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tv   Countdown to the Closing Bell  FOX Business  April 26, 2013 3:00pm-4:01pm EDT

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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. it is mostly a down day on wall
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street. looking at this number, nothing to really be worried about. we look like we will close up for the week. flip it over to the s&p 500. it looks pretty healthh. same at the nasdaq. we have data points today. it looks like rose to but it profit figures -- it is not like we reverted to negative. the big winner this week has got to be no small and midsize stocks. meanwhile, homebuilders knock it out of the park this morning with earnings. look at the start jumping more than 7% today. second-quarter revenue for this company was up 49%.
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dr horton is looking very good right now. it is up about $1.92. goodyear posting better quarterly results. goodyear ceo says he does expect consumer demand to remain weak, especially in europe. that is why you see this stock moving lower from the start. let's get right to the floor show. we have traders at the new york stock exchange, cme group and nicole petallides standing by at the new york stock exchange. each day just flies by. you said you were the most nervous you have been in for years. anything over the past couple of days that have changed the way you feel about that? >> not really. i am still concerned the boat is
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listing to one side. there are too many holes. i have been like this for too many years. this has to make you nervous. i am not saying anyone should panic. the point is, you should be concerned. you can use any numbers you want to look at. the fact of the matter is, there really is no justification to be here. the gdp number was way less than expected. it is still better than last and quarter. the dow, at least for now, is still on the plus side. liz: you would not be opening any new long positions? >> i agree with his analysis. the charts, to meet, still look pretty good.
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we could pull back to the 1560 area. i agree with them 100%. i think that is what has gotten us appear. the market has an incredible durability to climb a constant wall of worry. >> we have some pullbacks in the price of oil. at the moment, we are looking at are about gasoline. do you think that that sentiment , are we missing something? >> what i see is we will range down with the products and crude oil. we will be in the 90-$94 range for crude oil. we will not see a whole lot this next week and a half. it will stabilize.
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we will not have much movement now for the next week, week and a half. liz: is there one thing that you are looking toward? >> the jobs number. the unemployment number. i like the adp number just because of its origin. the granddaddy of all numbers is friday. liz: okay. i am not with you on the adp. [ laughter ] liz: i assume you know that. gentlemen, thank you. we appreciate it. investors have not been too happy with at least one company today. we want to focus on that. nicole: let's take a look at how they are faring. we have seen sears logic under some serious pressure. we are also watching apple very closely. what happened was the revenue
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that they are looking at is below the wall street analyst estimates. that is why you are seeing that. a drop of 8.5%. the stock is down nearly 40% this year. it comes as no surprise. it is directly related. that is why we have seen apple a little out of favor. today, we have seen apple a winner. back to you. liz: they developed signal processing. this is a high, high tech company. it is very important to and apple ecosystem. ceos of several major companies are about to arrive at the white house for a meeting with president obama.
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rich@thin is in washington looking at this very important trading partner for us. rich: this is all ahead of the president trip to mexico and coast arica next week. they will discuss expanding commerce in central america, chief executives from her she's, procter & gamble, kansas city southern, archer daniels and midland, and etc. will push for more trades south of the border. the u.s. is finally implementing its free-trade agreements with panama and colombia. it continues its talks with a handful of countries.
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the meeting starting any minute now. back to you. liz: the minute it hnspe, we will let everyone know. "the closing bell" ringing in about 51 minutes. we are pumping it up this hour. your portfolio that is. portfolio through camp coming up. should you buy stocks in the place you shop the most? to wall street experts battle that out next. you get to decide. ♪
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liz: we wanted to show you something here. what do all of these amazon charts have in common? look closely. stop what you are doing. profit and income.
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employees of, sales down. operating margins down. net income and cash flow down. the common theme is they are all moving lower. why is this stock continuing to hit new high after new high? would you buy this stock with all of those metrics that we just showed you or would you go in the complete opposite direction? we have someone on each team. i was not stacking the deck against you. [ laughter ] i will let you talk first to let it be fair.
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why should there be a hot focus on amazon with those numbers that we just showed you? >> i think you have to read between the lines a little bit. the company is still very much in investment mode. take a look at what they have done in north america. look at what the segment operating margin in north america did yesterday. it came in at 4.9%. it was a nice uptick. i also really liked what i saw on the gross margin line. of 260 basis points. right now, that is a great spot for the company. it is keeping its membership base happy and monitor rising as well. i do think that mid- single-digit margins are the
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nice reasonable number for the company over the next couple of years. liz: amazon continuing to say we are expanding. we are pumping up our employee numbers. that brings me to alan. going to yield brick-and-mortar store. that is walmart. why are you on t walmart versus amazon? >> it is not a matter of management at all. i think both management teams are great. we are not as adamant as we were two months ago when amazon was hitting 284, an all-time high. walmart was in the 60s. if you had to pick one, you know, i would pick walmart, mainly because of what you see today with amazon. it is down 25-30 points from its
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high. the numbers were not that bad. it is a situation where, you know, you could have good numbers and because the expectation is so high, you are taking more risk. liz: you want to comment on that? >> i generally agree with him on that point. at the end of the day, what gives me a little more comfort with amazon right now is that as we diversify past bricks and mortar, i think amazon has much more in the way of digital content to keep people happy. liz: let me jump in here. you could not be more right on that. i rarely ever shop that walmart. i get a little concerned about
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the pe ratio. then comes the question about what really appears to be a losing tax hurdle. there is so much discussion about taxing internet sales. i look at that and say who is more affected by that russian mark it has to be amazon. are you worried? >> you apply online sales tax. just because amazon does not have the physical storefronts, it still maintained that price leadership. amazon is on board with this. there is a reason for this. this will help them get into new verticals. i think it gets interesting. i think it is more of a non-issue. i do not think it is a
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dealbreaker. liz: you feel more comfortable with a brick-and-mortar operation? >> obviously, it is less risk. you will see arjun pressure with amazon and, you know, going into groceries, that will reduce, as far as their margins. they are having problems with unit growth. international did not look that good. again, it is valuation. i would rather buy walmart on a 10% tip. we like amazon if it has a few more days like today. liz: it was a great discussion. i think the world just stopped rotating on its access. you guys are both in toledo? >> no. i am in chicago. liz: okay. that's interesting.
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>> that would be incredible. that would be a first. liz: have a great weekend. which side are you on pusher mark where do you do your online shopping? is it walmart or amazon? i already revealed what i do. amazon. you cannot buy fresh fruit and perishables at amazon. closing bell ringing in 40 minutes. worried about having enough money for your retirement? we will tell you how to make money off of someone else's retirement plan. do not worry. it is legal. drama at jcpenney. i am looking at the stock chart. it is now jumping 13% at this moment. a billionaire is in, while other
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liz: yet another jampacked week on "countdown to the closing bell." here is a look at this week's movers and shakers. >> the faa closed down two summers ago. the administration wants there to be delays so they are causing delays. >> this has been very hard for the team. it has been hard for the city. we are trying to find ways to move forward. i think the sports teams are part of that.
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>> when you look at our market structure, there are participants looking for directional trades. the whole market is not high frequency. if they see a lift in the market right now, there are people find that activity, or there are people selling that activity. the higher frequency traders sold the market down. they got filled on a lotto orders that probably would not have if it was not for that sweet. >> you have to think of coal in terms of stored electricity. our company is 150 years old. it will be another 150 years old because the united states has 30% of the world's coal still in the united states. we will figure out how to use it. ♪ liz: we have to look at jcpenney right this second. we wanted to compare both
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yesterday's trading and two days. this stock is popping right now. after the bell yesterday, we broke the news that george was jumping in as a passive investor. he was buying a big percentage of the company for jcpenney. the stock up to about 7% in aftermarket session. today, it looked good. right now it is up 13.75%. it appears to be about 45 billion shares. value adding the companies arctic cap now at 3 billion. this is interesting to me right now. as we see, we have a bigger
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jump, charlie, in just the last half an hour or so. maybe half the world woke up. charlie: it was yesterday. liz: yesterday after the bell. it opened more nicely at the start today. charlie: that is good for ackman. liz: all of a sudden it was up. almost 14% right now. okay. charlie: that is good for ackman. maybe there is some value here. liz: okay. there is value in your next story. it is exclusive and it is breaking. charlie: there is a reason why a lot of people inside sec capital -- if you are in a hedge fund,
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you can only pull your money out at certain periods of time. the last one was in february. the next one is mid-may. a lot of investors are looking at that wondering if they should pull out given that there is an investigation. here is what people inside the firm are saying. they are saying everything in the end will be okay. i am not saying that. here is why inside the firm, though, they are telling people that they feel pretty good. the government, apparently, from what i understand, more than five years of ims, e-mails, i also heard that they looked at his tax returns. they have found nothing.
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this is kind of keys. if you do not have a cooperator, you do not have an idea. they tapped his phone as well. they have little to convict this guy on. liz: especially, if they do not get this guy to turn. charlie: he is not flipping. i think we would know right now if anyone was flipping. this is looking like a case they are trying to build against steve cohen that is not going to happen. at least not as of right now. charlie: i can tell you, for example, blackstone, they are weighing to redeem shares or not. they are looking for clues with steve cohen.
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you know, it is murky now. i can tell you, you know, as someone who has been following this pretty closely, this is a huge story, it means a lot for the markets. by the way, if they indicted steve cohen, you know what that would do to the connecticut economy? they are a huge taxpayer up there. that is what we here right now. you don't have e-mails, which apparently they do not collect you do not have ims, you do not have a cooperator, you do not have a case. liz: you don't got a case. okay. charlie: it is called binoculars. the only people that they watch you are the king. liz: well.
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okay. thank you, sir, very much. there are a lot of people who e-mailed us about grammar. you just need to say the reason. charlie: that is a term of art. it is called binoculars. liz: that is a good word also. charlie, thank you. closing bell ringing in 29 minutes. building up tension benefits only to find out those benefits have been caught, or worse, evaporated. do not worry, you can make money by investing in other people's pensions. we have a fox business exclusive next to talk about pensions. you need to hear this.
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especially if you are in any pension and who isn't; right? amazon or walmart? most of you said amazon. check your answers as we head to break. ♪ change makes people nervous.
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with your fox business business brief. its second civil in four days. accusing the unit of the swiss drug mak oedly payin millions of dollars in cash kickbacks to doctors to get them to prescribe the drugs. in a statement novartis confirms only that it is aware of the two losses filed by the u.s. attorney's office in manhattan. the fda said fraudulent burgeons of botox are being sold in the u.s. agents are posting an alert warning that the our record it -- out for carbon is counterfeit and the vial is foreign and not approved for sale of the u.s. and samsung taking a bigger bite out of apple's share of the smart phone market with its cheaper android devices. according to research firm idc, samsung has had nearly 33 percent of the market in the latest quarter, almost twice the apple market share of 17%. now we continue our "countdown to the closing bell" with liz claman. ♪
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liz: well, pretty much at highs of the session for the dow jones industrials. let's get to nicole petallides on the floor of the new york stock exchange to pick apart what moved the most this week. >> reporter: will take a look that the best percentage gainers on the dow jones industrials. this week we gained about 1902 points. but what names of the best performers in percentage terms? let's start off first with dupont's. dupont was a winner, and it gained almost 8 percent this week, clearly outpacing the dow gaining just over 1%. an 8% gain, double profit. you saw sales growth, good news. obviously, clearly the chemical maker is a huge winter. that was the number one performer. the number two performer, a familiar name to everybody, microsoft. a microsoft is the second-best performer of over 7 percent this week, unveiling on may 201st the new exports which will certainly be on all the holiday less.
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so despite the fact we are having some back-and-forth action right now, which really cannot take a look at this. look at this. i mean, you see that. which where we going? going into the closing bell. a winning week on wall street. liz: thank you. and remember, we picked apart the actual jobless -- job listings from microsoft about a week back and they were hiring big time. not in the office division. okay. thank you. it is well known that many pension plans, maybe even yours, are going bust. before you start distress over disappearing savings, we wanted to show you how many you can make money on other people's retirement accounts. larry zimpleman is chairman, ceo, and president of a publicly traded company. your company basically administers employees sponsored funds and plans for some of the biggest of the big in the entire
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nation. get to see you. thank you for being here. >> thanks. great to be with you. thank you for your time. liz: you did well in their earnings. he beat the bottom line, and things look good. the stock is down, right off the bat i want to know the state of u.s. retirement funds in the aggregate. >> well, i think to get the right engine to that you have to sort of separate the two. the, you are making earlier around the stress and turmoil in the pension landscape really is more around defined benefits which is a function of interest rates as well as anything else because when interest rates, the cost to provide income increases. on the other hand, were most of the action is defined contribution plans. we handle over 45,000 defined contribution plans from sized businesses and when you look at what is happening in defined contribution plans particularly with the rise in the market we find that account values are at an all-time high.
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liz: earnings were down. you're doing pretty significant business to much of what do you attribute the luminous of this year? >> well, our first quarter earnings were up 8%, 233 million. up 8 percent over a year rego, and bps for the first quarter was 11% above. we have been able to continue to generate very, very strong flow. the combination of strong, positive flow and the rising equity market is really what is allowing us to grow earnings at this point in the cycle. liz: are you worried about state pension plans? want to stick with penbecause se underfunded. we cannot ignore that issue. but we have had different people on here, for example, no well prize winner robert ingle who has won his nobel prize in volatility. he said to more of the most worrisome thing some horizon for into the next ten to 15 years and more so in the short term by the underfunded pensions that he believes can really cause some a.m. if things go south.
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>> great insight. obviously somebody who knows what they're talking about. again come of this is one of these, perhaps slightly unintended consequences. the fed policy than many quantitative easing programs that we have seen of the last couple of years, you know, we are taking the view that interest rates will remain low for some extended amount of time, and that is what is causing such pain and suffering for many of these defined benefit plans. and in most it's today their form of funding is a defined benefit plan. so that concern about the underfunding of state plans is absolutely spot on. liz: you're going to the global conference, correct? ,. >> correct. liz: i will be there as well. we will see there. we said at the top that maybe you can invest for our viewers. what we manage your stock is about 22% over the past year, outpacing the s&p 500. congratulations on that. >> thanks. appreciate it. liz: anytime.
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principal financial group, chairman, ceo, and president. i will be at the lobby. come say i. >> i will stop by. liz: we are both heading to the same place next week. the fox usiness crew and i are just sitting across the country, first of beverly hills california for the milken institute global conference. i will be broadcasting live monday, tuesday, and wednesday, interviewing influential business leaders such as bill ford jr. of the ford motor group, the executive chairman at the abbey joseph cohen. and then on thursday, yes to the entire crew and more so. crisscross backup for across the nation to ormoc, neb. throw wild and information filled weekend with warren. warren buffett to mark your calendars because a week from monday at 9:30 a.m. eastern in a fox business live exclusive, i am hosting a joint interview
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with warren buffett, berkshire hathaway vice chair and bill gates, the chairman of microsoft. plus, who is that question mark? is a mystery guest. but its business is the only place you will see this amazing conversation. we don't just talk about berkshire hathaway. it is always and is making our. live from the hilton with the unbelievable guests all they want. everybody plus warren buffett's three adult kids to wallow i tell -- call them the kids. the closing bell in 15 minutes. more fallout. casey mg partners. how the charges might be affecting business. we have the latest. you know what that means. asante their body and your portfolio in shape. we take you to your portfolio boot camp by cutting the extra
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♪ liz: "countdown to the closing bell". an accounting company kpmg losing its first audit clients as the company's insider trading scandal broke a few weeks ago. plymouth the opportunity, moving to replace and has nothing to do with the scandal. nothing at all. earlier this month former kpmg partner end of voter hears the scandal admitted to passing
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confidential information about five major company clients to a friend. there is the picture that the prosecutors put up their showing the of a lot of money. zero school. here it is. thank you for the tips. prosecutors said that london received more than $1 million for providing information on names like sketch years and deckers outdoor. as the market continues to hit new highs, and here we are in the spring, getting close to, of course, the bathing suit season. wind up with your investment body into shape. a $6 billion money manager says it is time for portfolio boot camp. he is remarque trust wealth management adviser joining me now from philadelphia to share is best money workout. good to see. >> i miss you. me to get you down to philly. liz: listen. if the sixers played the next.
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>> let's do it. liz: let's make it happen. let's talk about exactly what you mean when you say we need to use some discipline to whip a portfolio into shapes. >> well, the idea that a lot of investors have is when the markets are good you let it run. there is some truth to that. we have done well. the discipline comes then when we want to work carefully and thoughtfully to reduce equity positions for plans that are now i have a target. most likely there up to 70 percent now and ready to be careful about the percentage they have. it is important to trim equities when we can. liz: how do we do this? first you say drama equities, little scissors. figure out how to trim them back . >> specifically the domestic stocks have done really well.
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small capital amid cattle large capital performed amazingly well so we think may happen is we see a rotation from domestic parts of the market into the international market, specifically the emerging markets. it is an exciting growth area long-term. the emerging markets have really set up the rally these last couple of quarters. so if molesters control back domestic positions and septet at internationally, especially the emerging markets, we think there is money to be made. liz: the last time you were here in january you picked an emerging market funds that did not quite get there. that was probably let's give an early. when the expected start getting better? >> we like a lot. it's very well managed. it has a great long-term track record. a couple of concerns from the emerging markets that we think will make that fund and asset class more attractive. concerns of slowing growth in china.
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let's ffce it. they're growing three times faster than we are in the u.s. that gap evaluations is probably going to get lessened as time goes on. we're also watching the commodity prices. we all know what commodities have done. and a lot of the emerging-market exposure in south america and some of those rich nations. it has not helped. as the commodity market starts to stabilize and bucks realize the growth settles and, that is still a pretty attractive economy. we think patient investors will make money later this year. liz: and the end of your entire equities? url above the better reserve high pulling away the punch bowl? what is your number one concern. >> mixed emotions. there is an old saying : don't fight the fed.
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inducing economic rallies. the only issue is what you're saying god how long does it last enterprises has not come in yet. some of the housing data has been battered. how much of that is better induced and how much is real economic growth is so we're going to have to seek. we still think that the equities have room to run. that is a lot of momentum, but term positions better overweight. be careful. liz: who will soon find out what happens. i am sure it will be gradual. nice to see you. >> right to see you. liz: wealth management investment adviser. sorry, the sixers did not make it into the playoffs. we will see each other in the year. the closing bell ringing in about four minutes despite today's losses. the snb is on track to end the week up nearly 2%. not so bad. the biggest winner this week after the break.
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♪ but
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. . [ indistinct shouting ]
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♪ [ indistinct shoutin] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]'ll bust your brain box.
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♪ all onhinkorswim from td ameritrade. ♪ liz: breaking news. president obama is set to announce his pick for the commerce seg tear and it is bill snare penny fritzer is -- billionaire penny pritzker of real estate fame and hyatt hotel chain. penny pritzker, long-time friend will be named as commerce chair david asman is with me. david: there are some stocks really popping in both directions. liz: go to nicole right now. it has been amazing last hour here but jcpenney in particular popping as it
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gets a nod from billionaire george soros. >> that's right. there are a couple headlines from jcpenney we're watching going into the close. it is up 11 1/2%. george soros, 7.9% stake revealed in regula filing. coupled with chatter there may be financing being prepared for goldman sachs for jcpenney that is help being to move this market. david: on the other hand which had am none. -- amazon. we had an idea it going up and down after reporting earning yesterday but done nothing but going down today. >> when you talk about the growth concerns and outlook that hit amazon. as a result that is under pressure much like starbucks. liz: after a run-up of 15%. 15% move. cliff natural resources is falling. a struggle bell for this company. >> cliff natural resourceeen sue stock. they had a big jump yesterday pulling back 4%. we'll keep an eye also on apple as we go into the close. david: let's focus on positive. apple is up 2% today and 6%
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for the week. that is nice reversal of fortune. [closing bell rings] liz: what a week it has been. a lot of news flow, a lot happening but the bells clang on wall street and close the session today on a week of very busy trading. here is how the dow jones industrials finishing up. the high of the session it was up more than 37 points, we chapped that in half and more up 15. nasdaq struggle ad bit. couldn't quite make it to the upside. russell 2000 falling half a percent today. david: we had big earnings movers today. d.r. horton hitting a new 52-week high. quarterly profit tripled as it sold more homes we're talking about at this hour with higher prices. the company forecasting a better second half of the year. on the flipside goodyear tire and rubber falling. it posted better-than-expected profit, tire sales volumes fell 8% and the company warned that industry demand would remain weak throughout the year. liz: they pointed


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