tv After the Bell FOX Business December 2, 2014 4:00pm-5:01pm EST
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verizon. [closing bell ringing] dreamworks, penguins of madagascar a loser. >> david: little off the intraday high. came down a bit. not highist of the day, but a triple-digit gain. may sell a little below. that this is another record high today. who would have thought with all of the gyrations ever the market that we would end where we did. one of the good things besides the ultimate high of the dow jones industrial average what is happening with russell 2000. this is not only big guys but small sand middle sized guys doing quite well represented by the russell 2000. we have a busy day for you. "after the bell" starts right now. liz: the number to beat was 17,828.
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we did it by a long shot. we break doesn't action and what got us there with larry rosenthal from rosenthal growth management. he is here to tell us why he likes europe. david joy on ameriprise feels same way. he is here to tell us one area he thinks could soar 100%. can't wait to hear that. mark sebastian in the pits of cme. we begin with mark. was it data, what was it that really set a fire under these markets? >> you know, again i think it goes back to interest rates. they have just stopped moving. that is giving everybody clearance to start buying stocks again. until we start seeing 10-year and 30-year note start to move. there is no reason for them. the dollar is strong. oil selling off. gold's weak. until we see any inflation risk interest rates are going to stay low. and the stock market will just keep going higher and higher and higher. interesting trade went up. right in front of non-farm payrolls this week.
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across the street at the c-bill, a customer came in and bought 175,000 vix 12 1/2 puts. what is he betting? he is betting volatility will completely plummet for the next couple of weeks. these puts expire in two weeks. he is making a serious bet that volatility in the marketplace is going to plummet and that the s&p 500 is going to keep going higher and higher and higher. pretty much a straight bet. real interesting trade. david: larry, i want to go to you, because that bet really depends a lot on what the consumer does leading up to the christmas holidays. there have been some mixed signs there. at first we thought they were going to do great. online sales were terrific. but mall sales were lousy. there was a "wall street journal" article suggesting that while the price of gas has come down, that is big boon for consumers, all their other prices and health care and cell phone bills and everything are going up. what do you think will happen with the consumer, larry? >> i think the consumer will continue to spend. just as you mentioned gas prices
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coming down is sort of a reprieve from, you know, extra, like a tax break to the consumers. we know that the economy is made up, basically 2/3 of consumer spending. with that being said going forward we'll really see the consumers continue to spend in their mobile devices, technology things of that nature going forward. we're optimistic we see more positive economic data coming out. like the other guest was saying we'll see markets grind higher into end of this year and into first part of next year. liz: we like to have a two-week time horizon. we go to steve. you're not concerned at all what the federal reserve is going to do, are you you? with that said do you pile into stocks here, wait until the holiday season is over, wait until the markets finds its footing in january, then jump in. >> liz, there is no waiting in this case. liz: really? >> when the fed raised rates,
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every time the fed is in rate rising cycle stocks have actually gone up. so i don't want to wait. i don't want to wait at anytime for u.s. stocks but the way invest, i look for checks cheap, hated and in an uptrend. yes, the u.s. is significant at new highs but a market i really like right now is china which is actually 50% below its all-time highs. and still has plenty of room to run. >> wow. we'll talk more about china a second but i want to get to commodities mark, because we had an interesting thing where the price of oil came down but energy stocks were up. of course they were up yesterday as well with the price of oil. why did they go up today even though the price of oil went down again? >> well, look at the energy stocks that were rallying. they're vertically integrated. you have exxon, royal dutch/shell, bp. all ones that go from drilling to refining, to selling gas were ones people are saying wait a minute, these guys are making money hand over foot. the did i denned yields got a
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little out of hand. royal dutch/shell was threatening to have a 6% dividend yield, bp over 5%. exxonmobil over 3%, chevrontexaco over 3%. all these great a-chip stocks just awesome, blue chip stocks, huge dividends that really not in any danger. so i think people looked and said, you know what? it is time to buy some of these really big, vertically integrated energy companies. liz: okay, you go from energy to what larry really likes right now which i guess in a way, sort of unrelated, you like micron which tend to be a high or low flyer. this is one of the most volatile stocks since i started watching stocks market. visa, that toll road credit card company which can be a great play on solid consumer if you really believe in that. i am assuming you do, larry. >> i really do. micron provides chips for pc and electronic portable devices and right now they're in sort of the nice sweet spot of demand
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outstripping supply. we see that continuing to happen until about 2018. their margins are well above their peer group as well as the their growth expectations. consumer wants to continue to stay connected to their portable devices they're willing to give up other things but not that are ken next tivity. we see them -- connectivity. household net worth is all-time record high right now. that means most likely people will continue to spend through electronic payment systems using visa. next year in 2015, in october, visa will have u.s. retailers taking part in their electronic wallet delivery for payment systems. we're very happy about this going forward. david: already way up at all-time highs. steve i want to go back to china for a second because a lot of folks, you like china mobile specifically, one stock in china you like. a lot of folks are still worried about a slowdown there. whether they have become
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overextended. whether they might go through a financial crisis kind of similar to the one we went through, that awful one that led to the great recession. aren't you at all concerned about that? >> absolutely but i actually love all of those things because that means china is hated. and that's what i want to see when i invest. it allows us to buy in at a pe of 10. with that sentiment we'll slowly work itself off as china works itself higher. very specifically in this case i would actually prefer to buy the a-shares. china mobile is nice story, a simple story. 800 million users and it is a massive company but i would much rather buy local stocks. simplest way through etf with the symbol, ashr. the chinese market has soared by triple digits twice in the last decade. one of those moves was 500% and valuations today is the same point as the starting point of those two previous moves.
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>> very interesting. >> we're more at the beginning than the end of this move. liz: we'll catch it up on the up swing. david: steve, thank you very much. >> exactly. thank you. liz: steve along with larry and mark sebastian. appreciate it, gentlemen. >> thanks for having us today. david: promotions and lower gas prices attract ad flood of consumers to car dealerships last month with some carmakers reporting best november sales in years. liz: some cases massive all-time records. not every brand saw a boost they were expecting though. let's get jeff flock in on the conversation. jeff, you have the breakdown. >> we have the latest numbers and tell you what we expected. best november in 13 years for the auto industry and best second sales month in november in history. all of them. look at the winners. as you reported last hour, liz, chrysler, a big winner, up 20% again. it wasn't just jeep. the dart was up 39%. gm had a solid month. their trucks up 40% for the
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month. toyota up 3%. they had all-time record november for their trucks and suvs as well. on the downside, wasn't even that bad. ford, we expected to be down because of the f-150 switchover. they were down 2%. nissan down 3% but that was less than anybody thought they were going to be down. a winning month all together. you know what we would expect. you know does gas price thing have anything to do with buying habits? well, i leave you only with these numbers. the guzzlers versus the zippers. i think money is on the guzzlers. ford explorer, they have new one coming out. usually sales fall off. they're up 13%. while fiesta gets 40 miles to the gallon, down 26%. chevy traverse up. of the chevy volt, electric vehicle, doesn't use a lot of gas, down 30%. this is true across the board. really having impact on it. it was a great month. what can i tell you? if retailers didn't do that well
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on black friday, guys, selling cars, they did. david: cheap gas means gas-guzzlers benefit. jeff, thank you very much. liz: did you see the leaf, jumping multiple percentages. very nice move there, we want to hear from you on "after the bell." tell us if there is a guest you want to see on the show or a question you have for us, like us on facebook or tweet us. liz: today we would love to know about what you think regarding this new study that shows the middle class is being squeezed by basic costs. do you agree? where are you really feeling the squeeze when it comes to your bills? surprise us. certain us a message. we would love to hear what you have to say. we'll read some of your answers coming up. david: in the wake of new cyber attacks this week the fbi is warning that u.s. businesses are way behind on cybersecurity. liz: we're talking to mandy i can't. this is the company responsible for discovering many of the attacks gotten these headlines on the screen. where are the next threats?
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what are we doing wrong. plus the fill self 76ers, i know, -- philadelphia 76ers, i know, totally winless this year. not a single win. the team announced what could be a winning deal with draft kings, bringing nba closer than ever to fantasy sports. we're talking to the ceo of the 76ers along with draft kings's leader straight ahead. david: we talked about this, a squeeze on the middle class, could that hurt the economy? why opec will not win the oil war. and the waching dead, walks all over sunday night football. that and a lot more with our panel straight ahead. ♪ she's still the one for you.
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david: shares of radioshack plunging into the red after the stock was halted for five hours today. could the company be headed for a delisting? liz: let's head back to nicole petallides on the floor of the new york stock exchange. just pennies now. >> well that's the thing. we saw the annual low of 55 cents. the stock traded right near there. got as low as 59 cents. it was halted for most of the day, five hours. then it opened late in the day.
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the battle here, and the question is whether or not it will be delisted. if it can't meet criteria here to be new york stock exchange listed stock that is part of the story. the other part of the story are the lenders and them saying they have now serve ad covenant breach to radioshack. now radioshack, their rebuttal to this, they feel that these lenders are actually manufacturing a problem. in fact they wanted to close stores and there are fees involved with. that saying that these lenders in fact are trying to get out after receiving over $35 million in fees already. and janney, january any capital agrees with them. harbinger, saying they may be trying to speed up a potential bankruptcy. back to you guys. >> thank you, nicole. not a good prechristmas. david: sorry about. that another day, another headline about a cyberattack. we heard about hackers getting financial firms to trade on m&a information. then hackers attacked sony and xbox live, leading the fbi to
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warn businesses about a nasty, very new destructive malware being used. liz: in comments to fox business today the fbi told us, quote, u.s. businesses are way behind on cybersecurity. so we're bringing in richard bates, fireeye security strategy. fireeye is responsible for discovering and pinpointing many of these attacks. right off the bat, richard, where are the most recent ones coming from? can you figure that much out so far? >> well, liz, there is a whole range of bad actors out there. we continue to see activity from china. we continue to see activity from russia. north korea has been an active participant in this sort of stuff in the past and they apparently are very active now. we also see iran. so you have quite a collection of rogues there. david: suspicion about north korea, because this one film sony had coming out was about north korea, in fact specifically about somebody targeting north korea's leader, that they had a bone to pick
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with sony and really went after it directly. it wasn't about getting financial information. it was about trying to screw up sony. anymore news on north korea and its attack on sony? >> well, dave, the fbi warning that you mentioned didn't say anything about either the company sony or north korea specifically. the one mention of korea was the language that was epbedded inside of the malware that you opened the story with. now what is interesting about this malware, this sort of destructive attack has been seen in two places. it has been seen by the north koreans against south korean banks last year, last spring. also been seen by iran against some of its neighbors, saudi aramco and raz gas. what is also interesting iran and north korea have a technology partnership that they signed in september of 2012. liz: well, see there you are. the bad actors are everywhere as you say. now we've also seen the threat of some type of hacking attack
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circulating wall street firms and it is not just to gain access to their clients but more importantly to game the stock market. what can you tell us about this, that they're trying to find out, intercepting emails and mergers and acquisitions might be taking place? >> that's right, liz. we've seen this sort of activity for many years but only last say year-and-a-half have we seen it in such volume and attributed to the one group we were able to identify that we call four in our latest fireeye mandiant report. we decided we have enough evidence to put something out to the public to warn people this is happening at scale. not just one or two isolated events. david: richard, so much of the information we hear about concerning hackers comes from the military, the u.s. military. is this a moment or maybe it already happened where the military actively works with u.s. companies to try to prevent foreign countries from hacking us? >> well, there is all sorts of issues there.
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the military does not, the traditional title 10 military does not have the authority to do that sort of work. it is more of a police function. you see the fbi, secret service, trying to work with american companies. i don't think the military is necessarily the right tool here although we do see some cases where national guard units working for governors have been able to help companies but honestly there are sorts of privacy issues and constitution issues when you talk about military assistance to private sector companies. liz: so incredibly costly for small companies. jpmorgans and targets of the world can reallocate some money to put it into the cybersecurity but i talk to a lot of guys with middle market companies out in silicon valley. we can see bad guys knocking on our firewall. we don't have the money in our small i.t. department to protect ourselves. is there anything these companies should be doing hiring you at a high price or something to protect their own firewalls
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and fill the cracks that are in them? >> the best thing they can do, this is advice that applies to anyone, large company, small company, government, et cetera, treat this as a business problem. this isn't a i.t. issue. this problem can't be solved by installing a firewall. you have to admit this is business problem from others doing competitive activities to sabotage that is happening in your company. once you treat it as business problem, you just don't say, something the i.t. guy will take care of with antivirus. that is the best advice i recommend to everybody. david: it's a serious problem we'll all be dealing with. richard, thank you very much, fireeye chief security strategist. thanks for coming on. >> thank you. liz: do you want to save money on your cell phone bill? who doesn't? who doesn't? one company is now promising to cut your bill in half. david: how? liz: who is it? david: how? liz: details, david, straight ahead. david: basic costs like health
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care around cell phone bills are squeezing the middle class badly. will consumers start cutting back? what will that mean for stocks and jobs? liz: plus, 90 million people are expected to travel this holiday season. we'll talk to the ceo of choice hotels on where people are heading and how the season is shaping up. it is a publicly-traded company. let's find out how it is doing and where the deals are. ♪ how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time,
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david: consumers are getting a break with lower gas price. according to the "wall street journal" that is not enough for rising prices with things like health care and cell phone bills. is this keeping the economy slower than it should be growing? let's bring in our panel. we have fox business's tracy byrnes. brita schaefer, independent woman's forum, executive director and larry shover. tracy, is this keeping the economy down? a lot of consumers seeing their bills going way up? it is not compensated by lowering prices in gas. >> wages have been flat seems like forever, now, david.
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health insurance premiums and deductibles are going up. try to buy a gallon of milk at the store. that has gone up. food prices going up. basic necessities going up and your wages aren't. david: sabrina, look at those prices. home internet, we've all become dependent, that has gone up 81%. cell phone up, health insurance, despite obamacare or because of, it is going up. >> david, i have been affected by this just this week i learned my health insurance is going up $500 to cover my mid family. i feel optimism, i don't know if holiday spirit or i think energy prices have come way down. david: they have. >> more people traveling this thanksgiving than in the past seven years. that is sort of a sign of things changing. something else that is interesting. on cyber monday, that sales were down, but the national retail federation said it is not because people are feeling the pinch. they simply don't feel the need
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to find that holiday bargain because things are looking up. so i think there is some reason to be optimistic. david: well they're traveling, more, larry, but they're not traveling the malls more. they are doing more shopping online. that's great but that is not necessarily compensating for the lack of shopping in the malls. >> no, it's not. let's keep in mind, most americans are squeezed. unless you own a lot of stock, we do feel a little bit wealthier but we are squeezed. i looked at myself. my house price is still down 35% since twix. -- twist. my taxes have gone up 35% since 2008. health care premium for me and my family since 2010. and my deductible has tripled since 2010. so i don't feel very charitable. if i'm indicative of the nation, there you go. david: folks that is demand side. there is also supply side in the economy. chamber of commerce is warning that 33,000 new regulations will
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cost businesses many more billions of dollars than they have. sabrina. how much are the new regulars holding up business? >> this is a terrible problem. it costs consumers and economy hundreds of millions of dollars every year in compliance costs. just to put it into perspective for viewers, look in 2011 we passed 81 bills but there were 3800 new regulations that passed. this is, regulation without representation. it is terrible. we need to call it out every time we see it. david: tracy, is this slowing up businesses? >> david, how do you make decisions? how do you know what to do? what you do know you have to hire a compliance person. that is all you know because at this point no one knows what the rules are. sarbanes-oxley created a whole underground business in of itself. unfair to small business. they can't afford these people. david: larry, you have epa rules affecting some different businesses now. >> yeah. you counter balances itself. let's kill the coal industry. let's put them all out of business and kill some states in
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the process. let's worry about my sofa living room catching on fire with flammable retardants within it. we're spending billions of dollars on this. it is absolutely asinine. david: sabrina, go ahead. >> what is totally absurd about it, the countries with the best environment are the ones with greatest amount of economic freedom. ones which we're prosperous and time and resources to make the environment better. that is counterintuitive. david: tracy we used to be there. we used to have the lowest cost of taxation for example, on corporate level. now highest. >> it is highest. not going anywhere anytime soon. worst part is sneaky. they drop the 34 regulations right before thanksgiving. they have done this friday night 5:00 we've been reporting on this stuff. that is more unfair to businesses. david: all right, coming up, why the united states will beat opec when it comes to oil? and are zombies killing sunday night football. liz? liz: that's a good one. what about monday night
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basketball? the philadelphia 76ers become the first nba team to sign a deal with fantasy sports game site, draft kings. will it be a deal for the winless sixers. here on fox business, 76ers ceo and draft kings new partnership and how you win money by just playing. 6,000 hotels in 35 countries, choice hotels have the inside track how the holiday travel season is shaping up. ceo is with us live to tell us where consumers are headed and where best deals are. don't miss it. ♪
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and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro. liz: we showed you how much cell phone bills are jumping, skyrocketing if you look to save on the bill you may want to head to sprint. here is what sprint is doing. it will let subscribers pay half of what they're paying at verizon or at&t or anybody else, literally. they are now saying, just bring in your current bill, and they will cut it in half for the same amount of data. so if you're paying 100, you will then pay 50. the plan also offers unlimited talk and text. that offer, david, begins friday. david: wow. can't afford to miss it. before we get back to the panel, we asked you if you're feeling squeezed. we got a lot of responses. mark says, i want to cut cable tv and just use my row cue.
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unfortunately i got to have the cable to get fox biz. that's a good reason. dan says the grocery store is still a huge bill for us. even though transportation costs are down. and you can join the conversation. we have a lot more to go. we'll read more of your comments coming up later in the show. meanwhile opec apparently trying to squeeze u.s. energy producers whose expenses are much higher than most opec countries. very cheap for opec countries to get oil out of the ground. not so u.s. energy produce is. will energy producers here in the u.s. be able to outlast opec's squeeze play? larry is with us. we're back also with tracy byrnes and is a breen that schaefer. larry, first to you. you doubt whether or not opec is trying to squeeze u.s. producers. i think it is clear they are but do you think u.s. producers can outlast what is going on, these low prices? >> absolutely. right now the technological advantages or advances in the
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united states. we don't even know what the break even points are for u.s., hearing stories, 50, 60, down to $30 a barrel. we'll see less production, but so much is in the pipeline. combined that so much is hedged i think we're in absolutely fine shape without any problems short term. david: that is good to know. to larry's point, tracy, in north dakota, we're getting word, it is so cheap to get oil out of the ground, out of shale oil, even if boil prices go down to $40 a barrel, they still make a $10 profit. >> i don't think, larry made the point that opec, it is in their best interest to make this work. they don't want us out of this game, even though as your skeptical sicilian i think opec wants to crush us to the ground. it can't happen that way. as far as the global oil world goes it won't happen that way. even vladmir putin came out and said look, winter's coming thank god but it is coming. europe will need us. prices will eventually go up.
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david: sabrina, i truss tracy's sicilian instincts. i think she is right on. what do you think? >> i think saudi arabia has a real reason for instance to be worried. the united states we're actually have a conversation about us being competitors. this was unheard of a few years ago. think there is something real there. we note as they're saying put oil aside, fracking natural gas industry is in this for the long haul. so there is a lot of competition they're facing. david: time for something truly important. amc's waching dead, walking all over sunday night's nfl game in the ratings. is this a fluke or is football losing some of its juice? tracy byrnes, to you. >> this is sad state of society we're watching zombies, not an american pastime. this is terrible. i don't even know what the show is about so i can not judge the show. david: stick by nfl come hell or high water? >> i love watching those games. david: larry, do you think, they did lose, the nfl did lose to
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the walking dead this sunday. is that a fluke? >> i don't think it's a fluke. millenials experience with pro sports is lot different than mine. it's a big expense. i don't think they have the same attraction to sports. if i had a dallas-philadelphia game, huge eagles fan, i would sit and watch it, but my kids don't care. millenials don't care like we did. so i think if i could find a way to get short pro sports i would do it. david: sabrina, tracy certainly cares a lot about the nfl. what do you think? >> i'm not a huge football fan. i hope that doesn't offend any viewers. i'm watching "homeland" or "the good wife." is that lame? closer to my heart, working mom. >> fantasy football is as hot as is it is. david: tracy we give her the last word. thank you, tracy byrnes, sabrina schaefer and larry shover. liz: we're talking fantasy sports in just a second, david.
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nearly 90 million people, let's get to that, are expected to travel between thanksgiving and new year's eve. we have choice hotels ceo steve joyce how he is prepping for the onslaught. plus the 76ers, oh, maybe winless this year, but today they signed what they hoped will be a winning deal with daily fantasy site draft kings. we're speaking exclusively to the 76ers ceo and to draft kings about the deal. stay tuned. ♪ no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain,
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david: we're asking on social media if you think you're feeling squeezed in this economy julie says, have any of you been to the grocery store lately? that is where i see huge price increases. more of your response is still made, liz. >> how about nba tickets? it depends, doesn't it? get to the philadelphia 76ers, zip it. i don't want to hear anything bad. they may not have won a game this season but the team has a big announcement what would be a winning partnership. the first nba team to partner with daily fantasy site draft kings. what does it offer to players and nba fans, maybe even you? joining us with a fox business exclusive to talk about, 76ers
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ceo, scott o'neill and jason roberts from draft kings. how did this partnership come about? how did you strike this deal? >> joe ravitch is a banker with jason and draft kings and he introduced the two of us about a month ago. the deal has been terrific. this season had a lot of ups and downs on the court but off the court it is nothing but excitement. get a chance to work with an industry growing like a weed. a billion four passed with this category and leaders like draft king are interested in the content and create as nice partnership. liz: jason what kind of content are you creating for 76ers? tell people watching right now and why they should jump on and play draft kings? >> first, very excited to be working with the 7 offers.
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-- 76ers. they're one of the most innovative organizations in sports and great partner for draft kings. there are a lot of cool stuff we're doing together. we just today announced a contest where you can win experiences like flying on the team jet. we'll do other types of things where fans can win contests on draft kings to give them really life experiences involve players, former and current. being involved on the court and different type of things that partnership like this enables. why should people play draft kings? we're awarding millions of dollars every week. almost 15 million awarded in prizes. which have new contest on nfl, somebody will become a mill tear rest of the week in our sunday contest. >> perfect for you. log on now. liz: as you know i'm a hockey fan, scott. we partnered a deal with the nhl. >> there you go. liz: scott we're bringing full circle.
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ceo of new jersey devils. talk about. i know with the nhl it is free to play. is that the case with the 76er games? >> 76ers will do a variety of different games for us, promoting the brand, different things. we haven't exactly figured out which games those will be yet. certainly we will make sure we follow the rules and guidelines that the nba set forth for us to partner with them. liz: scott, you're bucking the nba trend. the nba signed a deal with competitor fandual. >> never heard of them. never heard of them. liz: forget fan dual. i think it is interesting you went in different direction. nba allows you to do a different thing. talk about what the future brings for this relationship. beyond the games that come up what did you envision? >> this is a dual draft kings has won that's for sure. duel. for us it is finding a partner
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like draftkings likes to have fun and create content. we had legends with us, world free and darrell dawkins and theo ratliff and how to engage dr. js and allen iverson to create fun content. which would be great. liz: fan duel, it works both ways. jason, why the 76ers? sorry, scott, don't get mad at me, you are winless. >> liz, not that we haven't won games. we just run out of time. liz: okay. that is what the celtics said last friday. we ran out of time. but jason -- >> see what i mean? liz: this is interesting way to go. but you also have a deal with the patriots. so you're with a very big winning team here. maybe this will bring the emotion along and bring a few wins to the column there? >> well, we, i mean the main thing we look at in choosing a partner is long term how does the organization think about things and is that a consistent
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and ally lined with how we do. 76ers and patriots are innovative, cutting-edge organizations, trying to push on digital and mobile front. we try to figure out what the next great way to exchange with fans is. liz: draftkings is the company. check it out. if you're a sixers fan or millionaire fan. i like a millionaire a week. maybe we'll all become one soon. thanks to both of. >> you come down to a game soon, please. liz: adam aron, right, we know him from apollo. got to get him there. scott, jason, great to see you. >> thanks, liz. david: run out of time. same for the new york jets. same explanation. liz: exactly. david: 90 million americans are expected to pack their bags and travel this holiday season. that is wonderful news for choice hotels. its shares are up big time over the past six months. we'll talk to the ceo coming next. a slew of economic data expected to hit the markets tomorrow.
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what could have the biggest impact on your portfolio? we'll tell you the number one thing you need to watch coming right up. >> hi, everyone, i'm gerri willis. coming up on my show at the top of the hour, many economists say the great recession is long over but new figures back up what millions of americans have been saying for years. those economists don't know what they're talking about. that is just one of the big consumer stories coming up on "the willis report" in just a few minutes.
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liz: here's a number for you. 90 million americans are planning to travel this holiday season. they're expected to spend 83 billion. david: whoa. investors seem to be betting that our next guest will benefit big time from this trend with the stocks up 23% in the past six months. steve joyce, is the ceo and president of choice hotels international. congratulations. >> thank you so much. david: one thing that has got to be helping is oil prices. how much are the lower oil prices helping your business? >> it is doing two things. first of all our consumers are benefiting from those lower oil prices because our folks drive. they do not fly. so filling that tank is a big part of their expenses. they are traveling. they will come up big for the holidays and be big next year. the great thing our folks, we represent middle america, right? our folks rhett getting jobs back. fracking is major area where
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hotel growth has gone in some those communities. we have rising employment. lower energy costs. other things offsetting it. but for our folks they're going back to work and traveling in big numbers. liz: choice hotels is everywhere. >> try to be. liz: 30 countries, 6300 hotels. where are you seeing best strength, everybody says looking at stocks, stay with u.s. names because everywhere else looks awful. >> of what is interesting, u.s. lags rest of the world. may slide into little bit of negative. could be even keel. asia is slowing down. and still slowing down. u.s. really shining market. u.s. had tremendous year this year and tremendous year next year. for the holidays, thanksgiving, christmas, new year's, are bookings are up 13%. some of the strongest numbers we've seen this year. liz: that's great.
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david: you went through the extraordinary rebranding process. i think of target and other big corporations have done it. you did it very successfully. i suspect because of all the boutique hotels. tried to match what they offer. talk about that. how did you rebrand yourself. >> that is from target. what has come about -- david: target was the master at rebranding. >> we at all levels want style. we were slow to move but we've been moving really quickly last two or three years. david: how much did you spend on rebranding? >> hundreds of million of dollars. 250,000 mattresses that you like. liz: whoa. >> we bought close to 200,000 flat-screen tvs. >> stay with one brand? i will buy the brand. >> this has been effect. biggest changes have been sleep inn and comfort inn and comfort suites. comfort suites whether you have soft pillow or hard pillow. david: your mattresses you would match with any boutique in america? >> they are great mattresses. people tell us they get a good night's sleep. liz: what are priorities?
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they tell us they want wi-fi or breakfast. >> they want value. that will be changed next year. as part of the survey what would you be willing to give up for discount? over half of them i give up bar in hotel to get a better price. half of them said, i do without housekeeping service to get a better price. and 26% said of them said i will do without my cell phone. if you recall we also put out a survey that said travelers would rather lose their luggage than lose their cell phone. so that is pretty interesting. they're looking for value. the good thing we do that. the free wi-fi, free breakfast. free parking at almost all of our hotels. we're giving value and they're coming out in big numbers. david: your franchisees, how are they doing? >> they're doing great. >> there have been some regulations working against them, et cetera, right. >> yes. they had really, if you look back to '08, had a pretty tough road through kind of '13. it had bright spots but '14 has
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been all good. next year looks really strong for them. our trend are really good so our franchisees are benefiting and they love it. liz: come april think can stay here. two new choice hotels in chelsea. the stock is up over 19% over the last year. wow, congrats. we've been asking you if you're feeling squeezed in this economy? brian says i think we're seeing this in early holiday reporting despite reduced price of gas, incomes have not increased. liz: ray says most workers have been working without pay raises. anyone who goes grocery shopping knows costs definitely keep rising. david: time for the number one thing to watch. let's bring back larry shover, sfg chief alternative investment
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officer. what is it? >> i'm keeping eye on eurozone pmi and retail sales. these numbers matter as they set table for the ecb meeting on thursday. let's bear in mind. the last 60 to0 points in the s&p 500 has largely been in care of chatter around the world from different central banks. this will be no different. will these numbers influence draghi and effective and appropriate with asset purchases? or will we be able to take cold water and throw it all over the place? we shall see. they don't seem like important numbers but they do matter given the ecb meeting on thursday. liz: on thursday. but then you look how the u.s. dollar is doing. it is at a five-year high. you look at some swooning european currencies. the euro is pulling back. then you have the ruble. do you think russia will have effect on our economy? do we not have to worry about them faltering? >> yeah. short-term, i don't think we have much to worry about the a all. keep in mind, this goes on and
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prolongs for three to six months from here, absolutely, there is risk involved but not right now. liz: larry shover, sfg alternatives chief investment officer. >> thank you. david: thanks, larry. "the willis report" is next. gerri: we begin tonight with new warning and new details of a huge cyberattack on the united states. just days after highly destructive malware was discovered at sony pictures the fbi warning other companies could be attacked as well. there is also new information on the kind of malware used by the hackers and possible clues where it came from. for more on this, teresa peyton, president and ceo and former white house cio. welcome back to the show. great to have you here, teresa. let's start with this wiper malware. what is it and why is it so destructive? >> you know it is one of those pieces of malware that we haven't seen s
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