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tv   The Claman Countdown  FOX Business  January 30, 2020 3:00pm-4:01pm EST

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elon musk called it, individual investors called it. if you missed our audience show, catch it this saturday, 6:00 p.m. eastern here on fox business. one of the amazing guests, liz claman. now over to her for her show. liz: thank you so much, charles. that was a very valuable town hall. i hope people catch it. in the meantime, breaking news, the wuhan coronavirus now officially a public health emergency of international concern. just minutes ago, the world health organization made the declaration at its news conference in geneva, switzerland. you see it now on the screen. the announcement comes after the virus made a gigantic leap in america. the first human-to-human transmission of the deadly disease revealed in chicago just hours ago. the number of u.s. cases has now multiplied to six. the outbreak claiming 170 lives in china, with nearly 8,000 confirmed cases at this hour, as business activity in the world's second largest economy slows. the man who literally wrote the book on deadly viruses is here.
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former soviet army colonel, ken alibek, oversaw his nation's bioweapons program before defecting to the u.s. he's standing by in a fox business exclusive with the threat analysis. stocks are tumbling more and more, as more and more businesses report the impact the contagion is having on their bottom lines. although right now, the dow is well off its lows of the session. down about 35 points. the s&p down 5. the nasdaq down 17. it appears the markets are trying to come back here. worries over the coronavirus, not stopping football fans from across the nation and the world from descending on miami. the site of super bowl liv between the chiefs and the 49ers. wait until you see the latest price of a ticket to the big game. it is rising as we speak on ticket iq. the ceo is here in a fox business exclusive to give you the latest price. as the ten-year yield falls, bitcoin is rising, back above
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$9,000. we are less than an hour to the closing bell. let's start "the claman countdown." liz: and we have this breaking news. at any moment, president trump is scheduled to arrive in michigan to visit dana, incorporated, an auto parts manufacturer in warren. he will tour the factory and he's also scheduled to deliver remarks that will probably include comments on the signing yesterday of the u.s. mexico canada trade deal at the white house. we are going to take that live when it happens. in the meantime, let's look at microsoft. it's hitting a new record as its fiscal second quarter earnings report showed strong growth once again in its cloud computing business. plus the company handily beat wall street expectations. that stock is jumping 2.75%, now standing at $172 and change. we got plenty of dislikes for facebook. the stock on pace for its worst one-day performance since july
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of 2018. stock is falling nearly 6%. the social media giant said growth will continue to slow as the business matures. altria also going up in smoke or at least certainly getting a little ashen after the tobacco giant slashed the value of its investment in juul labs by $4.1 billion in the fourth quarter. the stock plummeting about 4.5% as the e-cigarette maker and the market itself facing regulatory crackdowns and that of course is weighing on the entire sector. nike shares losing speed after a report that the u.s. is looking into illicit payments made by the company. the allegations surfaced during the extortion trial of disgraced lawyer michael avenatti, who is charged with trying to shake down the sportswear giant to the tune of about $25 million. nike down 2%. all right. seven days after the world health organization deemed the coronavirus outbreak solely a
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china problem, it has just now announced in the last 20 minutes that the mystery virus is now a global emergency. the director general insisting china has quote, handled the situation very well, even as the first person-to-person transmission of the virus has been found here in the u.s. in illinois. the number of major corporations suspending operations due to the coronavirus outbreak are piling up. on your screen, we already knew about mcdonald's and starbucks but oreo and chips ahoy cookie maker, that stock is down warning its next quarter, actually it's reversed, it's reversed. how about that. it's up 7.5%. but it had been down as it was indicated that revenue would take a hit from the coronavirus as it temporarily closes two china factories. from the start we have known the gaming stocks have taken it on the chin today. let's look at mgm. some of these stocks are coming off their lows. mgm is still down about half a percent. any casino with exposure to the gambling mecca of macao has pretty much turned into a ghost
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town. not a lot of investors expected this, though. invisalign maker has been falling all day although it punched into positive territory in the last 40 minutes. why? it tempered first quarter expectations on coronavirus concerns. china is one of the largest markets, accounting for 8% of the tooth aligner's revenues. dow jones industrials may turn positive, but dr. ken alibek is one of the world's foremost experts on the deadly virus. he's the author of "biohazard, the chilling true story of the largest covert biological weapons program in the world." he actually ran the secret soviet facilities where the plague and anthrax were weaponized before he defected to america in 1992 to help the u.s. government's biodefense program. dr. alibek joins us now live in a fox business exclusive. doctor, welcome. i have to ask you right off the bat, the w.h.o. inspector general has now said i changed my mind, it is now a global
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disaster. what do you think about that? >> first of all, let me say, it's a great honor. but when we talk about this particular situation, i mean, we are making some mistakes over and over again. if you remember what happened in 2002, 2003 and a little bit in 2004, remember how it was happening. same virus, sars coronavirus, and it started some place in november, if i remember correctly, of 2002. and it was not known to us for 80 or so days. by the time the information came out it was a little late, the virus was everywhere. liz: let me just interrupt here because as we look at the coronavirus, this headline is
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just hitting the wires, that the w.h.o. says it is not recommending restrictions on travel and trade against china. does that surprise you? would you open the flood gates and let everybody back in and let everybody out? >> you know, at this point, it's very difficult to say how this epidemic is going to develop, but we need to see and when we have an epidemic, of course we need to take some precautions. we know in the field of viral infections and epidemics, we know what kind of measures we need to undertake. in this case, in the case of this coronavirus, we know actually, the virus was identified sometime in december of last year. we didn't know anything about it, the first publication appeared looked like the end of 2019. liz: can i then ask you, do you
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think that the chinese government has handled this situation properly? >> initially, no. because as soon as coronavirus has some ability to infect humans is known, this information should become available publicly immediately, in my opinion. it was quite a significant delay and now we are getting the results of that delay. whatever, i mean, the literature say in this case, i think it is politically motivated statement. in this case, if we knew about this and scientists actually identified the virus, they knew it would be transmissible, sometime at the end of december and it was known it would be developing because it's a coronavirus, and if -- liz: let me interrupt you here. as a business network, we've got
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dozens of businesses that have shut their doors or temporarily closed their doors. google, apple, starbucks among them. 17 years ago, when sars was in its full flush and hundreds were dying, you consulted, you were called in to consult and help governments of taiwan and singapore deal with this. when you arrived, what was business activity like in the hotels and on the streets? >> it's a very good question. i signed an agreement with the government of singapore, i think it was 2002. initially it was not just about sars, it was just to discuss general principles of infections and then it was the time when sars started appearing in singapore and we had to see what could be done just to prevent sars to spread.
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then the minister of defense of taiwan, we knew what needed to be done -- liz: may i ask, do you think this gets worse before it gets better? >> that's always the case, of course. we are not reaching the peak of this epidemic. of course it will be expanding. how many cases we are going to have, it's very hard to say because it's a new virus. not much is known about this compared to sars virus. in this virus, we have some things which are a little bit encouraging and some signs i would consider discouraging. specifically, mortality rate of 3% compared to sars which was about 8% or 9% but it looks a little better. but the number of people infected -- liz: is way bigger. yeah. >> -- is getting much higher. and one more thing, i would like to specifically mention. in case of sars, incubation
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period was about from two to seven days and in some cases, ten days, but in this particular case, we are talking about 14 days. liz: too long. >> yeah. and in many cases, we see at this point people become infectious before they start showing symptoms. liz: they leave and travel and spread it. dr. ken alibek, we really appreciate you coming on and explaining it. i have read your book, i actually read it before the outbreak, and it's a fascinating read. thank you so much. >> you're welcome. liz: all right. so the markets are attempting a comeback again after selling off on growing fears of the coronavirus. how are investors trading the virus as it continues to spread and more importantly, how are traders doing it and guys, let's ask about your fear trades here. sarge, we are looking at a couple things. one, the ten-year yield had fallen to 1.53% this morning. it's coming up just a little
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bit, i think it's at 1.54%. what else do you see here as an opportunity to just protect oneself and the portfolio? >> well, the inversion of the yield curve is important. i mean, it's really important. the three-month is what you watch when you try to gauge those inversions against the market. i'm not going to tell you good folks at home what to do except pick up a pencil because i'm going to tell you what i'm doing. all right? last week i told you to watch out for the airlines, hotels, casinos, banks, retailers and disney because they were going to get smacked. most of them did get smacked. as far as the banks go, i'm holding on to what i have left. i don't want to go down to zero. as far as the retailers, if you got out of macy's on my words last week, i held on to half of that position. understand this investor day this coming wednesday, macy's will make it seem interesting. you might want to hang on into next week on macy's. energy, oil majors, chevron and exxon report tomorrow. before you get out any further, maybe wait and hear what they say. now, tech. tech's important, all right. they are getting out of hardware, getting out of semis,
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getting into software, why, because people might have to work from home. i still like amd. i don't want to buy it here, wait until it hits 44, 45. but working from home, that means microsoft, adobe, salesforce and service now. don't buy service now today. it's up a lot. wait a couple days. let's go on to apple. i got out of apple the other night after earnings. i like apple. i like apple a lot. but i just had a feeling with this china thing maybe it was a good time to get out. i'm looking to buy apple from 320 down to maybe 305-ish. liz: 320.82 right now. >> it's not there yet. i need it to get below 320. i need that to be my starting point. i want to own apple with an average price close to 310 if i can get it. if i had to chase it, i will pay up. i have done that before. one more thing. not china-related. viacom cbs, down a lot, especially today, because this bolton book might be held up. simon and shuster is the publisher and that's a viacom cbs property. i think it's overblown.
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i have been adding to cbs today. liz: are you as disciplined as sarge is, phil? we have to let our viewers know, president trump is on your screen right now just arriving in michigan on his way to tour the dana auto parts factory. go ahead. >> absolutely. i think sarge made some excellent points. i think for the average investor out there, you know, what they are going through is fear right now. there's no doubt about it. i hear it on the telephone. i'm getting calls if the middle of the night, what the heck is going on with this virus, what do i do. my best advice is to stay calm. in the big picture, today's market is a great opportunity. you look at the stock market, it looked like it was going to fall out of bed, it was risk off all morning, yet we have come down. so my advice is embrace the volatility. there's going to be great opportunities for stocks that you want to buy that you couldn't buy, that you are going to get -- liz: volatility, i don't know if we can pull up the vix here, but it was up 5%. it's now just up about 2.5%.
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there appears to be some calm right now. by the way, a couple of the airlines that have china exposure are now in the green. gentlemen, thank you so much. sarge, phil. we've got our rockin' 45 minutes left before the bell rings. could we see the dow turn to green? investment opportunities firsthand, like biotech. because your investments deserve the full story. t. rowe price invest with confidence. ♪ ♪ everything your trip needs, for everyone you love. expedia. for everyone you love. tit's great actually, i've been listening to audible. it's audiobooks, news, meditations... gotta go! ♪
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this is a bubble. we think this is a bubble. we think it's similar -- we think it's effectively bitcoin on wheels. liz: okay. he said that and the stock was up 6%. it's now up 10% for tesla. then tesla's ceo elon musk must be quite the wheeler-dealer. despite the bitcoin comparison from noted tesla bear gordon johnson, the stock has now cruised past the $630 mark after a blowout quarter and even dancing like that before the blowout quarter. the stock is up $58 right now. susan, boy, is he thumbing his nose at the short sellers, right? >> yeah. he's pretty happy. might get a pretty big payday in a few month's time. game-changing set of results because now we have to think of tesla as a profitable company. they actually made money in the final six months of last year and that's why you heard from the cfo in the earnings call yesterday, saying they expect
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their first annual profit this year in 2020. something that they haven't done, by the way, in the 16-year history of tesla. so there are a lot of tailwinds driving the stock and the business, also on the call you heard guidance for 500,000 deliveries this year. production might be competing sales. also, model y production will start in april, ahead of schedule. they had planned that for the summer. as i mentioned, looking for the first profitable full year in 16. as a result, you saw a lot of upgrades today. oppenheimer being the latest this morning, saying the stock is worth $684 to them. we heard from wedbush still predicting $550 per share. but there are some naysayers, non-believers out there. lot of brokerage firms including citi rating it as a sell on tesla, looking for $222 on t shares. as you know, there has been this long-running battle between elon musk, the founder, and the shorts. the shorts have really suffered in the last 18 months. they lost $8 billion last year, close to half a billion dollars so far this year, trying to bet
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against the stock that it will fall from these levels. elon musk, as you know, is not a big fan of short sellers and on the earnings call yesterday, says that actual retail average investors might know better than the pros. >> i guess we don't have to -- i do think that i love the retail investo investors, actually have different more accurate insights than many of the big institutional investors the. susan: there you go. we are well above that $100 million market cap for tesla. if it holds above this level for the next five to six months, elon musk will get a record payout in compensation and liz, as you know, he will be dancing all the way to the bank, even badly. liz: well, good for him. he's taken a lot of grief. you know what the low of the year of this stock was? $176. right now it's at $640.
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right as you were talking it jumped to $640. good to see you, susan. thank you very much. all right. popping to the top of the dow jones industrials, with about 39 minutes to go before the closing bell, we've got microsoft and then coca-cola. coca-cola fizzing its way to a new all-time high after reporting revenue that beat estimates driven by strong demand for its various namesake beverages as well as its few teas and coca-cola plus coffee drink. haven't tried that yet. all right. shares right now stand at $58.66. down in miami, pepsi gearing up from the super bowl liv halftime show. co-head liners jennifer lopez and shakira talking up the game plan for their historic joint performance and this was just a couple hours ago. all this as already record high ticket prices for the matchup featuring the niners and the chiefs are still climbing by the
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minute. we are going to get you the latest read on what you will have to pay to get a live seat to patrick mahomes' super bowl debut. "the claman countdown" is coming right back. as a struggling actor, i need all the breaks that i can get. at liberty butchumal- cut. liberty biberty- cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
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liz: okay. stop what you're doing and look at the tv screen. we have fired up ticket iq's website. this is the most expensive super bowl ticket right now. $49,284, but the price is fluctuating. it's flipping all over. shall i hit buy? kidding. do you have 49k on hand? that's how much it's going to cost for you to attend the super bowl in the 72 club at the hard rock stadium. what would you get for that price? black car service to and from the game, private access to and from the stadium, access to the
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exclusive 72 club, premium all inclusive food, beverages, access to the private living room box with complimentary in-seat service and access to the post-game onfield celebrations. that is cool. well, what about the cheap seats? how much are they going for? even just the average. jessie laurence is the man behind this website, ticket iq which sells the tickets and has been tracking every movement of the super bowl ticket prices. one minute it's at $54,000 per, then in the commercial break we refreshed it and it said $49,000. what's the deal with it moving around like this? >> it's a dynamic market. people are always buying and selling. this year there's a tremendous amount of demand. the chiefs haven't been to the super bowl in 50 years. the 49ers haven't won in 25 years. so compared to last year where we saw very low demand, this is historically high and we are seeing prices reflect that. liz: all right. what's the average price right now of a super bowl liv ticket? >> brace yourself. $8500. that's an average ticket price. that means you are going to be in an upper level seat, more or less.
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lower level seats are going for somewhere a little less than that, actually, than the average starting point but you can also as you said pay $54,000 or buy a tesla or a couple shares of tes tesla. liz: tell me how this ranks with other super bowls of the past. is it a record yet? >> it is the second most expensive that we have tracked in ten years. now, there's a little bit of asterisk -- liz: to what? >> 2015 which was in arizona between the patriots and seahawks. little bit of asterisk. that was a busted market. there had been a bunch of short sellers on tickets that year, and as a result, the shorts got squeezed, you were talking about shorts earlier with elon musk. shorts got squeezed and prices shot through the roof. this year it's a totally stable market and we are seeing prices this high. so i would say arguably, this is the highest demand super bowl we have seen. liz: you guys are looking at a live picture of the fox sports compound right now on south beach. i will be there tomorrow. we've got incredible guests. talking about the super bowl and the business of the super bowl,
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but do you think this super bowl will eventually surpass the 2015 prices? >> i think it's going to be really close. there's a lot of pent-up demand. people are not purchasing in the same pattern that they have in years past. people think super bowl prices are going to go down which has happened a lot in the past but what we are seeing over the last two or three years is prices actually go up as the game gets closer. i think there's a possibility a lot of fans get to miami, think they will get a cheap ticket, and end up not getting a ticket at all because prices don't come down from the current level. liz: here's an 18-person suite, if you got this coin. nearly half a million dollars. $460,000 as of this morning. what happens if that thing goes unsold? is there that possibility? >> i think they will lower the price off-market. that won't be widely publicized but good news for fans who get to miami and want to do something, there's a ton going on. we are tracking not only the ticket market but also the entertainment market. liz: speaking of entertainment, i have to ask you about the halftime show. it's j-lo and shakira.
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how much does the performance, the performers who are in the halftime show, add to the ticket price? is there a percentage or slice of that pie? >> probably not, to be honest. liz: really? people didn't come just to see beyonce? >> probably not. i think it's more about the teams and the location. people come for the city, absolutely. so miami is a draw. minneapolis a couple years ago was not a draw, it was minus two degrees at kickoff. this is a very different situation. beautiful weather, two high demand teams. the events around the super bowl in terms of entertainment options are massive. there's 50 shows we are tracking. you know, kanye west just announced he's doing his gospel service on sunday morning for fans that want to pray for a ticket or pray for their team. liz: i think he should do that for free. >> it's 20 bucks. liz: out of the goodness of his christian heart. >> there you go. it's only 20 bucks. it's close to free. liz: true. great to see you. keep us posted. super bowl music performances cost $30 million alone just to put on.
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we will be watching all of it and so much more but get on ticket iq if you got some coin that's just sitting around in the cushions of your couch there. great to see you. >> thanks, liz. liz: do not miss "the claman countdown" tomorrow. we are there live in miami for all the pregame action, including we have an exclusive interview with this guy on your screen. he's tony cahn, coowner of the jacksonville jaguars. the major plays he's making on and off the gridiron when it comes to things like wrestling and soccer. a lot of these nfl teams are dipping their toes into the world of soccer. we are going to be talking to tony tomorrow about that and so much more. we will give you the real feel there. you don't need an all access pass. i got it for you. the red-hot nfl brand well on its way to its 2027 revenue target of $25 billion. with 28 minutes to go before the closing bell, how does the multi-billion dollar brand really begin? we look through the lens of dollar shave club, casper and so
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many more. pulitzer prize winning journalist larry in grassia is here with details on how the upstarts turned the consumer world upside down. we'll be right back. and etfs are commission-free. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.
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liz: all right. we want to look at the markets because the world health organization's declaration that while the coronavirus is now a global emergency, that travel should return to normal, that's what the w.h.o. says. that is breathing life back into the dow, which is positive by about 12 points. s&p for a second turned positive, still down 1. the nasdaq down 3. but the state department is clearly very wary. it has just announced moments ago it has authorized the departure of non-emergency u.s. employees at its embassy in beijing as well as its consulates in four other cities. the u.s. saying that it has made the move out of an abundance of caution, given transportation
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and health care disruptions related to the coronavirus but again, we're well off the lows of the session. let us bring it back here to commerce, business and disruptors here in the u.s. this 1:33 video that came out in 2012 went on to crash the website of the dollar shave club. it helped the company gain annual sales now approaching $200 million and led to a sale to unilever for $1 billion back in 2016. that success story along with those of other direct-to-consumer brands such as casper sleep and hab haberdasherbenovos is described in "billion dollar brand club." joining me, the author of the bo book, larry ingrassia. >> great to see you again. liz: i love this book because it doesn't just give profiles of these companies, it explains how they toppled giants, the
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goliaths of the world with a simple idea. >> it's a business revolution. i covered a lot of them. this is something no one predicted. in fact, a little tidbit in my book, gillette had an opportunity to invest in dollar shave club early on, dismissed them without taking a meeting. this was a disruptive idea, different idea, it came along and were going to go direct-to-consumer, were going to bypass and give you a better price and you're not going to have to go shopping, you don't have to get the darned things unlocked from a case. liz: oh, yeah. duane reid or cvs. >> it was a simple idea, do something better for the consumer whether it's a price or convenience. liz: and paired with creative marketing. listen to this little video that came out that crashed the site in 2012. >> each razor has stainless steel blades and a pivot head. it's so gentle a toddler could use it. do you like spending $20 a month
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on brand name razors? 19 go to roger federer. i'm good at tennis. liz: because roger federer was endorsing gillette. he breaks it down, why are you spending that much, 19 of it is going to the face. >> brilliant marketing. also, it's to the point, kind of it's price, it's convenience, it's value. liz: what about casper? talk about that. >> okay. the mattress market has been disrupted. $16 billion in annual sales, $2 billion come from bed in a box companies, up from less than $50 million five years ago. what's the challenge for casper? the industry was flooded with competitors so casper kind of overspent on marketing, i think, to try to get market share and that hurt it. other entrants, purple innovation, another company, both of them are profitable. so it is possible to be profitable in these markets and to make money and to grow but you have to be very disciplined. liz: how do you see the big guys
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when they feel like their air hose is getting stepped on by these smaller companies with great gutsy brands? they try and crush them, don't they? >> they do. well, now they do. initially, like i said, they kind of ignored them. they thought who are these guys. but what you found is some of them are trying to acquire the brand and the knowledge so tuck the needle was purchased for i was told $500 million by serta simmons and the guy who founded it, bootstrapped, they didn't have any outside money, they could have been charged with helping to revive the serta brand. part of it is how can we learn from these people. liz: you have peloton, uber, these disruptive companies who then see themselves being disrupted. >> it's constant change. that's good. i actually think there's much more choice for american consumers now.
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there's innovation, sometimes it's product innovation, sometimes it's service innovation. choice is good. there will be a number of billion dollar brands. there will be a number of brands that will be successful that won't be billion dollars. there will be niche brands that will be successful on a smaller scale and some will fail. that's what happened in the luggage market. away turned out to be the winner but there were other companies that ended up being losers because away was smarter, better value, better marketing, better image as a brand. not everybody is going to be a winner here, but that's good for all of us as consumers because you will have more choice. liz: your talking has been good for the markets. we are now all positive. dow, nasdaq, s&p, it's all larry ingrassia. congratulations on the book. "billion dollar brand club." folks, if you have an idea, you got to read this because it's so much not just the horse, but the jockey, the leader of it. by the way, while we're talking about up and coming building a brand, have you heard about the lifestyle brand detroit versus
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everybody? the man who started it all is tommy walker and he is joining my everyone talks to liz podcast. hear how tommy went from pursuing his passion but then dropping out of college to build this lifestyle brand which skyrocketed into a movement, uplifting his native city of detroit and now he has trademarked versus everybody and he is working with fanatics in all kinds of brands, collaborating with adidas, so much more on the horizon. hear how he did it. the incredible story is available on apple, google, fox news pod casts.com, alexa, too. listen, rate, subscribe, let me know what you think on twitter. we are coming right back. don't go away. dow is up 68 points. corner of your growing business. from using feedback to innovate... to introducing products faster...
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liz: give me some chocolate. one of the biggest names in chocolate seeing some sweet success as we head into the close. the maker of hersheys kisses and reese's peanut butter cups posting nearly 4% boost in sales for the fourth quarter driven by higher prices. there's some pricing power here, and increased advertising for hershey's well known candy brands. stock is up 4.5%. they also raised full year forecast ahead of the key valentine's day holiday. nrf is now predicting, national retail federation, that cupid's arrow will hit a $24.5 bull's eye in spending this year during valentine's day. that's a 32% jump from 2019. connell. connell: could be painful depending where it hits. absolutely. liz: you bought already for your wife? connell: i'm all set. of course. ordered in advance. reese's pieces peanut butter
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cups and hershey kisses. by the way, top of the hour, window we have two huge stories next hour. amazon is one, earnings out right at the top. we figure if history is any judge, let's see how amazon is doing profitability wise. we will get to that. then the second thing, president trump is on the campaign trail today. in the next hour, he has an event touting the recent signing of the usmca in michigan before he goes -- there's the event -- to iowa tonight. we will be on top of those at the top of the hour. liz: he's in michigan and we have our cameras trained in case he comes a little bit early so everybody stay with us to see that. connell, thank you. we got to tell you that ups teaming up with alphabet self-driving tech unit waymo on a six-month test run in phoenix. the delivery giant is set to use autonomous chrysler pacifica mini vans to transfer packages between phoenix's ups stores and to a regional sorting center several times a day but shares are stalling out at this hour as big brown warns on its 2020 profit outlook.
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let's get to kristina on the floor of the new york stock exchange. you had a chance to speak with the ceo earlier. kristina: i did. you just mentioned that investments, you had ups pretty much outlined a few things before the earnings report, it was a mixed bag. you saw a lot of that revenue, almost 12% coming straight from amazon, their biggest client. they did very well over the holiday season. but the big question is look at that stock. it continues to fall. down over 6%. why is that? you're seeing weaker guidance for 2020. they got hit with a massive pension plan cost of about $1.8 billion and then like you mentioned, i spoke with the ceo, david abney, about why they are spending so much on labor costs. listen in. >> so we are taking big investment in this year to speed up our u.s. network. 80% of the population will see an increase in ups' speed over the next year or so. kristina: he's referring to operational expenditures because
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they are investing heavily on providing delivery over a seven-day period. that means seven days a week, to compete with the likes of everyone else in the market. the company, though, is really investing in technology, drones being one of the things we discussed. we know they are working on delivery of products exactly to your home which what is you are seeing on your screen. they're not there just yet but this is in the near future. but all of this comes at a cost. we know that that cost eats at their margins. nonetheless, shares down quite a bit today for ups despite a mixed earnings report. back to you. liz: more than 6.5%. thank you so much. with the closing bell ringing in about nine minutes and the dow now up 92 points, as we await president trump, who is touring the dana incorporated auto parts factory in warren, michigan, and yes, we will take you live there when it happens, there's a picture of it, we are going to talk about the five ps of investing. what are they? you need to pay attention. this commute's been pretty rough, huh?
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liz: call it a bit of a relief rally after the world health organization deemed the coronavirus a global emergency but said travel should be fine two and from china. i don't know how many companies believe that we have session highs at the moment in the last hour. s&p up seven. nasdaq is up 17. allied pilots association, the union that represents american airlines pilots has just said, just at the tape it filed a lawsuit seeking a temporary restraining order to halt u.s.-china service. stock up session highs at 3 1/2%. we'll watch that and more. president trump toured dana incorporated. this is a auto parts plant in warren, michigan, before heading to iowa tonight for his fourth
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rally this year. blake burman following president's movements ahead of his comment. reporter: liz, we still have some live comments. president is in warren, michigan, north of detroit as he is there to tout the u.s.-china trade deal. the president tweeted moments ago, saying he is essentially frustrated this has not gotten media attention he feels it deserves. the reason why i point that out is because there plans from within the white house to put the president on the road for event like this in the upcoming weeks, potentially even months after that because they really feel that this is a piece of legislation, his bipartisan signature piece of legislation to date that needs to get elevated. that needs to get highlighted. live pictures you see the president talking in this plant. usmca part of it. adds greater protections for the auto industry.
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more component of cars will be built, used to build cars in north america. so the first stop for the president today, go to an a auto supply plant this, trade deal will work for you. by the way, when the president leaves michigan in a little while he heads out to iowa for a campaign event. a state white house and others say benefit from this usmca trade deal. so expect to see some more event like this in the future, liz. but the first one for the president to highlight usmca. liz? liz: good to see you, blake. we're watching the president inspect some auto parts. i love seeing manufacturing. i get fascinated by that stuff of the thanks so much, blake. when the president makes comments we'll take it live. we always try to mind our ps and qs on "the claman countdown," except gasparino but today's closer said you should pay attention to one over the other. ubs senior portfolio manager
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alan says watch the five ps, what are the five ps, alan? >> overwhelmingly one is positivity. prior to the corona stuff we had sensitivity in the market unstoppable. potus, president of the united states, election coming up. powell, the federal reserve what is going on with interest rates. unfortunately now we have path owe agains. that is something -- pathogens impacting the market. the main focus people have to have preparation, set up portfolios, set up the investment protocols in a way they handle whatever the future brings. liz: as you're speaking the dow hit session highs. we were down 244 points earlier today. now we're up 123. that is a pretty significant swing. all in a single day on mostly headlines about the coronavirus, whether they fill people with fear or calmed a bit down is there still a danger in this area to really kind of ding the markets? >> i think the coronavirus is a
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known unknown but overwhelmingly you have positivity in the market you and i have been talking about a year-and-a-half now. liz: yeah. >> these animal spirits of positivity are not stopped what happened so far with the coronavirus. god willing this will not expand from here. liz: let's quickly say the fed isn't doing anything either. that's a positive. if you feel money is cheap and businesses continue to borrow and grow but what else do you like here? is there a particular area that does better than another with taking into account all of these five ps? look at bitcoin. this is fear trade. bitcoin, at this hour is above 9500. when i came down here it was 9400. it continues to climb. it is up 202 bucks? >> when you reference the fed, the fed is creating money. in doing so, expanding their balance sheet, that has real impact. what do you do with ci currency?
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cryptocurrency. what do we do with fiat currency with the balance sheet expanding? [closing bell rings. liz: alan, thank you very much. we'll put the five ps on lizclaman.com. that will do it for "the claman countdown." melissa: big day for wall street. major averages turning green in the final hour of trading after the world health organization creates a public emergency over the coronavirus. but officials say they believe china has the situation under control. the dow closing up 123 points there. three days of a winning streak. i'm melissa francis. connell: i'm connell mcshane. quite a turnaround. welcome to "after the bell". major movers today, pretty much the ones we brought you yesterday, tesla, microsoft both hitting new highs, better-than-expected ears.

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