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tv   Markets Now  FOX Business  January 28, 2013 1:00pm-3:00pm EST

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thor gets great rewards for his small business! your boa! [ garth ] thor's small business earns double miles on every purchase, every day! ahh, the new fabrics. put it on my spark card. ow. [ garth ] why settle for less? the spiked heels are working. wait! [ garth ] great businesses deserve great rewards. [ male announcer ] the spark business card from capital one. choose unlimited rewards with double miles or 2% cash back on every purchase, every day! what's in your wallet? [ cheers and applause ] melissa: happy monday to you. i am melissa francis.
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lori: the best attitude to come back to work. it is back to work today. i am lori rothman. the march to an all-time high on the down turning into a slow grind on wall street. why now may be the time to sell. melissa: tied for last. illinois credit rating for the failure to address the pension liability leads illinois tied with california has the lowest rated stay. we will have state treasurer dan ruth averred joining us exclusively on the downgrade. lori: it appears to be a rare bipartisan moment in washington. in the meantime, let's get you updated on the markets as we do every 15 minutes.
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nicole: this is the key. the fact that we have run up so far, so fast. up 11 out of the last 12 trading days. the s&p 500 sitting right there at that psychological level of 1500. for the most part, you are seeing some names pulling back. retail stocks: drug stocks and bank stocks. caterpillar, which is a name adding ten positive dow points. they talked about recent economic times being taught. however, during the back half of 2013 should look better for caterpillar. that is why you are seeing it within up arrow. it adds about ten positive dow points.
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we have pending home sales that are similar. furniture, paint, everything. home depot. back to you. lori: thank you, nicole. we will talk more about that later. all kind of excitement surrounding the stock market after all the major indexes begin the weekend at and all your heart. let's ask the president of heritage capital. >> good afternoon. i think that 2013 is going to be a frontloaded year. we will see the biggest gains coming earlier in the year. i am much more cautious, for the first time in a while, frankly. we will not continue up every single day. for a while, the trend should be
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higher. postdocs are certainly buying opportunities. we will set a high point on the dow and the s&p. i think if we start tacking onto the all-time high, i am looking to exit positions. lori: you are 100% invested in equities. what changed and how are you adjusting your investment strategy now? >> for us it is pretty much unusual that we have done nothing all year. we have kind of stuck with what we put on in november. slowly added to it. we are full bar on. everyone is thinking a high yield bond is like a corporate bond. lori: it is. >> it is where we were back in
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2007. i am just worried that folks are in the beginning stages of the individual investor complacency. there were articles and interviews where the individual investor is finally starting to adopt and agree to this rally. we are up more than 120% since march of 2009. you have to separate the treasury bonds from the corporate bond sites. i think treasuries will be one of the investments to be and in the second half of 2013. corporate bond, for 12 years, we heard about the bull market in bonds going to and. the greatest wealth estimation begins. i think it will happen on that extra side. i am not so worried about bonds right now.
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lori: you are sticking with those? >> we are. the risk onset will reward you well early in the year. the second half of the year, maybe the seven months that close to year, we do a 180 where we look at things like staples, it utilities and care. it remains technology. best case, we think it is a market performer. lori: what about apple? such a noticeable breakdown in the last couple weeks. >> we have been a bear on apple for a little less than a year. 625-650 mark. i got really worried about apple. we are down to the 3% roughly. if you asked me where the next move is, it will balance 50 to $100 easy.
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i think ultimately apple trades between 250 and 400. lori: we appreciate the details. paul, thank you for your analysis. >> thank you, lori. take care. melissa: two barges collided over the weekend. one of the barges began spewing oil into the river. it is unclear how much oil was spilled in the coast guard is still trying to determine exactly what happened. this spell has shut down river traffic for 16 miles. stalling at least 21 other vessels. it is a big deal. this bill is unlikely to pose a threat to the gulf of mexico which is located 344 river miles west.
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since april 2009 -- how hi will oil go push a mark sandra smith has today's trade. sandra: right around 96.21 a barrel. if indeed we get a close above 96.24, that would be the highest oil price we have seen rating back to december 17. this is coming off of the longest weekly winning streak dating back to 2009. there is definitely a lot of momentum the upside. it is a sign that the economy is
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improving. there is a large speculation that oil demand will improve. a lot of traders do think that we have hired to go here. the rest of the energy market, gasoline futures are spiking as there is word that one of the major east coast refineries. natural gas prices down 4% in today's trading session. guys, we are nearing $100 a barrel, as far as oil prices are concerned. melissa: sandra smith, thank you so much. lori: three-week since boeing 787 had its latest incident. investigator is shifting our focus. we have the latest details just ahead. melissa: the s&p holding their five year high. ♪
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the local melissa: it is time to make money with charles payne. charles: i accidentally went to ugg store. we just dumped into the door. what? i could not believe that you know, you do not like to do things on this anecdotal thing. the last time i went to a retail store that crowded with that type of enthusiasm and electricity was back in 2002. steve madden.
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the place was buzzing. i cracked a few jokes. no one even knew what i was talking about. the stock was five dollars then. you look at all the things that hurt them. weather. sheepskin prices. the macroeconomic situation in europe. i just love the way the stock has been acting. to see that sort of a french, i was shocked. lori: it is freezing cold to seven they do not look like ugg's. they sell normal clothes and shoes and boots. lori: oh, that is right. is that enough to carry the momentum through? charles: the stock is still well over 50%. 44% of the stock is short.
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if they could just get a small piece of good news, this may really take off. my target is $50. melissa: thank you so much. great stuff. lori: as we do every 15, let's go back down and tap the markets with nicole petallides. nicole: let's take a look at both ford and general motors right now. gm is roughly flat year-to-date. ford was cut today over at buckingham research. also, they said that there is no need on alliance. they are linking up to share the cost of developing fuel cell systems. general motors pulling back about 1%.
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we cannot leave out the fact that toyota motor retook this week the title of the largest automaker in the world. it is always very tight. it goods down to just a few autos on sale. toyota motors one that has obviously come back from the brink. back certainly doing well. lori: thank you for that roundup, the cool. melissa: wall street analysts are now saying they could reach highs. >> the s&p is 4% from its high in 2007. you are seeing down 2% shy of that level. we are seeing the s&p more than doubling since the lows hit in
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march of 2009. this is really interesting. look at this bullish indicator. when the market has broken through five-year highs, it is unusual for them to retrace backwards. maybe five times since 1929 as the market retraced and fallen back. that is unusual. less than a dozen times. we are seeing socks cheaper than october 2007. they are trading out 14 times earnings. china is still growing at 7.9%. federal reserve easing into 2015. corporate profits, of course, still rising. basically, when you see that happen, the results are better than conservative forecast. the forward earnings still continue to hit record highs. s&p 400, 500, 600.
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melissa: when you look at it, the st. louis fed came out last week and said that in terms of gdp growth, this is the worth recovery we have ever had. how do you reconcile the fact that stocks are on fire. a lot of it has to do with the fed. it looks like there have to be some fundamentals as well without the fundamentals -- i tell you something, that is a serious debate on wall street. talk to goldman sachs. talk to jpmorgan. a report coming out in the coming quarters, will the market take a hit, possibly. they are saying, look, you can have these microscopic savings rates. that is exactly what is going on. all that cash on the sidelines, it is coming back into the market. melissa: we are having this terrible recovery, but you have
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stocks on fire. >> may be more than half of the s&p 500 revenue comes from overseas. who knows. lori: thank you. you have people earning that if they are lucky enough to even have a job, the same salary year over year. to get some inflation, to get the economy going, you need higher wage growth. that is my two cents. one step closer to sequestration. the pentagon's new warnings. melissa: the toxic fog. utah battling a winter smog that has a group of doctors there glaring a health emergency. ♪
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>> at 22 minutes past the hour, i have your fox news minute.
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more than 50 people have been killed in riots that began friday. the two-year anniversary of the uprising then president. forcing islam is rebels to flee north. forces have seized the airport as they search for fighters hiding in the city. dutch queen beatrix will give a speech tonight expected to make it official that she will advocate almost 75-year-old queen will be succeeded by her eldest son. those are your headlines on the fox business network. back to melissa and lori. lori: thank you very much lauren. three weeks since the ntsb started looking into the liners.
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all 7873 liners were grounded. they will shift their focus away to the battery maker. none of this is good news for boeing who hopes to get the dreamliner, of course, back up in the air. do not count out boeing. the report came in better than expected. it was largely due to a 10% drop. melissa: the latest news on the battery is just so tough. they have looked at it and said, we do not know what the problem is. that is almost the worst thing that can happen. they say they have not lost orders. it will be interesting to see how long that lasts. the pentagon warns that pay cuts are underway.
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fox news jennifer griffin is at the pentagon with the details. >> hi, alyssa. defense secretary panetta was we are not planning for sequestration. those deep across-the-board budget cuts appear inevitable. the looming deadline is march 1. ashton carter warned hundreds of thousands of pentagon civilian employees. the employees would lose one day of work per week through september. they are planning to eliminate altogether 46,000 temporary civilian workers as a result of these looming budget cuts. the pentagon has started to plan for sequestration and even republicans are acting as if it
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is inevitable. >> i think the sequester will happen. we cannot lose the spending cuts. that was to pay for the last debt ceiling increase. >> one of the nations largest federal contractors, general dynamic, announced in recent days a $2 billion loss which it is blaming on defense cuts and falling government demand. >> the measures will have to be taken. layoffs and the defense industry. most importantly to me, devastating growth to our national security at the sequestration takes place. it is up to congress and the president to act together. frankly, so far, i have not been the type of urgency that many of us feel about sequestration and its implementation. >> it seems that the war being wound down in afghanistan that the real fight is beginning at
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home for tighter budgets. melissa: jennifer griffin, thank you very much. illinois heading to disaster. joining us now, dan rutherford. that is coming up. lori: are you overeducated and underemployed? the new normal of this job recovery. ♪
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but we're losing a little ground on the dow. not too much. let's get an update on the markets nonetheless as we do every 15 minutes. on the floor of the new york stock exchange, nicole petallides is looking at a whole few companies. >> let's take a look at some movers here. the first is transocean. when you think of energy you think of rig. now you have a couple of analysts coming out talking postively about the company. that is on the heels of the chatter that the activist investor billionaire carl icahn has been pushing the company to push, declare a dividend of at least $4 a share. if it does not, he proposes at the next annual meeting. you have guggenheim and rbc raising their price targets. guggenheim has a $75 target. rbc has a $66 target. goldman sachs is negative on bed, bath & beyond. saying margins have reached their peak. not good news for bed, bath & beyond, pulling back over
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2%. joseph bank, sales not meeting analysts. they blame the winner weather and superstorm sandy and some people are saying they should look internally but not good numbers for joseph a. bank. lori: sums it up. thank you. melissa: s&p lowering rating on illinois on the concerns that it is failing to address the $96 billion pension fund deficit. we have the trait treasurer of illinois and he joins us now. dan, tell me the practical implication of this. i know your pension fund they say is only 35% funded. they consider 80% to be healthy. this is really about your pension. what is the implication of the downgrade? >> well, for the taxpayers i think it is two things. one is a real psychological. you keep hearing about how illinois is doing so bad, whether moody's, standard & poor's or fitch but the other the fact when illinois goes into the bond market it costs us more money than if we were for example a aaa rated state
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like other states in the nation r it costs more in interest on the long-term type of debt we're looking to go into. melissa: they say you have weakened pension fund ratios and a lack of action on reform measures. >> right. melissa: they further go on to say they believe the legislatetive consensus on reform will be difficult to achieve given the poor track record in the past two years. basically it means they downgraded your debt and they feel like the politicians in the state are still not going to take action to clean up their act. go ahead. >> they also did a negative on it as well. i've only been the treasurer of the state of illinois for two years. when i came into office the governor and general assembly without my support passed a large income tax increase here in the january of twe ven. the sad thing we're now two years into the income tax increase and they raised money and not respond to the problem. i think this year, this spring session of the general assembly it will finally come home to reality. not only downgrades, moody's,
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fitch and standard have eight watches, warnings or downgrades since the income tax increase has gone into effect. what comes next the fiscal year fourth four, natural revenue growth from illinois coming from sales tax, gaming without tax increases is $600 million. but the reality of the amount of increased payments into the public pension systems is $945 million. i think they will have to deal with this $345 million spread. reality is --. melissa: dan, i applaud your optimism you think this will finally be the come to jesus moment where they realize there is huge problem but i don't know that is necessarily the case because we see california going down the same road. seems like politicians almost never have that reality moment that they have to act. what really has to happen to have them wake up and respond to the fact that they committed to these pensions that there is no way they can possibly pay? >> that's where i'm going
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with this. the idea of downgrades, warnings or watches have been eight times. that is not it. for the first time coming up, natural revenue growth, 600. payment and pensions, 945. that is $345 they have to come up with borrowing which is bad. raising taxes which is bad or cutting $345 million. i have a democrat general assembly and democrat governor. i'm a republican treasurer. i can tell you what they don't like cutting $345 million. they have to keep the 945 from growing exponentially next couple years. melissa: i hope they don't raise taxes to use the money to solve the problem. i'm afraid that's where you're headed. dan, keep us posted. come back on the show and let us know where this is going. this is huge problem across the country. california is facing. more states are facing it. thanks for coming on. >> nice to be back with you, thank you. lori: paying by credit card, it may cost you more. a new fee now into effect could tack on 1 1/2 to 4% of
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your entire purchase price to the bill. mastercard and visa users will bear the brown of these fees. 10 states banned so-called credit card surcharges or swipe fees. if you are making a purchase in california or florida you won't have to worry about being penalized. some retailers may begin a cash only policy to avoid passing along the surcharge to their customers. others may allow it to eat into profits. some retailers hope the new surcharge will inspire competition among credit card companies to reduce some of their fees. all came about --. melissa: i'm sure they will reduce their fees. lori: that is the problem. the credit card processors are in a crunch, right? they're being charged higher fees by the banks because of regulation. they're trying to offset it by charging customers higher fees. it's a big mess. it always comes down to pressure on you, the consumer. melissa: of course. lori: really troubling. melissa: yeah. lori: a lot of backlash on that. maybe it won't stick. in any event trumping the president. a day before the obama
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immigration plan, a group of bipartisan senators getting out ahead of him. melissa: people in utah catching a break from the smothering smog that slowed business and raised a health advisory. lori: look at interest rates today. we're talking about a bond selloff, a decent move. the ten year was over 2% earlier. it is back off 2% at 1.97. and the 30-year note, also up today, the yield at 3.15. back after this ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪
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if you factor out the transportation component, orders for products built to last three years or more, we're still up 1.3% which tops expectations. american airlines groundworkers could get immediate 4.3% raises in the carrier merges with us airways according it the union which negotiated the pay hike with the two airlines. that is the latest.
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lori: talking about cooking tips here. wonder when we discuss. a bipartisan group of senators are developing a plan on immigration reform granting citizenship to nearly 11 million people already in this country but illegally. peter barnes is on capitol hill with the details. peter, the president clearly acknowledges he won most of the hispanic vote in his re-election with this. >> these senators are trying to cook up their own pathway to citizenship.
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6. it is a bipartisan group, four democrats, four republicans. they put out the proposal today. they will have a press conference in the next hour. they're trying to get ahead the president's speech tomorrow in nevada where he will talk up his immigration plan from 2011. like the president this bipartisan plan from these senators would provide this pathway to citizenship. it would include a registration and probation program that would allow the nations illegal immigrants, 11 million of them or so, to stay in the united states and live and work with a green card as long as they paid taxes and penalties and then got in line for proper application for citizenship. but first, these senators want to beef up border security. they want to improve the tracking of legal immigrants who may stay beyond their legal immigration status. they also want to strengthen the ememployment verification system and
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create a green card system for top foreign college students getting ph.ds and massers degrees in math and sciences. senator mccain, for republicans would be good politically but one republican senator he was not yet ready to sign on. take a listen. >> we can't go on forever with 11 million people living in this country in the shadows in an illegal status. we can not forever have children who were born here, who were brought here by their parents when they were small children, to live in the shadows as well. >> i think right now they're at the talking point stage. this needs to be reduced to legislation. the last time this blew up, was when it was reduced to legislation. so it is my hope that we will come up with a bipartisan solution. i do think that enforcement has to be a big part of it. >> as you mentioned, lori and melissa, president obama got 71% of the hispanic vote in the presidential election. governor romney got 27%.
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back to you. lori: peter barnes, setting us up for our next segment. what will immigration reform look like after a trip through the senate? consider this. the latest "fox news poll" on immigration policy shows 66% of those surveyed illegal immigrants deserve a pathway to citizenship but does the pathway include full amnesty and stricter boarder control. we have grg valliere. that is the biggest point of contention, between the parties, right, the pathway to citizenship? >> i think that's right right, lori. i think the white house will be len yent and more liberal and the house will be more conservative. this is like a locomotive. the momentum for immigration reform is impressive. lori: what are your thoughts on what a compromise might look like? to your point we know the president favors a more lenient policy where
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republicans want to close the border? >> i think the white house will go along with that. i think within reason they will agree to a lot of these proposals in this bipartisan plan. when you get people like durbin and schumer, liberal democrats going along with something with john mccain and lindsey graham, that's a pretty good sign that this will pass easily in the senate. i think one of the most intriguing stories is the fight for credit. i think there are going to be a lot of people headed by marco rubio who will want to get a lot of this credit. lori: on the political side but it also begs the question, right, greg, what happens to the millions of illegal immigrants already living and working in this country? will it put pressure on available jobs and other services like hospital care, et cetera, what do you think?. >> i don't think so. i would prefer to take a positive spin on this entire story. i think if you look at a country like japan which is a demographic train wreck with a huge deficit, much bigger than ours, we're adding lots of people who will pay social security
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taxes. who will pay other taxes. you're adding to our population i think a workforce that will actually help our fiscal issues far more than a country say like japan. lori: good comparison. help our fiscal issues with more people paying taxes or perhaps solve them in a period of time? >> yeah. i always thought that "the wall street journal" editorial page has gotten right when it comes to immigration. within reason you don't want to have totally open borders. that's crazy but within reason, more immigrants means more taxpayers. it adds to the economic base. and i think at the end of the day this will wind up as a positive economic story. lori: safe to say this will probably go down as one of the easiest congressional fights in recent memory? >> well with a congress this dysfunctional, you can't ever say they will get something done easily. they're so incompetent. i suppose there could be gridlock with each party wanting to seek some
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advantage. you have to think this is pretty easy call. we will get a bill. everyone will fight over who gets the credit. but again, i think having a pathway for these people is good. let me add one other thing. i think for a lot of big businesses, especially tech companies, a sleeper is h-1b visas. those h-1b visas allow very talented foreigners, computer programmers, engineers to come into the u.s. this is a big story for a company say like microsoft. lori: sure. this is a good message for republicans. romney didn't do as well with his republican predecessor, george w. bush with the hispanic vote. it was a landslide in favor of the president. thanks for your take, greg. >> you bet. melissa: a quarter too. as we do every 15 minutes, nicole petallides is watching the new york stock exchange and facebook. >> facebook has positive comments from analysts. this was a $38 ipo last may.
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let's take it right here and right now. this is an up arrow and raised to outperform over at raymond james from outperform. they will report quarterly numbers on wednesday. that is something we'll look for. they recently settled a class-action lawsuit for $20 million. they have a lot of folks who have very hot on facebook's mobile ad revenue growth they have been seeing that will be something to watch for as well. back to you. melissa: nicole, thanks so much. lori: weekend winter storm saving people in utah from a smothering smog had doctors telling people to work from home? regulators blaming something called temperature inversion. when a combo of no wind and cold temperatures drapeau out ants in the valley. the epa labeled the salt lake city area as worst area in january that is not fog or snow. that is smog. melissa: it is. doctors in the area are warning of really dire consequences. they're talking about the
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dangers to pregnant women and unborn children. this is problem building for a while. we're focusing on it right now but it is a very incredible story. lori: when you have the pictures to tell the story it is all the difference. melissa: totally. tomorrow's college payment is a bitter pill to swallow. like some you're overqualified for your current job. lori: not me. twitter is trending. blackrock sinking $80 million into the social media giant. we'll glimpse how much the company is really worth. ♪ .
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lori: get this the world's largest asset management company, blackrock, is looking to get a stake of twitter that could value the social messaging site at $9 billion. shibani joshi has more. >> pretty good day for twitter, right? a habit, a bad habit for some of us out there. we think because the site is free and maybe the site is private, not a publicly-traded company, this is a small sized company. it's not. this new cash unfusion the company got according to "the wall street journal" now puts it in a very esteemed peer group. look what it compares to in terms of public market cap. twitter valued at $9 billion. it is worth more than research in motion, the blackberry maker and almost double of best buy and electronic arts, videogame maker and zynga and aol
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currently trade for. blackrock according to the journal infused in twitter, the company taking a 1% stake in twitter, valuing the company at $9 billion because they bought it for 80 million bucks. and really this is just seen as a nice vote of confidence. there has been a lot of questions about whether or not this company has a viable business model. how in the world it will make money. the ceo turned over a million times. this is needed boost. lori: what is the talk surrounding twitter's plans to go public given this? >> all remains on course and full steam ahead. this is a very, this is a very expected thing. this is a quite a common thing that big technology companies and startups have done. cashing out for their employees. facebook did it. groupon did it. and so twitter is doing it. it doesn't close the doors on them going public. we think it will happen probably next year but people are saying even possibly this year too. everything got shelved after the facebook debacle last summer. so people are starting to come back to the markets
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again which is good overall. it is a good positive indicator. lori: good place to leave it, thanks. melissa: underpaid and overworked? a new study for the center of college affordability and productivity shows nearly half of all college-educated workers are in jobs they're overqualified for. for example, one percent of taxi drivers in 1970 had a bachelor's degree. compare that to 15% in 2010. along the same lines, 5% of retail sales clerks had a bachelor's degree. in 2010 that number rose to 25%. the problem of course, there are more than double the amount of college-educated americans than there are jobs that require a college degree. then you have the student debt crisis. lori: there you have our overall labor crisis. melissa: yeah. it was, of course, there was a time when getting a college degree guaranteed you had a great white-collar job, maybe with a pension down the road. that was the key to elevating yourself in society. now it is so easy to get
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college degree and so many online schools and devalued the degree. lori: another issue how people are trained and whether or not they can be retrained into open jobs. a lot to chew on. melissa: coming up tonight on "money", paul king, corporate director of talent at caesar's entertainment. lori: does he interview the dancers? melissa: not quite. maybe i will ask him about that. this is about a three-day-texas hold 'em tournament for business students and how they use that as a employment opportunity. do gamblers make a good employees. they are willing to take risk. shows they are gamblers. i will ask him about that too. lori: u.s. economists are cain gaining confidence in the outlook here. ihm chief economist. nariman behravesh is here next on fox business with tracy and ashley. there they are.
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tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. confidence building on the economy. durable goods orders spiking last month. more economists say they're upbeat about the months ahead. ihs chief economist nariman behravesh tells us the brightest signs in just moments. tracy: the first shot in this year's expected battle over immigration reform. how a bipartisan plan to ease citizenship for millions of illegals could actually impact american business and the economy. we have that ahead. ashley: waiting on yahoo!. shares are up 30% since ceo marisa meyer took over six months ago but now investors want some hard evidence of a turnaround. the question is, will yahoo! deliver today? tracy: but we've got some breaking news now on executive pay at companies that received government bailouts or tarp funds. rich edson joins us with the latest on that. hey, rich. >> the government pay
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watchdog says treasury should have driven a harder pay bargain at three of the topped bailout companies. the inspector general report highlights executive pay at aig, general motors and allied financial still under government approval. they convinced treasury to roll back the guidelines by approving multimillion dollar pay packages, high cash salaries and huge pay raises and removing compensation to metrics. taxpayers can not look out for taxpayer interest on pay proposed by companies that historically pushed back on pay limits. they approved pay packages $5 million for a quarter of top executives. 30% made between 3 and 4 million. every top executive except for one, poor guy, made at least a million. general motors asked to be exempt from government pay oversight. the reaction from treasury? the paymaster says the government has limited
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excessive compensation while keeping compensation at levels enabled the exceptional recipients to remain competitive and repay tarp assistance. it cut cash pay for top 25 execs at several companies by more than 90%. cut overall pay for the top 25 executives by more than 50%. back to you. tracy: that a tough sell, rich edson. right? we bail them out but they get millions of dollars. ashley: rationalize it all they want. tracy: i know. ashley: time for stocks as we do every 15 minutes. let's head down to nicole petallides on the floor of the nyse. the dow is edging lower, nicole. >> a little push and pull here. what do you want to hear? you want to hear that we broke through, folks and we made yet another multiyear high today on both the dow and the s&p? the dow broke 13,900. traded as high as 13,951. the s&p 500 also new highs, 1503 and change.
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we're doing really well. we're up 11 of the last 12 trading days on the dow. the s&p is getting ready to snap a an eight-day winning streak. we're pulling back but getting closer to the all-time highs. want to talk about economic news. pending home sales came in. they were disappointing. that was good news. let's look at caterpillar. this is the name that we're following very closely. this is the best perform are on the dow jones industrials. that is on outlook for second half of 2013. for the time-being their numbers were not stellar. they have had to dig into inventory which has been a glut sitting there. they talked about tough economic times. they do anticipate some growth in the back half of 2013. back to you. ashley: nicole, thanks very much. we'll be back in about 15 minutes. tracy: u.s. stocks now trending just shy of highs set five years ago as a jump in corporate profits and of course the strong u.s. durable goods report we saw today supported confidence in the markets but does this mean stocks will hit record
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highs this year? liz macdonald is here with emac's bottom line. january was on fire. >> yeah, that's right, tracy and ashley. i just got off the phone with wells fargo and they're saying, wait a second, the markets may be a little bit toppy right now. when have we seen three straight years of markets trending higher. we haven't seen that since back in the '90s. are we back into the '90s again? is sentiment bullish and we ride off into the sunset? not sure that is the case. stocks are cheaper than they were in october of 2007 when the basically 2% shy of that for the dow and 4% for s&p. cheaper than they are. so that's a bullish case. in other words they're trading 14, 15 times earnings versus 16 or 17. no collapse in europe. china growing nicely, nearly 8%. federal reserve easing into 2015 of the corporate losts continue to rise. s&p for the 400, 5000, 600
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indices setting record highs. cash is pouring into equities, we know that. broad market leadership we're seeing and a housing melt-up. all the bullish case for stocks right now, guys. tracy: what if the liquidity stops? what if qe anything infinity stops. ashley: 28. >> that will happen in 2015. tracy: we heard them say it should stop before the end of 2013. >> that is the lone hawk. ashley: that's true. the majority don't. >> the doves on the fed i hear what you're saying. tell you something, when you look at the numbers and charts as we have been, for the s&p to have the best start of the quarter century is a really big deal and once that is out there, watch this stat. when the dow and s&p hit five-year highs, as you can count on maybe two hand when it is retraced pack since 1929. that is really interesting. when they push through that resistance they tend to trend higher by end of the year.
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ashley: hard to fight the trend by the end of the year. tracy: liz, thank you. ashley: we have breaking news for you the federal reserve will release dodd-frank bank stress test results march 14th. march 7th for the bank stress test results. tracy: and the 14th. ashley: and the 14th. december durable goods orders as we have been talking about came in better than expected in a survey by the nabe showing economists are increasingly optimistic about 2013. so is the u.s. economy gaining momentum? joining us is ihs's nariman behravesh. nariman, thank you for joining us. so look, it all seems to be pointing in the right direction, doesn't it? the markets don't always necessarily reflect what is going on with the economy, but the latest business survey from the national association for business economists looks for gdp breath this year, anywhere from two to 4%. is that a little optimistic?
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are we getting carried away a little bit? >> well, certainly the 4% is optimistic. our view is the underlying growth rate in the first half of the year is still probably only 1 1/2 to 2%. by the second half of the year it is closer to 3%, maybe a little bit higher. that 4% is a little tad optimistic. that said, there is going to be one little bump on the road. that is, that the gdp numbers that will come out on wednesday will show a very weak fourth quarter somewhere between zero and half a percent. the markets may not take too well to that. but that is a fluke. but, that will be a little bit of a bump along the road. doesn't mean we're headed back to recess know. -- recession though. tracy: are you worried the tax hikes an increases taxes on the wealthy will put a damper on gdp bigger than anybody is anticipating? >> ironically it is not the tax hikes on the rich that hurt but the increase in the payroll tax. >>.
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tracy: sure. >> it will probably shave half a percent off growth in 2012. without it growth would have been half a percent higher. tax increases on the rich will hurt but not quite as much this year as in subsequent years. >> you know be talking about the housing market. we saw pending home sales declining in december for the first time i think in four months now. the housing recovery has been excruciatingly slow. there is the lack of inventory out there. could that throw a wrench in the works with regard to the overall economy and its recovery? >> well, it is always possible but i think our view is, that the housing market will continue to improve this year. that pending home sales number, a bit of a fluke in the sense that there's a surge of buying having to do with the debt mortgage forgiveness program and the december number we saw the drop was probably a bit of a pay back. so that's a little bit of a fluke. i wouldn't read too much into that number. tracy: before we let you go, i know you were out at davos, tell us what did you come away with there?
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i know there's a lot of talk about the big energy boom going on in north america? >> well clearly that is one of the most positive stories that came out of davos. we were one of the messengers of that message if you will, in the sense we had a brake fast friday morning focusing on that. but the overall sentiment i would say is one of relief. that the world economy dodged a lot of bullets. fiscal cliff. eurozone meltdown. a china hard landing. but also some sense of caution about what to expect next. what can we expect from the congress, u.s. congress from this year? what will happen with the italian elections, german elections. still a lot of uncertainty out there. tracy: there sure is. there is something that we seem to have lost on the radar, right? europe. ashley: absolutely. it is very quiet which can be ominous by some people's standards. but, hopefully europe will continue to slowly recover as well. thank you so much, nariman behravesh with ihs.
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nation so much for joining us. we appreciate it. >> my pleasure. tracy: would be good if this energy boom officially takes off. we've been hearing about it for a while. ashley: we have. the signs are encouraging. reality is what we're really focused on. tracy: right. the dow right now, is down about five points. stocks taking a breather from january's surge. is there more upside ahead though? we'll talk to one big money manager coming up. ashley: plus wall street anxious for yahoo!'s results later today after the ceo marisa meyer said the company is going back to its roots, quote. one yahoo! analyst tells us what he is looking for straight ahead. how oil is trading with the dow meandering a little bit. oil meandering a little bit higher, about $96 a barrel. we'll be right back.
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ashley: the british department of transportation today announcing new plans for a high-speed train
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linking london to the northern england cities of manchester and leads. the trains will travel up to 255 miles an hour. that is quick. it is expected to cut travel times in half covering the 200 miles from london to manchester to just an hour and eight minutes. it is impressive. government officials say the $51 billion project will create at least 100 thousand jobs. critics say the plan is way too expensive for the money better spent elsewhere. so, it is one of those questions of infrastructure. you know you talk about it in this country too. the train systems could really do upgrading in the u.k. no doubt about that. tracy: here too. imagine if we had a high-speed train to florida? ashley: right about now would be good. get out of the snow and cold. tracy: that would be great. ashley: down to miami in an hour and a half? like 500 miles an hour. tracy: well, better than the flights these days. ashley: yeah. anything to keep you out of the --. tracy: exactly. every 15 minutes we check on
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the markets. nicole petallides on the floor of the exchange. i know you would like a high-speed rail system, don't you? >> are you teasing me? send me to miami in no time at all? all right. you know it is freezing in new york and i would take it. let's talk about names on the move. the first is hess. this is something that was talked about the minute i walked in here today before the opening bell even rang, everybody began. did you see hess? hess is on the move today. we all know it for the gas station and such. 6.5%. they're getting out of the refining business. the company plans to sick to exploration and production. they're disclosing a hedge fund is looking to buy $800 million in shares and nominate board members. so they're selling networks in new jersey. refinery by the end of next month. making a move to exploration and production. getting out of refining. the stock is up 6.6%. how about joseph a. bank? this one is on the move to the downside. they came out with numbers
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that missed. their holiday sales were dismal. they put winter items on sale but didn't actually sell them. they said it was unseasonably warm. they blamed superstorm sandy. all of these are obviously real factors. a tough economy. however some of the insiders are saying on the blogs and such. maybe they need to look inside their company because the numbers were not where the analysts had hoped. the stock is down 16 1/2%. back to you. ashley: yeah. tracy: blame sandy. honestly, for years to come. nicole, thank you very much. >> certainly nothing to do with their fashion designer. ashley: buy one sport coat, get seven free. one of those deals. apparently not working. >> how long can the bulls run on wall street? we'll talk with a big money manager had sees selling ahead. ashley: first let's look to see how the good ol' u.s. dollar is moving against some of these foreign exchanges. with the euro down, the pound down, they're all down
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against the dollar except the japanese yen which is showing a little backbone but not much. we'll be right back. officemax knows... time can be...well...taxing. so right now we'll give you... ...$10 off any turbo tax deluxe level software or higher! find thousands of big deals now... officemax.
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>> at 20 minutes past the hour i'm lauren green with your fox news minute. a section of the mississippi river is closed to traffic
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as crews clean up a oil leak on sunday. it hit a railroad bridge near vicksburg, mississippi, spreading oily water across part of the waterway. brazilian police arrested three people following the deaths of more than 20 in the nightclub fire in santa maria. the blaze reportedly started when a band member lit a flare on stage causing mass panic. the band's security chief and a member and owner of the kiss nightclub have been brought in for questioning. french and mali troops sealed off timbuktu forcing islamist rebels to flee north. they seized the timbuktu airport as they look for al qaeda linked fighters hiding in the city. the rebels are retreating into the surrounding desert and mountains. those are the headlines. back to tracy and ashley. ashley: fox's lauren green, thank you very much, lauren. oil is hitting its highest level since april of
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2009. the question becomes how high can oil go? sandra smith has the latest from the pits of the cme in today's trade. sandra? >> i want to give traders down hear some credit. the last time we were down here traders were bullish on oil prices. here we stand above $96 a barrel. a few minutes left to the close. i pointed out last hour, $96.24 a barrel. a close above there would be the highest close for that wti crude oil contract since september 17th. you're staring at four-month highs. with the close a few minutes away looks like we'll close there, guys. so keep an eye on that price level. there are all kinds of things at work here, pushing oil prices higher. we have the durable goods orders out this morning. nearly 5% jump in december, better than expected. that is leading to speculation that if the economy improves we'll consume more oil. you have hess shutting down a refinery on the east coast. that is pushing up oil prices. that is pushing up gasoline prices. look at the energy futures
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other than crude oil prices today. gasoline one of the biggest winners down here up 2%. heating oil about flat. natural gas on the flipside, your worst performer down here, down several percent as we see the forecasts coming in for warmer temperatures. that is leading to a big selloff there. guys, as far as how high can crude oil prices go? i'm talking to knight capital tres knippa. he is looking at trieses saying that the crude oil market is following the stock market. if we continue to build on these gains in the stock market which is at 52-week highs, we'll continue to see the build in crude oil prices. many of these guys not ruling out a run to $100 a barrel the however small caveat. a lot are starting to talk about it is a little bit top heavy in the crude oil market at these lofty levels. back to you. ashley: will hit tracy when she is filling up that big ol' hunging suv. thank you, sandra.
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tracy: don't complain about driving now. talk about the january effect the s&p 500 closed above 1500 for the first time in five years and having its best start of the year since 1997. where were you in 1997, ash? ashley: i can't remember. tracy: can it last? we have the partner and senior portfolio manager at skybridge capital. this is fund to fund. >> hedge fund. tracy: so other than the fed pumping money in, and a lot of it, what's keeping this market up? >> well the big drivers so far have been the resolution of a lot of the political risks, right? you have a lot of investors nervous about the fiscal cliff which hasn't been resolved but the can has been kicked down the road. and the tax hikes were not as bad as many people thought. the next thing is the debt ceiling which was a big leverage point and republicans kicked that can down the road. all you have left is the sequester. a lot of votes stores are on the sidelines worried about
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political risk and but a lot of political risk has been removed. tracy: you said kicked down the road but it will come back. you're talking about short-term euphoria for a while, correct? >> correct. the fed money policy is a huge driver. they're in the process of a financial repression regime where you look at different asset classes like treasury bonds. they're incredibly expensive. you don't make anything after cash. you lose money after inflation, right? tracy: right. >> what are your options? they're trying to drive people into risk assets. as investors look into high-yield bond or certain types of mortgage-backed securities they have become very rich. the only thing really left is equities. it is almost a process of elimination for investors. they end up driving equities higher. tracy: that's what we've seen in the month of january, we've seen a lot of inflows into the market. have they missed run? is everyone late to the party or will it keep going? >> if you came in january 1st you caught 5%. it is buyer beware.
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because you had the amazing run-up not over last six weeks but last two years, three years. we're above the bottom up over 120%. all the decent indicators are complacent of the institutional investors are bull. hedge funds are bullish. tracy: which should make you wary right? >> we say buyer beware. if we get a correction, whatever reason, political risk, europe flares up, the risk/reward is not as good as it was. we argue look for things with less downside if there is correction but give you reasonable upside if things continue to go. tracy: what worries you the most? >> the biggest worry for us right now is a return of europe to the forefront. the reason for that europe has a pervasive effect on the financial system and can cause further deleveraging. it has been almost eerily quiet. despite the fact ecb has done nothing. and european banks need to delever. they're in recession. we see the ultrashort term,
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markets ignore the situation and flaring up. tracy: ashley and i were talking about it. to your point, our own political issues kind of took over. >> in the short term. ignored it. tracy: there is no way greece is fixed. >> not even close. their debt-to-gdp is 160% now. that is like a solution? the secondary worry as you alluded to before all we've been doing in the u.s. is kicking the can down the road. tracy: right. >> hoping we can grow at escape velocity, three, 4%. unfortunately if washington doesn't pursue pro-growth policies it is difficult to get 3 or 4% growth. tracy: we'll muddle along, buyer beware. >> good to see you guys. ashley: i was in nashville in 1997. i just remembered. tracy: you remembered. ashley: been a million places. nashville. great town. next stop palm beach, how about that for a great town? a growing number of new york financial firms are reportedly fleeing the big apple taxes for the sunshine state. why not? gerri willis will be here to weigh in on that story next.
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tracy: first let's look at some of the winners and losers on the s&p 500 as we head out to break. the dow is down a whopping 2 points. we'll be right back.
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tracy: it's half past the hour. headed back to nicole on the floor of the new york stock exchange. >> we are getting some headlines, and john is here with me to break it down for you a little bit. outage, publishing trades, and symbols from bx to chz. i notice here we have names highlighted, john, you just went not ramp. you are a floor governor. what have you found out so far? >> your statement there summed it up. it's a small range of stocks, 150 that are effected, and that
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means that the information that's going to the public feed is not ag rat right now. they are about to restore the system and get the accurate feed back up again. >> are they actually trading? >> stocks still trading normal, but what we see on the screens might not be accurate information. >> okay, all right. trying to get back to functioning normally. the markets overall, dow, nasdaq, and s&p are not that far from the change line. hitting five year high after high after high. what do you think of this? >> great what we are seeing, and it's what i talked about thursday on the show. healthy movement in the market. what do you mean? building higher and higher, not having the selloffs or volatility in the market. we're seeing a step in futures so to speak. it's good. a lot of economic data this week, earnings report, facebook wednesday, everybody's looking at that. unemployment numbers friday. there's a lot to die jest. i expected a quiet monday.
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that's what we are getting. the rest of the week, we'll steam up. >> prepare for a busy week e ahead, everybody, and the fear index higher as well. tracy: thanks, nicole. thank the governor for me. ashley: the gov. financial earnings hot shots reportedly moving out of new york city for sunnier shores. surprise, surprise. it's about taxes. gerri willis wants to weigh in on this one. >> this just occurred to me. you know, if the industry is moving there, certainly, the business networks that cover the industry should go to palm beach. ashley: fire up the bus, we're going. >> talk about why, why, why, the state income taxes, nine states in the country do not charge income taxes so folks with high incomes love to move to places like florida, alaska even, washington, wyoming, tennessee,
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texas. texas is big indeed. the governor in louisiana is talking about not having a state income tax. you can see why. texas is stealing every employer in the world. it's hard for louisiana to think about competing with them so they have to, you know, even the playing floor so that they can compete too. now, reality of this, though, is it makes it hard on those old-fashioned states like new york that want to -- they want to charge state income taxes out the wazoo, and california raised theirs to 3.3%. it's not a surprise here, but, you know, take note. there's a palm beach office, the little city of palm beach, has an entire office dedicated to getting hedge fund managers, private equity dudes -- ashley: smart thing to do. tracy: the middle class will feel this. the wealthy can afford to pick up and leave and fly back to wherever they have to go. those of us with kids in school,
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families, can't sell the house, i don't have a choice. they will end up raising the state taxes for me to pick up the slack. >> or new york has to find another way to fund huge operations. ashley: exactly. interesting. talking about that tonight? >> possibly not. we're talking immigration. i'm also talking about the bond bubble. what happens if the bubble bursts? what would it look like? talking about that. ashley: yield's going up 2% on the ten year. watch out. >> that's what i'm saying. ashley: that's what you're saying. don't miss "the willis report" right here on fox business network. tracy: breaking news for you. oil closing up 56 cents. sandra smith said, $96.44 a gain of more than one-half a percent. ashley: headed towards a hundred bucks? maybe. tracy: got to be.
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pushing for immigration reform. senators want to help millions of illegals become citizens. details on that, and, plus, how it could impact american business. ashley: first, as we talked about, a look at the ten and 30-year treasuries. the yield is 1.98, and the yield on the 30 year at 3.15. we'll be right back. joeoods' fi ♪ rs boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. it's just common sense. all stations come over to mission a no go call. go. this is for real this time. we are on step seven point two one two.
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♪ >> this is your fox business brief. contracts to buy previously owned homes took a bruter last month after three months of gains and the national association of realtors says pending sales index dropped 3.4% to 101.7. general motors announced a largest investment ever, a $600 million upgrade at the fairfax plant producing malibu and buick lacross models, nearly $2 million invested in that facility. barnes & noble plans to close a third of the retail stores in the next decade. the ceo, michael clifford, told the "wall street journal," that in ten years, the company has just 500 stores down from 689 as of last week. that's the latest from the fox business network giving you the power to prosper. ♪
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>> bipartisan groups up vailing the plan on immigration reform, and peter barnes is on capitol hill with the details. hey, peter. >> hey, tracy. this press conference with the gang of eight senators on immigration reform, you know, had the gang of six on the budget, and now it's the gang of eight talking immigration reform. they are just getting going with the remarks, and it's four democrats and four republicans senators including senator john mccain who has been on the left of the screen there as well as senator marco rubio, the florida republican, also working on immigration reform. they are trying to get ahead of president obama who is going to be in nevada tomorrow talking about his immigration reform proposal, bringing back his 2011 and maybe adding more details on that. now, like the president, the senators, the gang of eight senators here, want to produce a pathway to citizenship, and their proposals would include a
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registration and probation program to allow illegal imgrants to stay and live and work in this country with a green card, provided they paid their back taxes and paid a penalty here and then got in line for the process for the legal citizenship application. they also want to improve border security. that's a big component of the plan as well as tracking legal immigrants, whether or not they leave when they are supposed to. they also want to strengthen the employment verification system, and they want to -- create a green card system for the top foreign college students here who get advanced degrees in math and the sciences. now, the white house did not shoot this down out of hand today. take a listen. >> the president welcomes efforts by the bipartisan group in the senate to put forward
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principles on the need for comprehensive immigration reforms, principles that mirror the president's blueprint, which, as you know, has been pressing for some time which has been available on since 2011. >> the problem for immigration reformers will be in the house with conservatives over there. they have generally rejected, opposed anything that smacks an amnesty program for illegal immigrants. tracy? tracy: peter barnes, thank you very much. ashley: all right. could a pricey super bowl ad be the savings grace for research in motion? that's the hope for the blackberry maker as they debut their first ever big game commercial this sunday for the super bowl. dennis sneale has the story. dennis? dennis: on to the super bowl, if i can get a prompter, that would help. airing the first add this sunday
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with the new smart phone that could make or break the company. now, rim is trying to cash in on the good buzz for blackberry ten after getting mugged by the apple iphone for a few years now. the stock is down 60% in two years, it was at $70 bucks in early 2011, below $20 now, and down 5% today. five years ago, rim was at $140 a share, down 7% or more today. rim and other super bowl sponsors, the babes of, the e-baby, dorritos and bud light and more, will they get their money's worth? cbs gets $3.8 million for 30-second spots on super bowl this sunday, up a nice 12% from last year's ad fest. a new report says last year's super bowl drew in 111 million viewers, the most watched u.s. telecast of all time of any program, and the ads were 34%
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more memorable and 42% better liked than spots that had run a month earlier. as for rim, tech advertisers are not that prom innocent in super bowl ad. spending patterns for three of the five biggest ad categories. auto makers, the biggest group by far in the big game. their spending tripled to $90 million in three years, two years as the industries recovered from the near death experience. beer also up $30 million, and super bowl ad up 50% from the year before, and soft drinks on the rise, guys, back up to $21 million, matching a peak from 2009. we'll see whether it's the right expensive money from blackberry who has seen troubling days as of late. back to you. ashley: a lot of money. make it count. tracy: the giants are not in it. in one's going to watch. come on. ashley: there's other teams out
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there. thank you, dennis. tracy: i don't know. 111 million people? time for stocks as we do every 15 minutes. nicole is on the floor of the exchange. what's the latest with the outages? >> right. we talked about over 100 stocks that may have been affected by this, and trading normally here, but as john explained, the data hitting the tape was not correct. the stocks were trading normally. we had stocks that were highlighted here in yellow. i don't see that anymore. we have heard that they are now back and functioning properly, good news, and that's what they are going for; right, to get it back to normal. that's the case right now. that's good news. at the same time, investigating this, i looked at nyx stock, 52-week high. good news there. shareholders waiting for those green arrows issue and last but not least, major market averages. dow back above 13900 here
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pushing the five year highs on the dow and s&p as well. the nasdaq is up one quarter of 1%. back to you. ashley: monday gremlin. tracy: i guess, but another case for why we need human beings down there. ashley: that's right. really fouled up with the computer. will mariss meyer deliver? hoping wall street's new ceo brings a turn around. we'll have a preview next. tracy: first, going to break, a look at today's winners and losers on the ins deck. we'll -- nasdaq. we'll be right back. ♪ twins. i didn't see them coming. i have obligations. cute obligations, but obligations.
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tracy: durable goods orders surges in december, and pent up demand for long lasting items 1 the strongest sign of recovery. we are live in a company in chicago that makes durable goods. what do they say? >> what is a durable good, you say? something that's supposed to last three years, things like chairs, for example, that you see here at richardson seating. the guy here is welding the things together. that's a pretty shot. a pretty shot is the snapshot of the numbers as you point out, tracy, double what economists thought in terms of durable goods. things are getting older. the average age of durable goods is, things are falling apart. >> yeah, things falling apart. people have to buy new products.
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>> that's where you come in, and where other companies that make this sort of stuff come in. they feel there's tremendous amount of pent up demand. we're also on a good run. you do business with a lot of big companies. this is restaurant seating. you make logo chairs for a lot of fortune 500 companies. what are you hearing from them because if we look at the trends, look at the last four or five months, we see an uptick in durable goods orders. >> yeah, people are buying more of those big tickets, and customers advertising more, putting more money towards new products. that's what we are seeing, and people -- we're feeling it right now. >> okay, there you go. no thanks to the government, no thanks to stimulus, perhaps, but just thanks to the fact that things like chairs eventually fall apart, and you got to replace them. >> there you go. tracy: thank you very much. sit on the floor.
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ashley: yahoo shares up 30% since marissa meyer took over in july, and hope for highs the struggling internet giant shows signs of a rebound. the next guest is not convinced. yahoo can turn its core business around. joining me now is rick sum, morning star senior economist. is this just based on hope that she turns things around, and you have not seen signs of that yet? >> yeah, a couple things. obviously, sentiments' changed. there's hope around her and what she can do, but the other thing we can't forget in the last six months, we had liquidity of the group, as well, an asian asset materialized to a $4 billion gain. that's a good floor on the stock here today. ashley: what other big issues facing yahoo now? generating revenue, o of course, but they seem to be extremely
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slow in the mobile market. they have smart phone apps, but not getting money from it, though. >> yeah. so, you know, we've seen the mobile problem rear its head. finnish and google, that -- facebook and google, that overhang in the stock price today, but there's a clear path for facebook and google to move into mobile. we don't see that for facebook. the strategy ofiester year -- iester -- yester year, and it's unclear how they migrate in that area. ashley: the redesign of the e-mail and flicker and foe foe -- photo sharing service. a little slow out the gates, or is that being unfair? >> you know, i think it's a bit unfair. i think, you know, looking at
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the short run, she's got a real, tough challenge in front of her. you know, looking at anything that's revolutionary is tough. that said, what we have to hear is about strategy, a kwr50u sneak strategy. how do you leverage core assets? it's not clear to us what path that is, but i will say simply saying we're going to launch more mobile apps, have a little bit better culture, that's not a clear path or clear message in our turn to investors. ashley: expecting guidance in the report? if not, how difficult is it then to make your projections? >> we don't expect guidance to come out. we still can expect over the near term yahoo to continue to lose market sthair to google, no facebook around display and lose market share, and an important part, search. still, the company generates more than a third of the revenue after sharing with what is acquisition costs, more than a third of the revenue comes from
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search. that's a real important component that's beginning to be really hard to turn that business around as well. ashley: the partnership with microsoft sounds good, but not meeting the revenue expectations. does that work or just a waste of time in >> i think it was more of a cost initiative, one thing that's not understood appropriately. it doesn't drive traffic to yahoo for search. while from a technology perspective, it's a better solution for yahoo, there's still competitors for you and i as search users. they gain market share at the expense of yahoo. ashley: this current price fairly priced? are you fairly conservative on the pricing outlook? >> so, you know, there's probably upward bias we can see, but not a lot. we're looking at, you know, $21, fair value at $17. looking at the value of the age and assets, if they hit it out of the park and execute a successful turn around, there's
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an upside here, but we don't think it's risk-reward appropriate right now. ashley: thank you so much. appreciate it. all eyes will be on that report. >> sure thing. ashley: keep it here for yahoo's results after the bell, just over an hour, an hour and five minutes. keep it here on fox business network to see what the analysts make of the latest report. it's unfair to be critical of her, such a huge undertaking, but they have to have a strait scwi in place is what they are looking for. tracy: not very encouraging. cheryl casone takes you through the last hour of trading. she has a market historian saying with stocks at five year highs, the bull run is not over, far from it. "countdown to the closing bell" is next. dow is down. don't go anywhere. ♪
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