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tv   FOX Business After the Bell  FOX Business  April 2, 2013 4:00pm-5:00pm EDT

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all to the downside. a day where we had up arrows. liz: let's savor the bells. the last couple of seconds. everybody 1570. the record again. these numbers still love. you guys look like we have broken another. david: small and midsize for the last couple of days. all the others are in the green. the good news. if you were holding on, you're in trouble. a big sell-off, selling at the lowest level in nearly four weeks losing $25. the close of 1575 an ounce. liz: the steel sector not so shiny. down the data out of china and iran the u.s. mark -- sparking worries about the man from two top consumers of steel. u.s. steel in a decline hitting
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a 52 week low and the rest of looking very healthy. david: this is the second state that they have good news. yesterday it was booming. today the stock to close higher for a second day. it was up 2%. it has come down a little bit of of its size but it is still up and expected to make an announcement and hold a conference call. this a very important news is coming up in this next hour, so you want to stay tuned for fox business. "after the bell" starts right now. ♪ liz: and as soon as the news comes up, we will get it to you. the stock has been shunned by small and large investors. getting bruised to the court. how can it get back on track? a top analyst has advice for the big man at the top. tim coke. david: let's toby is listening. also, some say state pension
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funds are acting like the banking industry pre crisis. risky behavior, unsustainable obligations, but there's one state that does not hold true to that, north carolina. three aaa ratings, and they are 96 percent funded. how are they doing it? north carolina state treasurer tony is in an exclusive coming right up. ♪ david: before we will tell you what drove the markets, stocks rebounding, boosted by strong u.s. economic data and gains in health care providers which is really what drove the market. the dow and s&p closing a new all-time highs as all the major indices and in -- ended higher. health care and consumer staples. materials and energy lag debate. copper falling for the third session in a row. record unemployment in europe and signs of slowing growth in china adding to concerns that demand will begin. declining to a 7-month low closing at $3.36 per pound.
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new orders for factory goods rising sharply in february climbing 3% on the surge in demand for aircraft. the commerce to barbara reporting orders and posted its biggest gain in five months. liz: i'm looking at the s&p 500, and it does appear to be a record wind. you are sitting at the pit of the cme. we have bryan he says the market may be due for a pullback record after record today notwithstanding. but calling for another 5-10% gains. first, let's go to tim. these records, initially it is a great deal, but then it ceased to excel at the markets and we need more energy behind each brigade. >> it has been a consistent grind. pullbacks have been short and shallow, but it is of fanfare that goes along with record highs and just as not fair. in a real inflation adjusted basis we are not there, but i think it has to do with the falloff, drop-off in trading
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volume that we have seen not just this year, but over the past several years. david: what would validate another bowlegs in this market, real shot up a thousand points on the dow? >> i think what you're going to see from the earnings standpoint , i move from the boring health care and staples and see cyclicals and technology take the lead a little bit. also, we're coming into the second quarter. assuming there is no surprise across the pond and we don't get too hot or cold, it looks like we can to keep chugging along because there's nowhere else to go. liz: maybe we got cypress early is the bad piece of european news. maybe we have a gun for that. what would be the impetus behind a shift from healthcare technologies? i mean, is there a new driver out there that you have identified? >> the technology sector as a
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whole has been held back by apple which is amazing. the whole market has come forward. which are going to have test save earnings because there have been concerns about margins and a lot of downgrades. we will need to see that, especially as capital expenditures pick up. that will be one of the impetus is that we will need to see. >> stay there. to a chicken in a few minutes to see how the futures close because we could maybe get these from the indication open yet a new record. we will see. david: let's bring in our market panel. wells fargo managing director. capital's founding partner and chairman. you say in your notes that you are cautiously optimistic. yet then you go on to say that we could see a 10% rise before the end of the year from where we are no. it is down 16,000 cautiously optimistic? that sounds almost wildly optimistic to me. >> i have been in this business
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for 34 years, and when i started the dow was in about 700, so that is at 20-fold move. about 34 years. over the next 34 years is there a possibility the see that again? there might be. in the near term, i think so. liz: do you agree? to look at the optimistic predictions. reno did very well in the run-up. i am really inclined to listen to that. what do you say? >> first and foremost, let's just take into account in adelle is the fact that this is been an awesome first quarter. arguably a year's worth of gains telescoped into a three month temporary. that being said, what is interesting about the rally is that it was predominantly an american story in the have not seen the center of action in global markets for commodity markets. other risk assets of the rally participated. upper of some opportunities should be seeking to airing upon
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the front. by and large for many valuation perspective stocks are not very expensive and the historical perspective, but to that end we have raised the price target to 25, some maybe not as optimistic as my colleague on the other side, but from our standpoint, we do think that cyclicals, the global recovery story is intact, but are willing to adelle is the fact we have moved pretty far pretty fast. given that, should we see some profit-taking stemming from some bad news overseas. it is take your pick on the political table rattling from right now. any of these to be catalysts in the near term, but we would look at those as buy-side opportunities. david: talk to your track record. you do have a terrific track record. one of the stocks that you picked and all of your stocks were winners, the way, the sec
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is up 8% since you were year in february, but you are sticking with it and think it is still a buy right now. why? >> a play on the transaction business. we like the consumer led recovery of the u.s. economy in the global economy play. these are some interesting things that we don't really know about. for example, some of the emerging come -- countries in africa the traditional banking system will be bypassed a slight it bypassed traditional airlines and the phone business. visa is well established to be the provider of many emerging markets. currency will be radically different. liz: that global picture. the hot spots that you're looking at on the globe where you saved once that area.
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in many ways americans are very ethnocentric in their approach to invest and tendency to buy things that we know. when you look at where the story is, the clearly developed markets are emerging. >> even to appoint some of these frontier markets. the larger perspective is like the emerging markets. looking at these bases, but global growth story is intact the bigger "story is that you have investor portfolios, particularly as a look over the next ten, 5920 years, my bet is you will see more allocations to international, because that is
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our gdp is and that is our market cap is, and -- david: real quick. we don't have a lot of time, we have been talking about offenses you guys came on. gold is way down, another $25 off the price. it may go down further, but would you buy a little gold now as a defense on the desk? >> i think that commodity allocations does make sense. reelected the precious metals as part of the allocation. and of the competitive valuations other going on in currency markets are no. that does war and some opportunity. looking at the commodity space, it has been an under loved area. liz: we will have you both back. thank you so much. call that a metal melts down. we need to continue talking about this. for its gold.
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silver in a bear market. copperas seven month low. is is the start of a commodity crumble? he lives and breathes metals. he will tell us what is really going on. david: the plays both sides, just looking for a good deal. also, sheryl crow, george foreman, and your wallet, to they have in common? we will tell you straight ahead. ♪ [ indistinct shouting ] ♪
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♪ david: s&p futures closing just up 40 seconds from now. let's head back to ten mulholland at the cme. what does it look like? >> we will continue. the close of a very good note it looks like today. this optimism that of the and plummer report on friday which is also going to be important. we are in the right direction. i cannot say moving higher. the standing the support. liz: we were waiting for the
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gone, and there you see it. thank you. good to see you. car rental companies, we were watching news all day long. a huge boost today. that sent back to nicole. they ended really well. >> reporter: there really did. both of these stocks, both hertz and avis moved to levels we have not seen since 2007, basically 5-5 and a half year companies -- company highs. and a very positive outlook for revenue growth, earnings growth, global demand for the rental, also a benefit from their evolution. put altogether. that in turn spills over. and then the fact that they're seeing business travel. you're seeing both of those names.
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david: even more good news. more and more americans are making there credit card payments on time. delinquencies for the last quarter 2012 were at their lowest level in almost 20 years. liz: bravo to all of you are doing that. peter barnes live from the national mall in washington d.c. was more armlet to be pretty decent numbers. >> reporter: talking to families about how they handle their credit-card bills. it looks like a lot of us may have learned a lesson from the financial crisis. a new report out today, more people are making there credit card payments on time, payments of more than 30 days late fell in the fourth quarter of last year to the lowest level since 1994 when george foreman was the world heavyweight champion in cheryl crowe had the top-selling record album, so now we're going to up grow a little bit about
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these numbers. about two and a half percent of all accounts were delinquent in the fourth quarter for credit cards. continuing a trend that began in 2009 during the financial crisis and will will of the 15-year average of about 4% delinquency. take a listen. >> the fourth quarter last year was a fork to estranged order ie sense that a room was worried about the fiscal cliff and what that meant that led to people being more cautious, making sure they have a financial buffer. >> of family here to a talk with right now about how they pay their credit card bills. up from atlanta with her daughter and her brother. sister-in-law. their family. you said that you are making sure that you make all of your monthly payments for your credit card bills on time. why? >> that's correct. the interest-rate killing of right now. the fees that banks are
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charging. it keeps you from having to pay a lot of fees. it keeps you honest so you don't get into trouble later. >> but you are worried about the economy and you do worry about the for the future. >> definitely so. the future, you don't know what happened with the economy so you want to make sure your credit cards are paid on time just in case you need to use the letter on. >> are playing it safe. thank you for your comments. he will not get our credit cards out to buy it little aliyah, she will be two years old on may 10th, and we all want to chip in and get her a great birthday present. though we? liz: she had that gave ramsey theory, live within your means. good, good comments. liz: thanks. it even announcements a brand new products are not enough to give stock a boost today. i guess that does not work so well. why have avesta's lost so much
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confidence? what can a company do to get back on track again? up next, the top panel is weighing in on what he would tell ceo steve kerr to do right now. david: local governments are facing bankruptcy as pension funds go bust. north carolina is very different. their pension program stands out as an exception. the aaa rating from all three rating agencies. how did they do with? coming up, north carolina straight -- state treasurer is here to tell us exactly how it is done. folks in stockton, listen up. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone
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♪ liz: that bp gulf oil spill is not yet closed in the history books. the trial was in today centered on not following advice of halliburton employees testified he did not believe that bp employees forest near safety when they did not follow its recommendations. he never saw our reason to call a temporary halt to the project that there were digging under see for before the blow up but did say, bp had the ultimate responsibility for deciding how the cement job would be performed. the trial has now entered its sixth weekend bp will present -- begin presenting its defense once halberd rests its case. liz: -- david: it has been on the defensive this week first apologizing to chinese customers
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in an enduring a downgrade from volt which ruled from its conviction list. three weeks before second quarter earnings are released. what must apple do to remain competitive? liz: joining us now, jmb securities senior analyst. i mean, it did so well over the past couple of years. you look at it and say, okay. people woke up and they are not that excited about the company anymore. to their return to the glory days of the past three years? how did they do it, more board and the? >> it is not evident that there will. i think that this round is going to sam simon, very clearly. they created a lot of buzz around the samsung's galaxy as for. they stole a page from the apple playbook in doing so, but i do think that there are avenues around the samsung galaxy s4 or. for apple to get back on an earnings growth curve. obvious gaps in the product lineup, and it really is all about the phones.
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we would get a new iphone five as this summer. more importantly we need to see more economic iphone model. we need to see a larger screen the iphone for some of those markets where screen sizes do matter. david: the momentum is gone from apple. they used to always have the momentum going in their favor. when they came out with an announcement about a new phone, not even showing it, but now announcing it, there would usually get a bump in the stock. now we sell the stock was up about 2%. they came out with that of about their new iphone in the stock went down in price. the momentum is all against the company. why? >> you rarely see it happen. momentum always breaks in high a growth stories. that does not mean there is not inherently value left in the stock. at a certain price level with a certain dividend yield and with
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certain forward growth prospects apple is down. i am not trying to say it is out. i think that they need to rekindle excitement around their product line up this year. it is pivotal, and i think going after the chinese market is very pivotal. liz: apple tv. do you know anything about that? when it is coming out, what it will apply? >> the difficult for apple is that it has to get hollywood of board. hollywood, i think, has a lot more to come at an apple with than the record a recording industry did. so i do think it will be a different story than the very rampant success it enjoyed with itunes when that came out, but i think there will keep chipping away at it. them being a part of the dismal explosion coming in the content come anywhere, anytime, i think that they can be a big beneficiary of that. david: you talk a lobbying against hollywood, and there have been times when that
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happened, but there is all this cash. in one way if they could find a way to get it here without paying too much tax on it, they could buy contents. work with the hollywood studios using some of those moneys to apply lose some of the items they have, some of the constant they have. >> i cannot say i have enough inside relationships in hollywood to know how they can arquette use that balance sheet to their vantage. i do know that hollywood wants to make money. they saw what happens to the recording industry and what happened to some of the margins in the growth that was carved out of it where resell the dismal explosion. i don't think that the content providers aren't eager to repeat that. it is really about negotiation. there is a wonderful distribution network across ipads, across iphones, maybe someday i tv. i do think they have their source and amount of leverage, but it will have to work itself out in the details of who gets what cut. liz: your favorite stock in this
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room right now? >> we are still 100 percent behind qualcomm. it wins it apple comes back, if samsung's stays the leader. a very wonderful the versify play on the smart phone movement in general. as a road map of 64 bit computing next year. also, wonderful play on china. as the best technology to go after the l t market. liz: the company that sells shovels during the gold rush. there you go. david: that is the sale of about apple. you in this segment, there is, by the way. the use ramp. great to see you. appreciate you coming on. liz: you might say, why do i care about stockton, california? is sending a bit of a children of the company as they try to pay the pension. up next, a fox business exclusive. north carolina state treasurer, her words.
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david: well you don't have to live in bankrupt stockton, california, to realize that state pensions are draining the finances of cities and states all over the country, even states that have been relatively responsible are getting crushed by pension promises that are coming due. one of those places is north carolina where a seemingly healthy $78 billion pension fund could be stretched beyond its limits if changes are not made soon to the pension system. so says says north carolina's state treasurer, janet cowell, who joins us in a fox business exclusive. thank you for coming in. appreciate it. now on the surface you in north carolina, you seem to be the ant at this time sis of stockton, california. what have you done right that they have done wrong? >> thanks for having us on. we have had a lot of support from the general assembly. they have funded this plan, 70 out of 71 years. so that makes a huge difference. we also tried to keep up with the investments.
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we've done very well with investment returns over 7.5% over the last 10 years, with little risk. so it has been both an investment story as well as a funding existing plan. david: by the way you say with a little risk. we know fixed income is a real tough thing to get any kind of yield out of these days. how are you doing that? of course pension funds have to be careful because they have a certain amount of fixed income it there. >> no, that is absolutely right. that is our biggest challenge in north carolina. we've always had a very conservative portfolio. we do have a bill in the general assembly to get more investment flexibility. we have to move the money out of fixed income into other asset classes. equities we could obviously do but that so so volatile. sew we're looking other options to max maze returns. david: options of what? a lot of investors are looking for those options as well. >> we've done well in credit
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investing and done some stressed real estate. we found good opportunities. at institutional level with size of our fund we find great opportunities here in the united states and we invest globally, you've done well. you get good returns. you have $78 billion fund this pension program. so why are you worried because you are concerned, are you not? >> you can never rest on your laurels. all the plans need constant attention. so we're running bills to tweak things like pension spiking where folks may ramp up salaries at end of the career which could cost a plan a lot of money. we're looking at introducing a 401(k) system, alongside the fund benefit to add an attraction, recruitment, sort of tool to state government. so, you never can just sit still with these plans. they have to modernize. they have to keep up both on the investment size and the plan design. david: 401(k), most of us in the private sector have 401(k)s of some time, the public sector unions are
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furious at ideas. they hate the idea. there is woman dana cope, whom i sure you know, one. union representatives in your state she says about you and your plan to switch pensions to something like 401(k) you want to be in charge of everything and responsible for nothing. these unions are furious. how are you going to win that battle? >> well, i think that, you know, obviously having a choice and what we learned when we studied our pension it is least friendly to short-term workers. even the new governor, when he was coming on he said a lot of my cabinet secretaries they will not have any options for retirement. we will not make the 10-year vesting. we need options. there will be a lot of support for a 401(k) choice but it is a choice. and folks can stay on the db. all the existing people have contractual rights. this is important for younger workers not 30 years with the state to have other options. david: if it is a choice between something that the state, that the taxpayers fund and something that i
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have to fund, aren't they going to choose the taxpayer funding and bailouts? >> no. i mean i think, again it is going to be how long you stay with the system. we'll make the two pretty much equivalent in terms of the benefit offered. i will say that the north carolina system has been one of the most economical in the country. we have some of the lowest amount percentage of pay in. so we have a very well-funded and, benefits are modest. and it has been a food system for north carolina. >> we have got to go but if changes are not made, the changes that you think are needed could north carolina's pension fund end up like stockton's? >> no, it would never end up like stockton's. we have so many safeguards against that. but these are programs that require money but so then do 401(k)s. if you have a competitive program. so i feel good about the system here but he we are going to make some changes to make sure it stays modern and up-to-date. david: janet cowell, north carolina state
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treasurer, the first female treasurer in the great state of north carolina the thanks for coming in. >> thank you. liz: silver takes it to bear market territory. you saw gold today, right? it settled at the lowest level in nearly four weeks. are the precious metals and base levels heading lower? wait until you see copper. we'll ask our metal expert george girl row next. david: who is moving ahead and who is hitting a speed bump? we'll break down the numbers. log on to"after the bell." click the "like" button if you plan to buy a new car this year. liz: and what kind. >> announcer: you never ow when, but thves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts,
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russian president vladmir putin is ordering russian officials to close all foreign bank accounts they may own within the next three months, or face dismissal. putin signing that decareer all bureaucrats and state employees to divest offshore assets by july 1st deadline. the his chief of staff, says, quote, no one will be above the law. bank of america will pay $655 million to settle a dispute over sale of mortgage-backed securities to credit unions. those mbas later collapsed. national credit union administration announced that settlement. bank of america did not admit any wrongdoing. that's the latest from the fox business network, giving you the power to prosper ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections
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of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. david: time for a quick speed read. five stories in one minute of the first up, eurozone unemployment hitting a new record high as the region struggles with its debt crisis. the unemployment rate rose to 12% in february across
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the 17 european union countries. subaru is recalling 200,000 legacy and outback all wheel drive vehicles to fix a brake problem. the recall affecting from the 2005 to through 2009 model years. nestle is spending 16 million bucks on a copy center in china. they are spending in china to boost the consumption of the beverage in the world's most populous country. global tv shipments declined for the first time in seven years. shipments fell 6.73% according to a report by ishs supply. jay-z is launching a sports agency, roc nation's sports. the rapper's company announced it signed yankee all-star second baseman robinson cano as he heads for free agency this fall. that is today's speed read. liz? liz: robinson changed agents. we'll watch that. come it a commodity, not rumble but crumble.
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gold at a four-week low. silver and corn are in bear markets. copper is at a seven-month low. for good measure let's show aluminum. aluminum at four-month lows. what is going on? are these buying opportunities? corn is kind of an outlyer when we talk to george giro, vice president of rbc capital market global futures looking very closely at metals as well. >> yes. i'm a precious metal strategist at rbc. liz: what's going on? >> what is going on? well, different things in all different commodities. first, let's take gold. what went on in gold, we have lost about, oh, i would say 20% of our open interest since last august. liz: now explain to people what open interest is. this is something that george loves to watch. >> these are people that are long and short together. it shows you the level of business that you're doing of unfulfilled contracts. and so we were in august up to about 492,000 and as of
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last night we have at 407,000. and so we have lost quite a bit of what we call open interest. liz: action. >> which means that when the prices went up, people were only buying back previously sold positions. we were not getting new business. and when the market went down, we were not getting short sellers but we were getting people who liquidated their positions. all of this means, that we now have less people owning futures contracts of gold, which, tells me that also, less people are in the etfs, exchange traded funds for gold. liz: what should that tell a smart investor? record high of gold was 1888. we're down 15% from record high. down 5% year-over-year. a buying opportunity now? >> it could be a buying opportunity later on but for
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right right now we're in weak terror. you had three banks all at once in the last couple weeks lower expectations on the price of gold for investors however gold is misunderstood. it is not a haven for ups and downs in the stock market but it's a haven for protecting purchasing power. now the fed told us there is no inflation and we've had very slow economic recovery. also, showing no inflation. liz: let me get to silver. silver in bear market territory. >> yes. liz: wow! look at the numbers about. let me say this. down four straight sessions. >> yes. liz: largest one day decline today, dollar decline and down 14% from the 2013 high. >> silver is the bridge between investment demand and industrial demand. half of silver is industrial metal which of course is weak. today we just heard right here that the eurozone had very low employment. their unemployment was up. and because unemployment is up it's anti-inflationary.
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liz: right. >> so the investment demand for silver was lower. now the, that's the industrial part of also was lower. not just the investment demand. so because we have a very strong stock market, that's due to very cheap money, in two continents, we don't have the investment demand need. liz: copper, i need one line on copper and then i'm going to ask you. >> okay. liz: get your mind at work here. metal you would be buying right now. before we get that, talk about copper here. >> yes. liz: copper is very, very industrial. >> totally industrial. 40 pounds of copper in a car. 400 pounds in the average home. liz: down 14% year-over-year. >> yes. but --. liz: higher from here? >> higher from here but not yet. liz: same with gold. >> same with gold. liz: what metal would you be first to buy when you start to see open interest pick up in all of these? >> ah but there is one more
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thing we forgot. today we heard from a fed person that --. liz: lockhart. >> there might be an end to the punchbowl and if there is an end to the punchbowl and the fed is not going to continue to stimulate, say a year from now, the market is already discounting that. liz: okay. >> that means higher interest rates and higher interest rates make dollar-denominated commodities like copper expensive. liz: right. >> and gold. expensive. and silver. expensive. i would buy copper going further. liz: buying copper. that is what wanted to hear. >> buying copper. i believe there will be economic recovery in about a year or so. and you will see the demand for copper and even from china where there has been less demand now. liz: all right. george, great to see you. he said it. copper. seven-month low here. >> huge open interest in copper. 30,000 more than silver. liz: i'm going to read this full title. george gero, rbc capital
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markets, precious metal strategist and vice president of global futures. >> thank you. david: that is catchy. might make you more money. >> dr. copper. david: dr. copper. this is story we had to tell you about, particularly we were talking about pensions, aspirin use could increase pension liabilities by as much as 100 billion. that is billion with a b, dollars. that because it would extend life spans according to a report by risk management solutions. they actually work these things into pension costs. pension costs for men in the u.k. could rise almost 1% within 20 years more people began taking aspirin daily. daily doses of aspirin are said to reduce the chances of developing or dying from cancer earlier than previously thought. so, who would have known, liz. >> take my baby aspirin every day. david: george will live to be 120. >> every morning. liz: thank you.
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it means be 120. a little reminiscent of "footloose" except it is not a band. remember the music band in foot loose? it is attack. one city is cutting loose as it protest as new dance tax? that's right, a dance tax. david: all we need. auto sales still going full steam ahead with companies reporting the highest monthly sales figures in five years. jeff flock has that story. jeff, go ahead. >> american automakers are dancing, david. along what used to be auto row in the south suburbs of chicago. they're all closed except for one. bill kay ford. only the strong survive. we'll tell you who the strong ones were in march. march madness in the auto industry. stay tuned. ♪ . welcome to the new new york state.
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liz: so march was such a strong month for auto sales with many of the big names in the industry posting their best sales numbers since all the way back in 2007. david: a lot of trucks sold. our jeff flock joining us live from a ford dealership where they have a lot of trucks in illinois to break down the numbers. jeff? >> we always like to do the good and the bad. the good?
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i talked to liz earlier, these fusions, very, very hot. that one through the glass, ford flex. they can't give that one away. what were surprises in march? what was the madness in march. look at my list of surprises. lincoln, it can not get out of its own way, down 22% despite big ad campaign, a lot of attention, sorry. the fusion sold 30,000 in march. that is, starting to approach camry territory. can you believe it? jeep was down 13% even though jeep has gotten a let of buzz lately. cadillac was up 49%. a lot of rich people buying atses and xtses. it was a good month for american automakers. someone got the buy american memo. gm up 6.4% for the month. that was a little less than expected. ford was up 5.7%. chrysler up 5%. what about the foreign automakers? not so much. mazda down 4%.
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hyundai, down 2% and toyota and nissan, unchanged, flat in the for the month. this is reflected in the stock prices. u.s. automaker stocks are worth looking at. gm and ford both closed up today. there is lot more room to run on the stocks. foreign automaker stocks, specifically japanese, toyotas, hondas, nissans, closed down today. i'll tell you, the u.s. auto industry, experiencing a nice renaissance. i like it. liz: so do the auto workers. and certainly the ceo's. sergio marchionne who took the chance. david: tesla has news by the way to report. we don't want to let you wait anymore on that. tesla is announcing its first leasing program. we heard a lot about announcements that they were going to make in this hour. that is the first of them. liz: right, it is going to be in conjunction. they're calling it revolutionary leasing product with wells fargo and u.s. bancorp. they're saying by the way, they came out with good numbers for the model s sedan.
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they say they are pegging their model s resale value to the mercedes s-class. they have a deal with mercedes. it is very interesting to watch the stock. it is slightly higher in both the bid and the ask from the closing bell. more to come in just a minute. david: a lot of people were wondering whether folks out there, the consumers would pony up all that money with the model s. if you have a leasing program maybe you try it out for a year, maybe two years. this is a huge move. actually not an expected move. this is one of the things that elon musk is bragging about. we'll see whether the stock price goes up further even as a result. it hasn't moved much of a hours after this result. liz: we'll have elon musk tomorrow on "countdown to the closing bell". david: he will be watching. "money" with melissa francis is next we gave people a sticker and had them show us. we learned a lot of us have known seone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age.
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