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tv   Bulls and Bears  FOX Business  July 6, 2014 8:00am-8:31am EDT

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it can irritate your gums. try fixodent plus gum care. it helps stop denture movement and prevents gum irritation. fixodent. and forget it. enjoyable holiday and we will see you tomorrow. >> that is how you can join us tomorrow wi tomorrow. and first time ever the index up over 17,000. and the jobless rate falling to 6.1%, but yet the consumers are not feeling the love. the gas prices soaring and the food prices soaring, and the wages are barely budging, so are we about to get burned again or are the boon times back? i'm brenda butner, and this is "bull "bulls and bears." we have gary b. smith, and tracy burns, and john lathe yal and
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david. are we starting to see the job coming back? >> yes, it is starting to come can back, but we have one of the lowest participation rates in 30 year years. we have structural high unemployment which is a signal of a problem going forward which will not be fixed with low interest rates. what the administrations and the fed policys have done is to greatly benefitted the 1%. they have made the rich significantly richer. they have destroyed the middle-class. wealth is still being created. look at twitter and facebook and there is being creative, but it is not coming with jobs across the country. and with the food inflation starting to the ramp up, and gas prices being high and going into the summer, the consumer is being left out of this, and to them, it is not feeling like a rall rally. >> right. >> david, do you think that the economy is strong enough to keep the market going? name some positive things about
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the economy. >> well, there are a lot of positive things in that last year in january the unemployment rate was at 7.9%. we now have it at 6.1%. we have an average of 272,000 jobs having been created on average in the last three mon s months. that is 600,000-plus people who were not working before and are now working. if we keep the trend going, we will see the demand higher, and the companies hiring more, and see what we are seeing on the stock market with the dow hitting 17,000. so i think that there's a lot of positive in the market, and we see that reflected on wall street, and also happening in the pockets of the main street as well. although we need to address more increasing the wages would be a good start albeit that they have rizden about 2% in the last year. >> and gary b., is wall street really looking at, i mean, is main street really looking at wall street? we have the housing market,
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which has no strong foundation, and gdp contractive last quarter. >> exactly. i wonder if there was a republican in the office if david would be so rosy how the economy is doing because let me offer a few rebuttals to what the left thinks is going on. i don't want to be a debbie downer, but you have brought up a good point, only half of the people are involved in the stock market. so 50% of the people have not seen any benefit from the rise, and it is a nice rise in the stock market. that is number one, and number two, david talked about the jobs created, but unfortunately a lot of those are a, part-time jobs, and b, the total unemployment rate which includes the people who have totally given up is remaining high, and almost double what it was back in 2000. so you have all of those factors plus housing. housing inflation adjusted which is still people's biggest asset is still below where it was in
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2000. so all of the people who bought e homes since then have seen a loss in capital. look, i'd love the say that the economy is great right now, but you pointed out that the gdpp has contracted and adding up the other things, and unless you are as john points out the part of the 1% heavily invested in the stock market, it is not that great out there. >> and jonas, what is your take out there? because we have gone 1,000 days without a correction and that is a long time. >> and yes, i'm not sure of the comparison s a comparisons are the best. the nasdaq is still below the peak, and there is a bubble, and i don't know if we will get to inflation-adjusted rate like the housing market, but that is the risk of the stock market is to look ahead a couple of years. right now, you are buying with $70,000 down, we will get the consumers to spend more. and now we have the dow that is making the stocks risky.
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if we have a recession in a couple of years that is when you will see the correction, and so we have to trust on the dow's stability for a good economy. >> and basically, consumers are paying more at the pump. more at the grocery store, and less money to go into the retail. that kind of demand would essentially empower the economy and we are not seeing that. >> no, and one of the dow leaders from 16,000 to 17,000 was disney. you could, you know, blame it all on the frozen and elsa and all that, but we don't have the extra cash can. part of the problem is that you have to go back a couple off years when everyone was strapped, and they didn't have extra money to put this the market and ride the run, so that is why there are so many people missing it, and the disconnect is getting there and sometimes feels biggerer, but if the hourly wages are not going up, the daily expenses are, and it is so hard to save. and so because of that, you
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know, so many people keep mis g missing this market, because it is going to continue to go higher, because the fed is still pumping the money in it, albeit tapering, and as long as the fed keeps pumping the market is going to go up, and it is an unfortunate thing that the people are missing it, because they don't have the extra crash cash at -- extra cash at the end of the week. >> and people had a tough time the last time that the bubble burst in 2000. >> rightment and people are not aware of na and that is why a lot of people are not this market, and no conviction in the market, itself. look the thing is trending upward and not surging, but trending upward. it is an incredible market, and it is trending up on not necessarily very high volume, and the people are worried about a lot of things going on and you can see the that the ecb is going to keep the rates the same a and that is going the do with the markets now and nothing to do with the united states per se at all, and what we are saying
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is that the market is looking at the job and the administration and realize that, look, we have an administration there that they can't get anything done. we have a congress that absolutely hates each other, and the guys are going to do nothing the next two years and for the market that is good. >> okay. and brenda -- >> david, go ahead. >> if i might say that if you look at the jobs market, we have hundreds of thousands of people that now have jobs that in january didn't have jobs. i am sure that there are a lot more confidence in dealing with the pricing in the consumer market than when they didn't have jobs. we have to continue to create the jobs for additional people to be employed, but at the same time we have to raise the wages which is why you will see the states take on the rise in the minimum wage. >> and david, that is not going to solve the problem, and first of all the labor participation is -- >> jobs do solve a problem. >> and minimum wage is not going
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to do it, because the minimum wage participation is still at 6.2% which is what it was in 1978, and we were on gas lines back then and i remember it well, so if you don't get the people back into the market, and i don't know where you are going to create the jobs if you don't create the confidence, but raising the minimum wage is not going to help at the end of the day. so that argument is not going to work. >> well, guys, the minimum wage argument takes you completely away from any argument that is important right now and it takes away from the ineptness in washington, d.c. right now. you are talking about the low paying jobs and getting a little bit higher paying jobs and we need real jobs. you argue the minimum wages, because you don't have a tax pl plan or energy plan or anything. >> we need to create jobs. >> and david, hold on for a moment. gary b. i want to bring up something that tracy said, there is a real unemployment rate at
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12.1% which counts all of the part-timers and the people too discouraged the look for a job, and that is still high. >> back in 2000, brenda, it was 7%, and that is increase significant from 6% to 7%. and i'm baffled when the left in particular says it is a great econo economy. i mean, the economy and don't we measure it by gdp, and i think that we do, and didn't that contra contract? people said -- >> well, the second quarter was up. >> and it is because of the bad weather, and then i say, wait a second, canada had bad weather, too, and they had a cold winter, and their economy didn't detract. no, the reason it did not is because of the government creating jobs, and the government does not create jobs, and we have to get that out of the picture. john made the point the government interfering with the jobs, and if they do nothing, we will be better off. >> i know you are excited and you can talk about it in the
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commercial, but we have to go, because we have to pay the bills, guys. and now the ceo who is tapped to clean up the v.a. mess. and why the cavuto gang is and why the cavuto gang is saying that we nee i had no idea i had shingles. there was like an eruption on my skin. red and puffy and itchy and burning. i'd lift my arm and the pain back here was excruciating. i couldn't lift my arms to drum or to dance. when i was drumming and moving my rib cage and my arms like this it hurt across here. when i went to the doctor and said what's happening to me
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his first question was "did you have chickenpox?" i didn't even really know what shingles was. i thought it was something that, you know, old people got. i didn't want to have clothes on. i didn't want to have clothes off. if someone asked me "let's go dancing" that would have been impossible.
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immigrants were flown in from overflowing centers in texas. now back to more on "bulls and
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bears." as the americans are heating up the heat, russian hackers are looking to pull the power on the power grid. scientists say this massive threat could cripple the energy threat. gary b., how serious do you think it is? >> i think it is so serious that i believe that cyberer security is going to be just like the navy, air force, marines and a pivotal part of the armed force s forces. i think that the next, that if we have a world war, it is going to be in cyber. think about if someone had maliciously had the impact that hurricane sandy did on the east coast, and how devastating that it was for the people still to this day. it is so serious i am put mig money where my mouth is and i told my younger daughter who graduated with undergrad in media and i said you need to reprogram yourself and go back to get a masters in cyber security, and that is what she is doing and how strongly i
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believe in it. >> and now you are skeptical about the ability of the siber hackers. >> well, i believe in the threat of cyber hackers, but the enemy countries don't have good hackers, because of the education systems, but russia, they have smart people, and doing the hacking of the energy companies bs companies, but the m.o. is not to shut it down like that picture, but it is old school espionage, and the countries and companies in the energy biz are not run as well as exxon, so they want to get in and see how we build the infrastructure, and then see how we do it, and then steal it. it is a threat to the capitalism, but it is not like where'd the lights go. i don't think that the direction they are taking. >> well, they are attacking strategically important energy companies. >> yeah, and that is a problem that we will have to deal with. look, no super power has controlled all four oceans like
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the united states does right now, and militarily, we are not going to be attacked most likely and certainly not going the succeed for any circumstance for decades to come, but look at what happened in iran with the computer program melt ed ed by stutz net virus, and so if you have a rich country, you can buy an elite group of hackers, and to me, that is biggest threat that the u.s. faces in the next ten years. >> and david, quickly? >> i think that it is a serious threat. i agree with gary b. on that. i don't think that blaming the russians on it is going to get a fix or address the problems that we face, and like that, gary b., we need to put our money where our mouth is to take some actir the infrastructure in general. we need to not lament it later and pay for it later as well.
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>> tracy? >> well, forget about the terrorism, because the grid itself should scare people, and it is old, and energy consumption is increasing, and the government policies affects it, and so does the bad weather. so many things affect the grid, and so many people online and it is old and aging, and that is alone a threat to the economy here in the united states and forget a siber attack. >> gary b, the last word? >> well, you know, to the foint that is made earlier, maybe they don't need good hacker, because it seemed that i could go to the pepsico site and bring things out. that is the problem. >> we count on your daughter to help out. all right. green piece is attacking lego over the global warming. yeah, lego, the toymakerers and talk about not playing nice.
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reasoning and develops the kids' motor skills and not on the handheld devices to however long and you are coming down on the point? it is sacrilgious, and every kid out there loves the legos. >> but, gary, it is nothing wrong with them saying that, because leg egos are not going away. >> exactly. i did not see a problem with it. i think that it is going to be dumb, and it is not going to have the effect that it wants, and if they want to raise their hand and say that lego is evil and as a loyal libertarian i would say they have the right to speak up, and it will probably just end up raising the profile for lego. but i think that people might buy more. >> and okay, john, leggo of my egg egos. >> i agree with that.
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but, as far as the future of polar bears drowning in the future is just going to con troe lu -- con troe luvolute their mes. i think this is a message that won't resonate. >> and as gary said, they have a right to have a partnership and i think that lego is doing a new cost benefit analysis to see whether their association or the cost of associating with shell outweigh the benefits that they thought that they had with aligning with shell. >> well shg, they have been associating with shell since the 1960s. >> i understand why the danish company wants to cozy up with the pet row company, but this whole notion, it is bad enough to market to the kids, but adult
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products like gasoline and cars to 5-year-olds to brainwash them to want a cadillac when they are 18, it is wrong and going too f far. >> i have kids and they want cars when they are 35. >> yes. >> thank you, guys, and tracy and david for joining us as well. >> happy fourth. as you fire up the grills for the barbeque, we are holding their feet to the wire, and we are going to be looking at the best and the worst i'm m-a-r-y and i have copd. i'm j-e-f-f and i have copd. i'm l-i-s-a and i have copd, but i don't want my breathing problems to get in the way of hosting my book club. that's why i asked my doctor about b-r-e-o. once-daily breo ellipta helps increase airflow from the lungs
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it most fair and balanced way to make money on tv. our game's best and worst calls for 20 shand how you can profit from them right now on the half year scoreboard. we do the good and the bad on "bulls and bears" and starting with the best of the worst or something like that. gary b., you are up first. you said that clicking on amazon is going to generate profits, because that delivery is late with down 10%. are you standing by it? >> yes, and just ask if you have used a amazon this week, and if the answer is yes, buy it. >> and joseph, you said to pamper the pooch with coach, a nd ramon cold not help this one down 28% since march. are you howling at this one? >> well, you know, the pet collar thing is fine, but the actual bags are stale, and i'm
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worried domestically, but i believe that the foreign sales will make it up. i'm kind of a holder on this up with. >> and the worst calls in 2014, and john a smackdown in january, you said that the wwe would be the champion, but it has dropped 29%. time for a rematch? >> yes, i bought more when it dipped, because i liked the stock significantly, but the deal for the tv rights was too high, and i do full color commentary for the wwe, and bullish on the stocks. >> all right. and now to the best calls, and john, you are going to kick it off. in january, you said to crack open a cold one with moulson and you were right. is it time to tap more? >> well, summer is coming up with beer drinking season and i would not buy it, but if you have it, hold on it to. >> and jonas, you said to fly high with southwest and since then taken off 43 p%, and do you like it? >> no, the oil is expensive, so
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get out of the airlines. >> and now for the best call in 2014, gary b, you are going to win again with netflix gaining 47%. time to binge buy? >> keep buying. i love it. >> thank you, guys. you will only get the fair and balanced pat on the back and kick in the butt next with neil. giving the v.a. the business from someone who knows a thing or two a about running a business. hello, everyone. can a tie-guy clean up the mess at the v.a. president obama nominated kep mcdonald, the one time ceo of procter & gamble to be in charge of a much different giant. charles payne, you say, why stop there? is. >> why stop there? i love the idea, too, of a ceo coming to wshgashington, d.c., will he be am loued to do what a ceo can do, bring in the accountability, and wreck the place and turn it

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