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tv   Markets Now  FOX Business  April 26, 2013 1:00pm-3:01pm EDT

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take to go back to normal. lori: hospital readmission, there's an air one for that. the ceo of health recovery solutions joins us. melissa: despite the problems carnival has been having this year the cruise ship industry is seeing big returns. lori: the most expensive cup of coffee ever. tim cook, more than doubling overnight. how much it will set you back to have that cup of coffee with him cook this hour and get you updated on the markets as we do every 15 minutes, our first trip to the stock exchange this hour to check in with nicole petallides, stopped a little changed right now all on that softer than expected d e p raise. >> we have gone back and forth mostly red but look at the dow certainly giving it ago today. up in positive territory, you see the dow about four points
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and that is a fraction sitting at 14,704, a ticketing nasdaq down 1/2% and that is the worst of the three and the s&p 500 down 1/3% and we saw sentiment improving but the key is the gdp number. you mentioned at the top of the show. really it just shows it came in less than expected, 2.5% and that just shows the economy, it is growing but at an extremely slow pace and a huge disappointment to those waiting on. there's a nice one week charged with the two indices we followed so closely and you can see you do have the s&p 500 outpacing the dow but both are winners. the s&p is up five days in a row. we will see whether or not today -- doesn't appear that way. hasn't been in the green yet. melissa: after passing a bill that would put an end to the furloughs, the air-traffic controllers, to head to
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president obama's desk, rich edson has the latest developments. >> it appears there won't be any more flight delays at least flight delays because of furloughs but there will still be a lot of flight delays. it took the senate a few hours last night to negotiate and figure this out and pass it and basically takes money from elsewhere in the department of transportation budget and finds what is needed to make sure there are no more furloughs. the house passed it a short while ago and it is on its way to the president's does anyone know the issue is all for the rest of the fiscal year democrats and republicans continue to fight about it. >> some of our airports have far more air traffic controllers than we need. air-traffic control, the last ten years is down 27% and we still have close to 15,000 air-traffic controllers. this legislation does provide a fig leaf for the administration who says they don't have the
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authority. they have the authority and ability to move people and resources around. >> the president believes it is good news to eliminate this problem but as i said, he believes, this is a band-aid covering a massive wound to the economy. >> air-traffic control our problems all for the rest of the fiscal year and will do it again oct. first. melissa: a government investigation following the arrest of michael steinberg who worked at capital management until steinberg is the most senior official to be charged but now fox business senior correspondent charlie gasparino has exclusive details about the firm's dealings wwth the government. >> the video looks like he is coming out of a nightclub. i don't know what it is. looks like he is with his entourage.
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we should point out that michael steinberg is the highest ranking official to be charged in this probe and i will tell you the way it is looking, not saying this is going to happen but he may be the last one. as we all know the ultimate target in this case is steve cohen and the government spends a lot of time looking at his activities as they relate to mr. steinberg and the former sec official portfolio manager who had a conversation, investigators think it is suspicious right before he sold drug stocks which we know it is alleged he sold those drug stocks based on that information. interesting tidbit coming out of this investigation. investigators -- we know they did an extensive investigation electronic communications. they looked at his e-mails, like something that has been described to me by investigators as a term of art among rock
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solid the dams. you know the term. but anyway, that is what they call inside the fbi and the sec, look that is ibms. i'm getting this from inside the capitol, this is pretty accurate because if it wasn't true the government would have charged steve, and by now. they have thousands, relatively little on the electronic communications. if you don't have steinberg cooperating, you don't have that, you wonder he would be doing it by now, you never know and you don't have steve:involved in electronic communications that are suspicious, they don't have much of a case. they don't have a case. fa am not saying he has done anything wrong but people say things when confronted with ten years in jail or whatever. this case could be going away.
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and it is. what is the end getting? here's where i get into my belief. i got this a little bit yesterday. i believe me personally there will be another settlement and there will be some sort of resolution with the government that ends this. >> how can be a settlement if they have no case? >> it won't just go away. they think he did something wrong, there's no doubt. they're running against the statute of limitations. a lot of that activity is 32008 and before. he built from 2002 when it started from 1990 when it started to 2002 is when amassed $14 billion. it has been stable since then. net worth was built during that time so there's a feeling among the government that his network was built with what they believe, people in the government believe has not been
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trading that violated the law. they never charged, we should point out, you have to charge people, lots of collaborators about what goes on. it is not just him involved, where the fund was running a way where people did insider-trading. there is that feeling. the other side of the fence is this is america and you either have the evidence or you go away. lori: any sense when this will come to head? >> some time this summer. >> thanks so much. lori: gross domestic product through the first quarter of the year coming in weaker than expected. analysts think it may get worse from here after a month of so-called economic bust what can we expect from the economy through the rest of the year? joining these economists john, thanks for joining us on the
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floor of the stock exchange. what is the main reason we got softer than expected report today? >> horrible performance by government spending deeper than expected decline, largely because of a surprisingly deep contraction by defense spending. lori: we saw that in the fourth quarter before the sequestration defense cuts went into effect. so is extended into the first quarter. >> i would add state and local government spending contracted yet again. the government portion of the u.s. economy is shrinking and as a result i think that will prevent the economy from growing by much more than 2% annually in 2013. lori: why isn't the stock market rally mode? the fed has all kinds of room to continue with its easy monetary policy? >> there's no inflation, the price index that the fed follows
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very closely is up by only 1.2%. the fed target is 2%. what may be worrying the equity market is the soft showing by business investment spending that grew by 10% annualized in the fourth quarter and it slowed to 2% annualized basis first quarter of this year. businesses are pulling back on capital spending, could be they will begin to hire with greater caution? that would be very bad news for consumers spending and the overall economy. lori: you hit on my next question. i you concerned about the april jobs report? march with a bust, only 80,000 added. >> we're looking for 150,000 new jobs but that is not exactly spectacular. if we have a payroll come in that something not much more than 100,000 new jobs that could weigh on market sentiment and i would add one of the reasons
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capital spending flared so poorly and you might be concerned about employment growth is because we are looking at very meager business sales growth. for those s&p 500 companies reporting so far sales are only a by 1/2% from a year ago, that is 240 companies. lori: consumer spending in this gdp, car sales were satisfactory, energy sales had a pretty brutal winter in the northeast of people were spending more to heat their homes. what do you think of that component? >> you had 3% real growth in the previous quarter but given a very slow growth of employment income, real consumer spending will not rise by much more than 2% annually. we don't want to forget, this is very important, because of sluggish wage growth, because of sub-par employment growth, employment income is growing by less than 3.5%, income before
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taxes. lori: the full economic growth forecast is 2.4%. to the data consistent with that? >> they're looking at year over year growth rate for the fourth quarter. i hope we end up with year-to-year growth of 2.4% in the fourth quarter but the fed also added in the latest policy statement that the risks facing the u.s. economy on the downside, make no mistake about it, the latest report on gdp warned that we all more likely to run into sub-par slower than expected growth than stronger than anticipated showing by 2013. lori: i have to tap in to your expertise. any to understand how in the second quarter the government will reformulate, recalculate how they come up with this. they will include research -- r&d and entertainment and the ripple effect, tell me more
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about this. >> stronger gdp growth as a resull, haven't fully accounted for the dealer activities. they tend to be faster growing activities so we may see gdp over time grow somewhat more rapidly. that is not going to change the reality that businesses face every day, and the reality is sales growth of less than 1%. you can't expect businesses to step up and hire a lot more workers, significantly increase capital spending when sales are barely growing. especially when the public sector is shrinking. lori: will it be more effective reflection of the economy? >> more comprehensive. lori: have a great weekend. thank you. melissa: a good week for gold bugs. we are in the trading pits to see if there are still bargains to be had the we have seen a lot of movement in european markets continuing the downdraft. lori: want to show you shares of j.c. penney. they're up at the $1.47, surging
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legendary investor and we will tell you about that, stick around. melissa: revolving board room door, a leading departure it, ceo marissa meyer worked to turn the company around. lori: once again show you metals as we head to break. silver is down, copper is unchanged. we are back in a moment. 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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who's lived well to their 90s. and that's great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy l of these years. ♪
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lori: we are covering all the market action as the week wraps up. nicole petallides is on the floor of the stock exchange and phil flynn of price futures tracking commodities. begin with you, you are watching numbers. nicole: we have a mixed market, taking a look at two needs we know well. let's start off with facebook. this is a $30 idea last year called over the place below the $20 mark but here it is today gaining 3.4%. it was upgraded to a strong buy
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over at raymond james and everybody on wall street talking about that. facebook is having a great day, it is unbelievable when you get a strong buy reading and that is a vote of confidence so you can 33.4%. and keeping a close eye on amazon, amazon shares have been weighing on the tech center, down 7.1/three%. very serious growth pertaining to amazon after they can out with the quarterly numbers. the current quarter was a disappointment so that contributes to this weakness. melissa: in commodities it has been a big week for crude, prices of 4% of their cutting those gains. phil flynn joins us. a sudden drop in prices earlier this session but coming back. phil: we had big news after the close, markets for pricing and the negative gdp. oil was down a little bit, gold
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up with the anticipation of the possibility of more easing from the united states and everything was very quiet. then manning, at the european stock market, everything fell apart. gold turned lower. we were down $8, down $34 on silver, quite a turn of the events in a short period of time. the word on the floor is in europe, somebody got a big merge, small fund, could be a big trader who has to execute those trades by the close of the day, he was forced out of the market. that really changed the momentum especially on the precious metal and played into the negative momentum of oil and the rest of the complex. melissa: that was true of gold and silver as well as on how did traders feel about that? is it was one person acting market is an opportunity to get in if you feel confident. >> absolutely. the other thing is due on friday
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or sunday night and is this indicative of more calls to come. let's face it. the volatility the last couple weeks has been off the map with gold and silver and the only reason you might not want to just jump back in is you are afraid there may be more out there. other than that, this is just a marketing situation, a 1 off, and, should be buying with both hands. melissa: thanks so much. start of stopping the revolving hospital door and cashing in on the president's of care overhaul, the ceo joins us on how his company's tablet for patients is helping out. melissa: more companies taking to social media to share market-moving information. callie will impact your bottom line coming up next. look how the dollars fairing as we head out to break, weaker across the board against all currencies. we will be right back. ♪
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>> this is your fox news minute. george jones is gone. the unforgettable voice of country music has left us. with the incredible memories of his on 150 albums and number one hits in five decades. his marriage to tammy made them a power putt couple in the industry but the small and was often leading dorr to cancel concerts'. bad behavior earned him the nickname no show jones but his music made him great. dead at 81 friday. he was hospitalized since the late teens with a fever and regular blood pressure. was a red line or not? after learning what house released a letter to congressional members saying serious government used chemical weapons on its own people in their civil war word the white house is considering what to do about it and if military action is not the only option. we reported the white house -- apparently not necessarily so.
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boston bomber suspect the dzhokar tsarnaev move from boston area hospital to federal prison medical facility in massachusetts. those are your news headline on the fox business network. it is fabulous friday. lori: i side you earlier. in. beans. have a good one. lori: the bogus terror tweet that rocked the market hasn't stopped a growing number of companies from using social media to share market-moving information. but it adds to investor confusion. here is elizabeth macdonald with the bottom line. liz: it feels great and sound great. more information on social media sites. but one analyst said it is becoming like the wild west of disclosure. look what is going on with investor confusion over companies using facebook and twitter and even youtube.
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gee, 20 different facebook twitter feeds, netflix, zynga as different feeds. the issue is transparency is great but the bottom line is the essence the filings, the other problem that needs to be pointed out is the fear that the company could disclose information on one of these fees and not another. that is why you have to always visit the web site but there's another wrinkle to this. with the banks losing an up and letting their workers use social media on the job. bank of america, citigroup, morgan stanley, the fear is there could be inadvertant disclosure of important information on bank workers' social media sites. now the banks need to do more to crack down and make sure they're doing it right and not disclosing important information. lori: a worker at the bit is using facebook --
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liz: you never know. look what happened with read hastings. is closed in a personal web page or facebook page at 1 billion hours on netflix and didn't disclose it anywhere else and that led to the sec saying there's nothing against him but saying this new rule will be in effect, companies can use social media to disclose information so this -- you can go to the company's web page to find information. i'm just saying transparency is agreed thing that you have to watch it because it could be disclosed one place and not another. so always use the fcc's filings on the government web site. melissa: and interesting pictures, you will be ready to go. getting back to work in the control tower. melissa: a plan to stop the f a furloughs as lawmakers end up on a weeklong break. former department of
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transportation inspector general on why this will come back to hurt the f a a. lori: what does george soros think? j.c. penney getting a nice boost. look at who is up and down on the dollar right now are as we head to break. hewlett-packard leading the way. we will be right back.
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[ male announcer ] e pill eachmorning. 24 hours. zero heartbur lori: half past. let's update you on the markets. trip back down to the floor of the new york stock exchange to check in with nicole petallides. we're right smack dab in the middle of earnings season. i know chevron had its report today. >> that's right, lori. we'll look at chevron to see how exactly it is trading as we speak. it is has a gain of 1.1% for
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chevron. this dow component. couple notes pertaining to the numbers that came out for the latest quarter. they saw their profit drop, first-quarter earnings actually dropped 4 1/2%. they kid have moderating oil prices. oil is sitting at 92.88. we have seen that and that led to lower revenues. so margins and revenue did decline for chevron but can't write off chevron. obviously a big, big player in the industry. it is a winner year-to-date. it is up over 10% for the year 2013 for this big dow component and big energy player. back to you. lori: thank you, nicole. melissa: legislation to end record speed. big shocker. white house press secretary was asked about the pace at today's press conference. >> when a bunch of business travelers start bellyaching because of flights delayed because of these furloughs at faa they get one of the fastest pieces of legislation to move through
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washington in recent memory. why doesn't the president take a stand at that. >> you could have thrown in members of congress who need flights home also. melissa: yeah. he could have, that's right. how did all this get done so fast and will it fix the problem? no one better to ask than mary schiavo, former inspector general for the department of transportation. mary, welcome back to the show. this feels like to me one of my kids throws the biggest tantrum doesn't have to clean the room but sadly the taxpayer has to come pick up the mess. api interpreting it wrong? >> no, that is exactly correct. that is what will happen. rather than wisely redeploy resources from within air traffic control, and remember the duties of air traffic control have fallen 26.4%2002. that is the faa owes own number on the their own website. they will reappropriate and move around money categories from other things in the federal aviation
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administration. you can this was available all along. all you have to do, and i did it myself when i was inspector general. all you do go back to the committee in congress to say we need to reallocate some of the monies you have appropriated to my department but we need to reallocate different functions. if congress aproves you can always do it. you can't do it without their approval. now looks like they're going to have to be taking monies from the trust fund or for grants to airports for infrastructure because those are the only big pots of money at the faa. melissa: yeah. so instead of building longer runways or instead of making whatever repairs they might have made they will use the money to pay air traffic controllers. what was the other solution? what else could they have done? obviously seems like the lines were real to travelers. >> right. melissa: if they're really moving fewer flights like you said, how does all that math work out? what they should have done deploy human resources where they need them. first of all they could fire
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the sleeping controlsers and controllers from new jersey talking about a dead cat while planes crashed over the hudson river collided. they need to manage their resources. there is no reason to deploy their resources in areas where they're not needed. for example we have a air traffic control tower in branson, missouri. branson, missouri has less than one flight per hour. we needed resources in new york, we needed them in atlanta and we needed them in washington, d.c. and chicago. instead they keep people on staff who either aren't measuring up in performance or they keep people on staff in towers not as busy as major towers in the united states. remember, 30 towers in the united states of america handle 70% of the traffic. yet we have over 500. so we need to use our resources where they're needed. and, managed. controllers who are not performing need to go. sleeping controllers, look at that --. melissa: we don't need to pay them. >> exactly. melissa: how long will they get them off the hook for?
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they can only rob peter to pay paul for so long, right? >> it will last depending upon approval from congress you can do this basically, recategory, recategorizing pots of money throughout your budget year. this will take them through to the end of their budge yes -- budget year if need be. another thing about the busy summer travel season what happens there are more people in the planes they're very, very business but most airlines don't bring on additional pilots and additional planes in the summer. there will be a lot more people in the system. shouldn't necessarily mean air traffic controllers are very busy with the exception of places like oshkosh, wisconsin, during the airshow. melissa: in your opinion as somebody inside the industry for so long were they being more dramatic creating lines at airport or were those real? >> well here's a very real statistic. on any given year without any of this snafu, we have between 350,000 and 500,000
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delays over 15 minutes every year. that is exactly 905 flights a day, to 1370 flights per day, which is exactly the delays that we've had. so i think a lot of this is politics as usual. but then, you know the faa headquarters is in washington, d.c.. melissa: right. mary, thanks is much. >> thank you. lori: president obama is preparing for his trip next week to central america, reaching out to business leaders whose companies have a significant presence in the region. the meeting at the white house today, 3:00 p.m. eastern will include hershey ceo john bilbray, proctor & gamble ceo robert mcdonald and ceo of archer daniels midland. the president will discuss opportunities for expanded u.s. commerce in central america and mexico. that will create jobs. meantime jcpenney getting a vote of confidence. billionaire investor george soros bought a 7.9% stake in the struggling retailer. soros is among the top
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jcpenney shareholders along of course bill ackman. that newsriving jey to the top in s&p 500 trading. look at that shares surging 9% to 16.57. revolving door turning again in the yahoo! boardroom. chairman fred amaroso resigning after a year on the job. he is 7th. >> who board member to leave in the last year. he is replaced on interim basis until the company annual meeting in june. yahoo! shares hitting 52-week high perhaps on that news, giving back some of the gain shortly. melissa: a big interview coming up on monday you don't want to miss right here on this show. blackberry ceotores son heinz talks about the companies turnaround plan and sales of the z10. that is monday at 1:00 p.m. eastern time. don't miss it. lori: we won't. riding a wave of negative publicity we're live in the miami with a check on the cruise industry. melissa: bidding for a cup
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of joe with tim cook, a share auction and conversation with apple's chief. lori: see what is going on in interest rate markets. look at treasurys. looks like they are gaining. people are popping into treasurys here today with the stock market little changed. book after this. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade. me. (announcer) scottrade. awarded five-stars from smartmoney magazin if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment
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that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not rlace fasacting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with iriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eyeain, or problems passing urine. her side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. >> i'm cheryl casone with your fox business brief. verizon communications may have a $30 billion hurdle in
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its bid for vodaphone's 45% stake in verizon wireless. according to "the wall street journal" verizon looking to pay $100 billion, versus the 130 billion vodafone is looking for but sources tell the journal that verizon hasn't made a formal offer to vodafone yet. samsung taking a bigger bite out of apple share of cell phone market with android devices. samsung had 33% the market in latest quarter versus apple's 17.3%. teen retailer pacific sunwear of california tripled pay package for the chief executive in two -- 2012. he received. that is the latest from the fox business network, giving you the power to prosper. giving you the power to prosper
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melissa: last night's nfl
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draft was all about solid sacking strength. for the first time since 1970 tackles were the top two overall picks. central michigan, aric fisher, first to the canssy chiefs. texas a&m luke joekkel was taken by jacksonville at number two. no quarterback was selected until buffalo turned to ej manual 16 overall. this left gino smith and manti te'o waiting in the green room. lori: let's get rotisserie leagues going. you and i should be on one team. we should end up winning because two of us we have zero knowledge. despite incidents seems to be smooth sailing for cruise line industry. fox's phil keating is in miami with a checkup on the cruise industry. hey, phil? >> consumer sentiment absolutely on the board a --
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across from the board because of highly publicized cruise ships as hell but not extremely or severely as the cruise industry expected. three are leaving today. they're all departing full. this is the majesties of seas. royal caribbean posted a big first quarter up 62% over last year. carnival cruise lines posting a solid third quarter up $37 million from last year. despite the hosch cruise of carnival triumph in february where 3,000 passengers had to be towed to shore on live television, no power or no toilets for five days. that plus 2012's deadly costa concordia crash in italy. definitely hag a impact for royal caribbean earnings call. looking to the remainder of the year, obvious questions, yes, recent media coverage is frustrating and probably impacted us a bit but no, it has not been a game-changer
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for our brands. however for carnival cruise lines in particular it has some with come severe costs. they are pledging to spend $700 more over the next several years to improve their ships, upgrade them, specifically the engine rooms and backup generators for power and, we'll have to take them for their word for it because the cruise ship industry doesn't have a regulatory body like the faa is to the airlines. lori: what else is the cruise line industry doing to lure passengers? lowering ticket prices? >> that is an enormous way to combat right now the suffering public confidence in the cruise ship safety industry as a whole. right now every cruise line is offering steal of a deals. some for as low as $100 a night, with which is clearly a lot more affordable than most hotels. now is is all partly due to aggressive pricing by the cruise industry and a pr effort to keep cruisers cruising. also combined with the fact that right now we're in between the slow season of
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spring break and summertime. >> for the general cruising public, it is something of a good sign. shows that carnival is trying to take responsibility, but what i think is interesting, for carnival to take responsibility, that is self-imposed responsibility. there is no real oversight of the industry as a whole. >> the cruise industry also luring passengers with state of the art game-changing new ships. one of them features an orb which lets you hover and fly above the ship 300 feet above the water. lawmakers and congress are of rights. seems like cruising passenger public more than willing to climb on board. back to you in new york. lori: we saw that in the live shots. phil keating, thank you so much. melissa: as we do every 15 minutes let's check the markets. john corpina is on the floor of the new york stock exchange. and, john, what are you looking ahead to next week. what will shape the trade? >> that is a great question. there is lot going on next week.
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still in the middle of earnings season. everyone will continue to look at that. look at economic calendar. we have a lot happening there. we'll get a normal slate of economic data out of washington. throw fomc comments and at end. week we'll get unemployment numbers. investors wait for this time of the month. put it together and headlines that move markets up or down that will make interesting week coming into this newmont. melissa: look forward to it. have a great weekend. jonathan corpina. >> you too. lori: one in five medicare patients are readmitted to the hospital within a month. the affordable care act cracking down on hospitals because of it. turns out there is an app for that. we'll introduce you to the ceo of a company called health recovery solutions next. melissa: take a look at some of today's winners and losers on the nasdaq right now as we head out to break. we'll be right back i turned 65 last week.
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melissa:. lori: well, the affordable care act is putting pressure on medical care professionals. others look at it as a business opportunity, including our next guest. he is ceo of health recovery solutions. welcome to you. >> thank you. lori: i've you've basically developed an app for a particular tablet with the goal reducing number of times patients with chronic conditions have to be readmitted to hospitals because the hospitals get penalized by medicare for continuing readmit tanses, correct? >> yes. lori: let you pick it up here. >> under the affordable care act hospitals are penalized for readmissions. they're three diseases they're targeting, heart failure, ammonia and heart attack. there is incredible
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incentive for hospitals to cut on readmissions because they're fined 1% of their medicare billing. lori: that can add up over time. tell me about the app and tablet. you're health care consulting you put your expertise to work there and technology involved as well. >> yes. how our platform works when patients are in the hospital. they get a tablet. that tablet helps them educate about the disease. there is videos on there. quizzes and they learn what a healthy lifestyle is. lori: who is programing it and how individualizize the to the person. >> we have a great ceo, dan, who does that. lori: dan does it, awesome. >> all the data used by patients sent back to the hospital they act on it for patients at high-risk. lori: can the doctor contribute it to as well, put on specific medications and times the person has to be rechecked, et cetera? >> it is all personalized about their medication plan. 2/3 of readmissions have
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something to do patients not understanding their medication. under our platform there is pictures of their medication so they understand. also this information is sent to family members so they're able to check in on them. lori: how well has it been received or not by hospitals? because you understand that hospitals are penalized but they still have getting some payment for hospital admittances even though it less than they perhaps like? >> well the landscape has definitely changed. in the beginning of the year we went around explaining what penalties are but hospitals are definitely seeing it is hitting the books. only way to see it compare this year's medicare payments to last year. they're seeing two million, one million dollar withheld payments. lori: who covers cost of tablet? >> our pricing model is at risk model for the hospital. we're sharing risk, making sure patients are not readmitted with sales. lori: how have you done with sales? how it is being received by patients themselves? >> how it is being received
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by patients is unbelievable. they say it keeps them motivated and organized. sales have been pretty great. we have 10 hospitals to help solve their readmissions problem. lori: interesting. we'll follow up to see how things are going and how it is catching on. thank you so much. >> thank you. lori: jarrett bauer. melissa: coffee talk with apple ceo tim cook, online auction site charity buzz, giving bidders have chance to have cup of joe with the chief at apple's headquarters. you better have your checkbook ready. the high offer gone up to $575,000. that gone up just this hour alone. compare to yesterday the highest bid was 185,000 bucks. lori: people pay millions for warren buffett? melissa: that is a lot for tim cook. speaking of asking questions, we have the ceo of blackberry coming on monday. tweet me, melissaafrancis, tell us what you would ask
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him. we have a lot of questions on the show. coming up tonight on "money," steve forbes, editor-in-chief of forbes media joins me as part of a power money panel discussion. do ceos, receive huge severance if they're fired time and again? we see ceos ousted for poor performance and get millions with them own the way out the door. that is 5:00 p.m. eastern. we'll debate it. lori: if tim cook could shed details considering what is going on with apple. there hasn't been anything new and great on the company. melissa: a lot of people want to hawk him on various products. i know people are trying to sell things to him or have in the past that would be investment trying to get your product before him. lori: that's a great point. because i couldn't figure out for the life of me why you would want to coffee for him. digging into the gdp, economist gus foshay says there is little reason to expect improvement anytime soon. he jones tracy and ash next.
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stick with us
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tracy: welcome back, i'm tracy byrnes. ashley: i'm ashley webster. fast acting and bipartisan, not two words you normally use to describe congress but they are fitting today. the house and senate quickly passing bills to stop faa furloughs causing nationwide flight delays. latest ahead. tracy: keep in mind they're leaving for break next week, so they need to get on planes. new warning signs on the economy, gdp rising only 2 1/2% this quarter. consumer sentiment falling to three-year low. we have pnc senior economist gus foshay here. he will tell us why much of the blame falls squarely on the government. ashley: one possible bright spot. gas prices. they are down more than a quarter of a gallon from a year ago. andy lipow tells us how low they could go by the summer. keep your fingers crossed.
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>> it is top of the hour. stocks are kind of mixed. gold and oil trading lower than expected on that expected gdp report. we have team coverage. nicole petallides on floor of the new york stock exchange. sandra smith still in the pits of the cme. we'll start with nicole at the nyse. >> tracy and ashley, you're absolutely right that economic report pertaining to gdp came in lighter than expected so the growth we saw under what the analysts were hoping for, the economists more notably. with that that really puts a damper on things. had the gdp done better we would see a better picture on wall street. dow jones industrials up 16 points. led by names of hewlett-packard, boeing, merck, chevron which cale came out with their quarterly report. tech-heavy nasdaq down one-third of 1% and s&p. if they close with down arrows today, they snap that winning streak that we saw. want to do some comps and
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look at s&p versus the nasdaq to try just to give you a glimpse how we've done this week. despite the fact you see we're not too far off the unchanged lines it is worth noting that the dow is up over 1%. s&p is up 1.7%. this is for the week. and nasdaq, best of the bunch, up 2.3%. we'll continue to follow a lot of names that come out with bits and pieces of news. we'll get into that throughout this hour. back to you. tracy: thanks, nicole. see you in 15 minutes. ashley: what the markets taketh away they giveth back, don't they? despite being in the red it has been a good week for gold. the yellow mattel is on a track to biggest gain in a year. sandra myth? thedsmith in the pits of cme. sandra. >> this would be the first weekly gain in five. that is the big story here. when we do get positive sentiment, buyers stepping into the gold market it seems pretty short-lived and they give back gains like we did today. we're up more than a percent earlier in the session.
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we're down a few bucks. we're sitting $1460 a troy ounce. not giving back yesterday's spectacular gaiis of $40 on the day with the biggest rally of the year. we're still on pace. this is key, to finish higher for the week. right now gold prices up about 5%. and again, it would be the first weekly gain in five. what is happening here? we're seeing gold used as a safe haven investment that is sort of lost its luster over the past month or so for that specific use. this morning we got weaker-than-expected gdp number. buyers step understood the gold market. weaker u.s. dollar. buyers step into the gold market. month to date, however, still very negative. gold prices still down 8.3%. by the way look at those silver prices as well. silver still a big gainer on the week. there are some strong buying in silver, more so than gold. here is what igt market strategist chris westin said, still there are upside risks in the gold and silver
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market but he says the long-term trend is still negative. he is telling his customers to consider shorting gold at 1503 a troy ounce, guys. we're quite aways from there, if we do get a bump up in this market, a lot of big analysts are still saying be careful, they would be more shorts if we saw a run-up in prices than would get in for the long term that we're going back to $1800 an ounce. gold giving up earlier gains, down three bucks. ashley: sandra smith at the cme. thank you so much. >> thank you. tracy: first quarter growth for the u.s. economy totally missed the mark. our next guest sees continued pressure on the consumer as well as the government dragging on growth throughout the rest of the year. should be bright spots now. joining us gus foshay, senior economist with pnc financial services. you know, gus, consumer sentiment at a three-month low. i misspoke and said three-year low earlier.
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consumer is down. business investment is now is slowing because everyone is digesting tax increases? where is the bright spot? >> well, i think home building is one big bright spot. we've seen that continue to expand. and so home building was a strong support to growth in the first quarter. i think that will remain a bright spot for growth. then i do think business investment will pick back up. we had slower growth in the first quarter in business investment. i think businesses will continue to try to get productivity improvements. interest rates obviously remain very low. the fed keeps rates low to encourage borrowing. i think business investment will be another bright spot through the rest of this year. ashley: how much of a concern is trade imbalance, gus? chinese products pouring on to our shelves? we're having a hard time selling to recession hit europe. japanese yen is so cheap automakers are struggling to compete with the japanese because of the currency issues. how much is that going to be a drag on the economy moving
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forward? >> i think trade will continue to be a drag on growth this year. looks like europe is going to remay -- remain in recession until at least the second half of 2013. chinese growth in the first quarter was a little weaker than we were expecting. but on the other hand there are bright spots in terms of trading, particularly energy production. the u.s. continues to increase energy out put. that is reducing need for foreign oil, foreign gas. that has been a positive. so i do think by the time we get to the end of this year i think trade will be more neutral for growth rather than a drag on growth. tracy: okay. so we have government sequester kicking in. so in a weird, sick, way that is hurting the overall economy, isn't it? on one hand it is good we're finally doing something. on the other hand we're taking away from jobs and economy. >> that's right. we had big cuts in defense spending over past few quarters. that has been an enormous drag on growth. we'll see more cuts to domestic spending throughout the year. that will weigh on growth as
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well. federal employees will spend a little bit less because they're concerned about their job wages -- situation. cuts to domestic contracts so those will have job cutbacks. we'll see a less growth in government throughout 2013. ashley: consumers are a little cautious right now. that is interesting because businesses are not so willing to boost up inventories if they're concerned that demand won't be there. almost like a self-fulfilling provesy we've seen for a number of years. seems like we're stuck in this cycle. >> yeah, there is no question but the growth throughout the recovery has been disappointing. over the past year growth was 1.8%. we would certainly like to see something stronger to help bring undo the unemployment rate. first quarter consumer spending growth was up more than 3% at an annual rate despite the drag from tax increases. consumers look like they have been pretty resilient. they are getting a boost from higher stocks prices. they're getting boost from higher stocks prices that is
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supporting consumer growth. that is positive for spending this year. tracy: we have just a few seconds. what is the come meant on statistical makeover in july? book sales will be included i guess? >> bureau of economic analysis is trying to do a better job of measuring the economy. it is not going to do much for growth. it will tell us we're a little richer than we thought we were. it will not make the economy grow more slowly or more quickly. it will not have much of an impact of day-to-day economics. tracy: a good point. picture will be rosier than it is day-to-day. gush show shea. thank you very much, -- gus foshay. ashley: we have three looks. hasn't settled yet. good points from gus. congress quickly passing a fix for faa fur lows and flight delays. the latest when air traffic could be back it normal. tracy: hopefully monday when congress takes off for break. speaking of travel, gas
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prices are down from a year ago? will it be a cheap summer for driving? andy lipow has forecast ahead. we have to check out oil into the break. it is down just a bit. we'll be right back
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ashley: last stop for legislation to end furloughs for air traffic controllers. it is headed to president obama's desk. rich edson with the latest developments. finally something happens in washington, rich. >> white house says the president will sign it. we're waiting for that to happen now. yesterday negotiations in the senate yield ad compromise that would allow the department of transportation take money from somewhere else in its budget, come up with $200 million to make sure there are no more air traffic controller furloughs the rest of this fiscal year.
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the house passed its overwhelmingly and now on the way to the president's desk. meanwhile in congress and washington they're still finding fighting about it. >> this is simply no way to run a government but the congress is stepping in to correct problems created by the administration's inaction. we're taking this step because of the gross mismanagement of this important function for the safety of all americans who fly and on behalf of the commerce that depends on reliable, a reliable air. >> this is bandaid solution. it does not solve the bigger problem. and it is, impractical to expect that all of the negative cop sequences of sequester can be solved this way. >> so the sequester, the automatic spending cuts that started a couple months ago, hit a number of places in the u.s. economy. when it comes to federal spending they will continue to fight bit for a number of reasons. this is only one slice of government spending that a number of democrats and republicans want to resolve.
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secondly only have the rest of this fiscal year resolved as far as air traffic controller furloughs are concerned. that means they have to figure it out all again in october. back to you. ashley: talking about government spending. you have an update on the debt ceiling. >> absolutely. this isn't official from treasury but dealing with bipartisan policy center. these folks are fairly accurate calling the debt ceiling date before. remember the debt ceiling is supposed to be breached by the federal government later in may. but what the treasury can do is what is called extraordinary measures and extend that out. there is really no specific date you have here. the bipartisan policy center coming out with new analysis the new debt ceiling date could be sometime between mid-august and mid-october. there is plenty of time for congress to delay to figure out how they will fix the debt ceiling. remain along the same lines. republicans say any amount of increase in the debt ceiling must be accompanied by equal amounts in cuts and reforms. ashley: doesn't matter they will i leave it to the last
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miniaway. >> thanks. tracy: the point we'll hit it yet again. ashley: of course. tracy: i don't know. speaking of hitting it, charles payne has. this hour he is talking gdp though, the modest 2.5% growth was driven largely by a pickup in consumer spending. charles, you're not buying that? >> i am buying it but tells an interesting story. we have inventory build. ashley: yeah. >> consumer spending, 3.2%. the savings rate went down to 2.6%. that is the lowest since 2007. ashley: yeah. >> i talk a lot about the idea of a dropout nation where people are more or less living for today. theyyre not getting married. not having kids. when you ask what are you saving for? dynamic said i'm saving for college. i'm saving for retirement. i'm saving to buy a house. i'm saving or liquidity to buy something. i saw an amazing pair of pants in a window near -- i will save two checks and go out and buy it. obviously this kind of thing is not necessarily sustainable either. so, you know, you get to a
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certain level and, it is a worrisome problematic thing. ironically helps market. look at retailers. they haven't done too well. starting to help homebuilders. d.r. horton had their numbers out today. tracy: yeah. >> defense names it helps. but it s, one of the things, we get these numbers and kind of just talk about them. i like to drill in there and like to drill in there to get to understand what people are thinking about. ashley: yeah. >> just not good. something we've got to figure out a way to spark. ashley: what will it take, charles? >> we spent so much money already trying to create a spark and we're not even close? >> yeah. i think there are two distinct things. the fed print ad lot of money trying to create that virtuous cycle. that's what they do. that is their job. i don't think monetary issue, policy. has to be fiscal. feels like, we're in the place where, if you do better, you will, they're going to take it from you anyway. impetus or the urge to do
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well just seems --. ashley: live for today mentality. >> seems like a live for today, mentality. that savings rate down that far dramatically is --. ashley: wages have come down. >> wages have come down. irony because we forcefully for the most part knocked 1.3 trillion off household debt. ashley: right. >> after, when we get the checks even though lower than the last four years, we have a little bit more money after the bills are paid because a lot of people got rid of credit cards. lost their house, all that stuff. ashley: true. >> something to keep an eye on. i like to see it turn around. i like to see americans more optimistic. tracy: we all would, charles. >> okay, guys. have a great weekend. ashley: you too. just quarter past the hour. time to check on the markets. nicole petallides down at the nyse. nicole, one homebuilder stock hitting a multiyear high. we were just talking about with charles. >> it is exciting to take a look at this group on a day where you have a mixed market and stocks not moving too much we make sure to
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find real stories and today d.r. horton is up over 7%. that is a high. this chart goes back to 2007. so it is a multiyear high at that for d.r. horton. many homebuilders continue to do well. d.r. horton story was profit and jump in profit. up arrows for all the homebuilders. you see them there. 173% jump in quarterly profit. not only that, but also the outlook here for sales and they're seeing a 34% of jump for orders for futures sales. this is the springtime. hot selling season for this ggoup in particular, many which actually doubled in percentage terms over the last 52 weeks. back to you. ashley: nicole, thank you so much. we'll be back with you at the bottom of the hour. tracy: on that, protecting your portfolio from volatility ahead. ashley: yeah. tracy: one money manager, good luck with that, tells us where he sees the safest investments next. ashley: firsts, take a look how the dollar is moving right now as we finish out the trading week.
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the dollar down against all of these currencies. all these currencies are up. as you can see the euro at 1.3026. british pound was down to 1.51. now up to 1.5483. we'll be right back.
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thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... 're making it.
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>> at 21 minutes past the hour, i'm lauren green with your fox news minute. u.s. intelligence officers telling ap the mother of suspected boston bomber dzhokhar tsarnaev was added to u.s. intelligence watch list database 18 months ago. her now dead son tamerlan's name was added. white house says it is not a airtight case but syria used chemical weapons. the obama administration won't set a timeline how long it will take to corroborate evidence on syrian chemical weapons use. two syrian officials are denying that president assad's forces used chemical weapons against rebels. country music lost one of its legends. george jones died. over his 70 year career he hid 150 hits and scored number one hits in five different decades. george jones was 81. those are the headlines. i'm lauren green.
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back to ashley. ashley: giant in country music. lauren green, thank you so much for that. we appreciate it. wall street is on track for a winning week after last week's route. our next guest says there may be more selling ahead. there are ways to take advantage of it. michael jones, chairman and chief investment officer at riverfront investment group and joins us now. michael, thanks for being here. let's get right to it. which sectors have the best value right now and how are you playing them? >> well, i don't think there is any question that where the, where the investor has been most willing to put money to work has been in the safest, least-volatile segments of the market. you have dividend oriented stocks. lower volatility sectors like staples and health care and on, our modeling, those sectors are about 30, 35% overvalued. and by contrast the higher volatility sectors of the market, stuff that no one loves like technology and industrials, materials, those, those sectors are about 30, 35% undervalued.
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so, we think we're due for a pullback. every market that has been running as hard and as fast as this market has inevitably has a period of consolidation. we think we're in one now. we'll use the period of consolidation to add so some more cyclical areas in the market. ashley: so you like industrials, materials, and some areas of energy like the oil services. what in particular? how are you playing that? >> one of the neatest ways to play high volatility strategy is through etf, sphg. it is basically a basket of the most volatile stocks in the s&p 500. even as i say that, you can probably imagine how the notion of buying a lot of volatile stocks lands on the typical investor in this environment. so you can imagine why that basket of stocks is much more undervalued than say, a comparable bass -- basket of
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low volatility, boring staple stocks because people flee fixed income because of low yields and high prices, that is the first place they have gone. that trade is done. those prices are fairly stretched to upside. we think opportunity is going to be going where people have been reluctant to go. ashley: what would you say to investors, i don't know like that chart, it is full of peaks and valleys, what would you say to them? >> i would say, it is easy to say, as an investor, i want to buy low and sell high. but, you know, there is unhappy rule about buying low and selling high and that is you only get an opportunity to buy low when there is something to be afraid of. and the amount of cheapness in a particular market is directly proportional to the amount of fear. and last and most unfairly, by the time there is nothing to be afraid of, that market is not going to be cheap. so the very fact that you don't want to buy in high beta u.s. stocks, you don't want to look into europe for
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opportunities. those are actually the reasons why you know that there is probably an opportunity there. ashley: interesting. where do you see the s&p finishing the year, michael? >> we set up three scenarios for the year because, let's face it, we don't know exactly what politicians are going to do. we try to set out a scenario, framework where we understand what would be disappointing policy, what would be optimistic, policy and what do we actually expect? we think what is playing out right now, unsurprisingly to us is the optimistic scenario for u.s. policy and that is consistent with a 15% gain in the s&p or maybe ending the year around 1650 or so. now why do we say it is optimistic scenario when seems like washington is in such a muddle? what we felt like the most important policy objective give that the fed is so firmly on the market's side, what needed to happen was washington take action on the deficit. we thought that could only happen through some kind of
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a grand compromise between the president and congress. ashley: right. >> we didn't place a high probability on that but we placed an even lower probability that congress and the president would accept the consequences of failure to agree by a allowing austerity budget cuts to ache effect. well, to our surprise they couldn't even agree how to kick the can down the road on austerity budget cuts. so they're going into effect. now we may not like the process. the whole fiscal cliff negotiations were ugly and embarrassing to watch the fact they couldn't make any kind of compromise agreements doesn't make us feel great but we need to reccgnize that net of those tax increases, net of the austerity budget cuts, you have had cumulative reduction in expected deficits almost as good as some of the grand compromise plans that we're out. ashley: right. >> we might not like the process but we need to recognize that we got a pretty good policy result. ashley: the result justifies the means there, or justifies ends.
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thank you so much, michael jones for joining us. appreciate it. a lot of great information. >> ashley, my pleasure. ashley: go for high beta stocks. if you have the will. tracy: there's that. ashley: social media and market, new questions about whether facebook and twitter disclosures are only adding to your investor confusion. liz macdonald is on the story next. tracy: first as we head out to break, the dow is up about 11 points. let's look at some winners and losers on the s&p 500. no surprise. jcpenney is up today, thanks to that investor, investment. 7.7% on that stock. we'll be right back this is america.
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tracy: 90 minutes until the close. take a look at the dow 30. ivf, exxon mobil are down today. merck and boeing up top. a little more red. green on the board right now. nicole: the moves today, they left the dividend unchanged. one thing we should know, they are the largest owner of u.s. shopping malls. it is down one third of 1% at 175.42. the key here is if it hit an all-time high today of 177.24.
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a big story about whether or not they would be buying space from retailers and then leasing it back. they have no interest in doing that. that is something worth noting. it makes shareholders pretty happy. tracy: thank you. we will see you in a little bit. ashley: allowing to announce market moving information via social media. the changes are only adding to investor confusion. i am not surprised. elizabeth macdonald. liz: there is a lot of uncertainty out there. companies are trying to play it safe. let's take a look at the companies that are basically using social media to expose their information. you will see facebook and twitter and there.
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netflix and automation have five a piece. zynga has three plus different ones. here is the deal, i mean, i will tell you something, transparency feels really great and sounds really great. it makes it really confusing four investors and where they should look. here is another trend that is happening. if you work at a bank, you cannot go on social media. now, the banks are loosening up those rules. they are considering letting workers access their own facebook pages that work. one of these guys could inadvertently disclose important information. this is just a minefield i want
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to warn viewers about. if you see a stock rocketing around for whatever reason, you have to watch out what is happening here. we know that the sec is letting customers do this. reed hastings at netflix put on his own facebook page information. tracy: 20 different places for people to check. that does not necessarily mean that all 20 places have the same information. liz: t. go to the government website. ashley: interesting. thank you. tracy: coming up, exchange fees. another airline dropping something that many flyers will
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miss. ashley: it is time to check the ten and 30 year treasuries on this friday. we will be right back. ♪ friday night, buddy. you are gogonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with, it's easy to search hundreds of cards and apply online.
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♪ >> i am lori blackman with your fox business brief. president obama is preparing for his trip to central america next week. today's meeting at the white house will include procter and
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gamble ceo and ceo of -- confidence pushing shares of jcpenney's higher. subaru of america recalling more than 10,000 vehicles to replace a carpet format. it is always something. the maps may curl up when exposed to heat which would interfere with driving. that is the latest with the fox business network. giving you the power to prosper. ♪
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♪ tracy: some breaking news for you. oil closing down. ninety-three dollars even a barrel today. two straight days of gain for
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crude. ashley: it has been a tough week for fires. united and u.s. airways raised ticket changing these. now southwest dumping a popular policy. say it ain't so. gerri willis is here now. gerri: it is no longer a fashion of hope. southwest is now saying if you do not show up for your flight, they will not just charge you a fee, it is not a fee, my friends, you will take the money that you paid for that ticket and we will take it away. what they are saying is, look, if you buy a ticket and you do not show up and you do not bother to pick up the telephone to tell us you are not coming, we are just going to take the money. ashley: what if you do pick up the phone?
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gerri: you would revoke. there are other options. they want notification so they can release the seat. ashley: i am amazed by how many people do not fit out for flights. gerri: they are raising their change these. we spoke about how fares would go up in 2014. it is not that you will see so much higher fees, it is that they are going to bundle these. this is looking like higher fees to me. tracy: they are nickel and dime in you. they are making it pretty obvious. it is not like, hey, pay one price all included. gerri: i agree. ashley: pretty soon it will cost to go to the bathroom.
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gerri: i have to promote my show tonight. i know you feel overwhelmed, inundated with all the information, the phone numbers, the recipes, the data that is coming in every day. it is an app for your ipad. we have the ceo on tonight. i use it. i think it is incredible. ashley: we all need help with that. thank you. gerri, thank you so much. do not miss "the willis report" tonight right here on fox business. tracy: seven days until the premiere of "iron man three." dennis kneale is on the story. dennis: only a week away.
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disney reportedly demanded 3x a point beyond the usual 50 / 50 split with theaters. ticket sales are down 12% this year. theaters cannot afford to miss out on "iron man. ". now, disney has settled with those two giant and a third chain. terms could not be learned, but something extra. robert downey junior got his
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piece. theaters get to sit back and take in fully half the gross. disney clearly had leverage here. iron man three books on track. the film was just released on 27 international markets. brought in $36.5 million. it set a new opening day record in indonesia. it could also have a great run in china. the china movie market, growing six times as fast as the u.s. disney has just announced that "iron man three" opens on may 1. tracy: dennis. not fair. ashley: all right, dennis. it is coming up to a quarter
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till. time for stocks now as we do every 15 minutes. thank you, as always. look, everyone tells you the markets are perhaps a little ahead of itself. what do you do? >> the trend is your friend. we have set this time and time again. it wants to move higher. we have been trading at the highs. it has to be interesting to see. unfortunately, for today, this is a headline driven market. we have to move this market today. everyone is taking short-term risks off the table and really anticipating what we will do it next week. ashley: thank you for joining us. we appreciate it. >> thank you. tracy: four weeks before memorial day. will they go up in time for summer driving season?
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ashley: smooth sailing for the cruise industry despite those high-profile pr disasters. we are live from the port of miami coming up next. first, let's take a look at some of today's winners and losers. we will be right back. ♪
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♪ tracy: drop in gas prices this past month. it has giving consumers a much needed break. our next guest believes the average will drop another $0.20 by memorial weekend. that will be $0.40 less than last year.
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your lips to guy's ears, first of all. we are at $3.50. supply is 20% higher than last year. >> supply is higher. inventory of crude oil is higher. the refiners will turn this crude oil surplus into a gasoline and diesel fuel surplus. that will be pressuring prices over the next several months. tracy: maybe there is a misconception that the refiners are not working or are not working at full capacity. >> they are not working at full capacity. how many expansions have we done? we have done million barrels a day of expansions.
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that will continue to cope with the increasing amount of crude oil production. tracy: that is crazy. >> it really is quite astounding what has happened in the u.s. over the past couple of years. imports of crude oil are right at 7.5 earlier barrels a day. i expect crude oil production to be upwards of seven and three quarters barrels a day. these have a lot of ramifications for us. tracy: maybe we can stop doing that if this trend continues. a half of all u.s. drivers think $3.44 a gallon is still too high. will it get lower for them? >> i think over the next couple of weeks, i am expecting prices
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to decline another five-$0.10 a gallon. i do believe there is a good chance $3.30 is in the cards for memorial day. tracy: people hit the road, take a little road trip, prices go up. you do not think that will happen this summer? >> i have hardly seen the preseason gas rally. we will just stabilize their the rest of the summer. tracy: that is great news. habits have changed. becauue we have high prices at one time, they eat out less, they drive less, maybe they delay purchasing because of these high gas prices, how about playing in? >> gasoline demand is down over 6% since its peak in 2007. the increased mileage efficiency of the new cars replacing the old cars.
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the forecast in the u.s. will continue to decline over the next ten years. tracy: what would grow this beautiful rosy picture off? what could derail your little plan here? >> my biggest concern is the goings on in the middle east with syria. as well as, concern about the rhetoric coming out of north korea. just making the oil market service. >> yes. another reason we need to rely on our own oil..3 ashley: if you do not want to drive, how about going on a cruise. it seems to be smooth sailing for the cruise industry these days. business seems to be fine. >> consumer confidence, though,
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it did suffer because of all the negative publicity in recent months. the cruise ship industry was expecting from its paying passengers. one of the three ships and port today is behind me. all three ships leaving in the next hour. all three of them will be full. royal caribbean posting a big first quarter this year. carnival cruise lines also posting a good first quarter. of $37 million over last year. "looking to the remainder of the year and the obvious question, yes, the coverage has been frustrating and, yes, it has
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probably impacted us a bit, but, no, it has not been a game changer for our brands." ashley: how does that impact the pricing for cruises? >> to make sure people keep buying the tickets, the cruise ship industry are aggressively pricing right now. it is a solid season in between spring break and summer. a large part of it has to do with the cruise industry aggressively pricing to combat the bad pr in recent months. we spoke with some travelers and they told us they are not hesitate at all. >> there are lots of ships out there. of all the places they go, they have to problems. that is minimal. besides, i can swim.
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>> game changing rand new ships. the u.s. senate is working on a cruise ship passenger bill of rights, similar to the airline passenger bill of rights. you can see the passengers up on board the ship behind me. all having that cocktail on the deck. the parting miami in the next hour. ashley: very jealous. you should go up there and join them. >> should i? tracy: yes, you should. honestly, you could give me a free trip and i do not take i would go. liz claman will take you through the last hour of trading. which one should you be invested in? walmart or amazon. get ready for our retail rumble. "countdown to the closing bell" is next. ♪ ♪ [ cows moo ] [ sizzling ]
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more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros wiwith dedicated chats and daily live winars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
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♪ liz: decisions, decisions. walmart versus amazon. which stock has the better value? which one should you own? a billionaire to the rescue of jcpenney. is it too little too late? the jcpenney brand. portfolio boot camp. listen up. our guest says it comes down to discipline. making a plan and sticking to it. "countdown to the closing bell" starts right now. ♪ liz: good afternoon, everybody. i am liz claman. on this friday, we got you for the last hour of trading.


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