when you have the inventory builds you need pull-through, demand side of the equation to meet that supply. what we saw in the labor market not only in the last report on friday but across the balance of 2013 a real discrepancy in in terms of wage gains and types of jobs we're putting into the economy, leisure, hospitality. median income in those jobs is $18,000 a year. that is not a middle class wage and wages in the median across the board are 34,700. neither one of those are middle class wage that is are going to pull through the kind of demand that the 4.1 number supposes. liz: right now on our screen we're showing s&p laggards. kohl's corporation is in there. brings me to retail. joe, i know you like that sector in the past, you continue to, with the backdrop or overhang superimposed upon the hacker attack. >> absolutely. there are a lot of concerns for
4:05 pm
that sector. actually a pivotal area, broke below the 85 level on popular retail etf on names and coincided with the 50 day moving average. i like the level to be retain tomorrow and before i catch that falling knife. liz: do you think there are names that will hit it out of the ballpark tomorrow. >> sure, if you're talking about individual retail names, some names i like longer term are t.j. x and vqk. both pulled back to potential support areas. analysts yet to sort of buy into those strong trends and even a lost short sellers targeting those retail names. i still think they have a lot of upside. david: christian, financials did not do well today. we'll report a lost financials. why do you like them. if you do like, them perhaps now is time to get in on a down day like today? >> exact loy, david. over last few years they haven't participated in the recovery as
4:06 pm
much as some of the sectors in the s&p have. some of the financial stocks are trying to dot year-end housecleaning and making settlements with the government. some litigation issues overhead. and their balance sheets. i think that will help the balance sheets going forward. david: christian, real short, would you buy tomorrow morning before all the reports come out for the financials or would you wait until the end of the week? >> i would wait until the end of the week. i think it might be a little too dicey coming off this last quarttory make any bet on what things, what numbers are going to look like tomorrow. i think you wait. there has been some nice announcements, even in the last week about some settlement options coming through on the financials. i say you stay put until after earnings. liz: i would like to get a touch on metals. perhaps, lincoln, talk to us about behavior, silver in particular, suddenly started to perk its head up but at $20 an ounce. that is the far cry from 40 people were looking at just about a year ago. >> so silver -- sorry.
4:07 pm
liz: go ahead, lincoln. >> the production number on silver is about 1950. it seems to bounce off that $20 level with interest once we get over the 1200-dollar level in gold. you see a little bit of shifting in investor appetite on dollar per dollar basis between how one is getting their precious metal exposure. more interesting metals obviously to our mind longer term is the copper price. that has been very volatile over the course of the last couple weeks really trying to digest whether or not the kind of growth we saw in the developed economies will transfer back out into the emerging economies. that is a big question for 2014. david: by the way, christian wanted to get into silver because he thinks it's a global recovery play. joe, i want to talk about gold for a second. we saw a little pop today, up $6. at what point would you get into gold or back into gold? >> yeah, i think it is a interesting technical setup here. if you look at long-term chart it is potentially forming a
4:08 pm
double-bottom here. going back so much getting into gold as inflation hedge. all of sudden when he look at a lot of polls we look at to measure certaintiment, we're seeing quite a bit of pessimism toward gold. it could be a tradeable bottom over the short term but longer term i see a lost consolidation, not a lot of net movement going out intermediate term. liz: good to see all of you, thank you very much. joe bell, christian magoon, lincoln ellis we'll come back to you shortly for the s&p futures close. david: thanks, gentlemen. this year will not probably be as bump free as last year as we certainly saw today. how should you invest in a more fickle market? we're breaking down a portfolio you can build your he is, you don't have to pay an outsider to build a modest recovery to protect against a crash landing. >> here come earnings and we've got your crystal ball when it comes to numbers members. we have three names that could beat this quarter and conversely
4:09 pm
three that could miss. david: he knows the best. two brick-and-mortar retailers we've been talking about suffering major data breaches, have you noticed so far we haven't seen any online retailers reporting same kind of problems. is your information more secure when you buy with online-only retailers like amazon? log on to facebook.com/afterthebell. your answers coming later this hour. ♪ [ male announcer ] once, there was a man
4:10 pm
who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noted that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with thk or swim from td ameritrade. when i first felt e diabetic nerve pain, of course i had no ea what it was. i felt like my feet were going to sleep. it progressed from there to burning like i was walking on hot coals...
4:11 pm
to like 1,000 bees that were just stinging my feet. i have a great relationship with my doctor... he found lyrica for me. [ female announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic rve pain. lyrica is not for everyone. it may cause serious allergic reactio or suicidal thoughts or actions. tell your doctor t away if you have these, new or worsening depron, or unusual chaes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired eling, or skin sores from diabetes. common side effes are dizziness, sleess, weight gain and swelling of hands, legs and feet. don't drink alcohol while ta lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. having less pain -- it's a wonderful feeling. [ female announcer ] ask your doctor about lyrica today. it's specific treatment for diabetic nerve pain. to hear more phyllis's story, visit lyrica.com.
4:12 pm
if you have a bubuness idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reali. start your business today with legalzoom. liz: breaking news that time warner is a after-hours session. it means when a company like charter will offer more than what the company's shares really should be valued at. interesting enough, if we look at time warner cable shares they closed at 132.40. reportedly the bear hug price is just 10 cents more, 132.50. except that if you talk to a lot of people, time warner shares have jacked up lately way more than what analysts feel they're actually worth simply because a lot of cable companies are interested. of comcast is interested. cox communications. cox cable is interested and of
4:13 pm
course charter. now reportedly a bear hug letter has been sent to time warner cable offering $134.50. $83 in cash. david, $49.50 in charter stock. time warner's ask is $132.97. moving higher at least for the ask but a lot of companies are interested in time warner cable. david: we'll see what happens there. there is news on blackberry. liz: indeed. blackberry shares falling following a downgrade by oppenheimer. david: let's go back to nicole petallides on the floor of the nyse for details. what is going on there? >> blackberry going back and forth. obviously a name struggling today. the oppenheimer downgrade did not help blackberry. you have the oppenheimer downgrade motivated by concerns about further hardware and services sales declines, right? first a decline in sales is not good news. that is what oppenheimer is saying. that is one reason you saw it is
4:14 pm
to the downside. the other headline is a new hire, hiring a former sac exec, global technology to come in to be the global sales chief this is the second one they pinched from sac. we'll see whether or not this can help. you had the ex-sybase chief, john chen, being involved. a former colleague coming on board to try to help blackberry with a turn around, a much-needed turnaround. that said, 52 weeks, down 35% for blackberry. back to you. david: trying to get our company other than than blackberry. a lot of people sticking with them. liz: i like it. david: a lot of people sticking with them. the s&p futures are closing. let's head back to lincoln ellis in the pits of the cme. i was hearing furious shouting behind you moments ago. what is going on? >> people trying to square up ahead of tomorrow morning taking advantage of volatility that entered the market during the second half of today's trading day. investors and traders trying to figure out if this is a temper
4:15 pm
tantrum in the scope after 2-year-old or whether the market is being moody or adolescent. a couple of things to watch overnight. obviously closing numbers around the vix particularly in terms of volume and the japanese yen, whether or not the japanese yen continues the move higher tomorrow afternoon. david: what is your guess to the downside or to the upside? >> i think we open weaker. there is so much technical buying around the 1850 level. david: understood, great to see you, lincoln ellis. thank you very much. >> thanks, david, thanks liz. liz: see you later. wall street bracing for fourth quarter earnings with 29 companies in the s&p 500 set to report this week alone so what should you the investor expect this earnings season and how do you trade on it? david: we have a earnings crystal ball with three names that could beat and three that could miss as well some of the estimates. we have sri rahman, reuters senior equity analyst. you have had great success in the past. before we go into details we had
4:16 pm
kind of a weak start to the quarter. what does that portend for the entire quarter of earnings? >> so his toreally when, well, we've seen only 50% of the companies beat. we've been talking about 50 percent of companies beating lowered expectations. that is not a great start. only 5% of the companies have reported. in the past when we have such a poor start the rest of the quarter tends to follow suit. it wouldn't be terribly surprising to see an unusually weaker quarter even though the expectations have been lowered so much. liz: today we had telecoms looking healthy. start with what you believe are sectors that might do well. i know telecoms are in there but what else? >> the financials are really let story. they're seeing about 22% earnings growth year-over-year. they're doing great. one reason is because interest rates have remained low but more importantly we're actually seeing the markets do fantastic. so anyone in the capital markets is seeing fantastic returns given that the markets are
4:17 pm
beating new highs. liz: thanks for, banks are always whining that they don't have enough opportunity to really make profits but will the profits be reflected in their earnings? >> they seem to be reflected in their earnings. we're seeing earnings growth. although we do see some banks with slightly, expectations maybe a little too high. it wouldn't be terribly surprising to see a few banks not beat as much or come in a little below. in general, 22% earnings growth is pretty stellar and we expect that to continue into this quarter. david: by the way, broad ridge financial is one of those you think will beat the estimates. so look at broad ridge. maybe we can put the stock chart up. i also want to talk about valero energy. people are very wary about energy as we see oil heading down into the 80 handle. what is your reason for liking valero energy? >> david, you're absolutely right about energy stocks. it's a tale of two different
4:18 pm
talks. valero is benefiting from the differential between wti and brent. as you know there was $14 spread between wti and brent towards the end of last year and refining company buys cheaper wti and refines it and sells at more expensive brand. it takes advantage of that spread. valero is really well-positioned to do that. that is one reason why they're expected to actually do well. they have a 91-cent smart estimate. that is our proprietary estimate they come up with is far above the consensus. how do we come up with the consensus with the smart estimate? we take best analysts more recent estimates put more weight on those. we have a high level of confidence that valero is likely to beat when they report earnings this quarter. you're putting a lot of confidence in analysts. that is interesting. you've given us a energy name, bank name. give us a tech name. i came from consumer electronics show. curved tvs are everywhere. do you have a tech name? >> yes, we do. universal display, all the
4:19 pm
consoles, flat-screen tvs, iphones, ipads, all have a panel underneath and universal display actually produces those light ehe mitting diodes you can touch-screen or emit light for the displays. they're expected to do really well with them falling all over the place. who doesn't have a ipad, iphone right now? they're doing fantastic. they lowered inventory levels dramatically in last quarter. that is expected to help them. operating margins are on the rise, set to be beaten. david: sri we have to talk about one of the misses you see coming, that is pinnacle entertainment. why? >> pinnacle recently acquired a meristar properties and they were expecting that to add to their profits. unfortunately that set of properties isn't doing as well in the gambling space. so that is actually bringing down their operating profit margins and their operating efficiency. so we've seen operating efficiency go down for five
4:20 pm
consecutive quarters. that is never a good sign for a company. their smart estimates are below consensus. wouldn't be shocked to see them miss when they report earnings this quarter. liz: listen, we'll put all of she's picks and plans on "after the bell" facebook page. check it out. >> and liz? can i add one more thing? david: quickly up. >> saying all these estimates depend on analysts. how do we know analysts are correct? we actually do a good job reading analysts. we try to find out who the best an lives are. liz: good. >> hopefully our estimates are slightly more accurate than the consensus and that is what gives us -- david: you have a track record. that's why we keep having you back. because your track record beats estimates all the time thank you very much. liz: thanks for clarifying. >> thank you, liz. david: they are two of the most coveted awards in the auto industry. coming next we'll tell you who won the north american truck and car of the year awards at the detroit auto show. liz: a-rod's "moneyball."
4:21 pm
it's a high-stakes right that could determine whether the yankee slugger could lose millions of dollars in earnings. we have a-rod's gameplan. stay tuned. ♪ [ me announcer ] this is the stoy 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 the 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 some of the world'great stories. that began much the same w ours did. in a little dorm room -- 2713. ♪ this magic moment
4:22 pm
♪ ♪ this magic moment so ally bank really has no hthat's right, no hidd fees.nts? it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally. 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 taxes for ten years... we're new york. ithere's something that creates more jobs, and ows more businesses... we're open to it.
4:24 pm
4:25 pm
airbus failed to beat arch rival boeing which delivered 648 planes. general motors's ceo says the u.s. auto giant is close to reintroducing a common stock dividend but didn't provide timing on details at the detroit auto show. they last paid a dividend on the common stock in may 2008. chevrolet's corvette stingray, nice car, silverado captured north american truck and car of the year. they faced mazda 3 and cadillac cts. silverado was up against the jeep cherokee and acura mdx. mcdonald's is hoping to 800 stores locally in the next 12 months. directv may drop the weather channel. millions of directv may lose the weather channel this if they fail to come to a carriage agreement and. [buzzer] that is today's "speed read." liz? liz: you heard of nest, home
4:26 pm
carb carb testing company? you have the carbon dioxide. google's closing value moving slightly higher in the bid and ask. nest labs is a company of course that has been described as delivering amazing product that is buy, thermostats that save energy, their smoke alarms, co2 alarms that can keep your household safe. the cofounder, tony fadel will continue to run nest. david: there is no ceiling for google's stock. none at all. liz: despite all the glitches and setbacks it looks like the health care act is not making health insurance stocks sick at all. david: by no means. on average the largest publicly-traded health insure participating in obamacare jumped 37% last year. so will the rally continue? rich edson joins us with more. rich? >> the law does promise insurance companies millions of new customers and with that brought substantial gains in the
4:27 pm
stock prices t offers safeguards against significant losses over the first three years just in case healthier americans fail to sign up to pay premiums. with that the administration released the first statistics showing who is buying obamacare and how old they are. officials say more than 2 million select ad private insurance plan through obamacare. nearly quarter of adults younger than 35. the government is subsidizing four in five of those enrollees. as for insurance companies values to continue increasing, analysts say millions more need to buy into obamacare. >> the promise of a lot of additional customers, obamacare offered a basic deal to investors which is, we're going to send you, we're going to increase the number of insured americans from 83% of the country to 93, 95% the country. that is a lot of additional customers. depending on the organization whether it is hospitals or managed care, pharmaceutical industry, the impact is
4:28 pm
different but in all cases it is meant to be positive. >> critic, notably, congressional republicans, say the administration is short on a number of total enrollees, especially younger ones. officials say they have the appropriate mix of younger enrollees and expect more to sign up in the next few months. these numbers fail to include how many people paid their premiums. back to you. liz: rich edson, thanks so much. let's take a look. you can see the health care sector itself outperforming the major indices. there were a lot of complaints this would socialize medicine and people would go to the so-called government option. david: there is a question whether the government will come in and bail out the insurers because the system is failing so miserably on many accounts. there are arguments on both sides of obamacare but clearly the health care sector, its only sector of all the s&p 500 sectors doing well in 2014. liz: they need a bailout? that is news to us. all right. david: a stronger recovery may be on its way but not without
4:29 pm
4:30 pm
cialis tadalafil for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet helpsapproved to treattime the msymptoms of bph, like needing to go freently. tell yr doctor about all your medical conditions and medicines, and ask if your heart is althenough for sex. do not take cialis if youtake , as it may cause an unsafe drop in blood pressure. do not dnklcoholn excess. side effects may include headac, upset stomach, delayed baache or muscle ache. to aid long-term injury,get my or any allergic reactionscrease like rash, hives,g or vision, swelling of the lips, tongue or throat, or difficulty breaing or swallowing, op taking cialis and get mecal help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.
4:31 pm
[ 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. ♪ liz: the 2013 rankings for the most favored brands in america is out. the new name topping the list according to one million interviews conducted by market
4:32 pm
research firm ugovbrand index. amazon the most highly-regarded brand, bumping ford from the number one spot. the report said the online retailer's brand benefited specifically from focusing on the customer. amazon prime topping 20 million members last year. i'm one, are you, david? i am. you talked me into it. liz: i did. i'm useful for something. best holiday sales ever for amazon. so what about ford? ford did rank second on the list followed by subway, "the history channel" and loews. -- lowe's.amazon kindle ranked t highest brand. they took a liking to amazon last year. the stock soaring 62%. david: unstoppable. unlikely that 2014 will provide the spectacular returns of amazon or other stocks of 2013, but, if you believe a downturn like today is, is the time to get in, how do you distribute
4:33 pm
your income among all the different market sectors to protect yourself from a market that will not see the same steady gains we saw last year? joining us advisor, investment chief investment officer jim lowell who create ad breakdown of the perfect recovery portfolio. jim, great to see you. 2014 will not be like 2013, there is no question but it is still going to be a good year you think, right? we'll end on the plus side? >> i absolutely do. one of the things driving the market down today is the fear that faster economic growth is returning to the overall environment. we think that is a positive environment for companies to be able to profit. we also think, as you just noted, following 2013's remarkable year of gains would be a very difficult act to follow. we don't expect that, but do we expect reasonable returns between the 10 and 15% range by year-end? absolutely. getting there and staying the course as always is the most difficult thing for investors. david: what you have done for us is extraordinarily helpful because we don't have to go
4:34 pm
outside of the television studio to figure out how to allocate funds. break it down for the viewer, start with 20% chunks of your portfolio or cash. the first 20% you devote to the spdr, the dow spdr. why the dow schneider. why not s&p spdr for example? >> i like the megacap, multinational balance sheet companies you find inside of the dow. they represent the global market well but with a good, solid domestic footing. the reality is, as you go forward investors on not just equity side but income side will look to offset return risk with some form of income enhancement. dow stocks provide it. many have more cash in the coffers than any government on the planet. david: that is first 20%. next 20% i call it fixed income portion. it is dividend and income section. another 20% is it fair to say this is fixed income part? >> it absolutely is but with a very unique twist.
4:35 pm
fidelity strategic dividend and income fund owns 50% of the assets in different-denned paying stocks so a lot of financials much. largest sector weight something technology because a lost technology names now delivering significant dividends followed by health care. it also owns real estate investment trust, convertibles and preferreds. this is well-diversified income strategy to impose especially the 2014 land scale that. >> is 40%. to make it to 60% we go into health care. now, caveat that i have, liz and i were just talking about this. so far the people signing up for obamacare have not been the right kind of people. they have been the sicker people. they need healthy young people to continue to provide cash for insurers. if they don't get that they will need a bailout. >> no question about it. so you could opt out of the insurers and this etf actually concentrates in companies that focus on delivering the drugs, medical equipment systems, devices as well as some biotech
4:36 pm
inside the mix. so those are pretty much invulnerable to what goes on in terms of policy risk that may or may not attend obamacare. reality we have a necessary demographics to our aging population here. that is certainly follows through, not just established markets of europe but clearly in japan as well. you have stealth emerging market growth play as those consumers are demanding more than just better food and better cars. they're looking for better health care. david: so you're protect either way. 20% brings to us 80% and international. you have a international fund. >> fidelity international growth. very well-diversified in terms of numbers of names and industries covered. i like europe in 2014. i think it is unsung, overlooked, underloved. reality i wouldn't go there stock by stock unless i had a stock-picker like jed weiss. david: you like europe but don't ignore asia. 5% of your portfolio in japan,
4:37 pm
right? >> japan's the world's third largest economy. it is on tentative stages being on the mend whether or not it end up in worse shape with abe-nomics. this is chicken hearted way to push back into the emerging markets in 2013. david: 5%, asia without japan. we should mention lost 4% in 2013. >> it's a vulnerable area. so small weighting counterbalanced by the larger cap plays inside of the japan etf but nevertheless you want to buy what has been oversold, emerging markets will sooner or later prove they have been. 2014 may be the year which they do. >> finally 10%, fidelity high income, quickly. >> brilliantly-diversified junk bond fund. never buy a single junk bond when you can buy a manager who knows how to diversify. a great chicken hearted way to play equity and income
4:38 pm
landscape. david: jim lowell, wonderful diversification of art pole. advisor chief investment management officer. great to see you. >> tasted david, thank you. liz: we obtained letter from charter communication. this is so-called bear hug letter saying from charter to time warner cable would like to buy you for exact price of $132.50. you see the stock closed just 10 cents below that but a bear hug in essence to give you the actual definition is when one company asks to buy the shares of another company for much higher per share price than the company is worth. usually it is made when there is doubt the target company, this case, time warner cable whether their management would be willing to sell. everybody thinks their company is worth more. now you see the bid and ask of charter moving considerably higher. same with time warner cable that bid and ask is higher. let me read a line from the letter, david. charter believes like substantially all cable
4:39 pm
transactions over the last five years that were cash transactions, this transaction is 83 bucks in cash and 49.50 in charter stock, this transaction would be based on combining shareholder groups and allowing time warner shareholders to participate at a substantial premium to time warner cable's unaffected stock price. now, i just want to quickly mention they say they are going to have a news conference tomorrow at 4:30 p.m. eastern. charter will state its case. clearly there are other players here david. cox wants it. david: it is surprising not a higher amount. usually when you have a bear hug it is substantially higher. it is not substantially higher. it is reflection what happens in the market, when you try one. manuevers when the market is at its peak as it is now it is more difficult to pull off. it may not work but will take some talking. liz: people said time warner is up considerably that time warner and cox wants in and charter
4:40 pm
writing a letter. hyundai debuts the new premium car as it looks to ref up sales. jeff flock is live in detroit with hyundai's ceo. david: new york yankees slugger alex rodriguez is not going down without a fight. he is coming out swinging. he is vowing to fight his 162-game suspension by making his case in federal court. with all the info that is coming out, did you see "60 minutes" last night? with what will it mean for his wallet and his future as a yankee? [ male announcer ] e new new york is open.
4:41 pm
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 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.
4:43 pm
liz: ah, the new york yankee alex rodriguez saga involving alleged performance-enhancing drugs has new twists and turns. anthony bosch, he is the founder and former proprietor of biogenesis, talking to "60 minutes" last night. >> so you're going to do this, let me show you how to do this, let me educate you and, let's do
4:44 pm
it the right way. and sure, let's not get caught while we're doing this. liz: okay. not a doctor. more like a hustler, but guess what? the regardless the players did get caught. what is next for a-rod? what does it say about mlb's drug testing program? totally ineffective? joining us ken rosen nall, foxsports.com, senior nmlb right writer. you have to read his columns. this one in particular, you nailed it. okay, he is losing money but mlb's credibility is at risk. let's go first to the money issue. we see the number 25 million he loses in his contract. it is clearly a lot more, isn't it? >> it is. he has a chance to make bonuses in the contract passing all-time home run leaders, willie mays, hank aaron, barry bonds, all-time home run leader. he will not get there at least anytime soon. liz: each time he hit as home run which won't be this year
4:45 pm
because he is banned. he filed an injunction. his lawyers filed an injunction against the decision so it is still in play. each time he might have hit the home run he gets five million. >> no, he has to get to certain milestones. liz: got it. >> he is eight short of one. and little more to one and more each time. willie mays at 660. you have babe ruth at 714. each time he gets there is five million. ka-ching, ka-ching each time. liz: each time. what else is he losing? really more than 25 million because aside from bonuses endorsements perhaps that are lost? >> his endorsements were pretty much gone as it is. he admitted using performance-enhancing drugs in the past. not as if he was in good standing with the advertising community but he still has 61 million left on his contract over the final three years with the yankees, starting in 2015. we'll see if that money all gets paid. now he is guaranteed that money but perhaps there will be a settlement in some regard. liz: i love the graphic.
4:46 pm
financials strike out. my husband even asked me this morning, do you think he will miss the 25 million? i would think so because again, as you point out, really is more than that. but what does that feel like to a guy like a-rod, conversely what does it feel like to the yankees. they must love they don't have to pay him 25 million? >> i wouldn't know what it feels like to lose 25 million. i don't know most people would. alex rodriguez signed the two richest contracts in baseball history. liz: 275 million over 10 years that was the original, right? >> that is this one. yes, the yankees are delighted one, to get rid of problem. two, to get rid of the money. we'll see where it goes from here. liz: when they go below 189 million that means they don't have to pay luxury tax. that is huge weight. >> i'm not convinced they go below 189 million. if they do this clearly helps. his luxury cap number is 27.5 million and gets them to a better place. they're still trying to add pieces. i'm not sure they get there. liz: will he make the hall of
4:47 pm
fame now. >> tough to see how where ped users are treated. liz: ped, performance-enhancing drugs. >> right. he has been suspend ad full season. liz: how will the fans greet him back, if at all? >> i can't imagine -- liz: people in new york, you should see the headlines on all of the tabloids. they can't stand this guy. americans love a comeback story. >> they do. and there is small, small percentage that feels he was railroaded by baseball even though there is ample evidence to suggest he did indeed do what he is alleged to do. i don't know that the fans will ever embrace him again but you're right they do love a comeback story. this guy is big box office, one way or the other. liz: david knows that the attorneys for alex filed this injunction to stop the suspension. we'll see what happens. great to see you. >> thank you, liz. liz: ken rosenthal, read his stuff. foxsports.com. david, over to you. david: we had such high hopes for him. ken, good stuff.
4:48 pm
giant leap forward for space tourism after virgin galactic's latest test flight. we have astonishing video of a flight that took the craft to a historic altitude. we go to the detroit auto show to talk to leading player in the auto market who has a secret weapon to take on brands like mercedes, bwm and cadillac. we'll be back in a couple of minutes. ♪ [ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great 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 ♪
4:49 pm
♪ this magic moment so ally bank has a that wothat's correct.a rate. cause i'm really nervous about getting trapped. ♪ this magic moment so ally bank has a that wothwhy's that?t.a rate. uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our rai your rate cd. if our rate on this cd goes up, yours can too. oh that soundsice. don't feel trapped with e ally raise your rate cd. ally bank. your money needs an ally.
4:52 pm
david: great news. u.s. auto sales increased 8% to top 15.6 million in 2013 but south korean automaker hyundai fell behind in the auto sales race, only seeing growth of 2.5%, much less than its rivals. liz: okay. so this has been a very strong player here but how does the korean automaker plan to make a comeback? joining from us the detroit auto show, jeff flock, who is with hyundai of america ceo dave zukows ask. i. >> i'm in the middle of the scrum here, then jump in with him. he is newly minted ceo of the company. the last guy, last ceo set all-time record for sales for hyundai and doesn't have a job anymore. i want to ask dave, if, i will interrupt, if you pause with me
4:53 pm
one second. >> don't like losing market share. they came out with great new products, perfect time for any consumer to buy a car in the marketplace right now. domestics are back not just on truck side. honda and toyota are back, nissan is back. it's a wonderful opportunity to buy a vehicle and keeps me up at night to make sure we keep competitive. i think what you will see it is unreasonable to expect the type of huge market share gains that we were able to claw in a really tough economy. now the economy is solid, but it is tough for us when we have constraints globally in the production to keep up with a moving target. so very, very encouraged. i think it is safer to say we'll expect to see slower growth trends, more consistent growth trends, long-term sustained planned. >> dave we're live on fox business network. welcome. >> thanks very much. >> you work for a tough company because the last guy that had your job, actually had record sales and doesn't have a job anymore. >> work for a great company. >> how do you, how do you, what
4:54 pm
do you do? what do you do to be successful? you are as you were just addressing there, you have serious constraints on how many cars you can make. you sell a lot, a lot of cars you build you don't have a lot of problem selling. what do you do? >> we continue to look for increased production capacity. we continue to focus on increased operating efficiency. we have, when, and again, we went two or three years where we had consistently carried about 20 or 22-day supply. that is very difficult. that puts tremendous on really fast turn rates to maintain sales levels. as your product age flexes a little bit, everybody's product ages, our aged a little bit in 2013. so that created some problems for us in the marketplace. so we have to be very smart. we're developing incentive systems to be mortar getted and more regional and much more efficient. we're developing distribution systems to be much mortar getted and efficient and getting right car in the right place at the right time. we think we have great prann to
4:55 pm
sustain the growth. steady growth is important. >> newly minted ceo. appreciate the time very much on live here on the fox business network. i spin around to show you the genesis what they just unveiled. perhaps hard to see because some people around it. that is what you get in the middle of a scrum and unveil behind the scenes at detroit auto show. again sir, think about that one, david. you know, somebody called it a korean cadillac. that is not me. david: all right. jeff, great way to wedge yourself into that conversation. >> we try. david: job well-done. jeff flock at the auto show. thank you, jeff. liz: looking to quit your job but can't find the right words? don't worry, there's an app for that, that way you don't have to do it this way. >> that's it. this is it, i'm done! through, it is over. i'm gone, finished over. i will never work for you again. ♪
4:56 pm
my dad has aor afib.brillation, he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stke. and unlike warfarin, with no regular blood tests or dietary restrictions. hethanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke.
4:57 pm
ask your doctor if you need to stopradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, ve a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problem especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa.
4:58 pm
if you have a buness idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reali. start your business today with legalzoom. there's nothingike 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.
4:59 pm
david: time to go "off the desk." virgin galactic, the space venture that aims to take passengers in the space hit new heights. the spaceship 2, climbed 46,000 feet with the help of a carrier craft before released and reached a record altitude of 71,000 feet. liz: also "off the desk," resigning your job by text? quit your job is a app associated with quitting your
5:00 pm
job. it answer as series of questions, old saying goes there is truth to every joke. while this is humerous app but people hope they use it. david: no offense, but i don't think many people want to quit their jobs today. liz: no. "money" with melissa francis is next. melissa: don't trust the water. a whole region left ravaged by a chemical leak with hundreds of thousands of lives coming to a complete stand still as local businesses watch their livelihood go down the drain because even when they say it's not it is always about money. melissa: we're going to get to that story in a second but before that, the hack attack continues. the data breach at target could now impact up to 110 million customers? can you believe that? that is a huge number. it is a third of the u.s. population. that is not all. luxury
137 Views
IN COLLECTIONS
FOX Business Television Archive Television Archive News Search ServiceUploaded by TV Archive on