tv After the Bell FOX Business March 20, 2015 4:00pm-5:01pm EDT
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the day and the vixx today now pulls back. david: all right. as the bells ring on wall street, it is a record day for at least one of the indices, russell 2000. of we like that sector because that's where the small and medium-sized stocks, really the heartland usa of the stock market. russell 2000 records, all the others not in records, but they're doing quite well. 170 on the dow, we have a record on the russell, the nasdaq doing, treatmently well, up -- extremely well, up 33 points. a tremendous pace setter. intel doing particularly well today, that's pulling all of those tech stocks with it. liz: from the start when the opening bell rang, the bulls were off and running. now what's happening? "after the bell" starts right now. ♪ ♪ liz: let's get right to today's market action. we've got jordan kimmel in the chair, he's going to tell us which apparel companies you
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should invest in right now. you saw what a lot of the apparel companies were doing to do. ken mahoney of mahoney asset management is here with one sector he says is a big buy. he'll tell you how to play it, and dan has from the pits of the cme. so many cross-currents, which ones caught you by surprise? >> well, actually, none of 'em caught us by surprise because basically what happened is the fed removed all the fear from the table. people are seeing the reaction to the dollar. there's been a lot of commentary, the high on the dollar's been put in, and since it started to fall convincingly today, that is having a major impact on most of the commodities. oil, even though we've had very poor supply and demand news, it dropped -- excuse me, it went up quite a bit because the dollar of the -- the value of the dollar is dropping. david: ken, today is a great day, but every other day the market dips. i'm wondering if you buy into every one of the dips, because if so, you're buying just about
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every other day. >> isn't it amazing? we can never get any traction. the russell's showing muscle today, and one day after the next we kind of see it bouncing around. if you step back for a second, there's a little competition in the stocks. the fed fund rates at 0-.25%. janet yellen, the raising rates has been pushed back. the market just keeps going and going and going, and those pessimists, those bears just keep missing it because the trend's your friend, and that's when we're following. david: so the answer is, yes, you buy in the dips, right? >> buy the dips. david: justed to get you on -- just wanted to get you on record. liz: overtap, you've been around long enough to know that sometimes we see the dips and sometimes we see the muscle flexing, and that's what we have right now. is there a way to really participate in this rally but also protect yourself for that moment when we might see downside? >> right. liz, that's the greatest question.
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not to get too caught up in the enthusiasm, but, you know, for years right now i've been one of the more bullish guys, i've been calling this one of the most up loved bull markets i've ever experienced. liz: right. >> and the key here, the way you want to protect yourself is you want to watch that advance/decline line, watch new high, new lows. those are the interims of the market and, frankly, they're great. internals of the market. so i hear all the pessimism, but rather than simply say i buy every dip, you know, liz, i'm very stock selective. and what you buy is just as important really when you buy it. david: dan, i think jordan's right. you'd be foolish not to take advantage of some of this huge success of the stock market. on the other hand, the reason this bull market is so unloved is because the economy is so odd now. we have the federal reserve doing stuff it has never done before, central banks all over the world doing this stuff. the question is whether the market is somewhat distorted because of what central banks are doing. the fed made its decision today
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on language -- or, excuse me, this week. but it didn't really make a decision on what it was going to do. is the fed going in the right or the wrong direction right now? >> well, personally, i think the fed's going totally in the wrong direction, because i think they set the table for some sort of a movement towards normalization on the rates, and they let that opportunity go by. so right now we're looking at is they de facto gave the market another half a percent interest rate cut because going from one and an eighth down to five-eighths, so the market is pricing in half a percent less fed funds rate by the end of the year. and that's what's giving us this buying momentum, the competition we thought the market had going forward, it now not has. totally away from the fundamentals, which we had been trading on fundamentals for a couple months, and the fundamentals haven't been that good with. it's now totally a central bank story. liz: ken has said go with the trend, but today, for example, the nasdaq got awfully close to an all-time record close.
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didn't quite make it, but one of the leaders was biogen, and in your picks you seem to be a believer in biotech and genomes because you're picking this etf. you don't see this as a bubble? >> not yet, you know, you have to look at the fundamentals of biotech. you have to really like them because it's not caught up in the macro picture, not caught up with the dollar, euro and all these things you're talking about. it's more bottoms-up, so fda's approval's helped. this is a farm system for pharmaceuticals. these companies and the things they're creating, the faa process, these pharmaceutical companies are looking like a aaa or aa team and bringing these prospects up to the big farm leagues. we like to buy on dips, we don't like to buy way up the way it is, but certainly, stay away from that dollar-denominated euro, all these things in the big macro picture. underneath the surface, biotech is a bottoms-up type of pick.
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david: hey, jordan, you're a stock picker unlike ken who likes the broad indices, i'm wondering about under armour. could their stock price be about to go way up? >> again, i don't know that information. it looks like it by the price action, and i loved under armour from the day they became public, i've also been long nike for years. nike's now extended, and what you have with under armour is one of these companies we want to highlight. i don't believe the fed is behind all this. i think consumers are behind this. you look at their revenue growth, their margin growth, under armour's a superstar that you can probably look back ten years that people looking back ten years and say why didn't i own nike, you'd ask yourself why were you talking about the fed rather than buying great companies? liz: that's an excellent point. but let's give barron's a little bit of credit here, they put the ceo of under armour on their cover this week saying he's the number one ceo. >> bingo.
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liz: nobody's mentioned greece. late last night -- david: thank goodness. liz: greece said we're going to come out with another plan, and they say that they will show not necessarily the austerity we've seen in the past but, dan, did that affect the pits early this morning? oh, greece is at least trying to get serious once again? >> i think that greece has pretty much moved off the front page here because every time they come up with a plan, we cheer it, and every time there's a crisis -- realistically, it doesn't seem to make any difference. it goes on and on forever, there's always a plan, and plan never works, but it never really means anything to our market. i don't think anyone here is that concerned about greece. liz: great to see all of you. jordan can, ken and dan, have a great weekend. david: thanks, guys. have a good weekend. breaking news from the mortgage banisters association on its outlook for housing this year and beyond. chief economist mike fran zahn tony joining us with an exclusive on what's to come.
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we appreciate it. let's start with rates and the 30-year fixed rate. what is it now, what do you think it will be at the end of 2015? >> well, thanks for having me on today. david: thank you. >> so last week we were still below 4%, 3.99% for a 30-year fixed rate conforming balance mortgage. we think that's going to the rise through this year getting closer to 4.5, 4.6 by the end of the year. david: wow. how about the end of 2016? >> about 5.5, we think. you know, this is really in the context of a growing economy. we did have some weak numbers in the first quarter of this year. we think that total growth will be below 2%, but for the full course of in this year and next, we'll be closer to 2.5. you know, we had three months of greater than 290,000 job growth, and we think the unemployment rate will be below 5% by middle of 2016. that is a very strong market for housing. david: well, mike, i don't want to embarrass you, but i've got to ask, how were your
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projections a year ago in terms of what happened today? >> well, in terms of purchase market and what we were expecting in terms of home sales, we got those numbers -- david: well, we'll talk about sales in a minute, but i'm talking about rates right now. [laughter] >> obviously. we were as surprised as anyone by the decline in rates last year. we had yet another year of really record low mortgage rates, and that was a real boon for the refinance market. and it helped some buyers into the market as well. david: yeah. everybody -- i think they did, dow jones did a survey of 100 economists, they were all wrong on rates a year ago. nobody expected rates to stay as low as he was. all right, new home sales, what are your predictions? >> we think for 2015 as a whole we'll be up about 13%. david: wow. >> now, that's a big number, but you have to remember where we are. at about 500,000 new home sales, that's about half the level we need just to keep up with the pace of household formation. david: still, that is a big, fat number. how about existing homes?
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>> between 3-4%. existing home sales run about ten times the size of new home sales, and we are seeing so far this year in terms of our data purchase applications to buy a home are running 3-3% -- 2 3% ahead of last year. david: let's talk about quality of purchases. who's buying these new homes? who's responsible for these big sales? because i understand millennials are not buying at all. >> that is the real question in the market right now. so last year if you look at the share of first-time home buyers, it was the lowest in 14 years. this year first-time home buyers have not reentered the market. you worry about min eleven y'alls' access to credit, and the entry level job market not improving as fast as the job market as a whole.
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david: that could be a pressure to the downside. is it getting any easier to get a mortgage? a lot of stories, both anecdotal and in general, about how tough it is right now. >> credit remains really quite tight, and we try to measure that in a credit index that we put out. it's gotten easier for a jumbo borrower. you know, you had the big day on the stock market today, jumbo borrowers feeling wealthier, greater access to credit, and where we're seeing the biggest gains in the housing market is at the upper end. for that first-time buyer, credit's still remarkably tight. some increase in the ability of some down payment programs, some reduction in the price of those programs, but overall it is much tougher for a first-time home buyer than pre-crisis. david: we don't want to bury the lead, that's a big jump. mike, chief economist from the mortgage banksers association, thank you so much. >> thanks for having me. liz: and not one, but two fed
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hikes hay predict. david: yeah. two in 2015. liz: forget opening spring companies or sectors, how about owning an entire country? single country everything tfs are popping up like spring flowers, but are they a good investment or too risky? david: greece is very cheap right now. breaking news on hillary clinton's private e-mail server. the select committee on benghazi demanding that she hand it over, the serve everybody. national archives is asking big questions as well. it former inspector general is going to be joining us live in an exclusive interview. liz: and the company behind the bionic suit that's helped thousands of disabled americans walk again now stepping into the commercial industry with a brand new suit. we've got it live in studio. what can it do for your company and your workers? we've got the cofounder straight ahead. ♪ ♪
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david: wild ride for the dow this week. the index, though, did manage to close the week in the red. liz: let's head over to nicole on the floor of the new york stock exchange. >> so exciting to take a look at some of these big movers. it was a winning week on wall street, and the winners were easy to find. the best performing dow stocks
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were nike and ibm followed by chevron. so, of course, nike we've featured so much today as we talked about how they hit it out of the park. that moved higher for the week up about 6.5%. ibm and chevron each garoned more than 5%. -- gained more than 5%. and 29 of the 30 dow components were, in fact, higher. there was one exception, and that was dupont. dupont came under pressure, that was down about 7% this week. there were concerns that there were some headwinds in agriculture and chemical business overall against the backdrop of the strong or dollar, bank of america downgraded that one and, of course, they're in a proxy battle. loser of the week, sadly. liz: they must have been celebrating a weaker dollar today. >> right, exactly. liz: the u.s. dollar taking a big bite out of earnings from both nike and tiffany's. who's the next victim? we bring in our panel, tangent capital management director bob rice, price futures group senior market analyst and fox business
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contributor phil flynn, and digital risk managing partner jeff taylor. jeff, i will start with you. look, if it wasn't nike and it wasn't tiffany, it was procter & gamble, it's been apple. even apple said it was affected by the dollar. who do your investor-viewers look for next to say, oh, sorry, our numbers are bad because of the strong dollar? >> you know, this one i might sound south intuitive -- sound counterintuitive, but we all know the housing market has had a tough time, so so home builders are trying to attract the foreign nationals to buy houses in the u.s. so i wouldn't be surprised -- again, with a stronger dollar -- if all of a sudden those foreign nationals have a little bit of a pause about coming in to buy those houses. that home builder sector might actually take a little bit of a hit. liz: you know, i hadn't heard that angle, and we do have the canadians and the mexicans, the russians and the chinese, newly-manipulated millionaires. bob, who do you think? who's next in. >> i agree with that observation, by the way, that it's going to slow down the flow
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of foreign flight capital right now. but for view ors at home one way to look at this is to say, look, this is going to hit all the multi-nationals, all the big caps, so maybe this is that catalyst that the market's been looking for for small caps to given to catch up. that might be one way to play this. liz: they have less exposure to a strong dollar. phil, eight months of a strong dollar, two days of a weaker dollar. we don't want to ignore what happened today, you've got to believe there's going to be a long tail of a dollar effect. who gets hit? >> well, i think it's mcdonald's, the fast food companies that are overseas. they're already struggling right now, and they're being hit not only by the dollar exchange rate with all the different countries, you're also getting hit by higher cattle prices for their beef. the question of the u.s., you know, boeing, your big airlines, of course. they have a lot of big deals overseas, and it's going to make it a lot more expensive. i do think it's interesting what he said about the housing
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market. all these guys who came over to the country and bought house, all of a sudden their payments went up. liz: let's hope they don't start defaulting. we want to lip over to -- flip over to single country etfs, more than 30 debuting last year alone, dozens more in registration with the sec. are these et fs whether it's, oh, focus on south korea, greece, the uae, are they a good investment, phil? >> i think they can be, you know, if you pick the right country just like an etf can be a good investment if you pick the right one. liz: who's the right country? >> i saw the uae one, they have a lot of growth right now, they have a lot of projects that i really like, so i think that's going to be a very, very good one. the greece one, of course, you're buying with blood on the streets. if they come out with one on greece, but who knows? greece was the best performing bond market earlier in the year. if they pull out, you know, this latest crisis, they might be a good buy again.
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liz: bob, is there a single country you'd love to buy a basket of stocks in? >> well, you know, you like to buy things when they're cheap, i think nigeria's an interesting play here. on the idea of single country etfs, the most important thing for people to remember at home is currency risk, what we just got through talking about. you could easily lose money because when you have to translate those earnings back into strong dollars, guess what happens to you? liz: jeff, is there a favorite country? we haven't heard anybody really mention europe in totality or maybe just a germany etf. >> one of the cups, one i looked at was brazil. i think the key to etfs and the p reason we all are so envogue with them right now is the transparency they give us. i you have one bank to make up about 18% of that etf. so am i buying a country or a heavy concentration of particularly maybe two companies? and i think that's what we have
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to continuously dig down into the etfs and just monitor what they're holding to give us a better sense if that's a good buy for our particular risk appetite or not. liz: well, yeah. you've got to look at the country and then play into what are the currency hedges. so many cross-currents. coming up, we're not done with you. hbo, showtime, sony, they are all asking for special permission -- in fact, think of it as a superfast highway for their streaming services. and nutrition nuts, listen up. you may soon know how many calories are in your alcoholic drinks whether you want to or not. david? david: i don't want to. i really would rather not know. meanwhile, breaking news on the hupt e-mail controversy. will she turn over her private server to a thursday party? the former inspector general of the national archives joining us exclusionly to talk about it. also 500 million tweets are sent every day. twitter wants to sell your tweets. you heard me right. who gets 'em, and what are they going to be used for, and how
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>> >> don't you hate to when you see that thing that shows the viewership this buffering? hbo and showtime are jumping into a tv there asking bride plant providers to steer clear growing internet congested we're back with the panel provided the whole discussion and that neutrality is you cannot pay extra at least if you are a company to make sure your stuff does not slow down the for the consumer? seibald want to be faster and the speeds that our higher. >> it is crazy.
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so they invented another and a free internet. the big money at the end of the day right now content is king and they realize that right now. the companies are in big trouble right now because apple comes out with apple td it will deal whole new world. liz: those who are on gave the thrones -- gave of thrones and then you want all the episodes should now have the option to pay more? the networks are agitating for this. >> it is inevitable and will happen it is a free public internet and it will be more expensive no question about it. it is a great way for hbo to make more money that is part of the subscription and a
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great way for cable providers to recapture the economics there is no way the ftc can stop this. liz: the fcc cannot and it is a gray area right now and that is it. let's move on to know how many calories are in your johnnie walker. there will be calorie labels on the products. i think a more informed consumer is better but then you realize you drink your calories? i would rather eat mine is. >> it is a brilliant move. basically they say here is what is in your vodka. it will force the hand of competition to follow suit. the more we know about our product the better informed
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decisions we make. liz: i can tell you. guinness 124 calories. [laughter] what do you think? is that a bad move? >> it is brilliant marketing would rather have five of vodka tonic gore won milkshake? >> e o e your calories in chicago i want the milkshake >> we have cold winters and we need that. i think the best thing is. [laughter] just a reminder the of long island iced tea 780 calories. thank you.
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>> i live i had two of them last night. [laughter] you could put a price tag on anything twitter will play in millions of tweets up for sale to marketing companies. liz: so which companies our -- are paying for tweets? timothy have been doing this for years in the next big target is the sales force or even oracle. the hundreds of millions cent every single day to order aggressively is taking advantage by selling the content. to match up the e-mail address it is smart enough twitter could link them to what you we're doing and what you want. starting back in november that allows thousands of customers to access your
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twitter data. privacy advocates to love this but insist that it is done in a complete fashion so we are not sharing private information if you were a part of that you could opt out of as well for the twitter platform. it is already a 10% of last year revenue and that was upwards of 109% year over year. liz: used to be called the mailing list and i was pretty expensive. and we have news on the hillary clinton in a real controversy. congress' demands and she turns over the private server to the independent third-party. like the national archives. and a former inspector general is your next. liz: take a look live in the greenroom.
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she was secretary of state. particular interest could be historical interest for the national archives. joining me now with a "fox business exclusive" is a former inspector general of the national archives. could the national archives or an inspector the then neutral observer that congress is looking for? >> i think the process that i would encourage is for the inspector general of the state department to do what he is authorized to do by law that is a better route to go. david: this is from the inspector general 1982 each shelled report expeditiously to the attorney general whenever he has reasonable grounds to believe there is a violation of federal criminal law. as a former inspector general to use think we have
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reached that point in the helleri e-mail controversy? >> i am not the attorney general or inspector general using my background of the national archives i personally having found out by the events whether through the hot line or the media the first think i would have initiated a preliminary investigation to look at the federal records act, to see a potential laws were violated, at that point understanding only the art of this could allow you to avian the records or destroy them. based on what i read, they did not in the secretary of state supervisor did not allow it to then sell-off
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could have been violated. so right now i would work to develop better information a would be doing interviews interviews, to have access to all records with the state department to employees and contractors and developing the case. david: that is a lot of information could the inspector general request a subpoena for the server? >> because it is offsite i would think the better opportunity would be to develop the case with the attorney general of the jurisdiction to have a search warrant to obtain the hardware itself. also going after the internet provider as well as
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the state department trying to develop that case stronger team when you got into this a little bit but with other divisions of government, do they have authority to look into if compliance was met by the secretary of state? >> they have absolute authority. that is the way the law was crafted. we don't know what the inspector general is doing for my former office if they are party the archives because of the specialty your unique experience but i assume the matter is being looked at. david: has been six years she has had a private e-mail that a lot of sensitive government information she
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is supposed to share because of the records act with the archives shouldn't the ig been involved to get that information at some point? >> first call i think they could is a pullback to look could knew and when they knew it but the issue resides in the darkest of united states because since that was created the archivist is supposed to be doing inspections and dictating and defining if it is sufficient heating requirements so the archivist is just finding out about this after six years. david: why? excuse me but why only now are we finding a house six years later that she had the e-mail account that was not accessible to the national archives which it should have been under the federal
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records act? mike i a assume it was internalized and the state department because the national archives is not knock on the door therefore it is like the wild wild west. i assume the archivist at other priorities perhaps but he was not on the ground to monitor and i assume the inspector general was unaware but this is something he can look at the annual financial statement audit. there is a lot of evidence to look for. david: for rick inspector general of the national archives. thank you. liz: the monster trick -- truck industry has 45
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go long™. ♪ >> this is very exciting technology one of the first robotics company's helping disabled americans to walk again is now expanding with the new products for industrial purposes. liz: here with us is exorobotics co-founders. >> i am wearing the exoskeleton and it is for construction and industrial workers with this device you can make the tools we less so i don't feel any of the weight on my shoulder so i can increase productivity. liz: look at your legs it is wrapped around.
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>> is a mechanical structure so the weight to goes through the structure to the ground. david: this is like life imitating art just like an "avatar". this is the same thing? but it could be used for military purposes? >> we started by developing the u.s. military with lockheed martin is the of that technology the other is a medical product at the end of last year we had 110 units out sold in rehabilitation centers it is used to mobilize a spinal cord injury or stroke during the recovery. liz: looks like the opportunity for heavy industry could be a game changer? >> absolutely. the difference is complete the and powered.
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>> it is the structure of joints that allows the weight to go down so it is easy to train. david: to have to ask about the one that tells people walk again. the fda has put you under a trial basis he were not expecting for you did not think they would be that hard. >> i wouldn't say they slowed us up but everyone was marketing these devices as the power to exercise a equipment but they said we needed new product classification. it will be class to so now we are in the process but it is going very well this us fox three have to check but we take it extremely seriously. liz: it looks expensive.
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>> is right now because the volume is low and also because this machine is used for different patient size is every single our side is made with all these adjustments. in the future people who can take these home than you have a simple system that is made in higher quantities at a much lower cost. david: have you already been contacted by a industrial firms? >> absolutely. construction companies. we're not talking names but top-10 global construction companies in the world. liz: welders, grinders, a heavy tools, jackhammers even with the heavy dramatic rivet busters i cannot pick it up without data know how they do it by themselves.
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liz: good luck. david: especially with the fda. that company is called exo. liz: one dow stock steals the show today. we will tell you what it is how anyone watching fox business made big money. next. david: what is the toughest truck? he has a preview. >> how about we crush some cars? we will do some more. take a look monster trucks when we come back. >> i in gerri willis. never pay full price again for the senior citizen discount that is one of the big stories coming up in just a few minutes.
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>> monster truck competitions aren't just for the high-flying car crushing giants like big foot and the raminator. they could mean huge money for the automaker. >> jeff flock joining us outside the monster truck nationals. i didn't know there was one, jeff? >> i'm at the sears centre in hoffman estates, illinois. you're going to see big foot get in action here.
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oh, yeah. man, i have mark hall with me from the famous hall brothers racing team. you may win the championship tonight. >> i certainly hope so. definitely going to give it 100% and hopefully things go our way. >> reporter: what is john doing here? >> a little doughnut action. >> that's a really good one there. >> reporter: the sound in here is just incredible! i don't think anybody can hear me right now because it's so dang loud! >> it is pretty loud. that's all part of it. though. >> reporter: what's he going to do now, looks like he's making another lap. >> another lap here, i think he's lining up with the car and giving us car crush action. >> reporter: i want to take a look at some of the car, truck sales numbers, this really has -- trucks have never been more popular? >> absolutely. truck sales are off the charts. >> there we go. >> whoa! >> that was a good one.
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>> that's what we do with the old junk cars before we make new ones out of them. >> reporter: what's hot are big cars, suvs, that sort of thing? >> absolutely. the big truck sales, ram sales are off the charts. we're proud of that. hopefully we'd like to be a part of that. >> i was going to say if mark runs the raminator, sponsored by ram trucks, i give you one more pass over the car here, and boy, i think my hearing is shot. whoa! >> they act like big foot the person, because i've been to those. big foot here, he isn't there this time. he's there. >> jeff, i envy you, brother. >> there's the old big foot. >> jeff, thank you. >> it's worth losing your hearing for a day or two. >> great stuff today. a big foot of a stock, nike posting biggest gain in six months, ending near all-time highs following healthy earnings.
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if you were watching "making money" with charles payne in december and followed his advice, you'd be very happy now. >> they're everywhere, smart, ahead of the curve. the company opened the second women's store in shanghai. this is one of the stocks that you never have to sell right now that i can see. >> you know with a prediction that is right on target like that. we gave the man a chance to come in and crow a little bit about it. how did you see this coming? >> pounding the table on nike for years and years and years. one of the things i love about it, honestly, they have one global competitor and keep beating them. the only other is under armour, i love them, we all love them, they are absolutely amazing and smart. everyone at nike that works there loves the business, loss of sports and know how to stay ahead of the curve. >> you've been saying i love nike for 40 years.
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they have a few bumps and bruises. >> that's the story of the market. when is it going to end? one guy sold everything last friday. why is the market up? i'm going to address that. the worst thing is to pick the top. there's a stock we put in for a trade today. last time we traded at 12, tock profits at 14. i love the company. by the way, after we sold at 14 and went to 8. i felt brilliant! wasn't because i placed the stock and not the company. >> your price target, nike is far away from it, 101 now, how high do you think it goes? . >> i am hoping 140. >> would you buy in at 101? >> if i'm not looking to sell it on tuesday, yes, i would. >> and what about the general direction, where do you think the market goes from here? we've got about 20 seconds. >> end of year at 19,000. i was hoping we had one major test in october. i like the overall fundamentals
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of american companies. >> more great ideas, 6:00 every night eastern time, "making money" with charles payne. >> good stuff. >> thank you very much. >> what a week we've had, up and down, who knows what's going to happen next week? we do. "the willis report" is next. gerri: hello, everyone. i'm gerri willis and this is "the willis report," the show where consumers are our business. the white house announces sweeping new rules on fracking. will they kill the oil and gas boom, a huge win for consumers. >> the petroleum industry contends the rules are redundant as states regulate fracking. gerri: home prices are rising, the number of people upside down on mortgage is going up. we'll investigate what's happening and how it will affect prices. >> could this be the new normal in the housing market. gerri: also, price matching. we see it all the time in retail, now it's about to revolutionize another part of the economy. paying for college. and senior citizen
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