tv Varney Company FOX Business March 14, 2014 11:00am-1:01pm EDT
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to an air bag problem on top of the ignition switch problem. he is the power of technology, mark zuckerberg picks up the phone, call the president. government snooping is really damaging. the president listens and i may, repeat may have been wrong on tattoos. "varney and company" begins now. two big developments in the search for the missing plane. abc news says the plane's two communications systems were turned off separately. the data reporting system at 1:07:00 a.m. the transponder 1:21 a.m.. that suggests a deliberate disconnect. tracking by military radar suggest the plane was deliberately flown to the andaman islands. use even in the top upper left
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part of the screen. the uss kidd is heading to the indian ocean as this search expands into those waters. the search area is absolutely vast. several times the size of the continental united states. almost a week in, there is no wreckage, no debris, no electronic signals and continuing confusion from the malaysian authorities, we're joined by the cia operations officer in that area. general motors the top corporate story of the day, the stock seeing its worst week in three years. now safety watchdog group says 303 deaths have been linked to the 1.6 million vehicles recalled for ignition problems. the group says the air bags failed to work. gm has dismissed those claims. these deaths are on top of 12 linked to the ignition switch problems. stock is up $0.50 throughout 34 so this is a crisis.
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a very big test for gm's new chief who spent her entire career at general motors. you have done a lot of reporting at gm. granted, she has gotten a rotten hand dealt to her as she comes into the top spot. is it possible because of a long career at gm she knew about any of this? >> that is the legal and policy center, highly unlikely she did not know about it. and composition in global product development and human resources and engineering as well. what gm game to the government, talks about july of 2011 meeting where these top players were invited to talk about this. hard to believe she did not know what was going on. no indication she was at the meeting.
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gm's reaction is deplorable. if people knew about the defect earlier they may not have died. that is what the issue is. stuart: i you talking about the air bag problem, or the ignition problem? >> ignition problem but now the fact that 303 potential deaths from the air bag failure is leading analysts, not just incompetent, deplorable. stuart: sandra is here. gm has just alluding to, they did find a fix to this ignition problems nine years ago and this is important. they made what is called a, quote, business decision not to fix the problem. that is appalling p r but doesn't it confirm liability as well? >> the estimated cost of the fix they discovered in 2005 was the $1 per car. the recently 2 former gm executives say they didn't make this the mandatory fix is they didn't consider it a 100% fix so
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they contacted gm dealers and said if anybody comes in and complaints about this ignition problem or their car shutting off you can supply them with this temporary fix. an extension on the key to make it fit better in the ignition and they didn't consider this a whole fix so they didn't make it mandatory and that could leave them on the hook. stuart: investors are accepting gm's deniable of reliability and responsibility. liz: they put it on the old bankruptcy. stuart: stock is up today. doesn't think much of this pr nightmare. another good sign for brick and mortar retailers. aerospatiale reported its fifth straight quarterly profits and stock is down big. you. five quarters in a row, look bad, down 13%. another big name and disappointing profit forecast from the serial people, general mills down 2% at 50. look at the big board.
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another loss today. if it closes with a loss that would make a full week of losses. there is apart from yesterday's there is no fire in this market at all. liz: we always talk about blacks one events dating back to 2010. what was the big global event which was going to cause the market to cascade down word? china not opposing it, ukraine not posing it. where is the black swan event? stuart: you put a floor under the market. how about gold? six month high, flight to safety. >> be like taking risks of the table, buying things like gold that if they're not buying the metal itself there buying the goal gt, gold is up 15% this year, they are buying the bonds market, up by utilities that pay
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high dividendss. investors are putting money to work, putting it more in safe-haven. stuart: they were buying into the amazon, facebook, netflix, they were aggressive, they were up, going, the other way around, you get defense of utility stocks you go to gold and even bonds. stuart: hold on, a couple more big names, big headaches too. there's a pattern developing, facebook, another security flaw in what's app. the stock please? >> stocks down 1.3%. the story on this one for what's app is when you change your phone and your phone number, you might actually get the prior user's information. that is terrible. just connected to your telephone
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number but the simplicity is a problem. it may be a huge security issue and you have one gentleman, saying that when he down loaded what's app he got the prior user's information and even a picture of jessica with the red scarf on. stuart: i see facebook is up 72 a couple days ago to 68, 69, $68 exactly. i have got more big names with problems. i will start with mcdonald's on this round. a lawsuit over wage theft. also target, they knew about the data breach on thanksgiving weekend and didn't act. let's deal with mcdonald's. what is this wage that? liz: new york, california and michigan, wage that meaning workers allegedly forced to work off the clock, not being paid over time, basically forced to wait to work until customers
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came in the door. that is what these lawsuits contend. mcdonald's may have a bullet proof defense, actually always said these are franchisees', independent businesses, we are just a parent, we don't dictate what these fans do. stuart: back to one of our big stories of the day. we are getting our first inside look at the disaster otherwise known and obamacare. david wright quit his job, wrote a scathing letter of resignation for what he calls the worst job he ever had. here is just some of what he had to say on that matter. i am offended as an american taxpayer the federal bureaucracy, at least the part i have labored in is so dysfunctional. i am saddened by the fact, much less outrage regarding the problem. karl rove. i see this as the first look from the inside of the chaos of the obamacare. can't help but think it is
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damaging to the idea the government can do anything right. >> this office of research is on the far edge of obamacare. it is the first personal testimony of how dysfunctional the department of health and human services but did we need to know that? we already found that out in the disastrous rollout of the affordable care act for which they had four years to prepare. this morning in preparation for this i went to a lovely document called the budget in brief which the department of health and human services summary of their budget. only 148 pages long but it does contain the problem. if you take a look at it in the last two years the budget of the department of health and human services going from $873 billion to $1,020,000,000,000. over a third of the operational budget of the federal government, almost a third of the total budget when you include interest payments is fed by one agency alone. it has gone up 6% in one year and 16% in two years.
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at the same time the full time equivalent employment account at the department of health and human services has gone from 74,992 two years ago to 79,450 and that does not include the contract employes like hundreds of thousands of navigators' so we have an agency that has taken a third of the federal government and trying to manage our health and human services. maybe it is too big. stuart: is being run by kathleen sebelius and cannot answer questions directly. >> demonstrated herself to be a complete and total incompetents. she was running one of the mcdonald's franchises you were talking about she would have been candle long time ago and lost her business. instead she is running an agency, trillion dollars in one department alone. stuart: the entire spending -- >> the part of defense than $526.5 billion fighting a war.
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stuart: that is extraordinary. $800 billion to $1 trillion. just going to write these numbers down. >> go to the budget and brief -- stuart: when you got that round. >> what should we have confidence they will do any better than they have been doing? stuart: david jolly winning in florida ran against obamacare. democrats now reportedly scrambling to cover because of what has been done to them in their campaign because of obamacare what is the new report out of politics, democrats are really split, some of them gung ho for obamacare. a lot of them not. >> let's put what jollied did in true perspective. couldn't just running against the obamacare. he said i want to repeal it but i don't want to go back to the old status quo. i want to take free-market principles and apply them to the problem of health care. we ought to have health insurance the portable.
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why should we be constrained across state lines? why don't we let small businesses pull their risk and get the same discounts big boys get? why don't we let people save more -- out of pocket medical? stuart: the reform is -- >> that is important lesson to take away from this. he did two think every republican candidate needs to be prepared to do. one is he made it bigger than repeals, made it reform. he made a conservative positive agenda for the future for health care and he put it in a broader frame and said the problem is you want to send somebody who will go along with president obama and put us into more difficulties with bigger government that can't deliver or somebody will be a check and balance on the president? he put it in a bigger broader frame. i will work with the president when he is right, vote against him when he is wrong and make the system work and finally when he got hit on medicare and social security this district has a large percentage of elderly voters, senior voters, he didn't shy away. he said i will protect social
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security, they are raping and pillaging medicare advantage and we need to reform entitlements for coming generations. you won't be affected but future generations -- stuart: the middle ground is -- you occupied -- >> i don't see this as a middle ground at all. i see it as reform. stuart: repeat aloud right. >> repeal the law but put in its place import reforms. don't just tinker around the edges, repeal that but replace it with important conservative reforms. stuart: get out of there with your plan. >> this guy jolly did a very good job of it. we need to pay attention to the lessons and if we do we will take a good midterm election and turned it into a gray one. stuart: karl rove, thanks very much, good to be with you. >> i will drop you off a copy. stuart: up next congressman marcia blackburn is on the congressional committee investigating general motors. representative marcia blackburn on that and the obama care
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look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally. stuart: not a lot of movement this friday morning. that is a lois point of the day. we are down five days in a row. check the price of gold, that is where we are up $12, $15.85. it is close to $14 an ounce. don't look now, the price of gas back above $3.50 a gallon for the first time in six months, $0.20 higher in one month. why is it going up right now? liz: this is a switch from seasonal blends. i know nothing tests the sanity
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of people more at the pump than gas prices going up but $0.20 below what it was last year so don't worry about it. it is a seasonal issue. liz: people get bent out of shape when the gas dealers messing with the price or the refiners are withholding and have a monopoly but you say this is a seasonal switch. winter blends to the spring bland. that is why it is up. we have mentioned before, a look at target. you look at the data breach on thanksgiving weekend. that, i believe, would have been before they announce the date of breached. trusty issue. >> this is a huge trust issue but target is saying we get hundreds of notifications of possible date of reaches. they didn't horn in on this particular one. is tough to know which ones to take as serious threats. they responded to this saying
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with the benefit of hindsight whether different judgment had been made the outcome would have been -- liz: law enforcement saying swiss cheese also at target. it was 74 that it was happening. stuart: they have gotten hurt. they got to big story which is general motors. bring in marcia blackburn, vice chair of the committee investigating to her motives. this all seemed to have happened right around the time the government was bailing general motors out. is there a remote possibility there's a cover-up involved here? >> that is one of the questions we have. the investigation will center on the timeline, who knew what, when, what we will need to do is go back and rebuild this. we are finding out the recall should have gone back to 2001 and at first would be 2005-2007,
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and backing up even further. what we have done is open the proverbial pandora's box and as we work through this over the next few weeks we will be able to hopefully establish a time line and look at not only gm but ntsa and see who was brought into the discussion. stuart: i want you to open the pandora's box known as obamacare because your committee sent a letter to the insurance companies. you want to know how many enrollees have paid and how many of these enrollees were previously uninsured. all of this is the very big deal for the numbers on obamacare. why can't you get these numbers from kathleen sebelius? >> secretary kathleen sebelius seems to punch everytime she comes to us and is uncertain as to what the numbers are. what we have done in addition to
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asking this question, time and time again. asking for a specific response, they should have those numbers, they should be pulling that data and that information every single day. the insurance companies have a better handle on it than kathleen sebelius. we have to knows this. stuart: we have this retirement letter from david right. he is inside the department of health and human services totally panning the federal bureaucracy, an absolute mess, can't get anything done. kathleen sebelius runs that bureaucracy, spends $1 trillion a year. that is how big the operation is that she is running and you can't get answers from her to simple questions like how many of these people have paid? i have to suggest maybe she should resign or be fired. >> we have said many times that she should be fired but here is
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the thing. obviously kathleen sebelius is doing exactly what president obama and his advisers want her to do, which is to make a colossal mess of the nation's health care system. their ultimate goal as they have said time and again is they would like to see a single payer system with the federal government having all control of health-care in this nation and being able to disperse and dispense that health care so this is why we are not getting numbers, this is why we do not know how many have paid. we do not know how many of those that have selected the plan were previously uninsured. we don't know how many are getting subsidies and we do not know how many of the total enrollees are medicaid enrollees. lots of questions. more questions every day. stuart: there's so much we don't know i feel the whole thing is collapsing around our years. no confidence that this is in
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place and functioning. i am sorry i am out of time. you are going to come back to us soon. >> certainly will. look forward to it. >> president obama's nominee for surgeon general strong anti-gun guy we debated on the show yesterday, so did you on facebook and twitter. response is next. also our march madness tax attorney is about to begin lose some companies still on the bubble. find out which ones make the cut. that next. it's a growing trend in business:
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range the problem is the technology isn't there so the anti-gun jurisdictions particularly in new jersey are mandating something that doesn't exist. i have a gun owner and keep a loaded gun at home. in a million years when i depend on a fingerprint or a watch for security, i depend on a lot and locks come with every single gun in this country and it is a dependable way to store your gun. stuart: a pretty good debate about the smart gun issue. that was emily miller from
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yesterday. you saw was a good debate, got a lot of responses. some of the comments, one of your rights if smart guns are so great, make the police and military use them. david has this to say about doctors asking if you can own a gun, sure they can ask. that doesn't mean they have to get an honest answer or any answer at all. that he has some concerns with the debate. i don't want to host asking questions about guns who has and a british accent. what they do in england is one thing. what we do in the u.s. is another. i hear you but i would think you would expect us to challenge our guests on their point of view not matter which side of the argument they or you are on or what accent the host has. to a couple stocks that are moving, higher profit to the team retailer, zuma, slipped a little bit. stocks are up 3%. amc reported purchasing w w e,
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denied those reports. the stock is barely changed. now to our march madness tech tournament. monday we will unveil the 16 team bracket featuring text box that may compete for the title of best one to own. we have half of the field said, all big names you know. google, apple, netflix, microsoft, yahoo! facebook, twitter. e or twitter devolved hether in the pack. are they tech companies? larry? >> price line technology company. >> price line technology is how i think of it. stuart: tesla. is it a tech company? >> definitely. it is an important tech play, a game change. >> don't think it is a tech company until they sell their cars on line. stuart: it is up for debate but we are including them anyway. chrysler and tesla are too interesting not to include so that makes ten of the 16 set.
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here are the stocks that are still on the bubble. some of them will be left out. ibm, ebay, hewlett-packard, cisco, adobe, intel. a lot old school tech names. only two of them are going to make it. because we need room for a possible cinderella story some possible names of underdogs making the cuts. zynga, fire i, activevision, 3d systems. a few crashed the party. we did a bubble team's real halftime report coming up. good stuff. mark zuckerberg angry over the nsa snipping scandal so what does he do? personally calls president obama, direct line to the white house. we will discuss that next.
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keurig a believe has no they deal with pete's. a certain 29-year-old billionaire calls the white house with a bone to pick. mark zuckerberg calls president obama urging him to do something about internet privacy. he then publishes an open letter for the behavior of u.s. government referring to reports of widespread surveillance by the nsa. i remember when zuckerberg was pals with the president in 2009. seems times have changed. >> zuckerberg with a post on his own webpage wrote when our engineers worked tirelessly to improve security, we imagine we are protecting you against criminals, not our own government. he is really cracking down showing his frustrations with the president. stuart: facebook has been crashed by surveillance
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authorities, he is worried about that. >> is in their bit of irony here when facebook is a basically hordes all of our personal information and sells it wholesale? we kind of signed up for that. stuart: i want you to imagine something. you look at a battle of heinz ketchup with your google glass, you snap a picture of the bottle and up pops a recipe for catch up or how to use catch up in a recipe. this is called augmented reality. my next guest is helping to bring this to advertisers. i will get it right, i promise you that. the ceo and founder. why would i want to put on my google glasses, stare at a bottle end up pops a recipe in front of me.
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surely that is not the only use of this technology. >> we start with advertisers because it is easy to monetize the technology in the early stages. stuart: you started with advertisers. they would have a little icon. >> they won't be an icon, it is just activated by the user. stuart: it is visible by the google glass? >> no, it actually recognizes the entire thing on the phone. you look at it and interact with it, the recipe comes out. stuart: at some time in the future and look at a product with my google glass. all kind of things would come to me like special offers. >> so how it is going to work, it is a pole base behavior. they pull the content. stuart: pulling stuff out.
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>> it is not like you're going to walk on the straight and things are going to come at you. more like you decide to look at a movie poster or a magazine and decide to look at an item and you said okay, glass. stuart: it is not exactly everywhere at the moment, but your technology can be applied in all certain circumstances to pull stuff out of what i am looking at. >> absolutely. we're already on mobile platform, millions are using it. stuart: that is an extraordinary claim. the logo is on more than a billion products? >> yeah. stuart: you are exaggerating. you were talking it up right there. when will you go public? >> not soon.
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stuart: would you go public morals you could raise $100 million? >> no. stuart: are you hoping for more? >> absolutely. think about it for a moment, how do we access information today? the only way to do it is through a google search. every time people look at something. stuart: i could look at something i'm interested in, google glass, give me that. you could change the world with that. you could be a billionaire. >> that is not the target here. stuart: 10 billion? >> the number is not relevant. stuart: where do you hang out? >> london and new york. stuart: come back and see us soon. thank you very much. a silicon valley billionaire takes out a life insurance
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policy. $200 million is the payout. there is a tax angle here, and we will tell you about it in a moment. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. spt-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistincthouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorsm from td ameritrade. ♪ from td ameritrade. if ...hey breathing's hard... know the feeling?
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we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. predibut, manufacturings a prettin the united states do. means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done. iwe don't back down. we only know one direction: up so we're up early.
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up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com stuart: there is an ipo that came out today. castle life health. i think this thing went to the moon, didn't it? nicole: that is right. to the moon? 138% to the upside, $16 per share ipo, and the opening bell rang for this one and it took off. the high of the day 41.95.
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stuart: have to believe if you price something at 16 and within a couple of hours it goes to 38, somebody made a mistake on the pricing. nicole: even in a market that is somewhat tepid, it goes up 137%. stuart: it is the cloud angle. thank you very much, indeed. have you downloaded the latest update to your iphone? you may want to keep your charger handy if you do. discussion forums indicate users are seeing significant drain on their bodies after installing the update. apple stock is down $4. an anonymous but well-known american billionaire just made history buying a $201 million life insurance policy. the largest in history. life insurance payouts are not subject to estate taxes. bob shuman is with us.
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this man knows more about the rich than just about anybody else and he is our guest this morning. a billionaire, nameless, he takes out a life insurance policy when he or she, when they die they get $201 million. no tax on that, is there? >> not at all. part of the lobbying effort about two years ago when the whole tax reform issue is going on, it is a major issue in america and a way for those who have lots of cash to put it aside. it passes to your state 200 early in dollars but it is not taxed as part of your estate, but you have to pay enormous premiums to justify $200 million payout. >> correct. but they are willing to do that. they take the risk. stuart: you, the billionaire,
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you are paying a ton of money as the premium to lock down $200 million payout. >> i would assume it is an eight figure premium. probably. stuart: it is a calculation. the premium, $10 million per year you are paying to lock down $200 million, is that tax-deductible? >> depends on how it is being done. if you own your own corporation you can probably pay it and take it is basically a benefit, but the company is paying the tax. stuart: if you have a billion dollars, you don't have to pay much tax, do you? >> if you have the right advisors and take their advice, you can probably do it. stuart: how about this story? the number of millionaires in the united states of america today is higher than the number of millionaires than what was
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it, 2007, right before the crash? how do you define a millionaire? >> this includes houses. by liquid assets the way we would call it, that number is about where it was. real estate recovery, the stock market recovery. if you look at it by individuals, it is about 21 million, by households it is about 10 million. stuart: 10 million households have a net worth of a million dollars or more. >> correct. stuart: i'm trying to do the math here, that is about 3%. spiegel give or take 120 million households, so about 12%. stuart: so 12% are millionaires benchmark >> correct. stuart: that is probably the highest portion of anyone in the world. >> definitely. we had the greatest number and america's economy has benefited.
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stuart: the wealth america has created is more widely dispersed than we thought. this group keeps going up and up and up. that may be true but other distribution of wealth country to country, we are still supreme. >> no doubt about it. as in a couple of reports where they look at millionaires by all the countries around the world and we have the highest portion. stuart: the you think this increase in the number of winners will continue to go up? >> that will depend on how well the economy goes. obviously a lot has to do with how the government deals with a lot of issues. stuart: we will leave it at that. bob, that is interesting stuff. come back. bob shullman. the dow turning up positive, we have had a four-day losing streak. maybe we will snap it today. tattoos. i hate them, i despise them.
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according to a new fox news poll numbers, you may feel differently than me. how could you? up next. it's a growing trend in business: do more with less with ss energy.hp is help. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind.
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stuart: everybody knows how i feel about tattoos. i hate them, don't like them, don't want them. 20% of americans say they have at least one tattoo. only 13% in 2007. so we are loading up on ink. an overwhelming majority, 73% said they would hire someone with a visible tattoo. sandra. >> i am not a big fan of tattoos. by don't have anything against people with tattoos. i would fall in the category of it would not mind hiring somebody. not in the habit on their face or a problem like that. stuart: you go to see an investment banker.
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they go to advise you on your money, he or she has a visible tattoo. would you make a judgment call and say you are not handling my money? >> won't say my first impressi impression, i would probably place judgment. just being honest. i follow bill murray on twitter and the other day he wrote everybody's asking me why i never got a tattoo. i always reply we put a bumper sticker on a ferrari? stuart: that is a very good. donald trump will not let his kids have a tattoo. i like that guy. i want to talk about something else. 58% say they don't like tattoos. i think i am winning on this issue. >> conside can 300 people get t. it is the millennial situation omak generation getting them.
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stuart: you see a financial advisor, a lady wearing a short sleeve dress. she has a butterfly right here. would you have her handle your money? >> i would not want my advisedly wearing a summer dress. stuart: such a diplomat. you should run for congress. you are good. thank you very much. serious stuff. the malaysian airlines mistry is still with us. you have to admit even the conspiracy theories are making more sense than anything else. talk a former cia officer at the top of the coming hour. and in millennial starts a new company, he is with us. a big new hour begins in two minutes. investors... oh hey, neill, how are you? [ male announcer ...you'd expect us to have a highly skilled call center. kevin, neill 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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[ mawhile a body in motionat resnds to stay in motion.t... [ male announcer ] and we do. staying active can ease arthritis symptoms. but if you have arthritis, this can be difficult. prescription celebrex can help relieve arthritis pain and improve daily physical function so moving is easier. because just one 200mg cebrex a day can provide 24 hourelief for many with arthritis pain. and it's not a narcotic. you and your doctor should balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease or risk factors such as high bloodressure or when nsaids are taken for long periods. nsaids, like celrex, increase the chance of serious skin or allergic reactions, or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers. don'takeebrex
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if you have bleeding in the stomach or inteste, or had an asthma attack, hives, other allergies to aspirin, nsaids or sulfonamides. get help right away if you have swelling of the face or thro, or trouble breathing. tell your doctor your medical history. and ask your doctor about celebrex. for a body in motion. stuart: the missing plane has everyone talking including us. conspiracy theories have more credibility than malaysia authorities.
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we have a cia guy who can sort out what's plausible and what's not. the president uses an angry mom to get kids to sign-up for obamacare. it's funny but do twentysomethings listen to an angry mom? the guys running an online version of costco, and this thing is taking off. woulwe do believe they came from farmville? phantom pigs and all. the of dreams of starting the next facebook in your dorm room? it is friday, here comes spring. ♪ stuart: the latest developments in the search for missing malaysian airlines jetliner. here is what we know now. "abc news" reporting the communication systems were turned off separately. the data reporting system at 1:07 a.m. that implies a deliberate
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turnoff. next, the plane deliberately flown toward the andaman islands, on the top left of your screen. we're joined by a former cia operations officer who served for 20 years and retired a few years back at the head of the weapons of mass destruction terrorism unit. welcome to the program. could this plane had landed on a small island? >> at this point anything is possible. this aircraft will take a mile of runway to land. you're not putting it down some plays that does not have a major airstrip of some kind. even on the admin islands there are probably two or three are strips like total. stuart: has it crashed? is it under the ocean? or has it landed somewhere because of a terrorist incident? i know it is speculation, where are you coming from on this?
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>> i think i will stick with the idea we have some sort of problem on board the aircraft that doesn't have anything to do with terrorism. if in fact it was on a flight trajectory we are looking at now, probably at the bottom of the indian ocean. stuart: your suggestion is backed up by the fact the search area is gigantic. something like six times the size of the continental united states, which is a huge area to search and maybe that is why we have not seen any wreckage or debris on the surface. >> the malaysian authorities have not helped by virtue of the fact they issued contradictory misleading information bits and pieces of things. they clearly do not have a complete handle on what happened. stuart: will he let his days be the country that comes up with the answers or do you think conspiracy why some government somewhere knows the answer already? >> i don't think anybody knows the answer. it is likely the u.s. will be
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the entity that figures out what happens because it is in the ocean, the technology necessary primarily american. stuart: that is the ship the navy is sending to that area. do you think that is the problem to the under the sea problem? >> it is the first point of the sphere. it will be aircraft in all sorts of other ships that will come in, and if it is there, they will ultimately located. stuart: why no signal from the black box? if it is under the ocean, surely we have gotten it by now, wouldn't we? >> not if for several days they have been searching in completely the wrong place. they haven't even been close. typically you have a trajectory, you know the airline went down someplace on this line.
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we're not even sure which see it is in. stuart: thank you very much for joining us, sir. we appreciate that on this particular news story. >> thank you be at stuart: our big corporate story of the day, general motors is dismissing claims from a safety watchdog group, that group is claiming 303 additional deaths linked to faulty airbags. those airbags on the same cars recalled because of ignition problems. peter barnes is in washington, d.c. how categorical is gm's denial? >> i think they are flashing a yellow light on this about drawing any conclusions from this federal crash data. on the airbag instances reviewed by the watchdog group. but the fact is the ignition has to be on for an airbag to work. in a statement, gm is saying "without rigorous analysis, it
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is pure speculation to draw any meaningful conclusions." investigation of the ignition switch recall and the impact of the affected switch is ongoing." stuart: this will take a long time. they will be hearings. it got to be looking at what, a year, reasonably? >> months if not years. you throw in all the lawsuits that, out of this, many years. stuart: that is why the stock is up today, liability of any payout is way, way down the road. thank you. content is king and netflix knows it. bringing back the details and puss in boots characters for kids exclusively. higher profits up from cooper tire.
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5% higher. check the big board, will it be a full week of losses for the dow jones industrial? today is dead flat. errol postel reported its fifth straight quarterly loss. it is going to be down big, nicole. nicole: that is not good for these shares down 14.5%. they have the double whammy. the tough winter season difficult for all the retailers. coupled with the fact they are trying to attract the fickle teens sometimes they shop, sometimes they don't, and they are also working with partners taking a stake in aeropostale working on getting some board members on the board. stuart: i am familiar with fickle teens.ith general motors and why they are down to a? nicole: they had a disappointing
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profit. stuart: we're about to introduce you to a 26-year-old millennial. he quit college to pursue something bigger, dropped out to start his own company. the company is called daily steals.com. and his name is matt, he is with us today. 26, dropped out of college? >> 28, actually. stuart: you dropped out of college. which college? >> i did. when i was in college i started buying products on ebay, primarily consumer electronics. fast forward, we were one of the biggest sellers on ebay. stuart: you are making money selling stuff on ebay before you started your own company. >> correct. stuart: you started daily stea steals, and that is what, a daily discount? >> it is a daily marketplace
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with heavy discounts everyday products for the regular consumer. stuart: how much business do you do? >> thousands of products every single day. stuart: you're selling thousands of products every single day. daily steals.com. >> they are marked down 70 to 80% off. stuart: give me the economics of this. the cost of growing the website is very limited. >> the actual cost, but a lot of overhead that goes into the entire operation. stuart: would you care to give me an idea of how much it costs to set up the website and operate it suits tuneups? >> millions of dollars. stuart: where did you get the money from? >> through selling on ebay and other marketplaces that gave us substantial funds to open the
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website and off the same products we were getting before to our own customers. stuart: i take it you take a little piece out of every sale that comes your way. >> we focus on revis no money to make into the company. stuart: you take a little piece, don't you? if i buy something for $10, you take how much? >> it varies, or margin is about 20%. stuart: a lady was taking 50% on her website. >> very different kind of a business. stuart: why? >> we are focused on consumer electronic projects, the margins are not as great. you'ryour offering a steep disct you are not able to offer 50% on the product you are selling. stuart: 20% you can do?
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>> it fluctuates between the products. some can make less, some can make more. stuart: you're 28 years old, dropped out of college, when are you going public? >> we had no immediate plans to go public. stuart: why not? >> we are happy with the way we have been building it. stuart: you don't want to cash out? >> i enjoy working the business. stuart: would you take $100 million? >> it would give us food for thought. a billion makes it a lot easier. stuart: you are a good sport and you submitted to the question, we appreciate that. daily steals.com. i just gave you a free commercial. >> thank you. stuart: and i will come looking for the money.
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a new ad for obamacare put out by the administration featuring an angry mom saying don't worry about me, i will stay here until you get covered. scotty hughes, a mom herself, on that after this. so ally bank really has no hidden fees on savings accounts? that's right, no hidd fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? we uhhh... surprise!!! um... well, it's true.
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tdd#: 1-888-852-2134 so you can take charge tdd#: 1-888-852-2134 of your trading. stuart: of this is, and online retailer that hopes to cash in on amazon's decision to jack up the price of prime offering a special deal to any angry amazon customers. lauren simonetti, the details, please. >> strike when the iron is hot. a million members, it is owned by alibaba, china's company as well as american express. they're partnered with brick and mortar, tommy others. if you are prime customer at amazon and annoyed with the price hike, come to us, we will give you free unlimited two day shipping. they are waiting it for your
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number one and going forward they say they will never be an increase above $79. stuart: amazing how these businesses sprout to take advantage of minor-league changes in the huge companies of america. that is a terrific nisha opportunity to jump into. >> they tell us people will not pay more than $79 per year. stuart: thank you very much, lauren. let's go on to obamacare. remember pajama boy sipping his hot chocolate in his pajamas suggesting you to talk about obamacare over the holidays? now it is the angry mom. urging youngsters to sign-up. the white house reporting mothers of celebrities to promote it. >> adam always made me do his dirty work. >> he would lay on top of my dashboard and literally not get off. us moms put up with a lot.
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one thing we should never put up with his our kids not having health care. stuart: that was jonah hill's mom and musician adam levine mom. we are joined by scotty hughes, a mom. the president is going after young people. sign up, sign-up, he is jumping through hoops to get them to sign-up. do you think the idea of having an angry mom lecture you to sign-up, do you think that works? >> this is the latest attempt we have to find out how disconnected he is of the millennial generation. the pajama boy, the guys doing the keg stands, and then the birth control because this guy was hot she wanted to take home, now you have an angry mom. her sing the last thing i wanted was my mother reprimanding me to tell me to do something for angry i am not doing right. a decade of independence.
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stuart: if you want to reach youngsters, that is how you do it. you use celebrities, you use all kind of media to get out of there. the president were to give 10 minute interviews the nbc nightly news, he would not reach many young people, would he? if he goes on youtube and does comedy, he does a better shot of reaching them. he is doing the right thing whether it is working or not. spiegel the 4.2 million people signing up, only quarter of them when the age demographic they wanted. they needed 40% of that number to be in that age range. now one for the best number only 4.2 million when they needed 17.2 million. it is not working. why don't we put a young 20 something a business suit and say i have car insurance, food to pay for but making sure it is important for me.
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that is the kind of person. stuart: a gentleman, his name is david wright within the department of health and human services overseeing obamacare, he is leaving the job and he came out with a blistering letter about it's a remarkably dysfunctional bureaucracy. he is offended as an american taxpayer. this is the first time we have heard from inside obamacare about the chaos going on. >> outside of this network and others, we probably won't hear too much about it. at least we have this one whistleblower. we had another reporter getting out, i think it is safety in numbers. does it make a difference? is anybody surprised? stuart: why on earth do we ever give a government bureaucracy control over the health care system?
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why on earth would we do that? >> listen to celebrities telling us this is the way to run the country. it is a big hamster wheel we are running in. is this man's message going to sign-up enough? hopefully he will provide facts and data. stuart: you know you're going to do very well in this midterm election because it is the kind of thing david wright is saying. >> i am an american first and what is going on in washington, d.c., regardless of what i'll you stand on is wrong. this is what he said was going to ruin the country with the country itself, the government itself. basically what people wanted us to do hundreds of years ago. stuart: you are right. >> i love when a man says i am right. can we get that again? stuart: that is on tape forever. >> fantastic. those are not the clips that will hit comedy central.
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for all of your stalkers, that is the clip you have to use this week. stuart: you are so right. >> thank you! stuart: i'm going to give you my take on the missing malaysian plane conspiracy theories on why this case is marketability to the conspiracy guys than the malaysian authorities. after the break. i ke prilosec otc each morni for my frequent heartburn.
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stuart: listen to this, quiznos filing for chapter 11 bankruptcy. first saguaro, now quiznos. you are buying videogame consoles. up from a year ago. that is good news for the retailer game stop. can you believe we put this thing on deathwatch? the stock right now nowhere near death. up a little bit more today. they are an online version of cost go. where house prices, buy in bulk, delivered to your home. they are all former zynga employees. the man behind boxed.com. the guy is here.
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nsas we get closer to march madness we have selected more than half of our tech tournament who else should be in? the real halftime report coming up. i really don't like conspiracy theories. if you ever this into late-night radio, you know what i mean. the guys were getting messages from mars through the plate in their head seem to come out at night. but now we have malaysia airlines flight 370. here is my take. it has been more than a week since it went down. since then, nothing. to say the least, that is unusual and frankly i think it is incredible. about governments the world over were checking out every move. a jetliner goes missing for a week without trace? how can that be? it encourages conspiracy theories.
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it is beginning to sound plausible, isn't it? making it worse are the briefings for malaysian authorities contradicting themselves. yesterday they denied the story about the plane flying on for four hours after last contact. today the denial is off the table. now there's a report one of the planes pilots had a flight simulator in his home, but his home has not been searched. this confusion and contradiction encourages conspiracy talk. the theory we are not getting the full truth from the authorities. so what is the biggest stretch? a jetliner has crashed into the ocean or the jungle and we can't find a trace, or that it was hijacked to a secret location? and frankly i think that is more credible. that is not a wild theory. not like anybody saying it is being taken by aliens to area 49. if you can find wreckage, debris or black box signals, it is rational to believe something is
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going on that we don't know about. there is indeed a conspiracy, a silence about the truth. the weekend is coming and i suspect the truth will be out very soon. in my opinion this is the news story where the conspiracy guys may be pointing in the right direction. nasc is about excitement. but tracking all the actn and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans.
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respect from group, the number of millionaires in america is higher than it was before the financial crisis. charles payne is here. the president, you won't see the president takes the credit and you won't a ben bernanke takes credit. you are going to say? charles: american businesses and the main thing is their ability to exploit global growth. the rest of the world is absolutely on fire. apple gets 60% of its revenue outside america. what's app gets 90% of their business from outside america. caterpillar 70%, top 50 companies on the s&p, 34%. the market rewards growth. america is not growing. margins have expanded because of overseas growth which has seen phenomenal growth. we have been talking about that malaysian plane, 14 countries on
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that plane, it underscore is the economy and if you want to use that or take advantage of it. stuart: reputation of the obama affect or ben bernanke affect. charles: despite president obama. stuart: breaking news on ali baba's idea. we call that the chinese amazon weathered is strictly accurate i don't know. they are denying reports to file paperwork of the idea next month. there is no timetable for the idea. the jungle of ali baba and proxy, 25% stake in ali baba. the stock is up 1.4%. another company taking on the names in retailing is boxed.com. a mobile apps offers product of wholesale prices, no member
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should see. whether we are right or wrong we call it the online costco without the hassle. the founder and ceo, viewer of this program on a regular basis. the rest of the show is yours. it is only on mobile, it is an apps. press the apps, up it comes and i can buy in bulk discounted items. >> we are see online club for people without the time, the means or the patience to go into the traditional brick and mortar. i get the apps and -- >> it is a free apps and we don't charge anything for membership. most receive their packages in one or two days. stuart: secretary of state john kerry is about to issue a
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statement on crimea. >> i gave in varying depth, constructive dialogue and how to address, the context of a unified sovereign ukraine. the united states strongly supports the interim government of ukraine. and the dialogue between ukraine and russia, to resolve the crisis. i came here in good faith with constructive ideas which we did put forward on behalf of president obama in order to try to restore and respect the sovereignty and territorial integrity of ukraine while addressing at the same time russia's legitimate concerns.
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foreign minister and i talked for good six hours and the conversation was very direct, very frank and i say constructive because we really dug in to all of russia's perceptions, their narrative, our narrative, our perceptions and the differences between us. i presented a number of ideas on behalf of the president which we believe absolutely could provide a path forward for all the parties. however after much discussion before minister made it clear that president putin is not prepared to make any decision regarding ukraine until after the referendum on sunday. united states's position on that referendum, i must say, is clear. we believe the referendum is contrary to the constitution of
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ukraine, contrary to international law, in violation of that law and is illegitimate. as the president put it, illegal. stuart: john kerry from london addressing the crimea situation. basically giving the news at the top of his presentation and the news is he has six hours of talks with russian foreign minister. the russians raise what john kerry calls their legitimate concerns in crimea and ukraine. america put forward a plan, some kind of action in ukraine concerning sovereignty. that was rejected by russia's president whom. vladimir putin will take no actions in ukraine until after sunday's referendum in crimea. it is the standoff. no progress. six hours of talks leading to that statement from john kerry. this had no impact on the market, the ukraine situation probably had some impact over the past week but no impact over
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the last few minutes as john kerry was talking. we started slightly higher, we will see how that goes and we will monitor the market. the founder and ceo of boxed.com. let me fill the audience in. you buy in bulk from an apps on mobile delivered to your door free shipping. >> for a certain threshold. one to two days. stuart: bulk stuff. big and heavy. why only on mobile? >> here on your show you talk about millennials and how there's a disconnect between how millennials are functioning and where they are spending their money or if they are spending money and being a technology company because at the end of the day we are retailers but we see ourselves as a technology company. we want to go where people will be so if you think about the post millennial world, people who grew up with only a mobile
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devices, where are they going to shop in the next four five or six years? stuart: mobile, that is where it is. we won't bother with desktops and laptops. >> not the we don't care. we are thinking about it but the company, we are filling a need. stuart: the other side of the story. i got my notes here. a whole bunch of engineers and former zynga guys. end you went from being exposed in two states to 48 states in 90 days. when you are online that is not a difficult thing. >> it was difficult because we have a physical component of its so we carry the inventory and shipped it all ourselves so we build nationwide infrastructure. stuart: we have talked to two online retailers in the last two days.
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the first said she took 50%. if you buy something for $100 she gets $50 and the gentleman who was just with us, what was the name of that website? i will find it. anyway, he gets 20%. what do you get? >> the margin in retailing it take inventory, they-but the kind of it was the choice we had to make because when you are in retail and come to you, click on my apps. stuart: on the i phone and i buy something for $100. how much do you get? >> in terms of the company? probably let's compare costco. costco, they do 2% or 3% margin and so right now our investors we do about the national average in terms of retailers so you will see us in the low to mid single digits. that is about it.
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that is as specific as i can get on the air live. stuart: you are not allowed to be specific? >> the good thing about being a private company is lena longer have to report every quarter. we are pretty good in terms -- stuart: when i you going public? >> i am very flattered the ipo or letters even being spoken but not for a while. stuart: $100 tomorrow morning. >> we wouldn't. bernard: when you are not interested in $1 billion? >> we are solving a fundamental problem. stuart: i don't want $1 billion. just want to solve problem. we got to go. boxed.com. we will remember this because you are a viewer of the program so you can come back. thanks very much. general motors has a pr disaster
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stuart: not sure i like the look of this. regular gas back at $3.51 a gallon. first time in six months. up 20-tenths in the last month. what will the summer bring? of reached a compromise to renew expired jobless benefits for five months for 2 million people who have been out of work the longest. the deal would end unemployment payments of people earning more than a million dollars a year. that is a pretty good idea of that brings me to the next story. according to a new report by the center. the grace and studies there were roughly 50 million native-born working age americans who were not working in late 2012. that is up from 40 million not working in that group in 2000. see coming up next we have for you the real halftime report. it is going to be a good one. if you've got copd like me... ...hey breathing's hard.
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really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. stuart: the real halftime report from chicago. scott kennedy from the new york exchange, charles payne right here. to you first, rough week for stocks. where do we go from here? >> we go along lower from here. stocks, you value stocks based on fundamental analysis, technical analysis, both look real bad, earnings are starting to come in because of a national
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events but technically where those chart patterns, you see those all the time. it is about to get really rough. i am not a big believer on facts on higher from here. stuart: what do you make of what ed just said? >> it has been a rough week. we finish the week slightly higher but i do agree with this. main street has to catch up with wall street and main street is not doing well which means wall street is going to sag in a little bit. we do better today but have a rough road ahead of us. stuart: what do you say to this? >> so much focus on the correction, people have been hiding in their basements missing the whole thing. don't care if it was a correction or not but the market will be a significantly over the next several years and if there's a correction by with both hands. stuart: straightforward. we have a few hot stocks and we are watching them. we start with general motors.
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the first crisis as ceo. do you think he was set up or handpicked? could you handle it? >> great question. conspiracy theorists will be out but no matter what, she took the job and will do the job and it is a great hurdle to jump over. it is a heck of a challenge for her but she is up for the job. stuart: your thoughts on p.m. in the mid 30s? >> fundamentally it is 43% undervalued. i don't believe anyone puts money in autos they will go to ford but stock is so -- people are not ignoring it because they don't know about it, they don't know the prospects. stuart: thank you, gm is one of four companies facing tough pr problems. the others are mcdonald's, target and facebook. to all of you, to the address to weather the storm best out of four companies? >> facebook, gm, mcdonald's,
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target. stuart: facebook fares better? charles: fares better. stuart: your choice? >> i like mcdonald's. facebook, target, they will all do pretty well except general motors. because of it being so much in the public eye it will be politicized. they have a tough time, public relationswise for year to come. stuart: when your pick? nicole: i would go with facebook as number one. and tim used to be the behemoth. i know what's app, the most recent acquisition has a problem with security but that is the king. stuart: if it is a minor league problem compared to gm or target that would be my opinion. >> on the opposite gm will be the best because two words, ford explorer. look how well they have come out. i would go to mcdonald's and target and i don't like facebook. stuart: what you got against
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social networks? >> you know what? pretend mortar. i will stick with a brick and mortar. stuart: a different kind of guy. let's get to our march madness tournament. these are the stocks we are calling double-team, ibm, ebay, a hewlett-packard, cisco, all old school tech names. only room for a couple of them to make the final 16. i want you guys to take one each. make your pick as to what goes through. >> i am going with ibm. their consulting business, they are huge and my cinderella, zynga. i know that is redeeming. it hasn't done well but it is a cinderella story about to happen. stuart: pick want to go through. nicole: i will go with adobe. dinosaurs and trying to reinvent
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themselves but tech at this time. i will go with that one. >> but want to go through. >> between adobe and ibm, they are in the cloud now but we said it before, the way forward is data mining. charles: what nicole hit upon is ibm went through this report. the stock went to steve -- everyone wrote it off and reinvented themselves and doing it again. stuart: i will move on to our possible cinderella story. zynga, yelp, 3d systems, they will crash the party. you have already picked zynga. >> i like it. traveling a less these days and playing lots of games and i look up and see the name zynga. others are just like me. nicole: that one is a lot more
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obvious which one should be the tech leaders and i really went with yelp because it has grown exponentially, has become a household name out of nowhere. i am not really tech savvy overall but this one keeps popping up. stuart: even though you are a brick and mortar kind of guy which one would you pick as the cinderella? >> i think yeltsin is the one and yelp is a technology company that leads you to brick and mortar. charles: i will kick out all built once and put them in. 3d, i love up and down. stuart: the halftime report, the real halftime report. thank you, everybody. the newest solar power plants goes operational. problem, it is not only flying birds right out of the sky that blinding airline pilots. we got it for you.
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reflection of the massive array of mirrors. one pilot said it was like staring into the sun. lauren simonetti has more on this. >> the mirrors heat the air to a thousand degrees fahrenheit. can you imagine? thousands of birds and blinding the pilots. projects like this have huge environmental and now safety concerns, thousands, hundreds of millions of dollars into projects like these across the nation. stuart: not closing down this one? >> california scrapped plans for similar reasons. stuart: jenna per networks. the company sort of reinvent itself, clicking -- and switching and security. data center, big data is huge and the stock, the next move 28.5, well over $30.
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stuart: time for the highlight reel. roll it, please. >> i was trying to think about that. i would say no. stuart: you are enjoying it so far? so far so good? where does the shortstop stand? insiders or outsiders? >> i played wherever i wanted to. i don't want to be disrespectful to the office of president but we had an impersonator in the oval office. >> you had your children, at least you have your children and they will be with you forever. >> appreciate you having an opinion on the subject.
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>> my money is it is down in the ocean but the problem is that the confusion from the malaysian air force, the general that keep coming out and conflicting his own reports. >> too much to ask the executive what statute i you relying on that gives you the power to do this. i cannot think of a statute that gives him the power to tell business is how much they pay their workers. >> you are being considered as a vice-presidential candidate. >> in what country? stuart: i you involved in cars.com or yoga? which one do you like? >> doesn't look like i am involved with yogurt. can't get aboard the candy crush. stuart: we've really had a great week. we enjoyed and hope you did too. cheryl: thank you, have a great weekend. appreciate it. from bad to worse, america's
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biggest automaker, how much is general motors on the hook for the recall of 1.5 million cars. top consumer watchdog says the death toll could be a lot higher than initially reported. adam: deliberately off-track? search teams unable to find the malaysian airlines plane that has been missing for a week. the radar intelligence that points to someone intentionally diverting the airplane. >> after six hours of discussions on kerri talks with russia, unable to defuse the standoff. we are building long ukraine's border, the latest out of crimea's referendum. adam: a lot to update you on because we will start the investigation everyone is talking about. general motors, the recall which is due to the ignition switch problem, new federal crash data shows two
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