tv After the Bell FOX Business January 29, 2020 4:00pm-5:00pm EST
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minutes. markets are slipping. [closing bell rings] s&p turned negative. dow make that holding on to 11 points of gains. massnasdaq up four. that will do it for "claman countdown." coronavirus i think fed mentioning that hit stocks. melissa: losing steam in the final hour of trading. stocks off the highs of the day after the federal reserve left interest rates unchanged but share jerome powell called the outbreak of the coronavirus a very serious issue and that it's too early to say what the effects will be. now google is temporarily shutting down all china offices due to the outbreak. on back of all of that, the dow closing up 10 points. you could see it fading into the close. in the green for the second day in a row. i'm melissa francis. connell: i'm connell mcshane. welcome to "after the bell." the google head lien towards the close. it didn't hope i guess along with jay powell. s&p looks like it will settle lower here, down almost three
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points. nasdaq is up by five points. all off the highs, right? melissa: yeah. lifting the dow today, boeing reporting a massive loss on fourth quarter results, the first annual loss in 22 years due to the grounding of the 737 max. why was it higher you ask? ending in the green as investors believe the company is on its way to solve the crisis. numbers we brought to you yesterday, apple closing at a record high after iphone demand shattered sales records. connell: look at companies on the screen. some biggest names in tech, facebook, microsoft, tesla are all reporting this afternoon. any moment we'll have the numbers in their most recent quarter. while we wait, let's bring in the panel today, joined by adam lashinsky, "fortune"'s executive editor, jonathan hoenig capitalist pig hedge fund founding member, both fox news contributors. adam, we have a few seconds whether facebook or microsoft comes out but give us an idea,
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microsoft is behemoth but a behemoth executing pretty well. what do you expect this afternoon? >> my inclination to speak slowly, connell. we expect them to do well. they have positioned themselves extremely well as second fiddle to amazon web services by focusing on bigger clients, on these massive enterprise businesses that are that are their core customers. if they continue to do that, they will do well. people don't follow that, if you use a microsoft computer and software but that is their business right now. connell: we'll get into tesla in a moment. jonathan, i'm sure you have a lot to say about that stock, even facebook, especially tesla is a ridiculous run. to the extent a technology company can be boring that could be a good thing, microsoft is doing that pretty well, right. >> it was really boring, connell for better part of 10 years. it was dead money. connell: that's true.
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>> 2000 to 2010. then the company to adam's point successfully remade itself. it is not about explorer. it is not about the old services. it is about the cloud or jedi contract. about new team zap a competitor to slack. this is a growth company now. that is why the stock is up 70% in the last one year. my fear even if earnings are god. connell: they are coming out, jonathan. i will break in. i tell you you a little bit what i know. if we bring the stock up after-hours we might get a sense this is right. but the revenue, it is up a little bit. the revenue at microsoft looks better than expected at $36.9 billion and i think, the reason, that was important is that the expectations were relatively high anyway for microsoft's revenue. analysts raised the bar there. to jump over a bar that is already pretty high, to me, adam, that is pretty good news. kristina will hop in a second go over details in terms of business segments and what have you, just on that glance, the
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idea that microsoft reports strong revenue that's a good number to me. >> that would be my first assumption also. remember for many years the company was churning out a ton of cash but was not growing. when you can combine growing with churning out cash you've got a winner on your hands which is why they have been doing so well in the market as jonathan was mentioning. connell: intelligent cloud business, sorry to jump on you, jonathan, is also the number to look at there. the operating income was four 1/2 billion dollars. revenue from intelligent cloud would be one to look at. that was 11.87 billion, that also, jonathan is better than expected. the cloud business, overall revenue better than expected and the cloud business where you have the growth, back to jonathan in a moment. kristina will run through more details on these business segments you are also better than expected. as i said to the guys, these numbers look pretty good for microsoft. take us through it. reporter: you alluded to some numbers. this is beat all around. earnings per share $1.51.
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that is higher than expected. we were expecting $1.32. revenue another major pete, we were expecting 35.6, over a billion dollars in terms of that beat. cloud, i know adam was talking about cloud, how cloud really, azure program for microsoft goes against amazon, their margins might be little smaller but they saw revenue climb 27%. another segment we're getting numbers, microsoft owns linkedin. revenues from linkedin. look at the number, up 24% as well. other news that came out of microsoft, they are launching a new a.i. program, a.i. technology, $40 million over course of next five years to look into health care and diagnose problems. overall seeing a very strong beat for microsoft in the second quarter. connell: stock up 1 1/2%. we'll transition to facebook in a moment, jonathan hoenig. pick up your thoughts before i cut you off, thoughts on microsoft. >> connell, very briefly.
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positive to hit the stock up even on a beat. one of the things we're seeing continue tradition, whether intel, whether apple today, good earnings news, the stock moving higher. so it is going against what i know a lot of traders anticipated, by the rumor, sell the fact. the fact they're powering up to even new all-time highs suggests as the panel previously talked about, the bull market is intact. connell: what about the growth? in terms of execution, adam, growth does come -- kristina alluded to linkedin. microsoft bought a couple years ago. this cloud business has been quite a juggernaut, right? competing with amazon. >> as you look at microsoft, think about things going on with this infectious disease in china, or 3m having a bad quarter because of concerns about industrial economy, none of that matters, microsoft is sitting on this trend right now of companies everywhere saying we've got to get behind the cloud. we've been talking about it for
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a few years, but now, bigger, slower companies are doing it too. which is really important because it takes the macro economy out of their performance to some degree. connell: what is your take, jonathan, big picture, not only this company but others of clarity that we can have, visibility from here, given the virus in china? whether too much is made we don't know yet. as people tried to put that together, we talked about it yesterday with the company's reporting, how does that hang over earnings season? >> there is rearry understanding however bad china reporting the situation is, probably significantly worse. in fact all day we got steady trickle of pretty somber news, starbucks closing half of its stores, google essentially shutting down a lot of operations, this will have significant impact on the global markets. connell: let me shift gears.
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melissa pick it up with facebook. first jackie has numbers. jackie deangelis. how did facebook do, jackie? reporter: good afternoon, connell. facebook reported earnings per share of $2.56. three sent beat in terms of what street was expecting. revenue 28.7 billion, slightly higher than what was expected. the stock is trading lower. so much hype around facebook a today. it hit all-time high. we saw upgrades on the stock. people were looking for blowout numbers here. we have a beat on our hands, not necessarily a blowout. people look at metric of monthly active users, daily active users as well, maus, slightly higher than expected, daily active users 1.6 billion. facebook is doing better. didn't really hit it out of the park. you can see the stock trading lower. down 6%. we'll dig into it. get back to you. >> thanks so much. go back to the panel.
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adam what do you think of the numbers? >> i was about to say this is continuation of what we've seen quite a foot quarters on facebook. all of our talk about privacy concerns, regulators going after them on antitrust or privacy grounds fining them billions of dollars, none had a meaningful impact on business. they continue to grow and make a lot of money. did i hear jack sy say the stock was down 6% in after-hours trading? connell: yep. >> that is something we need to dig into more. i heard it had its high. doesn't shock me it would come down. 6% is a lot for what looks like a beat on earnings. melissa: bret lars son, fox news headlines 24 seven anchor. i'm not sure if we introduced you there. facebook, does that seem like a good number to you? >> that seems like a good number to me. thing we remember about facebook, they're kind of a media company.
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january is always a slow time of year for media companies. doesn't surprise me that their revenue number is high as it used to be. when you're watching cable television in january, ad breaks become 90 second infomercials for one product the whole time this is it what we're starting to see on facebook, rather than on the facebook feed with their advertisements. becomes very much "as seen on tv" products. they're not at a loss for eyeballs we're seeing here. they're certainly not at a loss for ad revenue. what we remember for facebook and google, speaking back to the beginning here on microsoft, these are big international companies. facebook has a majority of users outside of the united states. so a lot of in and outs of the day what is happening inside the united states doesn't apply to facebook because it is being used elsewhere in countries where people love the fact they can stay connected with everyone, everything thing, some people state i'd are getting a little fatigued especially as we
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head into the 2020 election season. melissa: jonathan your take on that? >> we talked about potential risks for facebook. whether teens are abandoning the platform, as adam alluded to regulatory risks are very serious concern. they have overcome it all. the stock over the last year is up 46%. this is great example. melissa: let me stop you there though. you think they have really overcome at all? there is still a lot of talk, washington regulators going after facebook. recently their own state senators that stand up and rail against them and congresspeople. >> it is bipartisan, it is a bipartisan hatred. whether those on the right or hillary clinton recently came out against -- facebook is hated by everyone. it hasn't seen to hurt the stock, melissa all-time high earlier today. melissa: adam? >> they're hated by everyone except their customers. >> and shareholders. >> well, and advertisers.
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shareholders because they're loved by their customers and the advertisers that is just a fact. we're seeing it. so these risks are real but so is their business performance. >> we have to remember when we're talking about facebook and the facebook customer, the facebook customer is the advertiser. we're all the product. melissa: the product. >> of course advertisers are happy because you can make these granular level targeted ad buys reach exactly the people you want to reach. you're not spending massive amounts -- certainly not spending five million dollars to run a 30 second ad on facebook like you're going to on the super bowl this weekend but of course facebook customers are happy. they're getting exactly what they want. roi on a facebook ad will get -- melissa: i don't know many people un40 on facebook. >> but they're on instagram. they're on instagram. that is the point. >> owned by facebook. that is continued risk moving forward, competition whether tiktok or other competing social
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media sites. i think we're seeing in the stock, quintessential buy the rumor, sell the fact. they beat, but didn't hit it on out of the park. melissa: i am not getting -- on instagram. >> what is your secret? melissa: forget it. i'm getting lots of ads. i don't want them to change my algorithm. guys, thank you. connell: just getting started. we'll get back to earnings plus plenty of politics. a sealing of a rare victory lap president trump signing the usmca. what it can mean for his re-election chances in key swing states. melissa: 200 americans evacuated from the china, from china, landing in the u.s. today but how concerned should you really be? we're breaking down the chances of an outbreak here at home. that is later this hour. connell: cementing its position as king of sports, the nfl has really posted a major ratings
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comeback after last couple years after a series of controversies. what is behind that, more importantly will it last? we'll talk to shannon sharpe on fox sports these days. you see him on "undisputed." he joins us from miami. coming up. >> love it. woman: friction points, those obstacles that limit a company's growth. i try to find companies that turn these challenges into opportunities. it's these unique companies with creative business models that will generate value for our investors. that's why i go beyond the numbers.
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connell: here is a "fox business alert." we're telling but earnings from facebook and microsoft out in the last few minutes. we're rechecking stock prices. facebook is sell on the news. earnings seem strong, earnings per share, revenue both beating the street. remember facebook touched an all-time high. it wasn't a beat by as much as some were expecting. we see a little as jonathan hoenig suggested a little selling on the news here this afternoon. so that is what you have from facebook. microsoft was a strong number. the stock as a result up 2%. tesla in a moment. melissa? melissa: staying on top of that story. president trump celebrating a win today. the president signing the new usmca trade agreement into law. blake burman at the white house with all details on that one. blake? reporter: president trump could have signed this in the oval office. typical fashion like we see him do for legislation for a few
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years now. however i can tell you many in the building behind me felt it was signature piece of legislation. something that needed to be elevated. what we saw from the president, south portico of the white house. 400 people in attendance as the president signed a signature piece of bipartisan legislation to date. second trade deal victory lap from the president in as many weeks. >> this is cutting-edge state of the art agreement, that protects, defends, serves great people of our country. thanks to our proworker, pro-american economic policies, unemployment is at the lowest level in more than 50 years. reporter: democrats were not involved in today's ceremony over at the white house, though they were involved with changes made to the deal. house speaker nancy pelosi took credit for the final composition of the usmca trade deal. >> because of the work of our, chairman of our ways and means
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committee, and the work of organized later, afl-cio, and richard trumka, we made vast improvements. if we weren't we would not pass the bill. we would not even want to pass the bill. reporter: president trump will hit the road tomorrow. he will head to michigan to tout the usmca trade deal. there are plans within the white house to try to get the president on the road more often so that he can get out there and continue to tout this bipartisan piece of legislation. melissa. melissa: blake, thank you. connell: other side, pennsylvania avenue, crucial day once again, aren't they all, on capitol hill. we had senators from both parties submitting their questions in president trump's impeachment trial. chad pergram, fox news congressional correspondent on the hill with the latest on that. those of us who were watching earnings or the fed chairman, whatever we were all doing today, and didn't see everything that happened in the impeachment trial, what stood out in terms of the question and answer session to you, chad? reporter: they just came back
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into session here after about half hour break. they're on question number 29 as they toggle back and forth between the democrats and republicans posing questions to the house democratic impeachment managers and the president's counsel. the predominant questions jumped out were questions why the democrats why it was important to call witnesses saying that was absolutely important, how can you have a trial without calling john bolton and mick mulvaney, republican questions focusing on bidens, some issues with the bidens. this issue about calling witnesses that will not be decided until friday night. connell: got to jump on you chad. i apologize for. we'll get back. we have another earnings-related "fox business alert." tesla up 4%. it reported after-hours its earnings. jackie is back. i assume food numbers if the stock was up, jackie. reporter: very good numbers, connell. 2.14 adjusted eps. 21 cents better than wall street expectations on revenue better
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than 4.78 billion. the expectation was 7. we've seen tesla climbing. it did better than expected. we'll dig into the numbers. melissa: jackie, 2020 vehicle delivery they say should comfortably exceed 500,000 units. that has to be a big deal. connell: look at the stock, 600, $615. garrry gastelu, foxnews.com automotive editor. jonathan hoenig back with us as well. i go to you in a moment. sometimes we talk about the company and earnings and everything, but every now and again the stock becomes the story and for tesla it is now at $620 in after-hours trading. what a run. >> 200 less than a year ago, connell. connell: i know. >> if you look at allusions to 1999 and early 2000, tesla is really it. this is what i see.
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similar charismatic ceo, a stock to your point that simply gone parabolic. medical list said tesla making half a million cars. give you a comparison, ford makes five million cars. tesla is worth comfortably more than ford and general motors combined despite making fraction of automobiles. this stock is parabolic. it has no earnings whatsoever. this is technology driven growth stock in a growth stock market. melissa: give you details. solar, storage deployments should grow 50% in 2020 and revenue from autos, they put at 6.37 billion. what do you think of all those numbers and that one that they're going to comfortably exceed 500,000 units for the year 2020? >> they doubled sales last year. they will not double them this year but what we learned here they were able to make a lot of money on cars they did sell. that bodes very well with the chinese operation coming online, if they sell cars over there and
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make money on, that will be big for this year. connell: gary, we talked to a lot of people about a lot of companies involving china this week for obvious reasons. in tesla's case there is a specific reason with the factory in shanghai. your outlook for tesla in china? >> look, there is a lot of questions specially with the coronavirus now because not only is the market there soft for cars, soft for electric cars, how do you deliver cars, when the country is partially shut down because of these issues? could delay things. will it stop them all together, no, these things work themselves out over time. just a matter when all that is going to happen. the other question do people want to buy electric cars in china at the same rate they used to? that might not matter. tesla has proven doesn't matter what the rest of the market is doing. it can sell cars in the united states where other brands can't. no reason it can't do that there. the vehicles are coming online at a good price for the chinese market. melissa: jonathan you talked about the parabolic rise for
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this stock. so many think that is not justified or this is a really dangerous stock. it just continues to go higher. what do you think, does it ever come back to earth and what would cause that? >> in fact some short sellers are exactly what are powering the stock higher and higher, the higher it goes the short sell remembers forced to cover to bring the stock higher again. gary alluded to future of the company in china. considering a lot of subsidies previously provided to tesla here in the united states are going away china is a real growth market, is a central growth market for them. the problem tesla will have moving forward is not unlike beyond meat or any of these other major growth companies is competition. whether, whether bmw, whether porsche. we'll see a lot of new electric vehicles from high-end manufacturers. there will all be competition for tesla. meantime not hurting the stock. new all-time highs. melissa: right next to you showing the stock up more than 7% after-hours.
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connell: another 40 bucks. as always, both of you, jonathan, gary. thanks, guys. melissa: end of privacy as we know it. how one company is criticized over the use of facial-recognition technology but they're not the only one doing it. for hundreds of years they've had to do their jobs in blinding smoke. but verizon 5g ultra wideband is built to transmit real-world data so fast, it could power technology that lets them see through smoke. that's a difference that can save lives. that's a difference that will change everything.
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♪. connell: the national football league to put it mildly is back in the game. just a couple years ago it seemed maybe the nfl had peaked. now ratings are up and the league is near its 25 billion-dollar revenue goal by the year 2027. we're joined by a guest who certainly knows a thing or two about the nfl, shannon sharpe is with us. co-host of skip and shannon undoes fighted with skip bayless on for example sports one. great to have you on, shannon. couple years ago we did all the stories, the nfl is in trouble. what is the key for this bounce back for football the last
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couple years? >> well, i mean, look, it is a great product. the guys are unbelievable. you got patrick mahomes. you got the young talents. you have got deshawn watson, a new crop of guys are replacing the old crop of guys. the thing about football, every year you get five or six different teams making playoffs. they give the fan bases hope, what happened last year to team x that didn't make the play off the previous year, it gives this team hope their team will be the cinderella. you got the chiefs and 49ers. i don't really know how many teams had 49ers being in the super bowl but here we are. connell: here you are, that is for sure. mentioned patrick mahomes. you're right, sass like that bring it back, to some degree a guy like garoppolo. what are you looking for in the game? >> i expect it to be a great game.
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i expect kyle shanihan, the head coach of the san francisco 49ers to try to minimize jimmy garoppolo's throws. you can't make this game jimmy garoppolo versus patrick ha homes. you have to make it the san francisco 49ers running game versus patrick mahomes. mahomes is clearly the better quarterback. for the 49ers to win the game, they have to run the football, run the football successfully. kansas city on the other side they have no problem patrick mahomes throwing 45, 50 times during the ballgame. they can't fall behind as they have in the past. this team will stay committed running football, not let you deter them, once you get a couple first downs or touchdowns deter them running the football. kyle shanahan is committed to running football. i played for his father in denver. i won two super bowls under his father in denver.
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i know how committed he is to the run game. connell: one other sport, we watched this on "undisputed" today, talking about kobe bryant. had snoop dogg on, suggested they change the logo, not only one suggested that to kobe bryant for the nba logo. idea you have for that? >> i have a problem with it. jerry west is i'm tired of it. i don't care to be the logo any longer. i thought if they were going to change it, snoop dogg made a good point. michael jordan has a logo, it is called jump man. i'm no so sure if they approach michael having him be the logo, that he passes it on, this is honor befitting kobe bryant, what he meant to the game of basketball. i'm not so sure michael would even want to be the logo of the nba. i think it would be a great honor. do i expect it to happen. 50/50.
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i say 50/50 within the next year or two it does happen. they will change the logo to kobe bryant. connell: they have been talking about it already. that is interesting business decision especially after what happened. before we let you go, shannon, like many people during super bowl week you're appearing a company you're working with called chromedex. tell us about the work you're doing there. >> i take a product getting up 3:00 a.m. in the morning prepping, doing a live tv show for 2 1/2 hours. trying to work out, having a busy day. i found as i have started to get older, energy level wasn't there as it was in my 30s and 40s. i tried the product. i've been taking the product for 15, 16 months t has been a game-changer for me. i have the energy not only get up early in the morning to do my show, but i still have the energy i need to work out twice a day on monday and tuesday, like i had before i got into my 50s. it is a big difference. now, you still need to eat reasonable.
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you need to eat sensible. my diet consists of mainly turkey, chicken, bison, brown rice, sweet potatoes. don't think you take the product, eat whatever you want have the same levels of energy, get in shape. that is not going to happen. this is unbelievable product for me. connell: i worked that morning shift for years, i could have used it, 2:00, 3:00 a.m. alarm. join the game. thanks for having us. shannon sharpe, the great shannon sharpe. >> thanks for having me on, guys. melissa: new questions for the impeachment trial. go back to chad pergram from capitol hill. sorry we had to interrupt you before. where do we stand today? reporter: we work both ends of the shift on capitol hill. working early morning, going late at night. that is what we expect as they continue with this question and answer session where democrats and republicans in the senate are posing questions to the house impeachment managers and thenning to felling back over to the defense counsel for the president. they're up to question 31 right now. there were 106 questions posed
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in 1999 to the counsels in president clinton's impeachment trial. they have a long way to go if they will rival that. this will consume the next two days. then friday, is going to be a seminal day, perhaps the most important day in this impeachment trial. that's where the senate will decide whether or not to have a gateway vote as we're terming it here, to go down the road to potentially call witnesses or other documents. if they vote against that, then they could move to a final verdict sometime later on friday or saturday or over the weekend. however, if they crack open the door, vote yes, we don't really know here the outcome, this is happening in real time, a lot of times, melissa, politics is very scripted. it is not in this case, they just need 51 votes. that vote count right now is dancing on the tip of a pen. if they vote to open the door, open the gateway, possibly have witnesses, maybe they vote on a slate of witnesses or vote against individual witnesses
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later on friday night? or do they have an affirmative vote to call witnesses starting on friday night. that extends the trial, perhaps for weeks or some people say even month, what does that mean? if you look at the resolution they crafted you would first have to have witnesses who are summoned, deposed in private. and so it is a really question how soon they could get the witness in here if they call for anybody. you would need republican votes. most democrats think they want to call witnesses here. there is a few republicans on the fence about that. if they open that door, they can't blame the democrats, this will be on the republicans. that will be key next few days. melissa: it will be such a can of worms at that point, chad. who knows how many witnesses there will be. thanks for keeping us up to date on that. >> thank you. connell: as we move along separating fact from fiction, the number of those infected by the virus in china is certainly growing but what is the danger here in the u.s. as the numbers
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connell: "fox business alert." we've been following major tech result this is hour. take a deep breath after all this. microsoft, facebook, tesla, all came out, beat the street on their earnings and their revenue. and now the stocks have moved into different directions after the bell here. facebook sold off after touching
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all-time highs. that was the sell on the news story but microsoft was strong. intelligent cloud business which we watch closely. its revenue was great there. this is growing component of its business. investors are really interested in that. microsoft first earnings report since beating amazon for that lucrative pentagon cloud contract. microsoft up 2%. tesla up 7%. melissa: wow. connell: facebook down 6%. melissa: unbelievable. coming home. 200 americans arriving in california after being evacuated from wuhan, china, by charter plane. they have 14 days of self-imposed isolation as a precautionary measure. the deadly coronavirus virus claiming 132 lives and infecting more than 6,000 in china but how much of an impact could this outbreak really have on people living outside of china? with me now is jillian melchior, "wall street journal" editorial page writer. i want to put this in perspective because when i turn on the television everybody is
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leading with this story. i see people in the subway, all over the place with masks on. i know they're not responding to the normal flu because we don't freak out about that anymore even though we'll talk about that later, we probably should, how big of a deal do you think this is to americans? >> it is a big deal obviously anytime you have a virus like this, it is international news but i do think that developed countries are really good at handling this. although there are a lot of unknowns how the virus spreads in particular, what the mortality rate associated with it is, how long before somebody stops being contagious, i think what we're seeing here the risk is very low to americans. this is something that you have a great every chance of getting sick, dying because of the flu. and it is, to put this in statistical perspective you also have a greater risk getting in your car driving to work in the morning. melissa: we're looking at numbers on the screen here and i
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think these came from "axios." we were looking at this report this morning. so far this year, 132 people died from the coronavirus in china. here in the u.s., 8200 people died from the flu. does that sound right to you? >> that is huge number. i think it is important to get the flu vaccine. you're contributing to keeping others safe around you. break out the hand sanitizer. that will not hurt. >> one of the reasons there was so much focus on this, the last time we saw sars, these epidemics, it is a new virus. something new in the system. you have to figure out a new way to handle it. how does that factor in? >> anytime you have something like this, you're finding out a lot of things. right now if somebody potentially comes down with this, it takes a couple days to confirm that is actually what they have as opposed to another respiratory ailment. this is concerning it is originating in china. we remember during the sars virus they were not incredibly transparent. seemed to have learned from
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their mistakes back then but i think there is a legitimate question whether you can trust what is coming out from the chinese government. connell: melissa: if that is not that big of a deal and flu is killing more people here in the u.s., why does it look like in china a ghost town with people going down the streets? our own government is concerned how they treated that plane they came in. people go through some checks before they got on it, and got off. now they're in self-imposed quarantine. it must be a bigger deal than the regular flu, otherwise the cdc would have people who get the flu going into quarantine. what is the difference? >> i think abundance of caution here. this is a novel virus. we don't fully understand how it is spread. we don't know how it is transmitted. this is something new. melissa: jillian, thank you so much. >> thank you. melissa: appreciate your time. connell: sounds like page out of a sci-fi fiction, a technology company using artificial intelligence to track your online presence by matching a picture of your face. we have it for you coming up next.
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here is david cozga. they are a early investor in clear view a.i. they called you, david, secretive, this piece made a big splash but the truth is, there is a lot of companies doing this. you know it is already here. what do you think of the response? >> absolutely. it was a decent article but of course it was incomplete like many journalists articles are. reality we're living in unbelievable time where there is information everywhere. we talked about facebook's earnings today, 2.5 billion people who are going on phase book every day, posting information. that does not include 100 billion internet connected devices out there sensing imaging different pictures and thoughts that are going on. melissa: in case people don't know what your product does, it scans pictures out there on the web. could be on public pages on facebook or elsewhere, and it
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basically matches who you are, potentially to law enforcement databases, that right? >> yeah. just like google revolutionized the internet allowing people to search by key words, clearview does the same thing with photos. what you clearview a photo you can find where the photo comes up across the internet in all different applications. whether on your corporate website, whether on public facing facebook, whether on your charitable endeavors. melissa: yeah. so the concern is, you sell the technology to law enforcement. there are other companies that do it as well. you have amazon has recognition. there is axion-ai, data works plus, to name a viewfew, if you sell that to law enforcement, is that invasion of privacy? what is the next market after that? do you sell it to ring and they tell you who the person is at the front door? >> in general the arc of history is towards transparency and
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trust. as we know more, it will go to more uses and more applications. we'll get to a broader audience which is only good if more people have more information. melissa: but in this case, what do you say to people who say it is an invasion of privacy? now you're taking my face, you can identify me anywhere and identify me to law enforcement? maybe i didn't think my facebook page was public. facebook pushed back, they aren't necessarily fine with this. maybe they told the company one thing privately and say another thing publicly, i don't know but what do you think about that? >> facebook has really two business models. they have one business model where they're the public billboard. it is used by a lot of people and small businesses people selling jewelry, selling real estate or people with local pta and non-profit. you have a private side where you share photos and valuables with people you know. we only look at the public side. reality people want to be found. when you're out on the internet, you're posting you want to be
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found. that is what we look at. >> yeah. unless you're a criminal, right? unless you're out there breaking the law? >> on fox news on your website today there is police officers that are doing the dolly parton challenge where they're in durham, north carolina, dublin, ireland, posting facebook, instagram, tinder and linked in photos of criminals, please public help me find them. clearview would make their job 1000 times easier. if picture is worth a thousand words, clearview is worth a thousand googles. it makes law enforcement's job a thousand times easier. melissa: we'll see what implications are down the line. in my mind they are not going away. so many companies looking at technology, technology is out of the back. thank you. >> thank you. melissa: what do you think about pictures on internet. connell: i will not comment on that right now. melissa: where we stand during the break. connell: want to talk about protecting the votes coming up,
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democrat's plan. related story. using smartphones in a new way at iowa caucuses. there are concerns there about security and privacy, all the rest. we'll have details on the ground about this story. the details coming next. melissa: common theme. 75% persistent cardiovascular risk still remains. many have turned to fish oil supplements. others, fenofibrates or niacin. but here's a number you should take to heart: zero-the number of fda approvals these products have, when added to statins, to reduce the risk of cardiovascular disease. ask your doctor about an advancement in prescription therapies with proven protection. visit truetoyourheart.com when people ask me what makes verizon 5g different, i talk about the future of emts. an ambulance can only go so fast. but verizon 5g ultra wideband is being built to transmit massive amounts of life-saving data in near real-time. so someday, doctors could begin their work
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connell: 5 days until iowa caucuses, democratic party leaders have announced that votes this year will be recorded using a smartphone app, there are concerns raised 'that technology, hillary vaughn has been looking into it, she is in iowa, what is the deal with this. reporter: iowa democratic party defending this decision to use a smartphone app to report rapid fire results on caucus night, party's chairman, saying they are confident in the security system they have in place, they have paper back up, where the votes will be recorded addition to the reporting on this app.
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but, a lot of south carolina expert, or -- a lot of security expert or one said they don't think that the paper back ups are enough. >> but those unofficial results are the results that determine the horse race, that determine which candidates drop out, which candidates get a bump. which ones do into new hampshire, feeling good. because of that, the unofficial rums are the ones that -- results are the one that matter. reporter: party has used an app in the past, that was create the by microsoft, they are using a different vendor this year, they are not announcing what what developer they are using for this app. connell: a different caucus this year, we'll see how that works out thank you hillary. >> good stuff, from mason city, iowa, we're headed to iowa, i am. melissa: what?
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connell: yip, there i am. melissa: you will be checking security at the caucus, doing check work, he is in charge. connell: "bulls and bears" starts right now. see you tomorrow. david: a fox business alert three big stocks moving back after hours, microsoft, facebook, tesla reporting after the hours. we break the numbers down later in the show. >> today we're finally ending the nafta nightmare, and signing into law new u.s.-mexico-canada agreement. usmca is largest fairest, most balanced and modern trade agreement ever achieved. david: i am david asman, on "bulls and bears," president trump signing the historic
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