tv FOX Business After the Bell FOX Business January 31, 2013 4:00pm-5:00pm EST
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competitive. too much market share and they have a joint venture, that is why they sank today. david: facebook is in the green, and a lot of naysayers after the numbers came out, they fell away pretty quickly. we have an analyst on saying he is still a buy. what is the latest on facebook? nicole: they sold off early because they have had intense expenses cutting into their numbers, but they still have their users, monthly ad revenue is growing so now you see squeezing out a game today. liz: 16% drop, that is amazing, what is going on? >> they had to cut their full year numbers. not doing as well as they would have hoped. sales are weaker. with that, that obviously hits their stock today in a big way.
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david: gold coming up, but do they have any confidence in gold? going up 20, down 20 and stays at 1600. nicole: i noticed it had been lower. yesterday we saw it jump in. it remained a very volatile. david: the bells are ringing on wall street, trying to figure out what is happening with this market. it is basically a flat market, but the nasdaq just barely in the red at one point in the green commen comet may settle ue green. down pretty solid. the nasdaq sort of flirting with the flatline. the russell 2000 doing quite well. the strongest indication of a move we have in this market up more than half a percentage point. liz: speaking of doing strongly.
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what a month it has been. on track to close up more than 5%. the move could be good news for the rest of the year according to the january barometer which stays as january goes, so goes the year. indicator has been wrong with just seven times since 1950. more than 88% ratings. david: we talked about gold, gold falling with profits setting in after two straight games. gold fell almost $20 settling at this market, 1662. about where it tends to settle when it has beefed up and down movements over the past several months. and in the mud floor, the fourth consecutive month of losses. we saw analyst cut in price targets and ratings on facebook. the stock saw a drop initially but came back. we will have an analyst who raised his price target following the earnings report.
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find out why, and what it is now. liz: cyber attacks making front page news again. attacking "the new york times." some 45 times in secret before they figure it out. we are speaking exclusively with the man on the board of a company that detected the attack. also the ceo of a cyber security company, one forbes company calls the hottest enterprise security startup and they could be going public soon. find out how the company and meet the ceo on fox business. david: first we will tell you what drove the market today with today's "data download." a sea of green on wall street with all major indices ending january up more than 4%. the biggest winner, the small and midsize caps represented by that climbing more than 6% while the dow posted the largest january gain in history. the s&p and nasdaq each closing higher for the third month in a row.
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the euro gaining for a sixth straight month against the u.s. dollar. longest winning streak in nearly a decade. hitting the highest level against the greenback in 15 months, but rich edson, go ahead, we have breaking news. rich: the senate has voted to raise the debt ceiling through may 18. this also has a provision that says in the senate doesn't pass a budget, the senators don't get paid, house lawmakers don't get paid after april 15. they don't get paid until the end of congress and are made whole at the end of the congress in 2014. the bill goes to the president's desk raising the debt ceiling so treasury can extend that sometime to july or august. david: a quick question in terms of defense, we will be talking about how defense cutbacks are hurting individual jobs in individual sectors and does this affect defense spending directly? >> this moves the debt ceiling fight the back.
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now march 1, automatic spending cuts and defense and other programs begin to hit and government spending on march 27. next up, defense spending will be a topic of conversation in d.c. and congress. david: rich edson, thank you from d.c. liz: the chief strategist in the pits of the cme. right now i would love to sit here and talk about the trading action for today. the last day of january, it all @ooks very nice. it looks pretty good for january. here comes the january jobs report, is that what people are looking at? >> absolutely. the whole week has been pointed for tomorrow. lots of consumer confidence, lousy gdp, lots of bad numbers. everybody is pointing for this number tomorrow. if it doesn't beat significantly, think we're in for a little bit of solid
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pressure. looking for 195, expecting 215. if we are not north of 215, the market might rally a little bit and then sell off. now priced for perfection. david: what kind of selloff are people expecting? a minor 5% selloff for something bigger than that? >> i think it is minor. we could use some sort of selling pressure. just to create some volatility and trade. nothing happened all day long. liz: i'm always interested in picking who is buying what, you're moving them through, what caught your eye? >> i liked what was going on with facebook tonight. i thought that was interesting after earnings. liz: it had a huge reversal. >> i think that is a very delicious pattern, i think it is going the way of link in.
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i think the market has been extremely quiet waiting to see what will happen tomorrow, but facebook was really interesting. take a look at amazon. might be selling off pretty good right now. david: we will see todd in a couple of minutes. good to see you. liz: and the futures will close in 15 minutes past the hour. david: facebook analyst hit the one friend button on the stock cutting ratings. liz: the stock dropped at the open and moved all the way back up to above the flatline. we have somebody who went against the grain, raised his price target and reiterated his buy rating. what did he see the numbers that others didn't? managing director and global head of the internet and media group. let's get right to it, what did you see that didn't spook you like the others were? >> first of all we thought the quarter was really, really good.
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it is very easy to forget this is a multibillion dollars company and yet growing at 40%, 60% margins. we don't have too many companies of that elk. and you look at the metrics, they beat on every single metric. if you want to be a bear. compared with numbers that frankly were more by side related then sell side. they were exaggerated. david: what about operating expenses? why didn't that bother you? >> it didn't bother me because this is a seven-year-old company. you want them to spend, you want them to be aggressive, you want them to take risk. this is an internet company competing with google, linked in, amazon. frankly we think so far the return on investment capital has been very high.
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it will continue to invest. liz: what gets you slightly concerned about this company? is there any facebook fatigue where the user numbers go down for the month? >> that is something we have really monitored very much last night. engagement appears to be very solid with 60% of the monthly users coming back to the site every single day, that hasn't really changed. going forward, if we notice the usage or the younger crowd starting to invite less, that would be a worry, but we haven't seen that yet. i was just going to say the other potential risk is the privacy issue. we saw what happens to the user base when they decided to change their privacy settings. something like this could impact facebook but we haven't seen anything to that effect just yet.
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david: what about mobile ad sales? everybody is concerned whether they have had some sort of a feeling. are you concerned, or do you see there is no ceiling, the sky is the limit? >> by our math they're generating $0.50 per member per month on mobile. i think we can do better than that. certainly the business they were even in about nine months ago. generating over $300 million in frankly that number was slightly ahead of where we were. there were some hoping for 352400. that was more wishful thinking anything else. liz: what impresses you most about this album a? they started up a business in what appeared to be the blink of an eye. you can just press on something i quickly ordered them a small bouquet of flowers. that turned into a 200 plus
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million dollars market within a couple of months. what impresses you? >> that is exactly it. there are so many factors of growth this company embarks on. some we have identified. social search is the other. a number of others they're going to use that money david was talking about before, that investment to uncover some of these other opportunities. search is something that could turn out to be multibillion dollars opportunity for facebook over the long run. david: we've got to go, but is there anything zuckerberg is thinking about now? he is one of the few cents steve jobs passed away, one of the few really big out-of-the-box thinkers. >> hard to figure that out at this point, but i would say really is is more of a mobile company than anybody realizes in
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five years from now it is going to be a play on two things. mobile advertising general and e-commerce. i would not be surprised if half the business over the next five to 10 years out of this company is e-commerce which generated less than 5 million. david: thank you so much. appreciate it. liz: as cyber attacks continue to hit countries, individuals and businesses, maybe even yours? "the new york times" got hit badly. the business of defending against them grows. what are you doing it right? exclusive ceo of the cyber company that business insider calls the next hot enterprise startups to watch. they were brought in to catch the bad guys. david: defense cuts a striking a blow to gdp last quarter. this quarter could be even more painful. the effects on the economy itself. find out why in which companies
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will be feeling it the most. liz: and one money manager who is bearish, one who is bullish. they will duke it out after the break and tell you where they're putting their money right now. stay tuned. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ]
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david: the s&p futures are closed right now. the pits of the cme, what does it look like for tomorrow? >> tomorrow it will be based on a number, bu but outlook for 150 on the upside. but below 1590. i think the go a lot lower. liz: we will take that, why not. shares of conoco falling more than 5%. let's go back to nicole. people love this stock because it had a great dividend, but what happened here? nicole: was down 5% on the day for conoco phillips under some pressure. a couple of things happening.
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yesterday we got their numbers they should production forecast well below wall street expectations. at the same time there has been a lot of activists trying to split up the company separating the assets from international assets. the ceo said the company has no plans to do so. so the two pieces of news coupled together made for some weight on the stock today. selling off. back to you. david: it is time for a street fight. thank you so much for joining. we here for a lot of investors, just hurt my fellow at the cme saying we are ready for some sort of a pullback, a little top heavy right now but you say no way, we can continue to forge ahead and reach new highs
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despite the new gdp figures, why are you so bullish? >> contrary to what you see on the gdp, the underlining fundamentals and opponents remain positive. private demand, consumer spending, private residential housing construction are all positive and although we may get a pullback we have had a great year and first month of 2013. it comes from higher levels. liz: you are bearish for the next 12 months, was behind that perspective? especially since we have got a terrific january. >> anybody who owns stock stocks good about owning stock. that being said that might be ahead of itself. we look at the s&p 500, earning $105 this year. we put 14 and a half multiple on it, 1500, and we're pretty much already there. that is what makes us nervous.
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david: i was interested to see you are interested in real estate. real estate is one thing that is positive we can put our money safely in at this point, but you say beware, right? >> beware. there's a lot of shadow inventory out there. there are still something like 27% of people who have a mortgage are either close to zero equity or are underwater. that is going to limit people being able to move, people being able to sell, and certainly people being able to refinance, so it is not as rosy as we would like it, but it is certainly better than it has been the last couple of years. liz: if you were to ask them to believe things are looking pretty good. 80% equities, 20% other. talk about the sectors you really feel confident about going into the next couple of months.
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>> in this environment with improving balance sheet consumer discretionary spending around improvement in housing, health care after being absent the last couple of years is certainly improving. valuations continued to be attractive and those sectors that are dependent upon the economy. industrials and materials look attractive. david: even though you are a little bearish, you have some pics. two of them have been beaten down. boeing with issues of defense spending and intel of course. why do you like these two stocks? >> if we tell you to look at stocks today, we are planning on you at least keeping those in our portfolio for three to five years all things being equal.
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boeing, that is a great play on the emerging market. that has been in the area ordering a lot of own planes. we like that. in the developed world they are very fuel efficient and that is a very big seller. there are fundamentals we think should propel boeing in the future. intel, they have not been present in the mobile device category, and we think in the next three to five years they have a compelling story and we think they will be both in the smart phones and tablets and the next mobile device somebody comes up with. liz: close to a dozen new smart phones are shipping. i guess the question is do you fear it on the bubble bursting? so many people got so scared they missed the rally that happened through the past year, they're still parked on the sidelines with money under the
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proverbial treasuries. what would a bond bubble bursting look like? >> there's no doubt, question is did worst or did we let the air out slowly? what has gone into fixed income versus equities, we have all seen the numbers dramatic inflow intin the fixed income particuly around treasuries. i think we let the air out of that slowly, and you will start to see and the fed is continuing to set that up in their monetary combination and move into risk assets. it is sort of artificial, the treasuries which maintain that and they will for a while, but that will slowly leak out after. david: that is the slow leak from the bond market. good stuff, guys. liz: great to see you. jobs or lack thereof still a
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problem and another 368,000 people filed for unemployment benefits. first-time unemployment benefits so why is the president's job council shutting down? we will have the very latest. david: the gdp was hit hard by cuts and defense spending, but the current quarter could actually be worse. find out which companies specifically are ready to weather the storm in which others could tumble. suddenly, she does something unexpected
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liz: time for a quick speed read of the day's other headlines. let's go, first up according to reuters, citigroup is looking to exit consumer banking in more countries to lower costs and boost profits. the bank went through consumer banking in five countries and cut 11,000 jobs. hostess brands pics affiliates as the stalking horse bidder for the snack cake business. they have agreed to pay $410 million to purchase the brand. general motors recalling more than 13,000 cars in the u.s. for possible suspension and air big issues. the recall affects 2013 chevy and malibu sedans and 2012 buick, chevy camaro, sherri cruz and other vehicles. the average 30-year fixed mortgage rate posted the largest weekly increase, folks coming 10 months according to bank rate.
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rising 11 basis points, 3.77%. u.s. department of justice filed a lawsuit to block anheuser-busch. arguing the deal would lead to price increases. david: i need a beer. in the midst of a lousy stock market, president obama has shut down the white house jobs council. liz: it was created in 2011, met four times, how does the white house intent on tackling the unemployment and job creation issue? here now with more is rich edson. rich: no expand outreach to other executives, academics and labor leaders. the president is allowing his jobs council to expire after two years, for presidential meetings in several recommendations. one council member says the group is a disappointment. >> i think the people that were
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on it could have done a more realistic job. good job council it didn't embrace the president's jobs program is one you have to say what are they up to? rich: a spokesperson says to us and the abysmal nature of our economic recovery, look no further than the disinterest in learning lessons from actual job creators. whether ignoring the group or rejecting the recommendations, president treated the jobs council is more of a nuisance than a vehicle to spur job creation. republicans up until the council's most recent meeting with the president was more than a year ago. the white house says they have embraced and employed some of the fast tracking tourist visas and construction project permitting. other recommendations opposed positions like allowing u.s. companies to avoid paying federal taxes on its overseas income. back to you. david: kind of reminds you of simpson-bowles. thank you, rich edson.
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liz: cyber attacks once again in the news, this time "the new york times." now we're learning the "wall street journal" was hacked. up next, exclusively here, the ceo of the company brought in to discover whether these companies are being hacked. "forbes magazine" called it the hottest security startup on providing real protection and really succeeding where the big guys couldn't raising more money. if a possible ipo? david: find out why the carmaker behind a big ad you have probably seen little pieces of before could score big at the super bowl. more of that coming up. and don't forget to log onto facebook.com/after the bell. see if you pay more attention to the game or to the ads. he turned the sound off or not?
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there's a land of restful sleep. we can help you go there on the wings of lunesta. ♪ [ male announcer ] it was designed to escape the ordinary. it feels like it can escape gravity. ♪ the 2013 c-class coupe. ♪ starting at $37,800. ♪ david: time for a look at today's mark drivers. stocks ending the day in the red with all indices closing lower. they up ed more than 4% led by the dow which was up 5.7%.
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the s&p posted its largest january percentage gain since 1997. the dow posted its largest gain in all history. oil falling given to profit-taking falling 45 cents. prices finished month for a gain of 6%. this is the strongest january of for oil since 2006. consumers had more pocket change. personal income rose 2.6% in december. the biggest increase in eight years. the jump was largely driven by an increase in dividend income. liz? liz: businesses world under attack. did you see "the new york times" front page? they said flat-out, hackers got in. chinese hackers attacked "new york times" for the last four months for something like a total of 44 times they were able it infiltrate the computer systems of after reports at "the times", they perceived it as negative in china. they were revealing some big
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amassing of wealth on behalf of the premier. wen jibao. w they'd they were victims of cyber attacks. we have the man who detected that "new york times" attacks were happening. joining me in fox business exclusive. dave dewalt. chairman of board and fire eye ceo. let's get to this right off the bat, dave. how did the software work where you were brought into the "times"? they must have suspected something. even though they had symantec anti-virus software your guys and came in and revealed what? discovered what? >> first of all, thanks for having me, liz. this is interesting but it is not surprising. we're seeing so many different companies around the world, similar types of problems and "the new york times" and "wall street journal" is just another example of really what's happening out there. and to your point, a lot of
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the traditional defenses that these organizations and companies have put in place like symantec, they're just not working. and the traditional model of kind of anti-virus, pattern matching, what is called pattern matching, blacklisting kind of model has very little effectiveness in these complex type of attacks the world has changed a lot. companies like mandiant and fire eye have new types of technologies. certainly our team did a phenomenal job partnering with the at&t and "new york times" to help not only figure out why it was not working with the traditional defenses but figure out not just what they were after but where the attribution was as well and help them correct it. liz: the holes, the holes that must have been in the system somehow. >> definitely. liz: i want to say this for symantec, they apparently according to our information caught only one of the 45 instances. they issued a statement saying, turning only signature based anti-virus
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components not enough in world of daily check. i love the guys at symantec. sound like they want to sell more to people when this was already a problem the my question if i'm "the new york times" or "wall street journal" how do you know that it was the chinese? >> well, we're never 100% certain on attribution but what we're starting to see in the world is just a a huge amount of countries involved with espionage. a huge amount of countries and entities involved with cyberthreats and attacks. if you look back over the last few years, you and i spoke about this a couple times over the years. liz: yes. >> we watch ad company of companies in a couple of industry being targeted and a couple of countries where we watched what was going on. we're seeing 100 plus countries involved with this, with 20 or 30 different verticals and nearly 95% of all the critical infrastructure in our opinion is compromised already. so to see "the new york times" situation and "wall street journal" situation, as i said earlier
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is interesting but not surprising in the world of defense is not keeping up with offense right now. that is the problem. liz: certain offices of congress have been hacked. all of sudden fax machines started spitting out paper with chinese characters on them. it is obvious what is going on. china has been named as one of the worst, if not the worst offenders here. the government says we don't support any of this. who knows. who else? russia? iran? what other countries are starting to hack in and put this malware in? >> we now believe it or not, liz, we see more than 190 countries who are hosting servers involved with espionage activities, crime activities. china is one of them both as a victim and an attacker. we see a lot in eastern europe. we see a lot in the middle east. we see a lot in the asian region. this is global problem at this point. liz: right. >> interesting to watch what is happening. it is pretty amazing. liz: david, if i'm a company tell me what to watch for? a fax machine spitting out
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chinese characters is pretty obvious. give people guidelines here. what thud she be looking for? i'm sure anybody with a decent size has i-t department and anti-malware devices. is there a certain thing fire eye would say, wow this looks weird to us? what should people look for? >> this is the technologies of fireeye. we have a new detection engine that uses virtual machines at the network as opposed to traditional fileses are file based. the complex attack vectors need to be managed a little bit differently. these types of appliances that fireeye produces has much better efficacy from attackers like china. putting in new technology is really important. the industry is $30 billion a year on security and we still have 95% of the companies compromised. there is a little bit of a problem. so there a lot of opportunity young companies like mandiant and fireeye to
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show these types of entities like "new york times" and "wall street journal" what to do. this is product problem and integration with staff and product that really solve this. this is important to solve because you can see what is involved. liz: costs a lot. they were stealing reporters password. it was unbelievable what happened. dave, you know i love this company. we think it is fascinating. thank you so much and we'll keep a focus what is happening with you. thank you very much. >> thank you for having me. appreciate it. liz: dave dewalt, man did i ant chairman of the board and fireeye ceo. david: you think spending cuts in defense caused a big hit? you ain't seen nothing yet. the next quarter could be much worse. the a man tells house and yes and how that could affect the economy more than last quarter. the amazing kreskin is here. he is ready to give us his super bowl pick. he was on with me 2008.
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>> i'm adam shapiro with your fox business brief. shares of mastercard hit a 52-week high and closed up today at $518 a share. on news the credit card processor had strong fourth quarter results. net income was up 18% year-over-year. >> robo-signing will cost florida based lender processing services $121 million. the mortgage and consumer loan technology firm settled with 46 states attorney generals. the agreement prohibits lps from robo-signing and requires a review of all documents it executed between 2008 and 2010. customers going loco for taco bell for doritos taco.
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david: defense spending plunged 22% in the fourth quarter of 2012. this helps to explain why the economy shrank in the last quarter and our next guest says the effective cuts this quarter will be even worse. joining me now is todd harrison. he is defense analyst at the center for strategic and budgetary assessments. todd, good to see you again. thanks for coming in. tell our viewers exactly what we're talking about here. there is a huge industry, $300 billion a year. defense spending as a percent of gdp in 2012 was 4.6% but look at this. in 2015 it will drop to 3.1%. huge drop. so this is one reason why we
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saw the drop in the gdp last quarter. but specifically let's get much more detailed. what and who are being cut here? >> well, the reason for that drop in defense spending is primarily because of the wars in iraq and afghanistan winding down. so we're seeing, we had been spending up to $160 billion a year on the two wars combined. that has come down already to just $85 billion this year. so we're going to see that continue to decline over the next couple years. eventually the war funding will be completely gun. that is a lot of what we're seeing. david: let me ex-trap lot -- ex-trap owe late who is being hurt. i would expect a lot of small contractors. food service companies that provide the mre's for soldiers, that sort of company is being hurt particularly bad right now, right? >> right. it is the small companies not as diversified. they may have only have a handful of contracts, when the contracts expire it could devastate their business. also the service sector.
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dod contracts for a lot of different types of services of the not just for food service but security services for people to mow the grass, you name it. do systems engineering, things like that. they will be hurt as well in this downturn. david: talk about a specific, boeing. boeing had $68 billion in revenue last year. about half of that was from defense contracts. how will boeing be affected by this? >> i think boeing and the other major prime contractors are in a little bit better of a position. they have a strong backlog of products that they have already, that the government has already obligated funding to buy. they have got a lot of different product lines. they will continue to produce on those product lines and dod will continue to buy them. that's part of a lot of is funded out of the base defense budget. david: let me stop you there, todd, for a second. take one project, the f-35. this is the latest version of the stealth fighter. these planes are not cheap.
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they're about 100 million each. i think $103 million each. the pentagon is expected to buy 2440 of them. you say they will continue to buy them even with the cuts? >> they will continue to buy them. that is the current plan. the real risk to programs like f-35 is sequestration. if sequestration goes into effect on march 1st, every program project activity within the department has to be cut by the same percentage. they have to be cut by 9%. so the joint strike fighter budget for the current fiscal year will be cut by 9%. they're currently planning to buy 29 of those jets this year. that will have to come back. they will only afford 26, maybe even fewer. david: fort worth, texas where a lot of these planes are made. they have already taken steps, the town of fort worth, to try to diversify. to try to bring in other companies by giving them tax breaks, et cetera. what about a company like lockheed though? which is, while boeing has 50% of its contracts defense
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contracts, lockheed has almost all of them defense contracts. they have got to take a hit from this? >> oh, they absolutely will. but the buffer that they have is the backlog of orders that they already have in the pipeline. money that is already been obligated by the department of defense, when they have written a contract, signed it, and obligated that money for to buy something, that's not going to be affected by sequestration or the budget drawdown we're talking about. so lockheed will continue to be able to work through that backlog and build the systems that have already been contracted by dod. david: finally we have to focus on this one point. you say this quarter will be worse than the last quarter in terms of defense cuts and that affect on the gdp, right? >> right. so we'll see continued drawdown because of the withdrawal from afghanistan. on top of that, dod has come out with guidance recently said, hey, we need to get ready for sequestration. looks like this will really happen. they have already ordered all the services to start slowing down spending. they told them to put off
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orders for things like furniture, nonessential travel. start cutting back. they are already planning to let go temporary employees. we're going to see another hit in this quarter. david: fasten your seatbelt, we're in for a bumpy ride. todd, good to see you again. please come back. >> good to be back. david: liz. liz: ads for eight car brand will be shown during the super bowl. up next, dennis kneale will show us which one is poised to score big. the amazing kreskin is here with the his super bowl prediction. you have to hear what the mentalist is saying. ♪ . ins. i didn't see them comin. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes
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david: mercedes-benz has a super bowl surprise this sunday. a new ad for a car that won't even hit the market until fall. the new cla, one the first mercedes sedans priced at less than $30,000. liz: dennis kneale is here with more on mercedes's big pitch. dennis. >> i have a marketing quiz for you. which is the better vehicle for marketing the new cla? the supermodel or the superdome? supermodel, kate upton from the swimsuit cover of "sports illustrated" will grace two mercedes ads running in the super bowl on sunday. one ad has the complicate in a carwash scene. and prudish parents groups are criticizing the ad for
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objectifying a woman who makes a fortune wearing short shorts and a bikini. or is superdome better than the supermodel? turns out the stadium's official name is the mercedes-benz superdome. that will mean millions of dollars in extra exposure for the mercedes brand. still, comma, you know, superdome versus supermodel, the second mercedes features cragggy faced creeppy character actor, willem dafoe being the devil. usher performs a few spins as well. don't know whether the hoopla will sell more sedans. but certainly looks cool. adweek says the stadium name makes mercedes the clear winner in the eight car brands of super bowl. cantor says the stadium name will give them 6 1/2 minutes worth of exposure worth almost five million. if you look the price cbs charging, you're talking $25 million in value for
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mercedes name. david: all i cared about was video. liz: me too. david: as part of that advertisement, mercedes-benz will air 60 second comercial featuring kate upton. quite different from what we're seeing a high end car company. liz: ceo of mercedes-benz usa joins us. the lawn of the brand new car, stay with us for that. now five years ago, on dave's show he successfully predicted the --. david: not me. our next guest. liz: the next guest would successfully predicted that the giants would win 2008 super bowl by three points points. most recently predicted the winner of the 2012 presidential election. david: now the amazing kreskin is back. can he do it again. let's find out. >> i have to have the usual --. david: yes, thank you, thank you. always shakes my arm off. 2012 presidential election got part of it right and part of it wrong. >> one of themost dramatic feelings of my life, predicted one year, four months before the election.
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no one knew who was run for the republican party. and i said i was wrong. i said person they would pick would be paul ryan. turns out he was one they --. david: predicted president would win re-election. tell us about this quickly. 40 seconds. >> most dramatic prediction never done anything like this. i spent 14 1/2 hours. i put together who i believe will win the super bowl. there, i'm absolutely certain. but i have always put the score of both teams. liz: oh. >> want you to hold this. david: this is for me. i hold this. open it after the super bowl. >> we'll do it on the air because when you see, you both have copies of the prediction in different way. but the one thing is obvious. god forbid i ever hinted who was going to win or the score because with this is the most gambled sport. people would spend thousands. david: hermetically sealed. we have to go, kreskin. you will be back after the super bowl. liz: monday. we'll open it. yundueh monorkomna is with melissa francis is next
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