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tv   MONEY With Melissa Francis  FOX Business  December 26, 2014 2:00pm-3:01pm EST

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rich: ray, thanks so much from "food & wine" magazine. thanks for joining us. i would have a little more yesterday but my younger cousin was killing me in street hockey. that does it for us. tracy byrnes, take it away. molly: fireball shots be don't forget those. holidays don't come cheap. stocking stuffers taking their toll on the middle class as wages struggle to keep up with the cost of christmas. why some won't pay off the holiday debt up to six months? wow. is it pretty in spring? why cold months like december and january can be the best time to get new digs. battle to save the box office, hollywood struggling with one much its worst years in over a decade. getting antsy at 35,000 feet. if you thought knee defender was bad? hear about the latest device that has air passengers carving up their side of the arm rest. even when you say it's not it is always about money.
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tracy: markets were doing just fine before christmas. visit from santa never a bad thing for wall street. fittingly oil taking a big ol' lump coal. here to discuss that, damage schaefer, hilary kramer and james frischling. james, this santa rally will continue? >> i think it will continue a little bit. household institutions, lower gas price, particularly create as nice tailwind. consumer doesn't mind oil. whole another story about oil especially if you live in texas. consumer, spending is up. better for retailers than expected. tracy: dan, if retailers wake up and think they missed a heck of a lot? will they show up in january and
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2015 will be much better than we thought? >> i don't think so. i think we're on the tail end of this experiment with the federal reserve. i think retailers will be hit hard. i think consumers are not really spending. the numbers are not much matching what they're talking about especially in the media. tracy: right. >> i feel about that, i spoke to you about this many months ago we're in early stages of deflationary depression in oil prices. gold prices collapse. oil prices collapse. the greens collapse. the bond market keeps signaling a low interest rate environment for a long period of time not just in the united states but japan and germany with low interest rates. tracy: hillary, those stocking stuffers took a toll on middle class. of the spending on christmas gifts is up 35% since 1985, while median income only has grown 6.5%. what gives. are we demanding more gifts or charging it? >> well we went to technology, underneath the tree now are iphones and televisions. tracy: less expensive. >> and laptops.
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so that is replaced the gifts that might have been a stuffed animal especially for kids. xboxs for example. that caused extra costs. but in many ways it will actually, just what we need for those retailers that we have more shopping. it means they will stay around. tracy: they don't have money for this. >> they don't have money for this. much parents we have to find a way to rein it in. sixth christmas since the great recession. i think people generally feel better about the economy today, desight unemployment rate is lower. wages are still flat but there is this pressure i find for people to spend more. and therefore, digging into savings, what little savings is taking place. i will reiterate. lower gas fed into a little bit of christmas shopping. tracy: makes you feel good. how about this christmas turning into a tale of two sonys. promising one, completely annoying one, ask my son. sony pictures releasing
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"the interview" to many theaters nationwide. the playstation is now after another apparent hack. won't help company morale that xbox corrected problem and is up and running again. dan, sony can't get out of its own way. >> this is very big problem. shows you how delicate the situation with interneat and communication for them to knock out sony's xbox like this in today's society with all this engineering and all this software to hundred these people down. they're coming out of the woodwork and telling us who they are and doing it. tracy: right. it is the lizard squad. >> they could do this to the power grid. tracy: hillary, my son plays xbox and couldn't way open up the new games. you know it is mean, kids you're hurting taking out playstation and xbox unless you guys play. >> we're all vulnerable. this proves that cybersecurity needs to be rammed up. take it as cue and lesson for the future. in terms of sony, what happens
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if you executives who can write emails so despicable, like they did. that is eventually seeping down. tracy: trickle down, i agree. james, does sony recover? >> they will recover but unlike the target attack and attack on jpmorgan, target has been able to get this behind them and rallied tremendously. this attack is still not behind sony. we're trying to figure it out. it has aways to go. i do think they have been neglectful not addressing specific issue to playstation. >> they have been busy sending nasty emails. tracy: to each other. meanwhile, speaking of getting nasty, russia embracing north korea in the wake of sony hack saying kim jong-un's anger at "the interview" is quote, quite understandable. apparently what he did is okay. vladmir putin dealing with problems of his own. canceling new year's holiday for government workers thanks to russia's financial crisis. this is insane. for your government, the
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agencies, we can not afford the long holiday at least this year, you know what i mean of the do we know what he means? that this is serious issue. they are really having financial struggle in russia. they will start to look at their neighbors who are not friendly with the united states to help them out of this. for continued from january 1st to go on to try to solve this russian problem is showing us that it is not just the oil collapse that's a problem. there seems to be some other underlying issue. they will start to gang up on the united states. tracy: but, james he doesn't have a rabbit to pull out of his hat. he has oil and nothing else. >> i agree with dan's point. friend of our enemy is our enemy. tracy: sure. >> that is one thing. actually almost grateful to see him talk about putin, talk about government mishap. government mismanagement as one of three issues. oil being the second and obviously sanctions from the west being the third. you're right. they have nothing to -- oil is what they have got. tension here is going to grow. this is one of the big
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geopolitical stories going into 2015. tracy: hillary, does this bleed into the the united states? >> not at first. we should be fine because assets are fleeing out of russia into switzerland which had to go negative on their interest rate and into the united states. i think that is one of the reasons why we have santa here. all that money coming in. tracy: we'll take it, that's for sure. finally, no santa here though. one gentleman having himself a very merry little meltdown in laguardia airport. who is not melting down at laguardia airport? american airlines passenger flying into a rain after several employees had audacity to wish him merry christmas. the man eventually was removed from the flight. it was delayed 40 minutes. they eventually took off. i understand not everyone celebrates. happiness, almost like having saying having a great day? >> i experienced this a lot. like having a great day, when people fly it es very nerve-wracking experience. tracy: especially around holidays. >> why there is a lot of bars by the entrances in the airport as you walk in.
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when you somebody is upset and they're ready to get on an airplane and you can aggravate them in a moment that's what happened. i've seen it. i've been in situations where people argued right in front of me an my kid. tracy: merry christmas will set you off, james, god, i don't want you on my flight. >> i want to defend christmas here. this man did not get off the plane because of christmas. he got kicked off the plane because he is a hole. tracy: okay then. hillary we should be able to say merry christmas. >> we absolutely should. we need to be so sensitive to all the political correctness the spirit is to have a good, happy day. regardless of your religion. tracy: part of it too he is aggravated. probably broke. can't afford all the christmas gifts or gifts to buy his family of the he is angry at world. >> probably heading somewhere he didn't want to go. tracy: going to his mother-in-laws and not getting any food on the flight. what could be worse? thanks so much. glad to have you back.
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nothing like finding cats on the street but finding a couple million bucks? christmas miracle went south very, very quickly. colder months could mean a hotter housing market. panel weighs in on how now could be best time to buy your next home. ♪ she inspires you.
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tracy: from the u.s. to every corner ever the globe starting in hong kong where security vans spilled millions of dollars on the street. abu tish shun thought that miracle occurred. they were later arrested after picking it you up. they blamed it on a faulty secure door and over $1,000 was picked up by passengers nearby. emergency air shipments mean that the fast-food chain mcdonald can meet demand. customers were restricted to one small portion per person. japan blaming it on america. a labor dispute among west coast dock workers, many exports have
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been delayed. landing in china, christmas is so popular, churches have to tell tickets to wannabe worshipers. many were on non-believers just eager to hear songs and. christianity is the fastest growing religion in china. jesus would not want you to sell tickets to christmas. that is just me. >> think about it, you have less competition of buyers and mortgage brokers have way more time to focus on you and sell remembers desperate to get the deal done. bring in the housing power panel. kendra todd. rick scharge fa, executive vice president and auction.com. kendra, let's start with you. is that true you have more time? >> you do. most of the homes right now, that are desirable, selling in 30, 60, 90 days. once you get to december, don't have lot of inventory.
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they are focused on christmas than putting their house up for sale. you don't have multiple offer situations quite frequently. you have a way better chance of actually purchasing. tracy: rick, often true if you put the house up in december you have got to go, right? you are not doing it because you have nothing better to do. there is legitimate reason why you're selling that house. >> yeah, you sigh home sales spike in the spring and summer for obvious reasons. a lot of it has to do with families and the way the school year works. tracy: right. >> so so typically if something goes up in the winter, somebody has compelling reason to move now. tracy: jason, you're in miami. if i'm coming to miami, december would be time to do it. i would think there is pressure in december. >> i think it's a great time to buy. home prices have only risen 5% year-over-year this year. last year we saw 12, 13% increasing in home prices. so that, that is really good for the buyer. and you also, we got our numbers
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yesterday revised down in november. the existing home sales numbers went, they plummeted 6%. so, it is a starting to become a buyers market which is very good thing for buyers. interest rates almost historic lows. tracy: rick, the investors have backed off, right? no more, we're buying for investment purposes. now we're really starting to see families buying homes. >> you need to distinguish a little bit between the type of investor. institutional investors, hedge fund buying tens of thousands properties are slowing down. they're offering financing for smaller investors. but much less competition particularly low end of the market, which is good news for first-time home buyers. tracy: are you seeing people put, get out there to disclose a deal on decent and i want viking stove and granite in the kitchen. >> here is the bottom line. if you can lock in a mortgage interest rate under 4.5%,
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anytime, between now and end of 2015, that's the time to buy. because rates will go up. probably one, maybe two percentage points. so forget december, january, february. if you can get a mortgage rate below 4.5%, you have won. >> jason, do you think that will make a difference though? rates will go up, but rates are not going to 9%. that was 11 i think was my first mortgage. they're not going there. where are we going? are we going to 4.15, 4.25? do you think that will put a screeching halt to the housing market? >> i don't think you see a immediate increase in the rates. i think it will push out toward the end of the new year, possibly the next year. what we really need to see finally first-time home buyers getting off the sidelines, dipping feet into housing market. we're not seeing that. now fannie mae and freddie mac-backed loans offering 3% down paints back to prebubble type loaning. tracy: right. >> i it is actually a dangerous thing when the housing market is
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being promoted or homeownership promoted by the government, fannie mae and freddie mac. that something we should be watching as well. tracy: rick, we have to jump but what is your prediction for 2015, housing market up or down. >> it will be flat for 2015. 4.1 to 4.9 million homes sold. near half a million. virtually the same number this year. tracy: thank you so. selling in december sound like a good thing to me especially if you're in miami. thank you all. search-and-rescue a coalition pilot captured by isis after a plane crash. why the military is not jumping to get him out. facebook prying ice getting into a lot of trouble. the tech giant face as big lawsuit after looking through your private messages. more "money" coming up. ♪
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liberty mutual insurance. tracy: stocks pushing higher in today's trading let's go to lauren simonetti on floor of new york stock exchange. merry christmas. >> virgin america. that stock is soaring today up six 1/2%. back on wednesday, christmas eve, six positive analyst ratings on this stock. it is continuing to fly higher. this is also a day when oil prices moving lower down $1.27 now. show you how rest of airlines are doing. jetblue up. delta. american airlines stock hit a new high earlier today. above $52. i should say virgin america hit a new high. this group certainly looking strong. a lot of people still making plans to go away for new year's. they will continue to do even better. finally, tracy, we have groupon.
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major winner today. this stock also taking off as you can see, by 5.25%, tracy. tracy: got to tell you, lauren. i used groupon for many, many gifts this year. >> this is the best groupon that i found? tracy: i got my daughter the little beats speaker thingie. or santa today. santa today. >> you help santa sometimes. tracy: lauren simonetti, thanks so much. >> thank you, tracy. >> family of a jordanian pilot now pleading for his life after he was captured by isis. the 26-year-old's plane was brought down during an air raid. terror fighters are parading the new hostage on social media. what happens now? chris harmer, naval analyst at institute for study of war. he spent two decades serving a combat research-and-rescue pilot. so great to have you here. what happened here? the u.s. saying it was not isis. the plane went down. >> pleasure to be with you. i'm sorry to be with you under these circumstances.
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you pointed out something critical in our analysis. that was a 26-year-old single-engine aircraft. overwhelmingly the aircraft failed while it happened to be over isis held territory. he ejected and got out alive. unfortunately came down in isis controlled territory and held as a hostage. as search-and-rescue pilot, there are three different types we do. we do basic search-and-rescue where someone is lost and we find them. we do combat search-and-rescue someone is behind enemy lines and not yet behind custody. most difficult mission which is hostage rescue, probability of success is extraordinarily low. my guess the united states will not try to rescue hem under these circumstances. >> that is awful. does jordan have the means or money do themselves? >> not even close. this type of mission is so extraordinarily complicated. can only do it with tier 1 special operations forces. have to have navy teal seem six or army delta force.
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task force 1 off, special operations aviation regiment flying the mission. extraordinarily complicated mission with almost no chance of success. only thing i can compare it to when the united states tried to rescue hostages out of tehran in 1980. fortunately we would knot have made it there. i understand americans with killed but that is better that an having a bloodbath in downtown tehran. they may try to entice it into rescuing them and set an am bush. everybody sees that happening. as a result i just don't think we'll try to rescue this guy. tracy: but meantime though the president took some time this christmas to thank our troops for all their hard work in afghanistan to assure it was all not in vain. chris, if you would, just take a listen. >> afghanistan has a chance to rebuild its own country. we are safer. it will not be a source of terrorist attacks again. >> what you do i this? is this true?
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>> well, whether we win or lose it is never in vain to fight for america. we're on the right side of history in this fight. so every soldier, sailor, airmen, marine who served under these circumstances has my respect and i think history will count them having fought on the right side. i take issue with the president's contention that afghanistan or that afghanistan is no longer haven for terrorism. afghanistan is far safer today than 15 years ago. there are pockets for the afghan taliban and pakistan taliban. they won tin to work together. al qaeda has core havens in eastern afghanistan. borderline irresponsible to say we somehow suppressed threat. we momentarily suppressed the threat. al qaeda and taliban are live organizations looking to take a shot. it is beyond dispute they will try that again in the near future. tracy: he seems is only one that sees we're making progress right? is, does anyone actually think
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progress has been made or just the president? >> i absolutely think progress has been made. we're talking about generational warfare. took us 40 plus years to win the cold war. will take that at least that long to quote, unquote win the peace in afghanistan. talking about change agriculture where al qaeda and taliban had complete free rein over the country for a long time. there are geographically is lated areas of afghanistan where al qaeda and taliban have freedom to manuever and freedom of purpose. it will take a long time to change that cult you are t look how long it took to transition south korea from a military dictatorship to democracy. fought to successful stalemate in 1953. they were not a full democracy until 1988, 35 years later. i expect takes that long to win peace in afghanistan. tracy: you're always chockful of information. chris harmer. thank you very much. >> thank you for your time. tracy: the race for 2016 is on. how jeb bush is trying to avoid a mitt romney problem as he
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looks to the white house. move over knee defender. there is a new protector in town. this one is all about that space. "piles of money" coming up. ♪ so i can reach ally bank 24/7, but there are no branches? 24/7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates. ♪ (holiday mhey! is playing) i guess we're going to need a new santa ♪(the music builds to a climax.) more people are coming to audi than ever before. see why now is the best time. audi will cover your first month's payment on select models at the season of audi sales event. visit audioffers.com today.
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so ally bank really has no hidden fethat's right. accounts? it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. >> jeb bush is getting in to running shape. hoping to avoid the bashing mitt romney took for his business background in 2012. jonathan hoe named in chicago merry christmas to everyone. this is right up your valley.
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is that happening? >> he certainly laying the groundwork to do so. it started. >> hang on. if johnny runs, you have big money running after big-money. what about the little people of the world? you cannot win if you are not wealthy. having said that, he is trying to clean up his act. the message will be the message. wealthy against the poor.
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why is cleaning up his act mean this? somehow being seen as prohibitive of becoming president. he should embrace his wealth. you, too can be this. you can achieve that level of success. >> says that capitalist pig. some good news and bad news. facebook has been spying on your private messages. you can get money from this. facebook is facing a class action lawsuit. they are seeking about $10,000 per user. >> definitely not on facebook. the kids are. this is their business model.
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what is scary here is if the courts rule against them, they will not be able to aggressively go after you and follow you around. forget about this potential 10,004 each facebook person. >> what is new here? they have been doing this for quite some time. i think it is an issue with your customers. maybe perhaps beyond the very lengthy statement. have a level of comfort with
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this that maybe others do not. >> they are serving you at which you can or cannot click on. all of these companies are giving you hundreds of dollars worth of services. it is a good deal. >> walmart has a solution for all of those good gift cards. customers can trade in gift cards for more than 200 retailers. in exchange, you get walmart dollars. you can get rid of the gift cards that you do not want.
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>> i want to know what walmart is getting out of this. >> that is a great question. >> $0.95. maybe less. this is. get the people in your store. they will spend money. i love the idea, i just wish they would give people $0.100 on the dollar. >> this goes on all the time now. people get a gift card from a store that they really do not like. they sell it for a slight discount. walmart gets the upside to this. $750 million of gift cards go on spent every year. people get $8090 for stuff they
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want. >> i love gift cards. i do not know what is wrong with people. you will love the clip on device that slips the armrest down. i have two say, this is kind of cool to me. >> there are rules, tracy. >> state to the outside. >> state to your corner. >> just got off a long flight. a complete buyer between you and the next guy.
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a silly idea. >> entrepreneurial. >> people pay hundreds of dollars to sit in a slightly bigger seat. paying $30 for a more convenient armrest. if this actually works, every plane would want to install it. >> i think it said to her flight out just bad. i will put that elbow the elbow and so you do not bother me. >> middle guy gets everything. that is cool. you guys are awesome. thank you so much. why hollywood will not be looking for a sequel in 2015.
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the price at the pump continues to plunge. where you can find gas for under $2 a gallon. at the end of the day, it is all about money. ♪
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♪ >> i am tracy byrnes with peter fox business brief.
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documents show examples of personal data being e-mailed around and stored on a secure computers. warning people not to eat some brands of carmel apple. hollywood's most bankable star. numbers will likely go even higher as her latest hunger games installment makes its way across the globe. that is the latest from the fox business network. giving you the power to prosper. ♪ ♪
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you don't need to think about the energy that makes our lives possible.
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because we do. we're exxonmobil and powering the world responsibly is our job. because boiling an egg... isn't as simple as just boiling an egg. life takes energy. energy lives here. hollywood wrapping up a lackluster year. here with us now senior editor at in touch weekly. give us your annual roundup. just looking at the christmas box office. a lot of people did not know how "broken" would perform. looking to make over 40 billion
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for the christmas four day weekend. plus, you are seeing a lot of these movies do better than expected. the interview made $1 million. clearly not as much as it could have made. this holiday box office could potentially give you a sign that things are getting better. >> let's talk about "the interview." i would have jacked the popcorn prices up to $20. do you think that more theaters will show up and start showing this movie? sold out crowds. people going and say they are showing up for freedom of speech. showing up to show their
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patriotism. obviously, it is available online. 750,000 pirated downloads. >> the movie theaters, though, they are struggling. >> my kids and myself have not been to a theater and i cannot remember how long because there is no reason. why would anyone go to the movies when you can get the interview on youtube? we should really something the same day on demand. there is something about going to a theater in that experience.
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it would not have had the same affect on your screen or tablet. the hunger games. transformers. a lot more sense than seeing it on your smart phone or your tablet or in your living room. it depends on the film. i do not think that anyone will ever stop going to the theaters to have that experience. >> i think they are better in the theaters and at home anyway. what is the big blockbuster for 2015? >> star wars. the finale to the hunger games. little things like the entourage movie. fifty shades of gray. "the avengers." a lot of big releases to look forward to.
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>> i think my daughter and i are the only ones on the planet that want to go see andy. thank you very much. heading into the last hour of trading. we have to check in with adam shapiro to see what is next. >> a santa claus rally. will it continue? watching 2014 go out without a bag. we will ask the experts. it may be hot in regards to stocks. "the interview." 300 theaters. sold out crowd. will sony ramp up the release of this film? might they actually make some money on it? we will talk about that and what the north koreans they have to say about it.
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3d printing is so last year. we will find out the hot tech trends coming up next year. >> that is good stuff, adam. thank you very much. even robots cannot escape the season. rich and jonathan are back. >> what is that? what is happening? >> these are the robots that any people think will kill us sunday. they are in their festive wear. >> they are not killing us. they are helping us. the same robots that build cars.
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>> going, going gone. elon musk getting an upgrade. exactly how far your tesla could take you on just one charge. holiday shoppers had back to the mall just hours after opening those christmas presents. ♪ she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. 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, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away
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for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.
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>> christmas has come and gone. how about the 10 pounds you put on. the dreaded returns are still to
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come. well retailers. i expect patience? are you returning any of the gifts that you got? >> no. i like all the gifts that i got. the national retail federation that spending would be up about 4% this year. mastercard said it spending pulls down that they're spending pulls had increased out 5.5%. a major piece of positive news there. amazon also has some interesting numbers out today. they found that of all the people that bought on amazon this year, 60% use their mobile app on their smart phone.
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they sold toys on cyber monday at the rate of 18 toys a second. that's, of course, is an all-time record as well. take a look at the winner. what do you think the most popular boy was? >> of course it was. >> activation call of duty advanced warfare was the most.
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the latest in the diary of a wimpy kid series was also one of the most popular books of the year. >> i did a fair amount of shopping on amazon as well. how the heck are they paying for all of this stuff? >> well, some people do pay their bill each month. that is another way to go. >> introduced me to them. [laughter] >> a nice christmas present. average gas prices in the show me state falling below $2 a gallon. getting an upgrade. elon musk confirming the convertible will be able to travel on a single charge. that is 400 miles.
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that is pretty cool. google chrome books were the top-selling computer for the second season in a row. with four spinning plates and the ability to crash into trees, you can only guess what happens when god tried out their new drones for christmas. at the end of the day, it is all about money. ♪ feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.
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wall isn't a street... return on investment isn't the only return i'm looking forward to. for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement
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so ally bank really has no hidden fethat's right. accounts? it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. tracy: an hour just isn't long enough to bring you all our favorites stories, but here are some of the headlines you just don't want to miss. mitch and dominic are back. what you got? >> president obama's a heck of a sport, he was visiting a girl scout troop, and he put on a tiara. i think this is going to give ammunition to all those people who say he acts a little like a king sometimes. tracy: rich? >> kennedy knew not to wear a 20-gallon hat.
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[laughter] tracy: tom nick, you had a good line. >> they tried to get him to put the skirt on, and he refused. i give him credit for that. tracy: caitlin, what you got? >> a lot of dads got drone, but the results haven't been so pretty. on twitter gunther chase wrote: my dad already hurt himself with his drone. tracy: i don't even want to know where, dominic. [laughter] did you get a drone for christmas? >> i have a hard time using my smartphone, they put one of these things in my hands, as a country we are in serious trouble. [laughter] no drone for me. tracy: all right, erin, what else? >> one enterprising man out in nevada has a new use for his goat, he's going to have them clean up the christmas tree, eat them as a way of recycling. tracy: i don't know, rich, goats eating trees? >> hey, if that works -- tracy: there's some bad joke in there. >> you know, tracy, the room -- rumor that congress is going to
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appropriate $200 million to study the goats. [laughter] tracy: that's the message. thank you so much. that is all for now. we all hope you are making money today. adam: a lot of people making money today. even though volume is light, all three major indexes are on track for their second weekly gain. anies positive close for the dow -- any positive close would be a new record, the 52nd of the year for the s&p 500, by the way. take a look at the russell 2000, the small cap index hit a record high today. any close above 12 to 8 would -8 would be the ninth record close of the year. and the public is speaking, we will not let the hackers win especially when it comes to our rights to watch seth rogen comedies. "the interview" selling out across the country. and it's a christmas

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