tv Markets Now FOX Business January 31, 2014 1:00pm-3:01pm EST
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adam: stocks fall, but losses are more than cut in half. i am adam shapiro. lori: i am lori rothman just how concerned is the fed with the turmoil in the u.s., as well as emerging markets. in moments, peter barnes will have an exclusive interview. if stocks to bounce off the lows of it today. nicole: we got some key levels on the s&p 500. looking at 1776-1770.
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that was some good signs. the dow jones industrials down 100 points. we noted another weekday here on wall street. concerns about global currencies again. you have also gotten some earnings that have been tepid. that is what has driven this market. on thursday we got great earnings from some of these companies. on the dow jones industrial, chevron has been weighed on the dow. that is because of the margins they got. the refining margins. that has been weak on the dow jones industrials. back to you. adam: no signs of slowing down. sandra smith is here with more
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on this for us. we are getting serious outlook from emerging market bonds. $6.3 billion in outflows. that is just on a one-week basis. outflows totaled $4.2 billion. the biggest for the week. there's speculation is that a lot of that is hurting franklin templeton. i do want to take this to the stock market. deeply in the red today, some of them dropping by more than 2%. this is the drop we have seen over the last couple of weeks. this, of course, as the emerging market funds is down 10% just over the last month.
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one other quick one, the eem be. this one is the climbing as well. the climbing about 8% so far this year. adam: thank you. lori: poised for the worst january performance in years. david lutz is the managing director at stephen nicholas. what do you make of this? >> a lot of it just had to do with positioning. look at what has been going on in the bond market. short and does in the bond market were up five year highs.
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we are probably up arguing about two and a half in the tenure. at the end of 2013, bowlers sentiment was near 20 year highs. what we are saying right now is just a rotation back. adam: this is normal to you. you are not fearful of a crash. i have to tell you, here on the institutional trading desk, we have not had a lot of big sell orders. if anything, these guys have been buying value names as
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things have come back down to a more reasonably priced level. they just have the fastest pickup in inflation in five years. adam: sandro was just here. i want to know whether or not you think that these massive outflows, if they are justified. >> i definitely would think so. the first is obviously the fed tapering. what we will start seeing is these of merging market investments over the last couple of years when rates were held artificially low.
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things have become a lot less attractive. they continued to show thing slowing down in china. whether it is an asian country that is applying technology to the country or like south africa that is supplying commodities. i would say sandro hit it right on the head. the amount of outflows we have been seeing, that is a tremendous weight. if we start seeing some moderation there, it is probably safe for people to start looking at them again. lori: always a pleasure to have you join us. adam: veteran executives of merging as the leading candidate
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to be named the next ceo up our cassatt road placing steve ballmer. sources close to the matter warrant microsoft score has not made any final decisions. the dow up almost 1%. shares of walmart off the lows of the day. the world's largest retailer also expects same-store sales without fuel to be slightly negative. we will continue to follow the selloff in the markets. serving as a real reminder of the benefits of alternative
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investing. adam: from the history channel "county cars" flipping rundown cars. some of them are in pretty good shape. this guy does everything you need to know about cars. lori: we are in countdown mode to the super bowl. will new york and new jersey be the big winners? the economic impact of the big game. adam: we have an interview you only see right here on fox business coming up. ♪ i ys say be thman with the plan
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lori: the federal reserve announced this week that it will continue to taper. how concerned is the fed? how could they affect policy going forward? peter barnes has a fox business exclusive. peter: we are here with john williams. thank you for joining us today. the emerging markets are getting routed again today.
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they made no mention of the turmoil in emerging markets. why not? is the fed not concerned about this turmoil? >> they need to have a medium term focus. in my view, we should not focus too much in the short term developments. again, with that said, we are watching them carefully. peter: where they discussed this week? >> yes, obviously, we always discuss developments. peter: part of the reason this investor is on their minds, the
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hot money flows that went to the of emerging markets because of the fed policies the last few years. it caused some of the buildup in the economies. what about that. does the fed have some responsibility for this? 3 a result of a number of fact there is. i think our strategy right now and communicating pretty clear what our views are on that program going forward and also our monetary policy. i think that helps markets understand where we are going and why we are doing what we are
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doing. peter: what about u.s. market? i know the fed does not target stock prices. the climbing markets do affect household net worth, could affect spending, consumer spending, consumer confidence. >> it does affect investor views. it is good to remember, although the stock market has come down in recent weeks. as you said, we do not want to get caught up in targeting the stock market. we do not want to overreact to short-term movements. peter: how bad would it have to
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get in the emerging markets or domestic markets for the feds to really get concerned? >> i will not give you a threshold around the stock market. the movement in the stock market clearly have the affect on the u.s. economy and we take those into consideration. so far, i do not see anything that has happened in the last month around markets as fundamentally shifting and improving the u.s. economy and labor markets. that is one of our primary focus is. peter: what about the december jobs report? the number of new non-foreign
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jobs came in. an aberration due to the weather, as far as the fed is concerned or is job creation slowing down? how do you analyze that jobs report? >> absolutely. it was weaker than expected. more broadly, it was weaker than did. we look to december as being a bit of an aberration and expect job growth to continue to be pretty solid over this year. obviously, again, we will be watching the data pretty carefully to see what we learn over the next few months.
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there are a lot of indicators of employment in the job market. most of those continue to show very solid improvement, even through december. it looks like a flight to quality from some of these emerging markets. that is one possible explanation rates have come down. we did not see any mention in the statement about tightness and financial markets. is that a good development regardless of the reason? >> even before the very recent episode, we did see quite a bit of movement in the bond market and mortgage rates. my view is we have seen some good stability there. i think they have helped in providing clearer guidance. helping markets understand what we are thinking and what we will do.
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they remain low. that is what we need to keep the economy growing. peter: one of the reasons we called and asked you to visit us today is because you are at the brookings institution in washington a couple weeks ago to release a paper. it makes it harder for that. what did the paper say about how you manage policy in a low inflation environment. >> the focus really was a lesson.
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the paper goes back and looks at what economists and experts studied. what central banks do. what other policies could you implement to boost economic growth? a lot of research. during the crisis, an economic issue became a very practical issue in the u.s. the study then vote that what did the researchers say we should be doing? the paper then goes through and says what have we learned about that? first of all, both of these tools have been very affect this at moving market.
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the other thing we have learned is that these tools, although forward guidance have worked, it is harder to implement and maybe some of the theories would have told you those with challenges that we still deal with. the research clearly shows that they lower treasury rates, improved financial conditions. there is a lot of uncertainty. how they work and how big the facts are on the economy. the punchline of the story is we need more research. we still have a lot of unanswered questions.
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peter: thank you. look for it later on fox business.com. lori: peter barnes. thanks again. adam: clash of the titans. no, not the broncos and the seahawks. lori: how super are the economic benefits of the super bowl? adam: if you are looking for a different kind of investment caught let's talk about the only thing worth living for. classic cars. we have the number one behind counting cars coming up. ♪ [ male announcer ] did you know that if you wear a partial, you're almost twice as likely to lose your supporting teeth? try poligrip for partials.
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really allow us to do what we do. i have been pulling people over for god knows how many years. he was going to take it to auction. it needed restoration. i saved him a trip. bought the car right off the trailer. i am a corvette guy. adam: some of my elderly relatives don't have them. corvettes, you are pretty hot on these items. >> i believe we need to keep our eyes on.
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in my opinion, the 68-72, which is the chrome bumper are really going to start going up. in my opinion, if you are looking for a car that you can get into and hold on it to, i believe that that is a good thing to look at. adam: bulow good. especially if you are driving down the streets of manhattan. it is great to have you here. continued success. great to have you here. >> appreciate it. thank you for having me. lori: the latest and greatest of reality stars.
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it turns out that several s&p 500 names have headquarters in denver and seattle. topol bae shares hitting an all-time high as rising store traffic boosted sales and profit. not as good for amazon. shares plummeting. the company warned it may post an operating loss for the first quarter because of rising shipping costs. adam: 80,000 fans are expected to attend the super bowl this sunday. we will probably visit the region. fox news rick leventhal is in times square with more.
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sometimes the estimates do not reach reality. we are hearing some reveling. hotels are one very good example. it does not include the hotels that are across the river in new jersey. there is a glut of rooms. bad weather here. a lot of cancellations. rooms were originally priced at $1300 a night for the weekend. over in midtown, they book some large groups. they say they are doing okay. there is availability.
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listen. >> i think it is kind of a ripple in the pond. a drop in the bucket. as opposed to let's say phoenix or dallas. no where near the number of hotels to absorb that many. >> 20 of businesses will benefit. right is hosting a huge private party for the pro football hall of fame on super bowl sunday. about 2000 people there before the game. there will be other people watching the game at reds. will everybody make more money than they otherwise would? >> yes. >> everyone will make more money. definitely. yes. >> a lot more? >> i would hope so for their
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sake. that is the goal. >> people like to go to the bars near the stadium. i actually will be at the stadium. adam: you are not allowed to tailgate this year. there is no tailgating. lori: there goes my sunday plans. do not forget the kickoff is at 6:30 p.m. new york time on fox. people like to go to bars. the market is down. the dow is coming back after being down as much as 230. the chinese shadow banking system dodged a major bullet. the world's second-largest economy is not out of the woods. ♪ [ male announcer ] here's a question for you:
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adam: wellhead back to the floor of the new york stock exchange and nicole petallides. major averages in the red. hope builders are posting nice gains. >> they are. the group is doing well today and for the week though they have been under pressure. pull tea homes for example, up 3%, so is d.r. horton and lennar. the group is doing pretty well here. they're citing improved market conditions. pulte home gave out some reports and reporting their numbers as well. pulte homes said they will be acquiring more land to build on in 2014. so you are seeing that they are reporting average selling price that is are higher. let's take a look also at how the major market averages are doing. we know there has been a lot of
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red. there is still red. the dow down 117 points but certainly up off the earlier lows for the day. concerns about emerging market and earnings and the like. back to you. lori: nicole, thanks for that. stocks are selling off as you just heard. in reaction bonds are rallying. yields on the 10-year down to 12-week lowdown to 2.66% as investors snap up perceived security of u.s. government debt. interesting to note here the fed's taper is benefiting treasurys at the long end as investors pull out, especially of long end of emerging market trades. there is the 10-year. swings are not just confined to the equity markets, gold is in negative territory. fox's phil flynn from the price futures group is at the pits of the cme. >> even though gold is down right now, lori, we actually had a pretty good month. we're up 3.8% as we see asset reallocation out of riskier stock market, concerns about the
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emerging markets back to gold. one of the reasons we may be down, chinese new year. there are holidays in asia. so the cash market has been relatively quiet, but with ongoing concerns not only about emerging markets and what is happening in china, we could see big buy-in when the cash markets reopen. back to you. lori: thanks very much, phil flynn. adam: phil brings up china. it is not just emerging markets which are driving trading action. a slowdown to chinese factories adding fuel to the fire. a slew of data is adding to weak start for the world's second largest economy. we have the managing director at silver crest asset management. his resume' is loaded with reasons why he is actually an expert on china. he joins us now. i want to start with something you have said which people should pay attention to. this could be the moment chain is dancing with a lehman moment. why is that? >> you see increasing signs of financial distress in the chinese banking system. a lot of people say there can't
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be distress in the financial banking system, it is state-run and can draw on all the resources of the yet we saw a big crash crunch flowing into this month. we see a lot of more investment products default or on verge of defaulting there was one last week people hoped it would default. adam: wealth management product. >> that it would send the right signal to the investors that there is risk but the government bailed it out again. adam: how long can the government bail out invests essentially tied to companies like bernie madoff and they are sham companies? how long can this go on. >> it still drags down growth. it means more and more debt is rolled every. that is less and less credit available to generate real growth in the chinese economy. so we see a growth squeeze. this is similar what happened in japan in the 1990s. you didn't see after the bubbles burst japanese banks explode. you saw them sit on bad debt and saw the economy suffer. adam: if the econnmy suffers
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does that mean the chinese consumer stops buying products? a lot of american companies are dependent on revenue they get from chinese consumers, do they not. >> i think we'll see a shift away from investment led growth in china to consumption and investment t will be in the long run good for china and good for the year. china has driven growth by producing more than it consumed. they have accumulated 3.8 trilliondollars worth of reserves that represents buying power locked up in the chinese economy. they can afford faced with a economic adjustment to consume more than they produce. that would be very good for the global economy. adam: when you say wrenching transition, for whom, us or them. >> anybody that bet on the existing growth model continues. u.s. drives money and china and emerging markets drive output. i don't think we'll go back to the pre-2008 world.
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i think we see a consumption story coming out of emerging markets and china. maybe alongwith a very serious correction in those markets in terms of sectors traditionally driving growth and a production story coming out of the united states. adame wrap up, help me understand. how can you have demand in china if you have a slowing economy? they stop investing as they do to create jobs, there will be people that are not working they won't have cash to spend? >> in tte short run there will be a jolt if the chinese economy see asset back. like i said the chinese have been producing more than they can consume a year. they can afford to consume more than they produce. they can run deficits. that would be a positive thing for the u.s. economy. adam: patrick, thanks very much for joining it. we're watching what happens in china and how it at affects us here in the united states. >> thanks. lori: slashing monthly bills in half, is that possible? a man that is willing to do the dirty work on your cable,
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internet, electric and cell phones bills. it is legal and we'll ask him how he does it. adam: two social media giants will be tussling on the second green. screen. lori: great way to put it. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade. wherever you are with the mobile trader app she loves a lot of it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet
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settles claims over mortgage-backed securities that turned toxic. consumer sentiment slipped this month to a final reading of 81.2. that is down from the december number of 82.5. the thomson reuters university of michigan index found consumers are more concerned about upcoming economic conditions. tonight at 5:00 p.m. eastern on "money," we are digging into the cost of college athletes unionizing. we hear from both professional football players and a college athlete on whether those that would be affected are lining up to support this. that is the latest from the fox business network, giving you the power to prosper.
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down 230 at one point despite fresh concerns from markets overseas. the s&p is down for the week and a rough start to the year for major averages. s&p 500 is off at least 4% for the month, mark asking the -- marking the worst monthly performances since may 2012. adam: we have a new alert. possible signs of progress on the keystone pipeline. the state department set to release much anticipated environmental rao review. fox news learned it will likely disappoint environmentalists who oppose the construction. the state department has jurisdiction over the pipeline because it cross as international border carrying oil from the canadian oil sands to the united states. it sets the stage for the white house decision in the next 90 days. lori: forget about the super bowl, the biggest clash may be hashtag bowl, faceoff between twitter and facebook. dennis kneale with more. >> battle for the second screen
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between two pillars of social media. did you know surveys show the vast majority of us, 80% or watch tv at home with a smartphone or tablet in hand. it's a rare case where facebook is playing catch-up to twitter even though facebook has five times as many users as twitter and more than 10 times the ad revenue. twitter may be the number you know outlet in the on line world for instantaneous is that correct? facebook objection to that -- snark. facebook adopting hashtag format that made twitter famous. witter and facebook are wooing advertisers with free real time analytics during the game, telling super bowl sponsors as unilever axe body spray for teenage boys and pepsi what is trending. with what are the hot hash tags and other instant analysis. what both social media titans dream of. nabisco orrery yo tweet in the super bowl.
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moments after this blackout, twitter posted surge tohundred thousand a minute. bam, or yo -- orrery yo tweets it out. ro-eo. powder out? you can still dung in the dark. they foreawarded it to their friend a viral audience. hardest part for twitter and facebook to have advertisers pay for instant spots when they can s&p them out on their own free of charge. 30 seconds in a super bowl will cost a sponsor $4.5 million. twitter lucky to get quarter of a million bucks for three hours of real-time advice. lori. lori: that is fascinating comparison. we for years made big to do how much advertisers pay for short period of time to get the message out. of the social media, do it yourself. >> suddenly you have a multiplier effect working. that is great tool. how do you get it to start paying for that? facebook and twitter, they're not advertising companies. they're techie companies, so they're going after data. lori: what is your hashtag?
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what is bugging me? >> wbm. lori: sure. following that. >> try my chile. lori: bring some in on monday morning. >> i will. adam: hear no evil, speak no evil. not a chile eater, not for breakfast. two things we all wish we had more, time and money. lori: we have someone who can save you big on the monthly charges. can an investor be a name and not a number? scotade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. can you start tomorrow? yes sir. alright.
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>> pleasure. thank you so much. lori: would you say most of us are actually overspending on our monthly expenses? >> i think everybody is overpaying for monthly bills. for me personally when i get a bill in the mail, i usually write a check and send it in. our bills continue to go up every day and you know, i know there's a better way. i was able to create this company where we can save people money on the monthly bills by negotiating with their service providers. it's a win-win, win. the customer saves money on their monthly bills. i think service providers really want to provide a discount to their customers so they can maintain that business for them. for bill cutters, our incentive is to save our customers as much as possible because we receive a percentage what we save them. if we don't save them money on monthly bills, there is no charge whatsoever. lori: how do you do it? how do you pull it off? how do you know the tricks of the trade to encourage those companies to give their customers a break? you're doing all the legwork it sound like. >> actually similar in nature to
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having a very good tax advisor doing your taxes each year. in americans or consumers don't use a tax advisor, they're usually not getting deductions that they're due and overspending or over paying or taking too much out of their pocket to pay taxes. tax advisor will help you in that respect. basically that is what billcutters does for our customers. we know promotions, discounts and our service provide remembers providing on a regular basis. since we have our finger on the pulse of those we're able to pass those on to our customers. and really results in -- lori: what is average savings you're providing your customers if you give me a percentage? >> percentagewise, depends on the bill, on norm we save 25 to 35% but can go as high as 50% on a given bill. what we like to do get our customers to send in all the business. let us find out which ones we can save them money on. in that respect, the ones we don't save them money, there is
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no charge whatsoever. they are only charge ad fee for those bills we're able help them with. lori: is the fee you would chargings sliding depending on percentage you save your customers? >> no. whatever savings we achieve for the customer we split with the customer, 50/50. if we don't save them money there, is no charge. >> sent along tips for folks consider in trying to save money on their own. we don't have a lot of time, barry, one really stuck out for me so important, really watch your tone of voice when dealing with the companies. tell me more about why that is important? >> i think tone of voice in life in general is just critical. tough have an attitude of gratitude. i think what you give is what you get. you know the customers that, customer service departments you're dealing with on a regular basis, they're not necessarily used to hearing from complaints, but if they hear somebody pleasant on the phone they are likely to work with them and committed to save them as much money as possible. i think tone of voice is really critical in the negotiation. lori: barry, my husband would
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love it if you cut my saks fifth avenue charge. know any tricks for that so far came up empty. barry gross, thank you very much. >> absolutely my pleasure. thanks for having me. adam: scissors, card. lori: that's why we're not married. adam: super bowl out of control, time to rein them in or send the bills to our last guest? your tweets are in with tracy byrnes and ashley webster take you through the next hour of fox business. welcome back. how is everything?
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there's nothing like being your own boss! and my cusmers are really liking your flat rate shipng. fedex one rate. really makes my life asier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make tt happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs
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you what to do to keep your retirement account safe. tracy: costs for super bowl totally out of control and you the taxpayers paying big bucks as a result. i'm not on the panel. he is making big faces. is it time to rein in those costs? we have our experts here your tweets ahead. ashley: cost of beef high on the hook. our jeff hook, our jeff flock. tracy: it's friday. ashley: it's friday, jeff flock at a fancy chicago steakhouse checking out the menu and thawing out after being outside for the last month. >> i was going to say he is probably in the oven. wine in our fabulous "wine with me" friday, we're talking about wine as hot as ever and we have a great wine critic here to talk about it all. ashley: already been in the wine sounds like it. yahoo! latest to be compromised but why won't the company tell us how many people are at risk? we'll have that, oh so much more
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ahead on this tgif super bowl edition of "markets nnw." tracy: good stuff. we're only 54 seconds in. all right, so much for january ending on a high note. stocks are off earlier lows but still headed for the worst monthly drop in a year. how can you keep your portfolio safe in this volatile market? our expert chick panel is here. nicole petallides on the floor of the new york stock exchange. sandra smith is here on set alongwith lizzie mack. all right, nicole, we'll go down to you first on the floor. the dow is down 63 points. not as awful as it was but certainly not great. >> chick number one reporting for duty here and what we're seeing the dow jones industrials is down again. it has been a tough 2014 to start. the dow as we've seen is shaping up and the s&p for that matter shaping up for their worst month since 2012, since may of 2012. most names in the dow jones industrials are negative
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year-to-date but today we are seeing, we are coming back off the lows today. the low, 15, 617. it is also worth noting the extreme volatility that we've seen so far in 2014. all but one day i believe in january we've seen 100-point swing or more. so it really has been the year of volatility thus far. you have to pick and choose what you love but there is certainly a lot of companies that have given cautionary tones for 2014 and other money managers who are loving this market. back to you. ashley: very interesting to say the least. stick around i will be hugh hefner and bring sandra and tracy and thank lew for this setup. emac, is this a short-term blip or is there something more at play here? >> this is something like charlie or ashley's angels. short-term blip, no. we talked about this. remember we saw what happened in
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the markets in 2010 and 2011 when federal reserve dialed back on money printing and markets rocketed around 15%, right? i think that is also happening now. on top of that when the january effect kicks in, meaning a down january, 50/50 odds a coin toss it will end the year negative. the other thing, market watchers on wall street are talking about what if s&p breaks down below 1775 or 1750, is it a choppy, white-knuckle ride then? that is the issue. >> i don't think anybody can answer if it's a short-term blip or not until we figure out what is caution it. ashley: good point. >> i exchanged emails with somebody on wall street the fed is getting blame. timing of things. equity market sees this significant plunge. so you could easily tie it to that. the focus is more on the emerging markets story. that spooked investors here. they're liquidating out of their positions in the u.s. markets. if the focus goes back to earnings, there's a positive
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situation there. so, i feel like i still hear a lot of bullish talk from some big names on wall street. >> it isn't about earnings. at warren buffett said, the tide goes out you see who is swimming naked, right? we know the central banks around the world have printing of $4 trillion, right, including bank of england, bank of japan, the united states. so 4 trillion came into the markets. so what we're talking about is, what are, what is the ramification? will this be a broad correction we're in the front wings of right now? we saw it happen in '97. we saw a severe correction down 10% during the asian flu. '98, the russian ruble crisis, down 20%. but the markets both ended up. s&p ended up in both years in nice double digits. tracy: nicole, let's bring you in? what are they saying down there? sometimes i feel this is self-fulfilling prove if i. how january goes so goes the year and guys spook themselves
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trading into it. >> we'll see. the stats are about 75%. you're seeing you have money managers and some brokerage houses anticipating by year-end we'll have a good year, up 10%, but for right now, in the short term, i was reading an article about warren buffett and some other big players, how they are reducing some of their exposure to equities overall. a little concerned. i'm talking to keith bliss here on wall street of cuttone & company, he said listen, you don't see anybody buying the dips. rather, you're seeing people selling into the rallies. you have to, and to sandra's point about emerging markets. that is a concern. tough wait to see the fed's unraveling, 10 billion at a time of stimulus. now that is unraveling. how will that then really move throughout the global equity market? ashley: sandra, let me ask you this on earnings. i find it interesting, i still get the sense companies reporting their earnings are still saving money or showing balance that is include still a lot of cost-cutting.
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part of that they're not raising their wages. which in turn means stagnation in the wage area, consumers are not getting more money and that hurts the economy overall. we have two quarters of gdp growth in the last decade. >> that is interesting. i have a caveat with a lot of better-than-expected earnings we've seen. case in point the homebuilders. it has been my story today and i've been digging through there. while the numbers on surface look spectacular, numbers are rallying still this year but rallying still this week, pulte homes, their home prices were up 13% in the fourth quarter. looks great on the surface. the problem is, there was lack of inventory. so really this was just market getting squeezed by less homes on the market. is it really better performance or just the results of the supply and demand? ashley: yeah. >> consumer demand. we talked this morning about deflation in the eurozone, right? ashley: right. >> there is no pricing power for companies in the eurozone right now, so they can't really make
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earnings. to sandra's point, is it about less inventory driving earnings because they raise prices there? or what is going on with consumers? i tell you something, when you have 12% jobless rate as you do in the eurozone, that is lot of people out of work. that is 19 million people out of work! there are structural problems in the eurozone. they have tax rates at 50%, holy cow! not to mention the vat. what we're seeing again when the fed stops money printing, there is washout. you see fiscal problems, regulatory problems, economic problems coming to the forefront in every market now around the globe. ashley: right. tracy: that is to nicole's point. let it wash out. nicole, hop in on this. let it wash out, what you guys are saying down there. what a lot of people smarter than me are saying we'll end the year okay. you have to sort of get through this. >> get through this ride for the moment. but very frustrating companies
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dropping and many dropped in a big way. just in january alone, just to get back to the economic report, globally, clearly, made great points about the concerns abroad. even right here at home, you saw consumer spending was up today. that is good news but incomes are not. you still have obviously some americans that have jobs that either are not up to par for them. they have part-time jobs, other than full-time jobs. you have so many just unemployed all together. so, that really is the fundamental problem is, when you look at the economy. >> and just sheer outflows from emerging market funds. these numbers are spectacular. $6.3 billion in one week out of emerging market equity funds. 12-pointbillion over the month alone. >> biggest since 2011, right in terms of outflows, sandra if. >> right. >> does we, the united states get the flu, does the united states get the emerging market flu? sandra and i talked about this too. s&p 500 has 10% of their revenues from the eurozone.
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that has been steadily coming down but big guns out there heavily exposed to eurozone, 20 percent of their profits, mcdonald's ge, coca-cola. you have to watch those, big multinational names. ashley: goes so quickly. guys, thank you so much forking here, nicole, sandra, emac. costs for the super bowl by the way out of control and you the taxpayers are paying big bucks as a result. is it time to rein in those costs? our expert plus your tweets ahead. tracy: super bowl and super stocks. we're talking toyota today. how can you drive to profits on the japanese company whose ads will run in the big game with the muppets. ashley: love the muppets. love the muppets. a week of reporting on the freezing cold streets of chicago jeff flock deserves this savory assignment. >> it is my reward, you said it. back in the kitchen at perhaps one of the most sought-after steakhouses in america. we're in gibson's with the
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tracy: we have a stock alert. we're watching shares of walmart. retailer saying fourth quarter and full-year earnings may come in slightly below the low end of earlier estimates. revised guidance is all due to a need to account for story closures in brazil and china and the sam's club restructuring in the united states. the nation's largest retailer will report fourth quarter earnings on february 20th. ashley: where's the beef? remember that commercial from many years ago? that is what americans are asking again with the size of the u.s. cattle herd hitting new lows, prices are hitting all-time highs. jeff flock live from gibson steakhouse with latest would what is driving the cattle prices. >> probably one of the most sought-after steakhouses in america, this is gibson's. maybe you've seen the outside, john, good to see you, sir.
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>> come on in. >> you will let us come inside the kitchen. ashley asked, where is the beef? the beef is right back here. bob, i want to see gibson famous steaks being cooked and what is driving price increases for almost everybody but you because you're highest end, right? >> we're buying best possible product we can and you expect to pay. what we've done contracting for our product, it kind of kept us secure. >> take a look at prices. if you look at cattle futures, feeders and guys growing into the big ones that as well as live cattle, prices for both all-time highs. we have randy widener, the gibson's executive chef. what am i looking at? >> prime angus porthouse, 14-ounce fillet, bone-in strip and chicago cub bone-in rib-eye. >> the cold weather making it hard to fatten these cattle.
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a you need a fat cow to make something like that. you have a drought out there and small cattle herd. >> we have small cattle heard but we developed relationships to keep our supply. we have a steady cost. i mean we've got these relationships are very important. >> cooking there, you have relationships maybe other people don't have. by the way the gibson's restaurant group manages restaurants for the likes of disney, the likes of ralph lauren. this hits everybody though, in terms of, everybody from mcdonald's on up. >> it does but again it is the relationships and working with the breeders, working with processors and keeping relationships going, help the cost and everything. keeps consistency and the quality. >> we'll get out of your way if we can. got john coletti, thank you so much. not everybody lets you back into the kitchen. >> fox is very welcome in our kitchen so. >> fox is welcome in the kitchen. and they might even let you eat something if you're nice. tracy: we want to look at it.
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ashley: and smell it. >> i like looking at it too. ashley: jeff flock, always welcome anywhere, thank you very much. tracy: he is so good. quarter past, we've got to get back to the floor of the new york stock exchange. nicole petallides is down there now, watching mastercard. hey, nicole. >> jump in the oven and get one of those big steaks. i want to look at mastercard. this is completely different picture. mastercard is under pressure today, down 5%, a loss of four bucks, sitting at 75.75. the profit numbers that came in from mastercard missed analysts expectations. also there is some news that jpmorgan, which issues both mastercard and visa brand cards sign ad 10-year agreement to commit more volume to visa. that is not good for mastercard and knows it. they acknowledged how they will try to compensate in 2014 for that. mastercard purchases overall, were on the rise, 11% in the
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united states. purchase volumes rose seven 1/2%. back to you. tracy: nicole. see you in a bit. amanda knox vowing to fight her murder conviction by a italian court, quote, until the very end. we have details ahead in your fox muse minute. ashley: more of peter barnes exclusive interview with san francisco fed president john williams. tracy: costs for super bowl out of control? i don't know. tweet us your answers. is it time to rein them in? our experts, plus your answers ahead. dow down5 points. don't go anywhere.
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>> developing news at 21 minutes past the hour i'm patti ann browne with your fox news minute of the law enforcement in new jersey investigating suspicious letters containing a white powder substance. they were sent to several hotels near metlife stadium, the home of super bowl xlviii. sources tell fox news one of those letters already turned up negative when tested but in a separate incident, the nypd is confirming a suspicious letter was sent to someone in former
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new york city mayor rudolph giulianily ahn any's office. both are being investigated. amanda knox vowed she will never get her back after she was found guilty in a retrial. italian court sentenced her to 28 years in prison for killing her roommate. she faces possible extradition. no,'s boyfriend who was found guilty was found near the border of austria. he says he was not trying to flee. those are the headlines. ashley, back to you. ashley: patti ann browne appreciate that. a fed insider saying the poor jobs report a couple weeks ago was just an aberration. let's hope he is right. peter barnes in san francisco with a fox business exclusive. peter? >> that's right, ashley. that poor jobs report in december was not even mentioned in the fed policy statement this released on wednesday at its last meeting. also unmentioned were, was all the turmoil in emerging markets. you would think that jeez, if
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the emerging markets are just, being disrupted, perhaps that might have the, make the fed rethink its policy, maybe, pause the taper. it was all happening during its two-day meeting this week, but john williams, president of the san francisco fed, who was there this past week in washington for the meeting, said, of course, the fed is watching the developments in emerging markets but right now policy is staying on course. here is what he said. >> the movements in the stock market, movements in emerging markets, clearly have feedback effects on the u.s. economy and we take those into consideration taking appropriate stands for policy. so far i haven't seen anything happening last month around markets. fundamentally shifting in the u.s. economy. and primary movement in the labor markets is one of our primary focus. >> tried to pin him down.
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what would it take to change policy? a 10% correction in the u.s. stock market or something like that? of course he wouldn't take the bait on that. he did point out that the u.s. stock market has had a very good run over the last four years, particularly in the last year. he said he did not, the fed does not want to overreact to any movements in the markets, short-term movements. it really wants to look at medium term developments in the economy. so far for him the fundamentals have not he shifted. tapering stays on track. ashley. ashley: peter barnes on the left coast for a change. , peter, thank you. >> you bet. tracy: time for super bowl stock pick today, toyota. it is up 2% for the year. they are telling the national highway safety traffic administration, seat material in
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several vehicles, top selling camry sedan fails to meet retardation standards and could result a recall. they have halted u.s. sales moved dells in question. next week we'll see january auto sales on monday. toyota is set to release third quarter earnings on tuesday. now, i should say this, because it is from the muppets. it is time to get things started. time to play the music and light the lights and you know how it gross, come on, gonzo sung it. toyota plans a super bowl ad featuring the muppets, so fun! single 60-second ad for the highlander, starts, jerry cruz, a 6-year nfl veteran and animal. the man set up one wild adventure under the theme of no room for boring. the muppets will be live tweeting during the day on sunday. miss piggy is going to tweet! as i at least i hope she is as they make their way to the big game.
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$8 million ad airs in the second quarter. don't forget to tune in to your local fox affiliate. the sickoff is 6:30 p.m. eastern time. the maybe kermit will tweet something really interesting, huh? ashley: i love it hashtag moi from miss piggy? great stuff. next half of "markets now," a rout for the dow, not really a rout now, but down 66 points. this month was the worst january since 2009 when the dow fell nearly 9%. tracy: in our fabulous friday feature, "wine with me", why fine wines are big again especially among the collectors. we have a super tough wine critic ahead. ashley: and costs for the super bowl, are they out of control? well, you, the taxpayer are paying big bucks as a result. is it time to rein them in? our expert plus your tweets are next. hi, are we still on for tomorrow?
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liz: 90 minutes to the close let's look your dow 30, more red and green. look at chevron. that is your loser today hitting a 52 week low despite profit falling 31%. it met street expectations, they were that low. revenue missed expectations by $9 billion. on the floor of the exchange watching these markets you got a stock hit a new high. >> i will leave you in suspense.
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and showing the components take a look here. our low on the dow, we were down 220 points today. you can see we made our way back, the phrase on wall street, we applaud our way back or climbing the wall of worry, basically coming off of the lows of the day, down 61 points, that is 0.83%. now let's look at a winner, tyson foods, all-time high today, new high of $38.25. over the last year, good news, the pace of expansion, that is an issue. they did do well with chicken and beef sales. and largest one by sale, and
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earnings climbed 47% in the first quarter. and great move today. it is up 9%. ashley: thank you so much. cost for the super bowl, are they out of control, you the taxpayer, i you paying big bucks as a result. is it time to rein them in. your tweets at the bottom of the screen as we are joined by mark dennis, and how much is being spent by new york and new jersey? i the taxpayers getting bank for their buck? >> a plan to spend $70 million for the game, the answer is yes, they are getting more bang for the buck both in terms of direct economic impact, and the communities receive on a worldwide basis.
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tracy: that is not what they were saying. and is totally costing the studio money as you pay for security and the truth is people are not partying in east rutherford because who would? >> if you are looking -- you may be right but if we look at it on a regional basis you would be wrong, not just on a micro level with blinders on for your owner blocks around town, and new york and new jersey benefiting tremendously this week? ashley: use a worldwide audience, everyone knows it is here? >> new york may be the only place that does not need all of this attention but can still use it. every other city whether it is new orleans or indianapolis
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miami, tremendously benefit from the world wide tension and green media. new york city is different. new york is new york. even new york benefits from this worldwide media coming in and it is free media. don't have to pay for the around the world and it is worldwide attention for a weekend of a longer. cheryl: because new york city has so many hotels in the areas they don't actually get to double or triple the prices, and they are not financially as much as another part of the country would. >> interesting point. a long time after the holiday season, on downside for the hotel, rooms are getting filled up, $800 rate, and the hotel tax rate approaching 20% that is
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more money did goes into the state coffers as well. ashley: the nfl says the economic impact for the new york new jersey area, do we take that with a grain of salt. these numbers are completely taken with a grain of salt, $60 million, move the decimal point. why does the nfl should for a high number saying that is not really true? >> the nfl doesn't put out those numbers. the host committee promoting the event. like all these economic impacts, the people that promote it, and people that are saying it doesn't have much value at the low side. and the most sense for new york, and the $240 million range of economic impact those are the ones that make the most sense.
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tracy: you were talking about it in a rate, big buzz kill. and tickets available, scared people off. could they be different had we not had the polar for attacks in town? >> there will be too much attention paid to the weather. people involved with the game did a disservice by spending too much time talking about contingency planning and bundling up. ashley: partly to blame for this. >> i think roger goodell struck the right chord. the ball played outdoors with the elements is something that is great and we should enjoy. stopped talking about contingency plans, you know what winter is like. and what football games are like. too much attention scared a lot of people off, a lot of people didn't travel for that reason.
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people in new york got scared off. we may see an uptick, and interest, too much attention paid to the weather. ashley: do we go back to florida or arizona for the next 12 superbowl? is this just a blip? >> i think this was a blip. we will go back to the warm weather climatts, more traditional locations, we may see a super bowl in minneapolis when they get their new stadium, so you won't have the same issues, for the most part we will see the nfl go back to miami, new orleans, arizona, san francisco will become part of the regular rotation, traditional super bowls for the most part going forward. ashley: thank you for being here. i know you are busy, appreciate it. tracy: take note, there are tickets available, we should all go.
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it won't be here ever again. ashley: leave eight hours before kickoff. part of the experience. it will be 50 degrees, and -- exactly. tracy: what i you drinking on sunday? more people a drinking wine than beer, how can we cash in? definitely on the italian variety. that is next on the friday wine segment. ashley: how about some wings to go on with the superbowl line. you won't believe how many chickens have given their lives for the big game. just like turkeys at thanksgiving, it is not ready. enjoy. welcome back. how is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping.
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fedex one rate. really makes my life easier. maybe a promotion is in order. goonews. 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. [ male announcer ] introducing fedex one rate. but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed itas low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prtate or breast cancer. women, especlly those who ar or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all
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medicaconditions and medicatis. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. adam: adam shapiro with your fox business brief. new york judge approved an $85 million settlement between banc of america and investors. that deal meeting june of 2011 settles claims from mortgage-backed securities that originated in its countrywide unit that turned toxic during the financial crisis. aig opposed the settlement. after meeting with ceos at the white house president obama says
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he has commitments from 300 companies to reach out to the 4 million long-term jobless. those firms agreed to recruit those who had been unemployed longer than six months. consumer spending increased in december rising 0.4%, double the forecast for 0.2% jump. personal inccme remained unchanged. that is the latest from the fox business network giving you the power to prosper.
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my fine italian -- with more on this trend we are joined by ceo antonio cologne. you may name for yourself as a wine critic for wine advocate. that was old school writing reviews. what made you take this? now you are on the web, it is a constant flow of information, little videos, different from what you were doing. >> it is great to be on the show. it is fun to be here especially is this weekend. this is our vision of a modern day wine media platform and what we are after is to put leaders in the center of the conversations all i have this job where i traveled to burgundy, bordeaux, napa valley, champagne. it is a job.
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talk to my wife. and tasting these winds, experiencing what i am experiencing, venice is our way of putting the reader in the middle of the conversation. at its heart what venice is all about. tracy: what does venice mean? >> it is a word for younger exuberant wine. tracy: perfect for your viewer, young exuberant view. we want to learn, you are fooling people in that are intimidated by other forms of wine information. >> that is what venice is about, not just a higher end wines you alluded to but every week we talk about wine ended $25 you can open up tuesday night that is delicious, we talk about great wine restaurant destinations, helping people find what they like, not so much what i like but helping people understand not to be intimidated because wine is a marvelous thing that brings people
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together. tracy: fine wines in front of us, talking about an italian wines are making a come back. all about now, for awhile and people realize there are some fantastic wines from italy. >> it has to do with the way we want to live our lives, to eat healthier and more ingredient driven cuisine, focus more on vegetables, a pure style of food, a preceding generation, that is why there is massive interest in italian food all over the world and what is better than great italian wine? tracy: it is all from tuscany? for the collector with the everyday guy? >> in atlanta, they are in the mid 20s. and in the wine, it is a great special occasion wine.
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tracy: they want those in their cellars. this wine that we face every vintage of, a great track record to put their dollars behind. that proves what it is worth over time. tracy: what is the next trend? >> regionalization from tuscany, burgundy, calif. what is obsolete all over the world. tracy: you can learn about it, check out the website. i am so glad you were here. it was awesome. grab a glass of wine. ashley: little first the now. is a quarter till, time for a look at stocks every do every 15 minutes, as far to the stock exchange where jason wiseburg joins us.
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january, good riddance, how does that you are restart out? >> i will be the first to admit january's market is completely wrong, never in a million years imagined the equity market would have reacted so adversely to what is taking place in argentina and turkey, it is like greece all over again. february sets up to be really a much better month than january, to set to hire highs. earnings for the most part have been okay, guidance a little iffy, market activity very impressive, we started with a big downdraft, and they are not comfortable being short over the weekend coming from next week. let's hope we start on a better foot next week. ashley: thanks so much.
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it is time for the tech minute. december holiday sales, the stock being punished as a result, shares down, not a good day for amazon, $30 and 362, 363, up frasier prime, considering hiking fees on prime service with streaming and streaming video for revenue and earnings. the prime price hike is in the neighborhood of a $20 increase. and is worth noting, since the program started. you got hacked, yahoo! the latest provider to reveal the e-mail services, the company calling it a coordinated effort to gain unauthorized access to
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yahoo! mail accounts, not disclosing how many accounts were exactly compromised. yahoo! customers urging them to change their passwords, it doesn't appear yahoo!'s own servers were attacked. with a case of a third party database compromise. shares of yahoo! up 80% in the last year, you can see bucking the trend in the broader market up today, a little more isn't 2.5%. last week the search to replace steve ballmer has microsoft ceo may have come to an end, reports turned to a little-known sachya node nodell, a 22-year-old microsoft veteran and if reports are true this would make him the most powerful indian-born teck executive in the world. also talk that bill gates may step aside as chairman of mr softy should he take on the ceo role. looking at shares of microsoft, in a tough market up near the
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2.5%. cheryl: tracy: super bowl fever build. to view picking to win the game? we will tell you who the market wants. and -- ashley: 5,000 people expected in the new york new jersey area for the big game. we are live at the stadium. >> when your at metlife stadium in east rutherford new jersey the big game is 48 hours away and guess what, tickets are still available. you will not believe the price on line. lauren simonetti will have that story coming up. stinct shouting] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box.
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big money and the big game sunday from tickets to hotel rooms to keep the. lauren simonetti is looking at the super bowl by the numbers. >> 8,000 fans a tech to expend the game right here, 34 degrees is the temperature. that is the warmest temperature all week. on sunday is expected to be 49. that means we might see big demands coming in the final hours for tickets. tech iq says there are 8200 tickets available on the resale market and the cheapest price right now $1,247. it is all come down to is this. if you need a place to stay, going for $180, or bets is down 50% in the past week. is coming more affordable. a lot of people staying away from the area because of cold
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weather and restrictions at the stadium. can't just walk in and drive in, you have to plan things accordingly. there are a lot of restrictions. i want to introduce you to my main man over here peyton manning, we want to see him be the first starting quarterback to win super bowl for two different franchises, loving russell wilson over here, they are entertaining me all day. you are having a party, i want to leave you with these final front back, 1-1/4 billion chicken wings will be devoured, enough to go from seahawks territory in seattle to east rutherford, new jersey, 30 times, 4 million pieces sold and 50 million cases of beer. back to you guys. ashley: did someone line up the chicken wings? tracy: exactly. all right, the dow is down 77
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points, next up, and liz claman, she will have a special guest to talk about the super bowl economy. the marketing guru behind the super bowl contest, the coolest thing ever, to discuss the power of the super bowl economy, taking a peek at some of the best entries for this quite connick ad contest. do not go anywhere. when does your work en does it end after you've expanded your business? after your company's gone public? and the capital's been invested? or wn your cpan's bought another? is it over after you' given back? you never stop achieving. that's why, at barclays, our ambition is to always realize yours.
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once they're placed in my ear, i never think about my hearing loss again. showering is not a problem. traveling is not a problem. they're hassle free, they're 24/7, there's no maintenance, there's nothing to do. there's just absolutely no reason not to try it. 100% invisible hearing is wonderful. finding one that works 24/7 with no daily hassle is just too good to pass up. so call now and ask about your risk free 30 day trial. get a lyric in your life. ♪ liz: market mayhem, emerging market jitters to investors in a dismal month for u.s. stocks. will the turmoil continue and that you married? we read the tea leaves with our all-star panel and give you a game plan. the greatest show on earth is not just about football at super bowl xlviii but the ads.
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we have a fox business exclusive with the marketing genius behind this year's burritos crash the simple contest for all of america's madness wannabe. the modern day david versus goliath. this streaming giant netflix in a world where the dvd business has all but disappeared, they're fighting back and expanding with the secret ingredient. "countdown to the closing bell" starts right now. good afternoon. i am liz claman. the last hour of trading on the final trading day of the month and new york may be party central for the super bowl, there's a different mood on wall street with investors swamped by a wave of red ink but much less dramatic. look at these numbers on your screen. all the major indices while down
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