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tv   Markets Now  FOX Business  February 6, 2014 11:00am-1:01pm EST

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monica crowley is a first on how to get these people back to work. using your local post office as a bank? uncle sam wants to take care of your money for you and new york's newest crime fighters could be wearing google glass. the department things off device could lock up the bad guys out there and misusing twitter. there are a lot of ways to do that. we want -- we now learn most companies are using twitter more as a complaint line than a marketing tool which is the mistake. we have that and dagen mcdowell this hour of markets now. ♪ dagen: nice to see you made it. connell: there are ways to miss use twitter which is what i was thinking of when i saw that. dagen: i find my tweets here first. connell: find to worry about it and hope you get in trouble.
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dagen: speaking of trouble look at shares of twitter diving, growth in users. >> we are watching twitter, the biggest sell-off ever, the ideal in early november. 21.5% to the downside, $51.76, talk about that, the number one issue we are looking at pertaining to twitter. that is why you are seeing this stock dramatically lower. goldman sachs and others have been making some calls on twitter but it is not all bad. goldman sachs the target price of $0.65 up with a buy rating so is a mixed bag. it is as i noted mixed pertaining to what the analysts think on wall street.
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certainly worth watching twitter today, biggest sell-offs ever for the company. dagen: joline kent coming up with more on twitter. connell: more than one in six men, 25 to 54 prime working age do not have jobs. ahead of the jobs report coming up tomorrow. dagen: will they ever come back? monica crowley, radio talk-show host and fox news contributor. good morning. liz: they will be back with the right policies. we have to wait for president obama's term to be over before that happens because he has been committed to the policies we have seen that have been a huge blanket. connell: will they ever come back? any of these jobs, has been a long story, of gone not necessarily because of political reasons but economic ones, the world has changed, people are doing more with less,
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technology, all these things that happened, how would they come back under different leadership? >> that is the creative destruction of the free market where certain industries collapse, fall apart replaced by others that have more dynamism. what washington can do we saw during the reagan years and other presidents creating an environment for job creation regardless of this sector. that means getting washington out of the way and unleashing the free-market or reducing the tax burden, lowering tax rates, lowering the capital gains tax rate, cutting marginal income-tax rates. you get the government out of the way, give people the right to have more of their own money and what they earn they will put back in the economy in so many ways. dagen: in terms of unemployment among men, some of that is they can't get jobs that pay them enough to feel the need to start working again. doesn't that get back -- i don't mean to be little somebody in a situation where they lost their jobs, however it is an area of
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they could get a job but when they think is beanies them. >> there is some of that going on in this economy. we saw the cbo study saying obamacare is transitioning people out of full time working to part-time work, new study by duke university showing the same thing so we have these economic policies creating a broader economic affect. when we talk about working age men more than one of six, outrageous number, criminal to me, creates broader societal problems, so many working age men of work, you see it in europe and across the middle east, you end up getting bigger problems socially so the key is to have a growing economy. >> a question of incentives in the cbo report and the other report you referenced, what incentives are we giving people, what types of jobs will they take? will they take a job doesn't pay as much versus a job they don't like? all these things we have been talking about but the first
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point we made if you change the political equations and open up the free-market, and those incentives change, opening the free market might exacerbate these. >> when you have a political culture that this incentivizes work that makes it an easier to and i am not saying this is everybody but incentivizes people and pays them more in terms of benefits to stay at home because they know they will get every kind of social welfare program, obamacare, health care they will be less inclined to seek work. connell: the most they can -- >> fuhrer number of people so it ends up being a cycle that feeds on itself. dagen: does this change in a good way or maybe? the dinner equations where you have more women who are the breadwinners in their homes,
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more female power? that someone, the loss of jobs among working age men. women are back to -- >> the financial crisis, 51% of the work force. from a social standpoint and economic and cultural one this is a catastrophe to have this many working age men out of work. dagen: turning mailmen into bank tellers, financially troubled u.s. postal service, post offices provide banking service. connell: rich edson standing by on capitol hill. >> the post office losing $25 billion in the last three years. the service is floating in idea allowing basic banking services. and traction on capitol hill, democratic senator elizabeth
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warren writing in huntington post about this, quote, of the postal service offered basic banking services, just basic bill paying, check cashing and small dollar loans and affordable financial services for underserve families and at the same time shore up its own financial footing. coastal service figures could make $9 billion a year doing this but community bankers say when it comes to banking the government should stay out. >> you can do a great deal of damage when government starts dabbling in the financial services arena. government is at its heart a political animal. and what are you are talking about, tempted to influence financial decisions in one way or another. playing with people's financial future. >> the postal service has congress for the authority to sell other products and services, and so many interests.
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there is a bill in the house and senate, found their way, and stop losing billions of dollars each year. >> more than half of the s&p 500 stocks are what you call correction territory, 10% off of the highs, exxon mobile, ge, walmart, at&t, the founder and chief investment officer and investments, the top of the market cycle when people ask the broad questions like i stocks, markets up 150. >> i don't think so. i-man don other programmable months ago the time to take chips off the table is when complacency is high. a tiny correction, complacency is very high, complacency means volatility is low which means investors are in these markets not appreciating the full risk.
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the recovery we have is based on asset price inflation. if anything disrupt that, the recovery is down the drain. if everything is great, and we should appreciate those and take chips off the table. connell: what elder risks are you worried about? >> particularly vulnerable, because they are not as liquid. when fear goes up and volatility goes up, the markets that suffered the most but most notably we saw it in europe today the ecb at a press conference, we get negative deposit rates and this and that. they can't. in the north, speak for the first time next week, lay out her plan. she does not like these deflationary forces coming up, and will make it very clear,
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continue to be very active and as long as we have activist policymakers, it will be difficult to find market based prices and with that it is dangerous to be in these markets.% connell: we are not able -- sand -pthat as you are saying? >> i will never be there and the reason i say that is we cannot afford positive interest rates. ten years from now we might be spending a one trillion dollars more a year in interest expense alone if you take the of cbo projections and go back to, quote, normal interest rates. we can't afford that. connell: environment permanent environment like this? >> might go a little higher but we have negative real rates. that is relevant. got to have inflation, we are lucky these policies are not working. the worst fear i have is the policies are working because what happens to the bond market, how policiesmakers reacted that, we can see it play sooner, we
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are going to be in an environment where policymakers blame everybody, very interventionist, difficult time to be in the market. connell: interesting way of summing it up. thanks, good to see you. dagen: investors worried about the future of twitter. part of the problem is a businesses don't use it correctly. connell: then we have the new robot cop movie, and we far off law-enforcement tomorrow? the new york city police department actually testing google glass. dagen: more of a decision to no longer sell tobacco products. we talked to a doctor, continue to cut the number of smokers in this country.
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on altair thanks investment from coke. nicole: stock moving through new annual highs, green mountain coffee roasters, coca-cola take a 10% stake in the company. stock is up. this is a cute and move, 30% and 10570. the news is here, coca-cola stepping in, 10% stake in the company, $1.25 billion worth and will help to market a new product. and carbonated drinks, so the stream, and coca-cola up 1.3%, a lot of up arrows, green mountain even though their competitor higher as well. big news from the carbonated beverage area. dagen: checking on your global markets european market set to
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close shortly, 14 minutes from now and right now in england, france and germany germany being in the middle, nice gains across the board. nearly 2%. connell: one of the popular waste water is used today, actually for corporate apologies. over the last two years company apologies are up, nearly 60%. they look for keywords. sorry, apology, regret that appear from 10 to 40 times more frequently than in individual accounts. the city by the journal of pragmatics, companies using footage to market themselves but constantly apologizing after people complain. dagen: airlines use it for customer service to deal with flight delays. and we remember what president obama talked with the prime minister of denmark and david cameron. more importantly which phone
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should the president use? the paper did a study to see which phone takes the best selfy using the front facing camera. and followed by the samsung galaxy, the runner-up with a nokia, the winner for the best selfy cellphone. >> and look at that. dagen: better looking -- and the front camera. connell: the front camera. it was very ugly. this is an improvement. dagen: takes several day.
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don: we are trying to avoid mike benjamin references. connell: twitter may be the street. the ideal in november. the problem for a twitter, user growth starting to slow. dagen: yoga mats, rubber soles for issues, you won't find it any longer. it has been there. why is the bread so deliciously spongey, we will find out. ♪
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>> 22 minutes past the hour. this is your fox news minute. there is of brand new warning surrounding the winter games in so cheap. the department of homeland security has alerted airlines that terrorists may try to smuggle explosives onto a russia bound flight in toothpaste tubes warning that explosive devices could be assembled in flight.
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the department of homeland security saying the u.s. is not aware of any specific threat to the homeland at this time. the first round of peace talks is underway between the pakistani and taliban insurgents. both sides meeting amid growing doubt over the chance of success. extremists have been fears the trying to topple the pakistani government since 2007. the target date of breach, there are new developments resources telling security blocker that hackers stole network credentials from a vendor used by the retailer. cybercrook using those to infiltrate tied at's payment system network. those are your headlines at this hour. dagen: thank you so much. connell: the first quarterly report, twitter beating the street beating expectations but a decline in user growth hit the stock hard. dagen: it lost a fifth of its
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value or more in a day. joline kent is covering the story. >> it is plunging down 21% and twitter's ceo is promising to double down to fix the user growth problems because despite a strong earnings report the stock is sinking because user growth fell short and downgraded stock, twitter reported 241 million monthly active users in december which is a 4% increase from the 2 is 32 million at the end of september. the number miss the 249 million mark. analysts were looking for. and users were not as active either. if you look at the numbers they were not as active last quarter% they refresh the time line 613 times a month, down 10% for the third quarter. the ceo admitted on the earnings call using twitter isn't easy for many people promising, quote, we need to make twitter a better twitter, he indicated change is on the way saying,
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quote, we will continue to invest in making twitter a more visually engaging medium, a combination of changes introduced over the years that we begin will change the slope of the growth curve. since it went public the stock has been up and down and all around. looking at the full year outlook twitter expects revenue of $1.5 billion, double what it made, the growth in ad revenue twitter has been working hard on. they made a dollar and $0.39 for refreshes compared to $0.97 in the third quarter. co-ceo of twitter promising to change and become more satisfying for users old and new this coming year but no indication when that will look like or when it is coming. connell: thank you very much. dagen: they are not making it easier to use.
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connell: you are one of the people who likes that. hoping to change. dagen: not true at all. connell: a new face book setting and this and that. dagen: cvs. what about the future of the tobacco industry, polling tobacco products from stores. dr. debbie is here to tell us why this is the right company to make a move. connell: tobacco. dagen: i come from that part of the world. connell: subway not so fresh after all, the same chemicals used to make yoga mats has been used in subway's brad but times are changing. green news on this story coming up. [ male announcer ] this is karen anjeremiah.
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good news. i got a new title. and a raise? management couldn't ma tt happen. [ male anouncer ] inducing fedex one rate. simple, flat rate shipping with the reliability o fedex. connell: back to the markets now. it has been a big day on wall street with the dow up 130 points. we go back to the new york stock exchange where nicole has some of the top movers. >> it is easy to find big movers today. disney, for example, it is soaring. it is worth 23 dow points. the stock is up 5% after it did so well with everything from the movies, "frozen" and theme parks infinity.active with disney merck and pfizer are doing great this year with new cancer drugs. costco, same-store sales for
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january, those comps look good for the company. pandora media, down 11 1/2%, down 11 1/2%, i said it twice. that is huge move for pan doorla. yelp, huge move to the upside, . they saw better revenue than was expected. they have been adding customers, over 52 weeks, yelp is up 230%. great move. back to you. connell: not bad. thank you, nicole. dagen: cvs caremark makinn big headlines yesterday announcing it is pulling auto back coproducts from all 7,000 stores starting october 1st. connell: our next guest says simply this is the right time for this to happen. our friend, dr. devi, the professor at nyu school of medicine. why, why is the right time for this to happen. >> cigarette sales are going down, they have been going down 30% over the past decade. in terms of people smoking in 1965, said 40% or more thep
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poppopulation smoked. now it is under 20%. vcs may lose money but it is the ad ideal time for them to get out of this. >> do you think retailers and chains will start doing this and not selling cigarettes any longer? seems like the percentage of americans who smoke has plateaued or evened out somewhat in recent yyars. don't we need something to kick-start it to get more people to quit? >> they might. they might take that approach but the other thing is, why don't we say we absorb customers coming from cvs. connell: right. >> people do have to buy cigarettes. @n addition people buy cigarettes and buy other things from the pharmacy they buy other products. they can go to other pharmacy chains or convenience stores where most people buy cigarettes. connell: that is really the kind of the big question. we talked about it yesterday. looking at tobacco stocks, most likely what you mentioned, people will just go to the other places and business will go up. cvs will replace cigarettes with items where they have a higher
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margin to make more money and may not lose. maybe it's a win-win for everybody. from your perspective you follow health. won't have appreciable effect, will it on health story unless other companies follow suit? >> well, i think it depends. cvs is such a huge chain, you know? they're moving into other areas like medical clinics. they have minute clinics. so this is possibly a strong, solid business decision to expand in that area. dagen: they have pharmacy benefits management company. >> exactly. they have that and starting flu clinics. a lot of chains are bringing in doctors. maybe if they want to expand in that area it's a good move to get rid of cigarettes, you know? dagen: what do you think will get more people to quit smoking? >> i think casual smokers, people can argue if there are casual smokers or not, people who say get cigarettes on the way to the bar or something else, they may be less likely to buy cigarettes if they're not immediately available. if you have real addicts, people who know about the dangers who continue to smoke, it will be
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hard. they have to make a conscientious decision, go to smoking cessation clinic. work on the demand for cigarettes or tobacco. they're not necessarily going to be affected enough by one store backing out or multiple because they can -- connell: we talk all the time should the government be involved in various issues and industries. when the government -- first california. when they did it here, mayor bloomberg did it here, there is huge effect in terms of how -- dagen: banned smoking in bars. >> sure. big effect on people's lives. dagen: quality of llfe improved dramatically. you could actually go in a bar and eat dinner in a, in a restaurant bar, eat dinner and have somebody not smoking next to you. >> the culture has changed w he think it is normal where in the past people wouldn't have argued that. people argue how cvs might do the same thing for other food and junk food and chips and soda. dagen: don't get crazy. >> mayor bloomberg tried to do that with the soda. dagen: they sell beer and wine. >> they say those things are not
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as dangerous as tobacco. it is related to the fact that people really do buy a lot of those things. alcohol sales are high..3 connell: another one you might like. dagen: don't bo anywhere. dr. devi, stay right there the subway story. connell: heard us talking about this earlier. chemical used in the production of foam plastic mats like yoga mats and rubber soled shoes, could be soiled shoes too. turns out that the same thing is made to use bread or was used to make bread at subway. what? so a food blogger launch ad petition asking subway to get rid of this chemical and subway responded saying it already started the process of removing it. but it was there, remember that. the ingredient used as bread conditioner, to whiten the dough and make bread bake faster. approved by the fda and we should point out it is banned in uuk., europe, australia where they say it may be linked to respiratory issues. may be linked to asthma. there you go. dagen: dr. devi, this is crazy
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chemicals are used in food products. it raises an issue, what is in our food, particularly if it is mass produced. >> i agree. if you buy things at the store you have to see that list of ingredients and exactly how many calories are coming from each thing. i'm surprised they're able to do this. connell: because of -- dagen: what is outlook supposed to be. connell: who knew your yoga mat was edible. dagen: i thought bread at subway a little odd and always smells a little strange when it is baking. connell: not anymore. they're fixing it. dagen: well, okay. connell: thanks, dr. devi. >> supposed to be healthy. connell: that is the saying. that is what jared used to tell us. dagen: if you listened, thank you, dr. devi. newfie yacht chrysler automobile making a big splash at the chicago auto show. chrysler trying to send a message that its cars mesh with italian design with detroit sensibilities. connell: very, very nice, dagen. jeff flock is standing by meantime with chrysler senior
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vice president of product design and he joins us now. jeff? >> i asked you, dagen, do you know, is that an american car? is that an italian car? can you tell the difference? dodge voiper. that is? that is st viper. i know you know. most people would look at that and say it is italian car, right, ralph? >> it has the sexiness and certain appeal. >> how do you put these companies together. >> we've been together four 1/2 years. it has really been a common law marriage. now it is an official marriage. we learned a lot about each other. the companies have very compatible cultures. very can-do culture, humble spirit by passion and that is the thing that brings us together. >> you have worked for chrysler long enough to work for seven different ceos. >> yes. >> sergio marchionne, how does he stack up? >> i never met a human being who works as hard as he does, with such a command of business
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principles underneath the group. he knows a everything about it. >> everybody thinks he is doing great job. newfie yacht, chrysler automobiles logo. who wants to take credit for that one? you're the head of design but i don't think you designed that one. >> no, that was contracted out. symbol is humility of the company. really basic. meant to say, hey, we're here to stay. solid foundational look to it. >> other thing, it is funny, want to spin mike around here. that is one much your brothers over there that is the maserati. you are ot with the chrysler exhibit where the dodge is and ram truck is. you're over here with the italians and sexy guys. >> exotic cars. i've been lusting after maserati my whole life. i love what they stand for. it is neat to be kindred spirit. >> i want to talk about the super bowl commercial and bob dylan and made in america. you're responsible for the made in america.
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>> just came out as the star of the commercial. i love what he said at end, we will build your car. that is a cockiness there. we're back in the game and have fun again. >> pretty sexy guys doing commercials. >> that's what we do for a living. so it is fun. >> ralph, always appreciate the time. head of design for chrysler, has been since 2000? >> and eight. >> 2008. seven ceos, wow. been working here seven years and only been one. dagen: by the way can you hear me? that lime green viper, you know who droveethat on tv? >> you like that? dagen: no. kenny powers drove it on eastbound and down. and he might be one of the greatest jerks on tv of all time. he had a lime green dodge viper. kenny powers. that is pretty cool. >> cool car. we can paint it for you if you like. connell: right, always that option. always that option. dagen: cool to have kenny powers's dodge viper. -@connell: come off the shot wht
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is in a face? facial recognition software goes mainstream. complete strangers can now know everything about you instantly. dagen: judge napolitano is fired up and he will join you next.
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>> i'm lori rothman with your fox business brief. we've got some earnings for you. kellogg's's reporting lower than expected fourth quarter revenue as north american cereal sales fell for the third straight quarter. the world's largest brake fast cereal maker and battling rival general mills and cheaper private competition. shares hits a 52-week low today. the trade deficit widened in december to 38.7 billion. the commerce department said that is a 12% increase over november. for all of 2013, the gap reached its lowest point since 2009 on the strength of our exports. number of americans filing for first-time unemployment benefits dropped by 20,000 last week to 331,000. the four-week moving average fell slightly to 334,000. and that is the latest business from the fox business network, ggving you the power to prosppr. opportunies aren't always obvious. sometimes they just drop in.
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connell: there is a new google glass app actually in development allowing wearers to detect faces and link them with millions of records, including your name, occupation, listen, dagen, even your criminal history could be on there. dagen: this at same time the nypd is testing google glass for cops on patrol. hmmm. connell: sounds good. dagen: put one and one together, it makes wellings something illegal perhaps? fox news's senior judicial analyst judge andrew napolitano can weigh in. it would be illegal for cops to use it, would it not? >> it would beeillegal for cops to use it unless they had what the law calls artic youable suspicion on the person they're using it. if they use the on connell like the tie, handsome face or hairstyle. connell: combination of all three. >> something comply men at thatry or innocuous, they couldn't. but if they had reason to suspect he was up to no good. dagen: with a hand tatoo.
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>> not even a hand tatoo. some reason to suspect criminal behavior they can commence an examination. connell: same way they could in old-fashioned way? >> same way they could by looking up paper records or typing into their ipads. think of this google glass as a small, minature, literrlly in your face ipad. doesn't do anymore or less than that. in terms of individuals using it on other individuals, remember the fourth amendment only protects privacy from the government, invasions of privacy from the government. doesn't protect invasions of privacy from other individuals. and is it really an invasion of privacy when what the google glass is going to download what you have already made public about yourself already on the various social media sites? but when the government begins to gather that, that is starting an investigation. and it means articulable fishing shun of criminal behavior to trigger the investigation. dagen: but it is perfectly legal for an individual to wear google glass and do --
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>> people will find it freaky and the word i saw this morning was creepy until they realize -- dagen: it is not like a phone where they're scanning your face. they're doing it and not aware of it. connell: interest could be a lot of' abuse potentially. >> there could be a lot of i have a abuse. i think the government will try to regulate it in some way because it might very well be annoying. but somebody with google glass will come up to you in a restaurant and say something to you, how the heckkdid you know that? realize it was something you said with dagen on air two days ago. connell: kind of fun to have that power, wouldn't it, judge? we'll all have the power as long as the government doesn't have that power. dagen: new york city, actors walking around, women with no makeup and scan their faces because they want to figure out who it is. >> that is remarkable when you thinn of it. connelll are you supporttve of the idea given restrictions you talked about? >> i am supportive of the government leaving it alone.
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and i'm supportive of the government complying with the fourth amendment. dagen: okay. >> theoretically a lot of stuff about me out there that i didn't put out there. people captured it from the various venues we appear. there will not be a piitures of inside of my home but pictures of i and eye producers posted of me. i put it out there. why would i complain if somebody gathers it? dagen: it is totally cool and legal to flash your lights at somebody, in on-coming traffic to let them know the cops -- >> in the state of missouri it is legal. dagen: nationwide, isn't. >> here's the thing cops have been pulling people aside on them ad none meshing it. there is no law prohibiting them in most states. they admonish them because to cops it is frustrating when one driver is warning another driver because the cop is up the block with a speed trap. cops, most of them seem to be more interested in the credit for a ticket and money generated
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from the ticket than people driving sllwly. what is effect of somebody flashing at lights of you warning of a speed trap. you obey the law. that is the goal of all this. connell: that is very right. >> judge reviewed this in maryland actually enjoined, not maryland, missouri, who enjoined the police in the state of missouri from doing this, said, this is freedom of speech. you are using your high beams instead of your tongue. dagen: equivalent of calling somebody on the phone saying there is speed trap quarter mile down the road. >> which is perfectly lawful. connell: that is old school. google glass is kind of funny -- >> flashing the headlights has been going on forever. connell: for years. thank you, judge. good to see you. >> likewise. dagen: coffee prices are down slightly today following seven straight days of gains. connell: sandra smith has more on that coming up. that will be the trade today. stay tuned for sandra. first some of the winners we're seeing over at the nasdaq. good day on the markets.
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can you start tomorr? alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked lid. we close on the house tomorrow. i want one of these opened up. becatorow we go live... it's a day full of promise. d n, tday arrives by train.
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g day today? even bigger one tomorr. when csx trains ve forward, so does the rest of the economy. g d y today? csx. how tomorrow moves.
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connell: we are back to talk about coffee prices now with you. actually down slightly today after seven traight days of gains. dagen: sandra smith has today's trade. hey, sandra. >> we'll start out by looking at this year-to-date chart of coffee prices. this is the spike everybody is talking about. everybody is fearful their coffee will go up in price or fearful some of the stocks they own could be affected like green mountain coffee roasters. coffee prices year-to-date are up 29% buttit has actually been very volatile. just brings us back to where
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they were a year ago so prices flat compared to same time last year. keeping that in mind this is the biggest seven-day spike in coffee prices in 14 years that makes you look at some of these coffee companies. obviously we're watching green mountain coffee roasters. coca-cola bought a 10% stake in the company. that is why it is getting this 31% jump. it has done well over the past year. guess what? analysts are saying, don't be worried about the high coffee prices. the margins, the margins at these coffee companies are so big, it would take such an incremental jump in coffee prices to actually make a dent in their profits although the single biggest cost for most of these companies. green mountain coffee roasters in 2013, heir gross margins were 37%. even bigger than that, starbuck's gross profit margins, 5% in 2013. guys, that's why you see other companies like dunkin brand and particularly mcdonald's wanting a big chunk of that
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coffee market because there are such big margins when it cops to coffee, that these skyrocketing coffee prices will not likely raise your cup of joe either. a lot of analysts are calling this a blip a short-term blip and not enough for people to raise prices to pass them along. i cleared the air on this, dagen and connell. this is one of the most read stories on fbn.com. everybody is worried. dagen: they should be. connell: thank you, sandra. we have breaking news. we'll show you a live picture. here it is of, north dallas in texas, coming in today. the snow's falling there. it is currently 18 degrees. through especially in theher is southern part of thh country. you're wrong. it is continuing today. of ccurse it has been tough to handle. ask atlanta and some areas not used to it as others. >> may i make a suggestion to the fine people of dallas and fort worth. stay off the road. don't drive. connell: might have to go to work. dagen: if it is treacherous and
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dangerous, don't get in your car. connell: it is dangerous. i got stuck at dallas-fort worth airport pause because of ice. dagen: people go out in the suvs, giant vehicles and drive too fast and think oh, i've got four-wheel drive. you can't stop. connell: that was huge issue yesterday. the mix. dagen: they're hauling you know what. slam on the brakes and the thing skids all over the road. connell: today is better. flag is waving behind juice you want me to do the weather check? connell: do the live weather report. dagen: sunny out. connell: thanks. dagen: roads are dam 7. connell: love you what you do that. dagen:aol turning heads with ad sale growth. kim armstrong, the chairman, joins cheryl and dennis. connell: some think it's a good idea for the post office to get into banking. that story and more next on "markets now." you? [ male announcer ...you'd expect ushave a highlykilled call nter.
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coke. it, it has every element of failure written all over it. cheryl: outrage other a post office plan to get into banking. hello, everyone, i'm cheryl casone to take you through the next hour of "market as now." the post office wants to fix its financial woes by handling your money. who thinks it's a good idea. stocks are back in the black on better than expected jooless claims, but tomorrow's jobs number is key. we have one top strategist, and he's going to tell us how he is playing the markets today. and take a look at aol shares. the stock is actually tumbling as you can see on your screen, down 2.5% despite an ad sales boost that helped the company post its strongest revenue in a decade. chairman and ceo tim armstrong will be joining me. we're going to have this and a lot more in the next hour of of "markets now." ♪ ♪ cheryl: well, one thing we do have today, at least, is the dow
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up 145. will this, of course, bring us back up to that 16,000 level, and at this point we're far from it. and one day does not a market make, unfortunately. dennis: yeah. but to be up at all has been so, so widespread, i'll take it. maybe it's just selling fatigue and we've got top of the hour stocks, nicole petallides at the floor of the new york stock exchange. nicole, what do you think? >> reporter: well, that's the question. you know what's really going to, you know, it's hard to really gaugg which way the market is going to go, dennis and cheryl. what to i think? well, a couple of things i'm watching ery closely. the dow jones industrials up 148 points, that's about 1%. the s&p 500 also up 1% sitting at 1768. tech-heavy nasdaq with a gain of 43 points, but when you watch the dow jones industrials up about 1450 points right now -- 150 points right now, what's interesting is it crawls back up above the 200-day moving average. that's a good, telltale sign. but the question is whether or
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not it holds that level. analysts will be watching that closely. vixx has been the lowest level since we've seen since last trued, so things have reserved to a certain extent. however, we are still down for this week. we did get in some good news from disney, so we've seen some up arrows on some of these companies, been helping the ddw along as well. back to you. dennis: all right. thank you, nicole. and some of the biggest stocks on the street already in correction mode with more than half of the s&p 500's companies down 10% or more from recent highs. rob hover morgan -- morgan joins us now, and, rob, is this profit taking or are investors losing hope? >> well, dennis, i think certainly at the beginning of the year it was more profit taking than anything else. we had a lot of low volume days at the beginning of january, and then, of course, towards the end of january we began to get some
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bad data out of china, manufacturing data, and that really accelerated this, this pullback. and i think, you know, we were down about 7%. i think, though, the fundamentals still remain pretty strong. i'm not sure anything's really changed with the scenario necessarily. dennis: yeah. because somm of the selling another global meltdown since it started with some of these international currency jitters. now, there's two averages to watch, the 50-day moving average and when it falls, it makes you worry in the short term stocks are going to fall, and there's that 200-day moving average. and when that goes below where it's been, makes you worry the decline is going to be longer lasting. now, we lost the 200-moving average, fell below, and then suddenly today it's back up. are you surprised by that? does it make you feel any better? >> well, nicole, and, of course, nicole mentioned that a minute ago, anddthat's certainly healing some of the connect call
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damage -- technical damage done to the dow. the s&p 500, though, which i follow a little more closely, it's a broader index, you know, it's 500 companies instead of 30, it's actually wwll above its 200-day moving average. it did break its 50-day, and that's painful, and that damage has got to be repaired as well. but, yeah, if the dow's able to hold the 200-day moving average as nicole pointed out, that is certainly a good sign. another good sign that she mentioned too, you know, the vixx hit a one-year high last week that coincided with the big sloff day -- selloff day of the year. and, you know, as that begins to come back more in line, i think that that may be showing us perhaps we hit a bottom when we were down 7%. but it's, obviously, bears watching. dennis: in terms of the next leg of the market, you clearly doo't see crisis here. is this the start of a gradual rebound?
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are we going to see more ups and downs like a roller coaster? >> you know, i'm advising clients who may have had some cash on the sidelines that this is probably a pretty good entry point. dennis: wow. >> we talked about the technical damage to the s&p 500, but at the same time, you know, the pe ratios for stocks, they're still about their historic norms. they're a little bit cheaper now than they were at the beginning of january. earnings estimates continue to actually expand in some sectors, and, of course, you know, the retail investor still hasn't gotten back in the market in a big way and, of course, months like january will continue to keep ttem out, there's no doubt about it. dennis: okay. let's look at -- >> but those are all good signs for stocks. dennis: you want to overrate small caps, smaller companies versus large cap. you like growth versus value, and you say overweight international at a time when those currency jitters, and my gosh, everyone is all atwitter, but you like international?
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>> you know, i guess that's probably my biggest contrarian bet, dennis. and part of the reason is because even though the u.s. is entering a period of rates rising eventually -- they're not anytime soon, but eventually -- the rest of the world is still more in a rates-dropping mode. and that, depending on the part of the world, obviously, that should bode well for international markets. tennessee deb okay. well, you know what? you got a spring back in my step this morning. thank you very much, rob morgan. [laughter] >> sure thing, dennis. thank you. cheryl: well, shares of aol edging lower after being up as much as 7%, this after the company posted its strongest revenue growth in a decade, up 13% from just a year ago. but as the company shifts away from subscriptions and wrapp up its exit from the hyper local news service patch, what are they doing to compete against google and yahoo!? let's bring in tim arm stomp --
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armstrong, the chairman and ceo. good to see you again. >> cheryl, nice to see you. cheryl: i want to talk to you, first, about the activity we're seeing in the stock. we spoke with an analyst that said during the conference call after the relief when you started to talk about third and to them -- to him, excuse me,med that you were talking so much about the back end. he is nervous about the front end of the year, first and second quarter. i want you, first, to respond to that because that seems to be the reason that your stock is selling off right now. >> cheryl, so, first, you hit it up front. the olympics are starting this week, and we had an olympic performance for aol. no one expected us to get back to double-digit revenue and profit growth which we did in q4. look, i'm the single largest shareholder in the company. i don't really watch the stock price probably as close lu as you do throughout the day, but what's really important is the long-term value of what we're building. if you look at what aol announced today, we're very strong in video, very strong in
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mobile, very strong this consumer traffic. we had 17% growth in our consumer trafffc quarter over quarter at the end of q4, and if you want a tailwind of where the industry's going and where aol's going, we're very, very strong play both for consumers, customers and advertise ors. so, you know, whether or not wall street has concerns, we're laser focused on precisely operating where we are. most of the investors i've heard from, a lot of our top shareholders and top an lusts, i don't hear a lot of concern. i heer a lot of, wow, great results, and you guys have done everything you said you were going to do. cheryl: you did, again, best performance you've had in ten years, certainly to be congratulated. the patch story continues, and that was something you touched on and the fact that those layoffs at patch, that is going to be on the books of aol. i mean, you know, you partnered up with hale global, you're handing over that majority stake in patch. i'm curious if you're worried
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about the decision here with patch and if it maybe is something that, you know, is another way for you to go into hyper news, to go to hyperlocal news but do this in a different way now that you've rid yourself of the patch acquisition? >> yeah. we essentially, you know, our strategy has been to go to very large white spaces and innovate and acquire and grow. and kind of four or five areas we've gone into, you know, patch has been one of them. and if you look at videoo if you look at huffington post, look at success we've had in a bunch of the different acquisitions we just acquired, patch is a specialized situation that serves a specialized market, and we felt the best thing we could do was partner with somebody who was hyperfocused on hyperlocal. so we are still a majority/minority shareholder in that, and we expect that business to continue to be restructured and the product to improve. so we're not getting out of hyperlocal, we're just coming in with a partner on it now which i think is the right decision for us and a tough decision.
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but we really are excited about our big growth markets. i would say the hyperlocal market for us is something that we're going to work with hale on in general, but the company's performing very well because we've done well -- cheryl: but i'm wondering if that's going to be more acquisitions. certainly, you mentioned the acquisition of gravity, that's one strategy. but are there going to be more coming then? >> you know, as we've seen from us, you know, we've done a really good job at three fronts, one is basically returning value to shareholders as we have done the turn around, second piece is to operationalize the assets we have today. look at the huffington post going from 20 million users in one country o 94 million users on five continents, and the third strategy is look at partnerships and m&a. we've done that for four years, the three-prong approach. we're going to continue. imminently, there's nothing on the radar screen from an acquisitions standpoint, but we just did one, and we're focusing
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on operationalizing gravity which is a great company of the future. cheryl: i want to go back to 2010 with you. when you bought a company could about me. they'd been public for literal lu four days. you bought them. fast forward to 2013, february, you decided to actually sell back to the owner of the company the majority stake in that company, the founder of that company, excuse me. after that all shook out in february of this year, the company actually boosted their profile. they had 1.6 million prrfiles at the time when you sold back your stake, now they're at 4.25 million users. i'm curious if you regret the accuracy decision about me? -- acquisition of about me? >> as i said on the earnings call todaa, one of our key attributes is to change and move quickly and calibrate our strategy. as we've started to get more into content video and ad sttck
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profiles, about me did not fit our company profile. we sold ii back, essentially, to the founderr of it and still own a stake in it in general. so i think, you know, look, my job is to make very, very precise and well-timed acquisitions and bets along with organizing our current strategy, and, you know, we're probably batting .800, .900 at this point. so i don't think our investors are complaining right now with the returns they've gotten. -@and if you look at the act -- acquisitions, we have done huffington post, gravity, and our success today has nothing to do with about me in a positive or negative way. it has to do with us really going after the single largest opportunities we can as a business. i hope about me is really successful, that'll benefit us and our investors still own a piece of that company. but we really focused on how do we move the big needles, and ur
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q4 earnings are a big needle mover for us. cheryl: i've got ten seconds, tim, but the rumor mill still keeps turning about you and yahoo! doing some type of merger. would you consider it? >> we are big partners across multiple parts of our business. we are focused on one thing cans operating our strategy, and we're doing it very successfully, and that's the main strategy. cheryl: tim armstrong, a great quarter for you. tim, thank you so much. we certainly appreciate your time today, and we can't wait to see what happens in the next quarter for aol. congratulattons. >> thanks, cheryl. cheryl: chairman and ceo of aol, tim armstrong. switching to swg else now, a proposal from the financially-strapped u.s. postal service is gathering support in washington. the plan would have post offices provide banking services. rich edson is live from capitol hill with more on this. rich? >> reporter: well, for years the postal service has been asking for the authority to do other types of business. congress hasn't approved any, but now there is some traction
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behind allowing them to provide basic banking services, basically, because they need the money. they lost $25 billion over the last three years alone. senator elizabeth warren writing in the huffington post that she supports it. she says we need innovative ways to create pathways for struggling families to build economic curt, and this is an -- security, and this is an idea that falls into that category. quote: the possal service appreciates all innovative ideas to generate revenue and enhance the custer -- customer's experience. however, community bankers say this financial services is no place for the government. >> anytime you have government trying to impose itself on a free market, free functioning system like our financial system in this country, it's a bad idea. >> reporter: the postal service says they could make $9 billion a year doing this type of business.
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however, that would have to bo through congress, and it's taken years for congress really to do anything on the postal service. there are proposals to reform the postal service on capitol hill, and neither has passed congress. back to you. dennis: thanks very much, rich edsonn and coming up, growing papes for twitter. will it get its action together the way facebook did? cheryl: and we are heading live, you know you can't wait for it, to the chicago auto show. there's a ye preview for you. -- live preview for you. we'll be right back. ♪ ♪ [ female announcer ] who are we?
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we are thinkers. the job jugglers. the up all-nhts. and the ones who turn ideas into action. e made our passions our life's work.
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cheryl: all right. time for stocks now. the dow is up 158 points right now. let's bring in nicole from the floor of the new york stock exchange. you're watching shares of yelp right now, hitting a new high. >> reporter: a lot of names to watch here on wall street. it is earnings season. we're hearing about beats misses, in this case some nice revenue numbers out of yelp. the stock's up 18.5%, almost $14 at the moment at $88.87, but it
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did hit a new high of $91.49 which only helps the one-year performance, moves it up to 236% return. i don't think anybody on wall street would turn that down. what a wonderful move. as i noted, what we saw was the fourth quarter loss narrowed as revenue did jump. they continue to attract more visitors to yelp which helps them along as well as those local business accounts. back to you. cheryl: all right, nicole. see you at the bottom of the hour. dennis: it has been a record year for ford with 23 new products unveiled worldwide. jeff flock is live at the chicago auto show with joe henricks who runs ford's american business and has the latest innovation. jeff? >> reporter: and he is the guy who unveiled the probably most important vehicle that ford will have in the -- you have 23 unveils coming up this week. >> that's right. 16 in north americc alone, so big year for us. >> reporter: by the way, i've
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got to show you, that's an f-150 with a snow snowplow on it, and if you live in the midwest, that could come in handy. >> yeah. we offer it on all the cabs, and of us in the midwest, so thatall comes in handy. >> reporter: one of the things that's had kind of a chilling effect on profit going forward because you're spending a lot of money unveiling and updating a lot of vehicles. >> right. especially the truck plants. 13 down weeks this year. big deal for the rest of our incomes and trucks, but, yeah, 16 new launches takes some down time to make happen. >> reporter: speaking of ford history, that, by the way, is the very first ford mustang ever sold, 1965. a girl in chicago talked the dealer into selling it to her two days before the launch, right? >> right. her name's gayle weiss. it was gayle brown at the time. she talked him into selling it to her on april 15th. she got the first one. >> reporter: and this still exists, she still owns it.
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>> yeah. >> reporter: which is pretty amazing. and, of coorse, that's the new mustang over there. there's a lot of media around here which i guess happens on media day. that's what you like. >> it's called a show. [laughter] >> and the one thing you like about the focus on the cars, for a while there was a focus on executives and uys like you and who's going to run the company, all that. you would rather have the focus on the vehicle. >> it's all about product. ultimately, the value of our company, all of our jobs, it's about serving the customer. we're so excited. mustang, 50 years. first time doing a new all of aluminum. we're just excited about being able to serve our customers. >> reporter: the young plant manager in the history of automotive production at gm back in what year was that? >> '96. that was a while ago. >> reporter: from the plant floor to the executive suite and who knows where from there. joe, always appreciate it. good to see you. his daughter in school here this chicago, by the way. she needs that snowplow. [laughter]
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cheryl: that's true. there you go. thank you, jeff. tech companies may be bringing jobs to places like san francisco and seattle, but they're also striving up rents and housing prices. a new study illustrates just how high they are jumping. dennis: and what is facebook doing right that twitter might be doing wrong? we got a guy. [ male nounce] if you're taking multiple medications, does yourou often feel dry? a dry moutcan be a side effect of many medications but it caalso lead to tooth decaynd bad breath. that's w there's biotene. available as an oral rinse, toothpaste, spray orel, biotene can provide soothing relie and it hes keep your mouth healthy, too. remember, while your medication is doing youood, ary mou isn't. biotene -- fopeople who suffer from dry mouth.
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>> about 25 minutes past the hour right now. hi, everybody, i'm jamie colby. we're hearing the syrian government is striking a deal with the united nations securing the evacuation of hundreds of civilians in holmes. they've been trap -- in homs. syrian state tv not giving any additional details on that deal, only saying the evacuation would take place very soon. and north korea today is threatening to cancel reunions between families in the north and in the south that were divided after the korean war. the move coming amid joint military drills that are about to begin with south korea and the u.s. the north accusing the u.s. of raising tensions by flying a bomber near the korean peninsula. and el salve dohrn fisherman who claims he was lost at sea for and months -- for 13
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months is having health issues. doctors are saying he's severely dehydrated and also low on vitamins and minerals. the castaway managing to visit with the media, though, they always seem to find time for that, and some are still skeptical of his whole story. those are your headlines at this hour. i'll send it back to dennis and cheryl. guys? dennis: what's bugging me is the minimum wage debate. now, like everything in washington these days it gets so distorted. anecdotes and ideology end up trumping facts and rational fixes. now, the democcats want to raise the minimum wage, so they're the good guys. the republicans don't, so they're the bad guys. but who's right? got some numbers for you. we have a population of 330 million people in the u.s., 125 million of us have jobs. only 3.5 million are on minimum wage, and half are under age 25. high school kids shoveling february. fries -- french fries. so raising the minimum wage will
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make the dems look good, but it will kill half a million jobs, economists say. and it isn't just a theory. minimum wage is a job killer in europe. in countries with no minimum wage at all, the jobless rate among the young was at less than 20% in 201. and at almost -- in 2012. and almost 30% in nations that do require a minimum wage. the jobless rate is 50% higher in countries that force employers to pay a minimum wage. but here comes our president pushing this false fix anyway. he wants to raise the minimum pay 40%. par for the course. so tweet me @dennis kneale. is it a real fix or political posturing? cheryl: house speaker john boehner lowering expectations for immigration reform to be passed anytime soon. new details for you coming up. and twitter shares in a nose dive today after disappointing earnings. we're going to look at what the company is doing wrong and why they should be thinking more
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like facebook, coming up. @7 ♪
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♪ e what's new at projectluna.com they don't know it yet, but they're gonna fall in ve, get married, have a couple of kids, [ children laughing ] move to e country, and live a long, happy life together where they almost never ght about money. [ dog barks ] cause right after they get marri,
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they'll find someinancial folks who will talk to them out preparing early for tirement and be able to focus on other things, like each other, which isn't rocket scice. it's just common sense. from td ameritrade. >> twitter losing billions of sollars in market value on so-so growth. what it could learn about advertising ahead. john boehner capping down on immigration reform this year and a new study finds how much the tech boom is driving up housing prices around the country. the chief economist is here with the numbers. stocks every 15 minutes, let's get to the floor of the new york stock exchange and nicole petallides. i am liking this day better than recent days. nicole: if you are a bull, the dow jones industrials are up 140 points above the 200 day moving average. that is a level of last weekend
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you see plenty of green on the screen, the dow components led by disney. look at a name i am watching closely, 4.7%, on the move, this is the parent of victoriana's secret. came out with same-store sales for january, and costco did well. some retailers had a chilly january. green mountain coffee is on the move, new high as coca-cola faces 10% to work on a single carbonated soda tight drink. it is up 10%. tesla, number 5. it is up number 11 and consumer reports. advance auto parts, new high. dennis: it faces a new threat by
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green mountain coke. cheryl: john boehner effectively drop in immigration reform from this year's house agenda. peter barnes live from washington with the latest developments. is the surprise turnaround by the house speaker. peter: the speaker has cooled immigration reform from the house agenda. according to sources on capitol hill talking to our fox news colleagues john boehner is putting up a stop sign on reform to internal party divisions on how to move forward on legislation with some republicans reportedly favoring keeping the focus on obamacare rather than risk internal party warfare over immigration. in a press conference just finished moments ago the speaker would not say on camera that reform is dead for lee year but it will be difficult to get it passed. republicans are worried about the president's use of more
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executive actions to implement policy. >> there is widespread doubt whether this administration can be trusted to enforce our laws and will be difficult to move any immigration legislation until that changes. >> these remarks came a day after mitch mcconnell raised doubts about immigration reform legislation this year. he said the two chambers are too divided on process with the senate looking for a comprehensive bill and house republicans want to take a piecemeal approach. jay carney is briefing reporters right now and says the administration has seen progress on the issue with republicans and will keep working with congress to get legislation done this year. cheryl: peter barnes, thank you. dennis: twitter tanking as fourth quarter is overshadowed by disappointing growth and
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advertising engagement. all this as facebook is hitting its stride. let's bring in eric francey, online whisperer. is there something facebook is doing right that twitter is doing wrong? >> thank you for having me. there are a couple things. facebook is just a larger service in general, five times the active number of users. dennis: brings ten times the ad revenue of twitter, distilling to what it has got. >> it is a different service. you set up facebook and it is for everybody. you can connect with a friend, a business, posted picture, it is easy to use. twitter is different. it is about what is happening right now. it is about news, sporting events, what is going on in the world. dennis: that makes it less appealing to an advertiser? >> it is the killing to an advertiser whoowants to be in those environments but not necessarily my audience is here and built a whole presence on top of the like they do on
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facebook where they need to market every single day. facebook has not cracked the reason for marketers to have a consistent presence and spend a lot of money. dennis: twitter doesn't give brands the consistent reason to advertise. is this a divergence we see where facebook is a better place for ads? what can twitter do to change the imbalance? >> i don't think so. twitter is a fantastic service. they could do well to make the service easier to use and understand and the ceo acknowledge a big priority for the country. it is easier for users. get more users on the surface, get the more engaged, that will naturally circus, more opportunity to connect with advertisers. it is about big events, superbowl, amies, oscars and. dennn the sur bl 1 min people watched, 5.6 million people tweeted, four five tweets apiece, that does not sound like a media revolution.
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are you concerned with that? >> it is very early for twitter. it is 34 users to understand how to engage on twitter. last year was a blessing for them because they had a blackout everybody rushed to twitter to find out what was going on. it was a moment made for twitter's real time natu dennis: wall street has shifted, worried about your subscriber growth falling and we are more interested in seeing how you do selling ads based on the people you got. is twitter at critical mass where we no longer worry? 240000000 users, wall street decided not enough, killed the stock down 20%. >> it has got to be both. because it got slow growth, focusing on growth. he said it is a top priority, they doubling down on user growth making it easier to use every single day and got to go
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around. dennis: about 110% for the whole year accelerating to a $600 million ad sale business. >> top-10 in the u.s.. and did it in three years. dennis: wall street could be overdoing it. thank you for being with us. we appreciate it. cheryl: time for west coast minute, seattle and is accompanied principal power received initial regulatory approval to build five massive wind turbines up the oregon coast line. -pthe project would be the firs offshore wind facility along the west coast. the turbines should be up and running by 2017. kind of cool. officials say $14 million in additional funding to help californians deal with the severe drought and water supplies, water districts and the growers get the bulk of the assistance money.
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the drought is threatening california's agricultural industry but thousands of jobs in that region. finally arizona will be the first u.s. state to attempt a legal fight of nsa surveillance. arizona state issued a preliminary approval to a bill that will no longer support intelligence agency collection of mated data as well as banning the use of warrantless data in court and prohibit state employees from helping agencies monitor phone calls and e-mails and that is your west coast minute. dennis: protestors blaming google and other high-tech companies for income inequality. how bad the issue is. ilen yelli] [ telephone rings ] [ shirley ] edwa jones. this is shirley eaking. how may i help you? oh hey, neill, how areou? how was e trip? [ male announcer ] with nearly 7 million investors... [ shir] he's right here. hold on one sec. [ malennouncer ] ...you'dxpect us to have a highly skilled call center.
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kevin, nll holley's on line one. ok, great. [ male announcer ] and we do. it's how edward jones makes sense of investing. ♪
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ashley: ashley webster with your fox business brief. the u.s. trade deficit widening in december to $38.7 billion. the commerce department saying that is a 12% increase over november. the gap reached its lowest point since 2009 on the strength of exports. general motors' profit of $0.67 per share missing the $0.88 estimate, revenue up year over year, short of expectations. first quarter earnings will be weaker adding the impact on u.s. sales in january was mostly weather related. u.s. worker productivity rising
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3.2% annual rate in the fourth quarter, the labor department saying that is down from 3.6% growth in the third quarter. non-farm productivity measures output the hour of work. that is the latest on the fox business network giving you the power to prosper.
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cheryl: protests in place in san francisco point the finger for another tech company to raise rents at home values, and, maybe not to you. the amount, san francisco and san diego, more than 10% and 12%
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respectively. >> san francisco,diego, seattle, double digit or near double-digit increase in rent. even though single-family construction at very low levels. the 15 year high, new rental apartment buildings. >> we seated google bust story. the companies trying to make it right. new construction, rental construction is picking up in -pthese cities. the lower and middle-income earners in san francisco even seattle. that will not satisfy those that
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are protesting. >> will not close the gap. and these tech hub that in most other places but buying even more expensive. it costs 80% to buy the same size health in one of these tech pubs than in other markets around the country so the gaps on big and have been there for a long time. when we look in 1990 when we had e-mail and the internet industry sprung up, these tech hubs by then, the affordability concerns have gotten worse in recent years, they were here before the internet industries where. cheryl: did you reach out to technology companies as well. one of the pieces connell: fax will rent home values especially in west coast cities will be salary ranges. the data you compiled for this
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report. >> we looked at census data where the industries and workers actually live, across the u.s.. some of the places, well-known places like san francisco and seattle and other places are actually more affordable are tech pubs, places like raleigh, north carolina and austin, texas. those are much more affordable than san francisco. they have a lot more construction and have for decades. cheryl: do you get a sense or is there a way to calculate a separate report by the labor department for future salaries because even tech company salaries even if they rise, they don't keep up with property values and rents, you have the disparage situation that we see in san francisco or a rally. the problem could become worse and this is a political debate as you know. >> the affordability concerns will continue, and more
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construction will worsen both in san francisco and other tech hubs making construction difficult. pbout?: how much are we talking >> right now there is a construction boom going gone, almost twice as much construction as normal for san francisco. >> it is far less than what is normal nationally. construction in san francisco runs a quarter of the rate of the national average so that is not enough to keep up with a strong demand. cheryl: the apartment building in dan found -- downtown san francisco, thank you. connell: the price of oats traded above corn for the first time in 12 years and going back from yesterday's ties let's go to the trading pits of the cme and phil flynn. phil: it will be a lot more
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expensive, all time high today. we never ceo trade above corn hardly ever. your seeing that today. the lowest level since 1960 and goats has to compete with oil for round space to get them out of canada to the united states. the united states the biggest importer of canadian oats and there's a possibility of a strike right now. they are in talks right now but if that strike goes on we will see shortages of boats creep up and that is why prices are at an all-time high. one thing is natural gas, is making a heck of a ronald next couple weeks. we saw inventories that came out bottom line with expectation of a big drawdown in supplies, cold temperatures well below the five year average. connell: thank you very much, phil flynn. dennis: or friday media minute, the perversity of wall street.
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sony shares surged up 4%, and response to it will run a loss of $1 billion for the year ending in march and bailing out of the bio laptop business. sony still struggling in the tv set business where it lost 70 straight years and cutting the pc business where it runs, an elegant product that could challenge avalanche the ceo will call that bio bailout an agonizing decision. the question is whether he will do something more drastic. how about splitting sony and 2 two companies, hardware and software content as i have been pushing for for four yearssand split up the x box video game business. a smarter richer guy, daniel load has been pushing them to spin off a piece of the softer side to free of the better visit from electronics half of the company, but sony said not going to do it. and raising the minimum wage. is this a real fix or is it political posturing?
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that is what is bugging me today. is bugging you we will find out after the break. cheryl: winning names on the nasdaq, green mountain, and automotives, we will be right back. [ male annocer ] e new new york is open. open to innovation. open to ambition. openo boldids. at's why nork has a new plan -- dozens of tax free zes all across the state. move here, expand here, or start a new business here
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dennis: raising the minimum wage. is this a real fix or political posturing? what is bugging me. here's what you had to say. just political posturing. the government could easily reduce the income tax on minimum wage earners and get the same effect. mike kelly reaffirms sayyng it is political posturing with a range won't affect that many workers. better idea cut taxes, reduce, create jobs, increase failed
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political ploy so the dams can have they hope will winning issue for keeping the senate. jim makes a good point on saying political posturing givinggkids a raise, he stays, doesn't look for better job. i wish i had made that point. cheryl: awesome place in hawaii. security is on high alert for the sochi games. concerns that the terrorists may smuggle explosives through toothpaste tubes. the u.s. department of homeland security to awarding the toupees tactic may be used on russia bound planes, abundance of caution surrounding the olympic games but no threat at this time. the opening ceremony for the games is on friday but some of the competition's may have begun. people are asking jay carney in the briefing about this issue. dennis: no word how floss' might be affected. we remember this famous selfy with president obama and the prime minister of denmark. what phone was he using or more
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importantly which phone should % he have used for the flow? our friends at the new york times did a study to see which phone takes the best selfy using only their front facing cameras legion last place the i phone 5s followed by the samsung ga, the nnerp inokia 10 at none ughtnd theinr est selfcellone theh t c e brze a immigration hoe spkerignalling a rough road ahead. one of president obama's top priorities. cheryl: investors are not following twitter today, the stock got hit, it is down more than $14. that is not going to be scaring .oo much ark may haney. snow and not enough salt to melt it. sending states scrambling. surprising alternative in case you want it back. welcome bk. how is everything?
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cheryl: a turnaround on wall street. adam: the down nodding the biggest gain of the year crossing back above its 200 day moving average at key resistance levels. the chief investment strategist mark machiney on how to position yourself ahead of the jobs report. what he thinks could be underwhelming. lori: twitter trending lower. better than expected earnings, sluggish user growth dividing wall street analysts. our analyst sticking by his guns, mark mahaney maintaining his outperform training. adam: revenue increases across all segments but it isn't all happily ever after. warning on the uncertain
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consumer. lori: the competition in sochi, the green behind going for gold and the most expensive olympics ever. house speaker john boehner affectively dropping immigration reforms, straight to peter barnes with these latest developments. >> the speaker has effectively eat pull the emigration reform from the house agenda this year according to sources on capitol hill. according to fox colleagues, john boehner putting up a stop sign on reform due to internal party divisions on how to move forward on it. for one thing some republicans reportedly favor focusing on obamacare, whether than risk an internal fight over immigration in a press conference on little bit ago the speaker would not say on camera that reform is dead for the year but he did say republicans worry about the president's use of more executive actions to

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