tv Varney Company FOX Business April 2, 2014 11:00am-1:01pm EDT
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investigations are expanding, and what about you? are you walking away because you feel the market is rigged? we have the latest on this. stocks are up again as we get positive news on jobs. the rosy outlook for employment and you can make up your own mind. and we will take you to amazon. a big announcement coming up during this show. feels like apple, doesn't it? building up the buzz. but isn't that big of a deal? 327 is about to begin. happening right now, general motors chief mary barra is facing the science. the house gave her a hard time yesterday. she came up with a lot of i don't know on how, when they tried to fix the mission problem
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that resulted in fatalities. she appears to have lawyered up. there were some fireworks earlier today just a few minutes ago. listen to this. >> what i want to know is what investigation began after that deposition. >> that is part of the investigation. >> you don't know whether or not anything happened after that investigation? >> i don't have the complete facts to share with you today. >> that is incredibly frustrated me he wouldn't have a simple timeline of what happened once you got that knowledge. stuart: look at the stock, no impact. 34, $35 per share despite the fireworks, despite the intensity of this safety scandal is what i will call it. i'lup $0.11 at 34. amazon is in the news, the stock price of just $1. holding a big event in
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new york city, we're expecting the debut of an amazon video streaming box that will compete with roku, apple tv, that kind of a thing. rumored to run on google's android system and could play video games. we will bring you all the news as amazon breaks it during this program. look at the big board, they say these markets are rigged, that is having an impact. not on the market but on other areas. a couple headlines for you. the sec is now investigating this high-frequency trading along with the fbi. high-frequency trading company virtu was going to sell shares to the public but has delayed the ipo because of that rigged comment. michael lewis this morning compares computerized trading to a casino. >> it is rigged, to give you an analogy, the casino is the
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exchange, high-frequency traders and tour group operators. the tour group operator operatoe of the money, that is the arrangement. stuart: you are turning a lot of people off immediately. he made, you did the big story, you had your take. he has become the wall street and the stock market anticapitalist except for him making money. i had to tweet this a lot so our viewers are not buying into it. when you say insider-trading, that is an officer or director somebody really high up in a company who knows there is news pending that will fundamentally change the company.
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it is distinctly different than if you put in a trade for 50,000 shares of microsoft and somebody jumped in front of it for a penny. a million miles away, it is irresponsible and it should be criminal what he is doing. stuart: if they are getting the information because they have access to super fast computers, if they're getting it a tenth of a second before everybody else. charles: they are not getting the information, picketing the trade. inside information is they have a new chip enable designers tomorrow. it is just individual trades, it is two different things. stuart: in a court of law if you get the information on the tra trade-- charles: somebody is buying it. >> how do the this happen before electronic trading? a person took the order, what do you ca think they did with the information? michael lewis is not presenting
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a fact. stuart: if you can say that this bunch are getting information before others, you can make the case, you can make the case in a court of law you will make that, in the current climate where wall street is dirt, they will make that argument. charles: and they will lose because there is a distinct difference between somebody buying a stock. stuart: lose? charles: yes, they will loose. insider information comes from inside the company. they have no idea what is going on here. this is between the big boys. a horse race between the giants guys with big blocks of stocks who have zero to do with our audience watching the market. >> michael lewis is uninformed and he is not being challenged. he is being given platforms to go out and spread this false information. it is very much at the detriment of everyone.
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charles: he is doing it for nefarious reasons beyond selling a book. >> i am listening to this guy thinking he has never made a trade before. charles: i know he hasn't, but it is just sensational to be honest. stuart: he is the author. succeeding enormously. in selling books. >> the technology here is not perfect. humans were never perfect when it was only left up to the humans. i think it is important to identify that. but the regulators are to blame here. the sec is crying people are acting illegally in the market and market is rigged, where are they for the bad eggs spoiling this for everybody else? stuart: we hear everybody. should we change the tone?
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golf, there is a change of tone. the golf world, i am told, is buzzing about nike's new high tech golf balls. first of all, the stock, i don't despite any impact, but tell us. nicole: i know you want to bring all the hottest in latest things. this would be right here with these golf balls from nike. it turns out these golf balls are black, platinum, red, white, these are designed for a more advanced player and the speed and spinrite is controlled, apparently they are more efficient. back speed, heisman range. these are for the pros, people who live in love golf, they are available on the site with all kinds of golf merchandise. as we await for the masters to begin, tiger woods not in the masters, so the betting will be down about 20%. stuart: if you come out with a
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better golf ball, that is not just for the pros, this is for everybody who plays golf. nicole: it is for a more advanced player. i don't think i would qualify for the platinum new ball. i would try, but do you, stuart? stuart: i don't play, but sandra, you do. sandra: i do, and the golf ball is very, very important. and they are very expensive and the profit margins are very large on this. stuart: the way this golf ball is made, it is made with a core different from what they used to make golf balls out of. it is stopping the slicing and hooking when you hit the ball. and he go for we'll that. sandra: you look at the price, it is amazing. people who are true golfers will pay any price of they believe something will improve their game. genius marketing by nike.
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i am a title escrow. stuart: fireworks on the market, now fireworks on this. charles: i am getting a ton of e-mails. people watching the show i did not even watch the show. keep them coming, guys. stuart: president obama took his victory lap on obamacare sign-ups, he took it yesterday counting 7.1 million enrollees. that was a pep rally. the president had a big p.r. moment. step back, now take a look at what he said on this program yesterday. >> of these for in half to 5 million people who have purchased plans on exchange, at least half a million or more will stop paying the premium at after the second or third month. stuart: now that's interesting. four and a half or 5 million have signed up and paid. of that, maybe a half million will just drop out later. we are joined now joined by the
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price waterhouse institute. you heard that from betsy mccoy. roughly 10% of those who paid, signed up, will walk away from it in a couple of months. you know this subject, what about that statement? >> those are some intriguing projections. i don't know anybody has a handle on what is going to happen with this brand-new population. in health insurance today even prior to the affordable care act there is a lot of movement going on. some people have a job and get coverage through that job, others lose their health insurance coverage. some people become eligible for medicaid, some people get married. there is always constant churn in the health care industry. stuart: what you make of that number? we don't know how many have paid, a lot of things we don't know. what do you make of the raw $7 million number?
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>> i think it's surprised a lot of people who lived through the very rough fall rollout, as remember, with a very troubled website through october even into november. certainly exceeded expectations. but there's no magic in that number, stuart, as you know. much more important are some of the issues you brought up an even more important what is the health status of these new enrollees. that will be the critical issue. stuart: got it. where does all this leave the insurers? it seems to me the insurers don't know what's coming at them. as a very uncertain position for them to be in, isn't it? >> it's uncertain around who are these individuals and what are their health condition? the insurers are happy to see growth, to see new paying customers and the insurers have been very aggressive in terms of reaching out to these new members trying to learn as much as they possibly can about them as quickly as possible so they
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can head into care management, which is very important good stuart: do you think the premiums will go up? real fast. >> in my lifetime i'm having a hard time remembering when premiums didn't rise. stuart: will they go up because of what has happened with obamacare so far? >> i think that would be pretty hard to say at this juncture. what will happen is we will look at the people who not only enrolled in the exchanges but also off exchange there appears to be pretty big numbers there, it will vary widely based on who they have in what they were price the first time around. some of these companies intentionally price low to be very competitive. stuart: thank you for joining us, sorry we were so rushed. we appreciate your input. major ruling on campaign contributions just came in from the supreme court.
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stuart: breaking news, straight from the amazon event going on a few blocks from here, amazon announced what it is calling amazon fire tv. looks like a set top box. they criticize apple tv performance based on amazon review and then said it simplifies everything. we have a camera inside the event and we will show you what it looks like the camera comes outside. the stock is dead flat. the big board, a modest rally, 16,549 is where we are now. still below. now look at this. the share price of mankind, wouldn't that have been nice to
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have this earlier in the week? advisors backed the company in the failed diabetes drug. we spoke to the ceo last summer. roll tape. >> the problem in the earlier efforts to try to do this is that the product were not very convenient, but more importantly the kinetics were all wrong. they were not as good as injectable insulin you have today. stuart: okay, charles. you like this company, you like the guy. a huge bounce back. charles: we hear a lot of stories of the billionaires in america who are greedy, selfish. we have a guy who is doing a lot. this guy has 17 companies, nine of them taken over, two taken public. given millions of dollars a way to society. i just love a guy like this.
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if this works or not, he is set for life but he is stuck with it and really trying. stuart: essentially a drug you inhale, not the injections of insulin. charles: it has failed many times because it has always scarred the lungs. it does not mean it will get full approval. if it does, the stock could go significantly higher. stuart: about a half hour ago the supreme court ruled agri it limits on campaign contributions are unconstitutional. the judge is here to explain it all. simply what does this mean? >> let's take a presidential campaign. individual can contribute $2600 in 2016 to any candidate. but that is then under the laws it was two hours ago, that is deducted from the total aggregate the individual can contribute to presidential campaigns. the aggregate is now gone. the aggregate is now gone for
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all political campaigns the amount of contribution per campaign still has a cap for the total aggregate an individual can make too many, many campaigns, that cap is now gone. stuart: so the cap is still on for individual campaigns. charles: it not for the contributor. stuart: if i wish, can now get an unlimited amount. >> this would be an enormous if if it was you giving it away. [laughter] stuart: interesting principle. for the sake of argument an individual like yourself, for example, you could give an unlimited amount of money. >> correct. you can contribute $2600 in 435 house races and in 37 senate races. stuart: but he could not give $3600 to anyone candidate. >> correct. >> justice clarence thomas who
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declared in the consent would have validated the supreme court decision upheld the contribution limits. his view of the first amendment is money is speech, he should be able to spend your money in favor of whatever political speech you want. but the issues quickly speaking was not before the court today. those aggregate limits are now invalid as of about 47 minutes ago. a very big deal. they are just absolutely furious over this because they believed they need to balance the playing field to prevent wealthy people from being able to contribute to a large number of campaigns. stuart: the director of national intelligence, you know this very well, acknowledges the nsa searched american communications without warrants. he did that.
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>> is started june 6 continuing up to the present day. he told everybody about the metadata information. metadata has identifying information on it only. you called charles, what phone you called from, what phone charles received it on, how long you spoke but not the content. edward snowden says they have the content, they have the content of e-mails and text messages. the nsa says we don't admit we have the content but it is just sitting there. we don't have access unless we get a search warrant for it. in a march 28 letter revealed yesterday, the general admitted they don't get search warrants for it, they rolled through the content of phone calls and e-mails and text messages at their whim. now that's very significant because it is the same who testified under oath that they don't do this. stuart: general clapper may have
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to take fall for the administration. >> he might. if he escapes without his job with his pension would be a pretty good deal for him because anybody else would be prosecuted for perjury. roger clemens was twice positive for perjury for like a house committee about the contents of his urine. this guy lights we house committee about the most massive government spying in the history of the country and he is not even been charged with a crime. stuart: that is an extraordinary thing, isn't it? >> yes, it is. i was stunned when he read the letter. it is written in heavy-duty bureaucrat east. you don't know what he's writing about if you don't know the terminology. the fact he made these admissions is simply extraordinary. stuart: judge, thank you very much indeed. i have to go to jo ling kent. we have raking is on amazon. >> hey, stuart. amazon unveiling the kindle, the
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amazon fire tv, excuse me. a lot of people were expecting a dongle. it is a very thin box. three times faster than the roku and apple tv box. it has dual band and th dual wii for faster downloading speeds, so again this is a set-top box. we may be able to show you an image of it. some other information, two gigs of ram on this, has wi-fi built in. there is a remote that was the remote problem a lot of the roku and apple tv have. very interesting obviously amazon trying to take advantage of what is expected to be 10 million prime subscribers plus they wants to compete with apple tv. this particular device, the fire tv is a bit smaller than the apple tv and looking at roku, roku revealed the streaming
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stick and this is a divergent, a different step from that. interesting developments. the device will be available right away. no word on the pricing right now but we will be sure to bring you that later on. stuart: interesting stuff indeed. amazon within a pretty good job getting the buzz going with a big event in new york city. i don't think it has had much impact on the stock. it is indeed a small, thin, nice streaming box. you don't think -- i think it is hard to judge the technical details. charles: they are all trying to leapfrog each other. the better news for them is he had an analyst talk about amazon prime saying they should get 5 million new users every year for a long time. everybody wants to be every place. every single niche and cranny of
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the tech world, it will be hard to be a winner in every single one of them. stuart: i just think amazon prime is such an attractive idea. they will move it up to $99, but what you get for two day shipping. charles: i doubt if it would hurt their growth at all. it has been a long time. i agree, a brilliant move on their part. stuart: no impact on the stock. let's get to the wall street pep rally which followed obamacare enrollment hitting 7.1 million enrollees. just listen to this. president obama: last night the first open enrollment time under the law came to an end. despite several lost weeks out of the gate because of troubles with the website, 7.1 million americans have now signed up for private insurance plans through the marketplaces.
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7.1. many of the tall tales have been debunked. there are still no death panels. armageddon has not arrived. >> there are those who have been critics that they have only been turbulent, they have not been the obstacle. the american people having a healthier life. our founders want it for them. stuart: the founding fathers? you tell us what you think about all of this and stay tuned for my take on the obamacare victory lap that comes up next hour. we had quite the reaction to my take yesterday where i called obamacare socialist medicine in disguise. two systems, private and public, one for those with money and one for those who don't have money. that's what happens when government tries to organize your health care. that's what obamacare is doing to us.
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and it's very difficult to see a way out of this. obamacare cannot be repealed for at least three years and it is getting more entrenched all the time. here's just some of your reaction to what i said yesterday. tara challenge me saying hey, let's not overlook the fact that the rich like you are in seventh heaven because obama give companies the opportunity to fire full-time workers and then rehire them part-time at $10 per hour. not sure where you're coming from on that one but i disagree entirely. adding why should we care what a noncitizen has to say about america. he is another pierce morgan. that really hurts. i am not pierce morgan. charles: was that low the belt? stuart: how dare you. how dare you. please keep the comments coming. i don't necessarily like the haze mail, but i like when you disagree with me.
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i want to hear it. another must-see go pro video for you. the leapfrogs jumped into the san diego padres stadium at the start of the home opener on monday. the helmet camera worn by one of them captured entire jump in the stadium. we say it all the time, go pro does not need to advertise, they just have viral videos like this one. by the way, go pro is going to go public fairly soon. more next. [ indistinct shouting ]
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stuart: charles payne has a reputation of making some money for you. he will try to do it again now. recommending ginko solar. charles: it has been absolutely remarkable. i think it has really shock a lot of people how well solar is starting to do as subsidies began to retreat. look at that chart, stuart. it is a chart and a half, extremely volatile. this is why i like it. my target is 40. you like to use all the different valuation metrics, peg ratio 0.7, trading at less than
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one time sales, two times growth. this is what value investors would normally buy, but it has the products. solar chips and panels. the chinese play. stuart: that is a better chart. charles, thank you. let's go back to amazon. we got it for you. that is an amazon vp holding the device. very thin. much better than apple tv. faster speeds they say come a lot of content, also partnering with glue, espn, netflix to provide content. voice controlled remote. it was up just a few cents. now it is up to dollars at $3.45 i saw on amazon.
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if you want anymore comment on this, charles, walk away from the field if you wish. charles: amazon has a different problem this year. i think they have to start making money. start ringing money down to the bottom. stuart: they're making money but they spend it. charles: they have to bring it to the bottom line. somewhat of a free pass. something is wrong and i think wall street wants him to step up and start ringing this to the bottom line. stuart: we don't talk about the adp report very much, but today it shows what could be the jobs pounds. this refers to private sector job creation, adp. they come up with a report every month right before the report and today 191,000 new jobs were added last month. that could be the setup for the solid jobs report come friday. charles, lot of people are saying maybe -- you are laughing.
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charles: we waited for solid jobs report for six years. you know the play around the corner, maybe we can open it back up. waiting for solid jobs report. adp some hopeful things. construction was intriguing. manufacturing, we made north of 200,000. we need now to jumpstart this economy. stuart: you are going to get a lot of spin saying it is an improvement. here we go. charles: they have done a great job establishing expectations. even with obamacare. where did that number come from? the white house. they get get to set the bar andn they hit the lowest quotations, they take the victory lap.
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i want them to say we expect 350 jobs everything a month, let's talk about something robust, something we can do. stuart: just a couple of points to make here. number one, fewer people are working today then worked in 2007. fewer pages today than there were six, seven years ago. number two, half of the new jobs created, more than half the new jobs created the lesson $14 per hour. low-end wages stuff. the median income of middle america has declined by 6% compared to 2007. real numbers. that tells the story. charles: higher minimum wage will not change that. stuart: i have other headlines for you. in his study says drinking diet soda can be hazardous to your health.
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finding older women who consume two or more diet sodas per day, 50% more likely to die from cardiovascular related diseases. next one, chick-fil-a selling more chicken than kfc last year, $5 billion worth of food. pacific gas & electric charged with felony counts we did to a gas explosion in california. the fed fed so they found multie violations they filtered and five problems with other pipelines. eight people died in the 2010 explosion. but look at the stock. the stock is up 1.5%. of one .5% on news like that because the news is now known. it is a known quantity. the hot story of the week got charles really fired up. high-frequency trading. some people say it is rigged. the fed is investigating.
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the data center is in his district. that is after this. how did edward jones get so big? t me just put this away. ♪ could you teach our kids that trick? [ male announcer ] by not acting that way. it's how edward jones makes sense of investing. if you have a buness idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reali. start your business today with legalzoom.
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getting a larger iphone later this year. reporting strong earnings this morning, revenue up 7% from last year. it says it is all due to an expansion in the corn and soybean business. shares up 1%. microsoft kicking off the annual developers conference expected to announce upgrades to the windows phone including a voice assistance. check the shares, down half a percent. and up next, on the investigation into high-frequency trading. we will be back. when folks in the lower 48 think about what they get from alaska, they think salmon and energy.
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but the energy bp produces up here creates something else as well: jobs all over america. thousands of people here in alaska are working to safely produce more energy. but that's just the start. to produce more from existing wells, we need advanced technology. that means hi-tech jobs in california and colorado. the oil moves through one of the world's largest pipelines. maintaining it means manufacturing jobs in the midwest. then we transport it with 4 state-of-the-art, double-hull tankers. some of the safest, most advanced ships in the world: built in san diego with a $1 billion investment. across the united states, bp supports more than a quarter million jobs. and no energy company invests more in the u.s. than bp. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.
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stuart: straight to nicole. gt advanced technologies i think it is up big today. nicole: check it out. the stock up almost 6.5%. to give you a glimpse, we talk about this company because they work closely with apple and are likely to make a shattered proof glass for apple iphones. they talk about iphone 6. we are watching the stock up over $1. this stock is up 110%. this year 114. how about 450%. stuart: had we been watching
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charles payne, we would have thought that stock. charles: we are still in it. people up from 47% over 100% watching the show. stuart: are they happy? charles: right now they are. although we're getting a lot of e-mails on a michael lewis thing. 90% or me and sandra. stuart: we had an intense discussion this morning and you and sandra were both saying this is nonsense, they are not insider trading, guilty of anything. stuart: and have not broken the law in the market is not rigged. what are the viewer saying? charles: most are saying they think is sensationalizing it even though he is scared because he doesn't have a shot against the big guys. one trader came on the show a lot, brilliant guy, he things he
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is onto something we have argued back and forth using martha stuart for example. they are little frustrated he goes that kind of a thing doesn't hit the market. he is number one on amazon. he's doing well with the book. number two, if i buy microsoft at $1 per share, but the flash traders, these high-frequency traders get it for $0.99.9 per share, okay, have they rigged the market? technically they have an advantage over me, technically they have a better price than me but i don't think it adds up to rigging the market. charles: it would not be against 100 shares, to be 20, 30, 40,000 shares. this is a game between the big voice.
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michael lewis knows that. he is taking this and using it to scare the general public. stuart: let's bring in somebody right in the middle of this. the commerce been scott garrett from washington. welcome back. >> it is good to be with you. stuart: rank you for taking the time, i really appreciate it. i said a moment ago the district is in the middle of this because that communication line from jersey to the town in your district, these high-frequency traders are getting information from that communications line. this is your district, is the market great by these high-frequency traders? >> i thought you're going to go someplace else, i was somehow tapped into that line to work this thing through? we have to think about that for a little while.
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others have made this point as well, as far as the line between those two points, you go back historically, the person who is able to communicate between those two trading centers either through faster communications at the time, whether it was by vehicle, a telephone or by light transmission, what have you, they kept increasing the speed and now have the absolute speed in high-frequency trading. we have seen this through trading. he has an advantage because somehow or another he is doing it a little bit faster. stuart: it is not rigging the market. you are not rigging the stock or rigging the market. >> the second question you have to ask is not just the one you raised but the fact that why is it here, i would suggest part of the reason besides the
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advancement in technology which naturally comes, but because of where i am and the complexity of that. some of this behavior is driven by the laws and regulations pushing this direction. stuart: that means you're not going to try and do anything about this, not going to try to interrupt the trading advantage, the high-tech trading advantage. >> no. instead, what needs to be done is to do a more holistic look at the market before any of these computers were really in play, they do a holistic review, not do a technical term which is a whack a mole approach look at any individual problems people raise off, but to look at from a holistic view, a broad view of how the market is operating and whether it is the complexity of the marketplace that has exacerbated some of these
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problems. stuart: one thing we have all agreed, this kind of the city, this kind of demonizing, a wall street stock market is rigged. maybe turned off, which is a really bad thing. >> it is. anytime you create lack of confidence, what is the appropriate response, i'm going to step back from them for a while and it reduces the flow of money to the creation of jobs desperately in need of right now. stuart: you better go back to that budgets meeting. sir, thank you very much for joining us, appreciate it. edible arrangements, fruit sculpted into flowers arranged
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stuart: we got it, this is the news we were waiting for from amazon. $99, that is how much the set-top box, that is the cost. you can buy it today, much more at the top of the hour. the stock is beginning to react just a little bit. you may have seen them in the office, we certainly have at fox, giving them away as a gift. edible arrangements. the fruit bouquet. here is, i've got one of these edible arrangements right next to me which we will put on camera. also joining us, the ceo of
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edible arrangements. the founder of the company. it is your company. and it is private. you did $500 million of sales last year. >> we are blessed. it is an amazing start. stuart: we had a production meeting and you came up with this. number one, that is gender-neutral, isn't it? flowers tend to go to ladies but edible arrangements can go to men or women, no problem. do you have a breakdown in the supply for gender? >> a lot of our products of course men send our products for any location, lot of guys
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sitting to their wives and girlfriends, and a perfect gift for the celebration at work or for promotion. it is gender-neutral. this one would be around $70. stuart: $70. that perked me up a little bit. the seams on the high side. >> a lot goes into it. chocolate truffles, chocolate strawberries. if you look at it in the range of gifting it is similar. stuart: is it out the door? >> and we guarantee it will wow. when i started edible arrangements people would ask me how do we know this will taste great in the winter months? i guarantee was i had nothing more than a guarantee, some i guarantee would be if it does not wow we will give you your
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money back. we still stick by that guarantee, it is a great experience ordering only through receiving. stuart: the fruit, all of it has got to be right, ready to eat right now. which means that the timing has to be perfect. >> that is what we are really, really good at. we deliver it immediately. the only reason this is lasting writes now is because you and i are not digging into it. normally it is gone in moments. stuart: how much of the $70 ends up in the pocket? >> by the end of the day we have done well. i am living the american dream.
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we make good money. stuart: my producers said obviously enough. he go public, we want to hear about it. >> you will be the first to know. stuart: do you want to break the news now? >> you never know. stuart: coming up, new at noon. putting harry reid and his long list of off-the-wall comments on the couch. not many financial programs would do that, now would they? average price 1.7 in dollar $1.. one of them going for lot more than that back in two minutes. (dad) well, we've been thinking about it and we're just not sure.
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read your statement, you will like it. and we have some drama. senator harry reid, normal or not? dr. keith ablow puts him on the couch. there is a shocker. it comes from our french exile. we take you inside the ultra luxury real estate boom in manhattan. check out a $3 million apartment. 1400 square feet. big buy in our production meeting. i'm not outraged when the congressman ride first class on taxpayer dime. and amazon announcement, a streaming set-top box. is it really such a big deal? ♪ stuart: you will like the look of this one. that is mankind, that is a
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stock. fda advisors back the company inhaled diabetes drug. up goes that stock. $7 per share, that is up 74%. it is inhaled as opposed to ingesting. a different story, glaxo smith kline has stopped a long cancer vaccine trial after deciding it will not be possible to find a group of patients who would benefit. the stock down, but not that much. gm still in the 34-$35 range despite all that is going on at capitol hill with the safety investigation. gm chief mary barra is facing the senate over the ignition key problem linked to 13 deaths. investigators want to know why didn't gm recall the carson a. connecticut senator rick blumenthal asks a personal question. whthis into this.
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>> is that cobalt car now safe for your children? >> i would let my son if he only had the ignition key. stuart: to you first. the senator wants recalled cars off the road. >> he calls them lethally defective. at only public safety issue, he wants gm to compensate victims and set up the fund because of the 2009 bankruptcy, gm is technically not liable for the old gm prebankruptcy. he wants the doj to get the fund set up. stuart: in financial terms what he is suggesting would add vastly to gm costs. >> absolutely. if back when they fixed the part for $0.57 would've cost $100 million.
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times eight, times 10. they've already said the hit along with the fund way up. stuart: we hear the expression criminal negligence. that is a quantum leap in terms of the seriousness of the charge. criminal negligence. >> links to the possible cover-up. any indication of a cover-up meaning they knew about the safety defect and did not do anything about it. that is why the pediatric nurse who hydroplaned is so fired up because to that a lot of documents are coming out saying the engineers knew about it but actively lied. the senator in the testimony today, she used to be a prosecutor, really giving it to mary barra about the engineers testifying in the case,
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hydroplaned off the road, engineers actively covered up and lied about it, stuart. stuart: criminal negligence implies criminal proceeding. >> they paid 1.6 billion victims compensation fund. gm $30 billion on the balance sheet, toyota had 11 million vehicles recalled. 2.6 million in the ignition switch problem here. what we're talking about is also this culture at gm. they talked about how companies are becoming more like government and cronyism why not. when you see gm testifying, they are behaving more like government and the chevy cobalt was under active recall in various states across the country. stuart: let's go to amazon unveiling the streaming device to connect to your tv.
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razor thin hardware, very elegant. we were inside the event inside new york city and joins us now. is this a breakthrough? tell us. >> it is a step forward for amazon. i don't know that it is a breakthrough. speeds in the features they showed off, i can sit there and say search gary busey and suddenly videos will pop up on the screen. amazon needed to do this because they were lagging behind. they had all this great content. it was just an absolute mess to watch it on an apple tv or one of those roku boxes. for amazon and it is but the content they are creating in the hands of the people who need it and who actually pay for a prime subscription. stuart: you are holding one of these. is it as easy as you suggest?
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voice controlled so i could literally say to that box give me this, this and this and it gives it to me? really? >> that's right. and it is pretty impressive getting a chance to do that and see how quickly it responds to your voice commands even in the demo areas where the big companies have rely on the wi-fi at one of the old buildings, it was really fast. that is one of the things amazon was touting, how fast it is, two gigabytes of ram. it may sound like specs what you are watching these little video buffering symbols and you could make a cup of tea by the time the video loads, that is a big deal. stuart: do you think amazon is getting into the streaming business too late? >> i don't know they're getting into its to late because i don't think anybody has solved the living room problem yet. did thi they sign some they deal
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with espn or another cable provider? we could suddenly just get one of these boxes and have those partnerships. we are at a tipping point right now. in the next year to two years, when a company figures out the living room, who can figure out the living room experience. the speed and specs are great for this device but i don't think anybody has solved it yet, so it will be interesting to see what apple does, can the respondent can they get one of these big partnerships so responsible for the next step to the living room. that would be the tipping point in my opinion. stuart: it will happen. that simple. thank you very much, indeed, sir. there is another tech ipo happening today. nicole, what do they do?
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nicole: they're like the market makers of digital advertising. they bring together people buying and selling digital advertising through one of their corporations. all about digital advertising. the stock is up 34% today on their ipo day. price at the lower end at $15, but certainly easily surpassed that. i cannot leave out rupert murdoch's company now owns a part of this company owning 13.7%. stuart: the congresswoman, we told you about her last week flying first class on the taxpayer dime $33,000 worth of flying first class. others on both sides of the aisle are using taxpayer money to fly. republican congressman from arizona is working to stop that from happening.
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let me tell you something. this morning in our production meeting we talk about your bill to stop this first class flying on taxpayer dollar. i am not outraged. why do you think i should be outraged when a congressperson, congressman or congresswoman flies first class? i am not outraged. >> everybody should be outraged, stuart. or military prohibited by policy to sit in first class, social members of congress. i don't care if you have upgrades because of extra miles and points, don't pay on the taxpayer dime. compounding debt interest is the opposite of compounding interest for profit. every dollar we save will be dollar earned in our profit. we ought to live by example on this one. stuart: does your bills and no commas person can sit in first class.
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>> they cannot purchase a first-class ticket. many flights sometimes there is an opening and if you have increased points they will upgrade you for free of charge, no additional cost, but we should not be buying first-class tickets on the taxpayer dime. stuart: people in congress, do they have a set budget for travel expenses between washington and their constituency? >> we do. we responsible for the people in the office, the rental for travel and communications of our constituency. this is more accountability. the house cut over the last three years to be a more accountable to the taxpayer. this is just another way of being lean and mean and like everybody else. stuart: you probably have a pretty good chance of getting this through, right? >> all the help from outside sources like yourself and fox business brings this to a
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head, you never know sometimes out of sight out of mind and bureaucrats don't want to do it. stuart: i am not exactly helping on this one. let's see how this thing goes. mi out on a limb on this one? >> interest in you brought up the military is not allowed to fly. look, is it that big of a deal? stuart: have a budget to travel. they want to spend on first-class, so what. the calmest people of united states of america, they have stature. >> i'm cruising to a certain class types of tickets this oftentimes it can change their schedule. sometimes if you pay a little bit more it is refundable. stuart: if you are sitting in coach looking to first class and see congressman or woman sitting in first class, are you outraged? spiegel i'm outraged the use military planes. that is more outrageous.
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stuart: senator harry reid saying cancer patients are liars and he denied saying that. same people cannot find a before care because i don't understand the internet. dr. keith ablow on this after the break. >> there are some people like my grandchildren who can handle everything so easily on the internet. a 63-year-old woman came in and said i just about got there, it would cut me off. we have a lot of people just like this through no fault of the net, but people are not educated how to use the internet. when does your work en
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per the new data shows to fly has $5 billion in sales and kfc has 4.2 billion. that is a big increase in for a store that just doesn't have the number of locations. if you look at the breakfast menu because we have been talking about the first meal of the day, both have breakfast menus. ingredients which customers like. stuart: i was saying it is just the chicken, they sell more chicken then kfc. that is all we're talking about here. lauren: yes, both are chicken chains b. stuart: is senator harry reid out of touch? he calls them liars and then he backtracks. listen to this. >> there are plenty of four stories being told, all of them untrue but they're being told all over america. i've never come forth on my recollection or said a word about the examples republicans have given regarding obamacare.
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stuart: now he is lashing out at one of his colleagues. who is battling prostate cancer. raise concern over obamacare is coverage of his cancer treatments. here is how senator reid responded. >> he is very good at getting in the weeds and try to find something he thinks makes sense. but i think we need to look at the overall context of this bill. it really brings a lot of people in from the cold so they have the ability to get health insurance. stuart: fox news medical aid a m dr. appel is here. put senator reid on the couch and do your normal segment. is senator reed normal or not? >> i think he is slide perhaps because those statements are not statements. he is saying literally nothing. he is not address the man's argument, he seems very talented getting getting lost in the weeds but people will get a lot of coverage in the end. there are no facts.
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he is taking the american people for folks who just kind of like looking at colors passing by on a tv screen and the kind of like the sound of his voice or something. but he is not addressing any issue. for that person it also happens to be apparently the case he is able to attack and say these people are liars with horror stories of obamacare. he is untethered to anything like the truth. that is evidence you just resented me. this man doesn't care about data, this is not a scientist, this is somebody with no respect for the intellect of the american voter. stuart: if he was on your couch which he prescribed a drug regimen or would you do psychoanalysis? >> i would say to senator reed somewhere during the course of your life you have become convinced that people are best served when they have less
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information rather than more. when you have more control and they have less. and when the authority rests with you and others that you consider your comrades rather than with the individual and autonomous person. what happened to you to make you so convinced people cannot decide for themselves as they must be treated like sheep. what happened? tell me. stuart: i think it is politics, but that is another story. >> does not mean to say to people follow blindly. it means open your eyes, see where you are going and if you think we should go in the direction i am suggesting, get behind me, let's all go. stuart: i say men don't like browsing in stores. men in particular hate trying on clothes in public trying to decide this suit, that suit, this shirt, that shirt.
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i was called sexist for saying that. am i sexist? >> you are an expert in gender. you happen to know something that other people want not to believe. the bottom line is if i find a pair of shoes i like i might get three pairs because they might wear out i don't want to have to go looking for them again. i don't call my friends and say hey, gary, would you like to go shopping this weekend? what has happened to you. stuart: liz macdonald is here. >> 2000 people surveyed last year, men feel like they are subjected to shopping. women treated like a hobby. eight in 10 hate shopping with their partner, have tried to avoid it at all costs because they get bored and they will only go shopping if they get a treat at the end. stuart: a reward for it.
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it was a british study, by the way. >> men want to recruit somebody to help them in the men's department who will say here is the thing, a good deal, i want that one in that color. my best friend who happens to be the ex-husband of tory burch, said why don't you ever open men's stores? he said wendy over the opening of a men's clothing store where there is a line outside? the answer is never ever. so my buddy knows where the money is and he knows psychology like you do, stuart. stuart: thank you very much for joining us, sir. be well. president obama in the polls. he may not like what i'm going to say, but listen to it anyway after this. ♪
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stuart: $99 shipping today, amazon unveils the new screening device market is a big on, up a dollar. are you getting an online degree? disappointing numbers, down it goes to 9% down. more real estate eye candy for you coming up inside and near $3 million new york city apartment, do you think that is worth it? plus the robot that can perform surgery on astronauts in space. that i think h think you would s genius. my take today is a prediction. president obama's polling numbers are about to go up. forecasting politics is about as dangerous as forecast in the stock market. i understand i may be wrong. many of you hope i am wrong but let me lay out my case. i think the comeback started yesterday when the president
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held a pep rally to announce obamacare had reached the target enrollees. it is a very friendly audience. a sea of smiling faces. this morning the media has cast obamacare in a new light. it is a success. like it or not, that kind of coverage has impact, the president coming back from disaster. some voters will like that. based on deck, the job numbers. the media will be the presidents megaphone. watch out, a few more private jobs in the private sector, and fewer layoffs, that is what is probably coming and that will be hailed as a rake through. finally we have turned the corner. the media wants success without ever digging into the story. this happens all the time, but it has impact.
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if you're sitting at home, casually watching the news, what is coming at you? a president who has come through the obamacare firestorm and is bouncing back and an economy finally looking up, you will not be told obamacare is ruining the health care system, you will not be told real unemployment is about 10%, you will not be informed america's great middle class is still losing ground. anything bad is all the fol fauf wall street and the rich. yes, the republicans. i emphasize the word but the uptake and the president's political fortunes will be temporary. he cannot disguise the obamacare disaster with pep rallies forever and he can't spin the under performing economy. reality will make a comeback. that is the good news. (dad) well, we've been thinking about it and we're just not sure. (agent) i understand. (dad) we've never sold a house before.
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(agent) i'll walk you guys through every step. (dad) so if we sell, do you think we can swing it? (agent) i have the numbers right here and based on the comps that i've found, the timing is perfect. ...there's a lot of buyers for a house like yours. (dad) that's good to know. (mom) i'm so excited. i'm j-a-n-e and i have copd. i'm d-a-v-e and i have copd. i'm k-a-t-e and i have copd,
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but i don't want my breathing problems to get in the way my volunteering. that's why i asked my doctor about b-r-e-o. once-daily breo ellipta helps increase airflow from the lungs for a full 24 hours. and breo helps reduce symptom flare-ups that last several days and require oral steroids, antibiotics, or hospital stay. breo is not for asthma. breo contains a type of medicine that increases risk of death in people with asthma. it is not known if this risk is increased in copd. breo won't replace rescue inhalers for sudden copd symptoms and should not be used more than once a day. breo may increase your risk of pneumonia, thrush, osteoporosis, and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking breo. ask your doctor about b-r-e-o for copd. first prescription free at my breo.com when folks in the lower 48 think athey think salmon and energy.a, but the energy bp produces up here creates something else as well:
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jobs all over america. thousands of people here in alaska are working to safely produce more energy. but that's just the start. to produce more from existing wells, we need advanced technology. that means hi-tech jobs in california and colorado. the oil moves through one of the world's largest pipelines. maintaining it means manufacturing jobs in the midwest. then we transport it with 4 state-of-the-art, double-hull tankers. some of the safest, most advanced ships in the world: built in san diego with a $1 billion investment. across the united states, bp supports more than a quarter million jobs. and no energy company invests more in the u.s. than bp. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.
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>> another hit for the soda industry, a new study links diet soda drunking to heart disease. lar ren whereby the details? >> the american college of cardiology fines women 63 years and up who drunk two or more diet drinks, fruit juices a day are 50% more likely to die from cardiovascular problems. cardiac disease is the leading cause of death. 600,000 people die around the world because of it and now there's a link to diet soda. if you're a beverage company, a
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coca-cola, you're worried, we told you yesterday diet pepsi sales were down 7% last year. so there's the health concerns. there's aspartames in it and not good for you. it's a huge deal and the beverage companies are worried. >> it is a big deal. >> luxury apartments sales in manhattan have hit a 7-year high in the first few months-year. look at that. the average price for and apartment, this is manhattan, $1.76 million, that's the average price. cheryl is with us now and inside, a very expensive apartment, $2.8 million for an apartment. show us around. show everyone, is this thing worth it, go. >> ok, well, i'm going to let you and your viewers and the company just for themselves. 2.$82 million is a luxury pephouse apartment at 75 wall
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street in the heart of the financial district which has become more of a residential district. we'll talk about that later on today. few things to note hear. as you can see, you have quality furnishings. wide blank oak floors. this is a new thing in manhattan as far as brand new apartments. this is a brand new building. a couple of things, you have a two-bedroom, two bath apartment with 1400 square feet, though. you have 10-foot ceilings, which should be standard, but it's not always the case. very high-end appliances. you may have heard of boscke dishwashers but it's the hidden dish washer that's popular in manhattan apartments. again, the worship windows them, windows in every single part of this apartment. these are 8-foot ceiling windows and you can see sweeping views, 360 views of all of downtown
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manhattan. the building itself is a bigger selling point. i want to point this out because there's a full service spa. they have a gym. you can have your meals catered to your residence here and you can have spa treatments in your new luxury penthouse apartment. here's the question, you and your viewers think 1400 square foot with these views and services is worth $2.82 million? i defer to you? >> i have one more question for you. if you buy that apartment and you live in it, you are subject to new york city's sky-high taxes, which the mayor wants to raise even more. you buy that apartment and you live in it with a good high income, you'll be paying way more than 60 cents on the dollar in federal, state and city taxes. that is a killer on the deal. lard word to you, cheryl? >> and you'll also put 20% down
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for this apartment and you're looking at 9 grand plus for a monthly mortgage payment and searched hundred in maintenance fee. the happy tax situation that is living in man tat han. >> if i was a russian and spent 25 days there, i could make a case for that. cheryl want that was excellent. thank you for showing us. >> a growing number of frenching citizens moving out of france. in fact the number is up 60% since the year 2000. we're joined now. this is young people, isn't it. give me the numbers. >> yeah, it's 1.6 million french people live outside of france. france has a population of 63 million and while it may not seem like a lot of people, it's as you said up 60% from 20700. bu2072000? it's the productive people leaving france.
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the people who want to create something and feel that france is definitely not the place where they can start a business or if they're successful, the people saying if they're successful, they'll be punished for it. so these are the people usually you would want to retain and they are the ones exiting, going to london, going to silicon valley. >> i think you taught us there are 50,000 french citizens in silicon valley alone almost we read your stuff and you're saying france is the new greece. explains that. >> i mean, if france has been going down for a long time. it's quite remarkable that there is so so much wealth in france, considering the level of taxes, the government consumption of the economy is way above 50%. their debt now has reached almost 100% of gdp. taxes are not only high and have been very high for a long time,
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creating a lot of dis-insensitive to investor but certainly to invest and to earn an income but also, there's french people constantly live in fear of more oppressive taxes. these are all conditions that are not conducive to producing wealth, to producing the type of growth that you require and i think worse is the fact that there is such a large number of people who are dependent on the government. >> one last one for you, we ran a story yesterday of a frenching billionaire who was born to $602 million estate in southern california, the most expensive house sold there in a long time. why would a frenching billionaire go to california, where the tax rates are very, very high? what is he doing going there?
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>> i guess he's used to high tax environments and that's what he knows. i mean, there is some appeal about california. it's a beautiful place and by all setters, california is actually lower taxes and at least may feel like lower regulation for french person. >> that's the reasonable explanation, i suppose. >> honeke, welcome to america. hope you stay. >> thank you. >> it's a story everywhere is talking about, pie frequency trading, rigging the markets, yes or no? charles got fired up about it last hour. up e next next, another chance d the table.
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fly faster and further than any other ball on the market. monsanto is up half a share and all thanks to an expanse in the soy bean business. and universe makes uniforms and it says higher operating spends cut in and stocks down 10%. up next, the real half-time report. i've always kept my eye on her...
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>> here it is, the real half-time report, joining us from chicago, scott, market watcher shawn in miami and charles pain are both here. on this morning's amazon news, does it make you want to buy it? >> it makes me want to buy the product, that's for sure, not the stock. the stock is overprized but i think the product is fabulous. i think what it does is set a much higher bar for apple. but i think on its own this product is fantastic. amazon is creating its own ecosystem. so i love it but i don't love the stock. i think it's overpriced. >> chart, we're talking about a set talk box with high performance and elegant thin design, would you buy the stock?
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>> i would not, $340 a share is what it must make or another dip in the broad market takes this to 300. >> liz, does this new amazon device hurt next flicks. >> analysts are saying yes because you can get next flicks through the streaming device at amazon, meaning the amazon set top device, but here is the key, amazon coming up with its own original content, six new tv series, including one by the creator chris carter, also exclusive streaming rights to downton abbey and 24, starring keefer sutherland. >> move on to jobs, 190 thorough private sector jobs. is the job market finally looking up? >> yeah, i think it is. we'll get a good set of clean numbers for once and that will put more frequenter on anyone if it's a good set of clean numbers and the numbers aren't what we want, we'll be back in the box
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of being in trouble again. i think we're kind of lurching in the right direction. they should be good on friday. >> tesla, makings big news in norway. you don't think to buy with the stock at this price. >> i want it at under 200 but i think at this point it is a buy on weakness. it will make a run at some point north of 2 other. >> then we have delta, which has hit a new 52-week high. why? >> after a tough january san february for all of the carriers, delta came out with march numbers that, stellar. they showed traffic rate up 4.1% doe necessary tickcally, 3.9% overall, the passenger revenue kicked higher, so that's the news. were they on time? 84% on time and the stock moves to a new high and all airlines are higher today. >> all of the fees for baggage, that's what helps. listen to how flash boys michael lewis described the stock market
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this morning. roll it, please. >> it's rigged in a subtle way, it's rigged to give you an analogy, casino analogy, the exchange and the high frequency traders are the poker players and everybody, the tour group operator gets the money, the possibler player. so that's the arrangement. >> ok, people hear the word casino connected to the stock market and run for the hills what do you say? >> i think it's causes a lot of those issues and it needed to be addressed anyone is long overdue. the ftc never addressed it properly and part of the reason is they make money and the exchanges make money off and i think the problem is correct lid stated by michael lewis isn't this is a systemic problem, not affecting investors on a day-to-day base assist but it causes seriously problems which we could see another flash crash
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and undermining credibility of the markets. >> interesting, but liz is shaking her head. go. >> the spc wanted electronic trading, remember. i know you've covered this, too. there was a lot of could restitution between brokes to rig prices and crumbs going on in the market. wait, we want the middle guys to get out of this and then want to move to electronic trading. i like how one analyst said it is closing at highs. and michael lewis is talking his book and high frequency is helping everybody. i'm not saying it doesn't happen with insider trading. but remember, it was the fcc who wanted the move to electronic trading. >> earlier today charles payne was pounding at the table. one last chance to say something especially. >> quickly, to peggy-back, electronic trading when i came in the business, if you wanted to buy a stock and sell it it would cost 300 to $500 for
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benefit. if someone gets in forecast of you and makes a penny, that's not a big price no pay. they won't trigger the class per say but benefit from volume and volatility. high frequency trading h did $7 billion in 2009 and $1 billion year. >> i can't believe charles payne is old enough to remember fixed changes in 2002. >> it was a big period of my life. >> sure was, you in diapers, i believe. laughter >> we thank you. another gee whiz story today. robot surgery in space for astronauts going to mars? we have the story and an explanation coming up. check this out, talk about being lucky, 21-year-old tree trimmer rushed to the hospital with a chainsaw imbedded in his neck, missing major arteries, expected to make a full recovery. can you believe that? i have six chain saws but none
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>> we specialize in this, gee whiz text stories. a time of scientists building a robot to perform surgery on astronauts in zero gravity. explain it. >> i can't tell you exactly how it works because it's way over my head but basically there's robots in space that are operated by doctors here on planet earth. is there a need for space row woulds, doctor space robots? yes. when you're on long space flights you have issues with your heart, something with the gravity, loss of muscle mass. right now in an. medical situation for an astronaut to get back to earth, he has to get into an emergency escape capsule and that takes a couple of hours. this would be automatic. it's a great idea, a cool idea. i would be nervous about the astronaut, however, that is operating the robot, which is also operated by the doctor on earth. because the astronaut has to put it in through your belly, they make an incision. >> it's just being tested now. >> you know this is coming in the future.
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>> i'm sure it is, yes. >> you don't know when. >> tweet using hash tack tag, if you want to know about a particular company or stock, because you asked about it. >> i thought that was a fascinating question. this is spanish for hawk about a guy named flied wilson who had a companied called petro hawk. anyone who investorred know this guy. it was a relative thenny stock that was sold for like, how much, $18 billion? unfortunately, the stock is down 50% from the high. look at that chart. they missed estimates, yet i looked into the numbers, they look fascinating. the production is increasing. >> what's wrong? >> the execution is awful. it's a 23% short position. i think if someone is a looking to buy a break-out through 450, i would buy it there but you have to use a first stop loss. in this case 3.90, $4.
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>> i have to break here, turkey's country high court ruled that the ban on twitter in turkey is unconstitutional because it violates the right to free expression. the court demands access be restored. this ruling comes after the real election of otigen who called for the ban in the first place. i believe he tried to ban youtube. >> it was a reelection of his party. >> yes, high court says no, you can't do that and bring it back. your take is next. we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪
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varney say novel by thousand shares of microsoft is an individual trade. it is two different things. by the way it went on from there. a lot of fire and passion from charles this morning. your take on the rest of the show. mark says this about whether or not those defective cars from gm should have been recalled earlier. it is proven gm knew people were getting hurt civil penalties are not the answer. people need to go to jail. and our discussion on a potentially good jobs report, quote, back all you fox losers haze that. however i am sure you will find some way to spin it. this is not o'reilly but we are the notice thin zone. got that? here is dierdre bolton. dierdre: welcome to risk and reward, we have more ways to invest your money on stocks and
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bonds. we focus on real estate hedge fund strategies, venture-capital, even arch. it is all about alternative access. our top story, the battle to take over your living room is gone. amazon versus apple tv versus row coover's is google, we will give you details on jeff bezos's next step to make amazon and everything company. more ways to make money, better ways to keep it. other headlines we are tracking this hour, speaking of apple is in talks to buy japanese chipmaker for close to $800 million targeting an electrolytic, and get logger battery life on the iphone. that is the idea anyway and from tech to luxury real-estate prices and lower man and sky high.
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