tv Countdown to the Closing Bell FOX Business April 29, 2013 3:00pm-4:01pm EDT
>> the best of the best. all at the milken institute conference in los angeles. all coming up. which investor will be licking its wounds today? earnings come out after the bell. the hottest real estate markets in the country. are you one of the lucky ones? is there still time to get in on the action? ♪ liz: live from beverly hills at the beverly hills hotel. now, it is the stomping ground of the milken 2013. the greatest gathering of the wealthiest and smartest people. welcome.
it is the last hour of trading. a pretty good rally we are having right now. the dow jones industrials jumping about 120 points. bernanke was worried about vulnerability in the markets. we are up nearly a full percentage point today. we are watching the s&p 500. that is on track for a new record close today. the records are back. we are above it right now. we may see another record. let's get to delphi automotive's. it is a game right now. it is not a bad picture for
delphi automotive's. we also have disney. they are up more than 1% at the moment. that is a widely held stock. take a look at nike. nike jumping about one and a third quarter. the technology sector, that is the big winner right now. you can see with the nasdaq moving the way it is, it remains rather healthy. it is up 33 points at the moment. technology does remain one of the worst sectors for the year. healthcare looks pretty good. it is up year to date. nonetheless, overall, we have a very positive picture. fits right in with the sunshine and the palm trees. it is a think tank. what we have our big thinkers. we always have big thinkers on
our floor show. as we began, we also have nicole petallides standing by on the floor in new york. first, to our traders. let's talk about why we see a rally today. >> it is a great example of the perversion of wall street. economies throughout the world are so bad that the central banks will have no opportunity other than the ecb to cut rates in the federal reserve to keep rates where they are. you had a very bad reading out of the dallas fed today. mr. fischer had been one of the proponents from using a way of quantitative easing. he has backed into a corner if he will protect the interests of the dallas fed. the markets rally. liz: again, the president of the federal
reserve. they will continue to pop up this market. therefore, buyer beware. if you avoid equities, you will get burned. equities is that one place where people can find real yield. >> as far as this probably goes, i am a little suspect of it. i will not get short and i have missed it. there has been some soft numbers would i do not like regional numbers. coming up this week, we have employment and manufacturing. those are big numbers. i want to see what happens. if that continues over the next few weeks or even months -- liz: i am going to interrupt. they are getting killed every time they try to short this market. look at today. look at this. all time highs the s&p 500. including names that are
popular. >> absolutely. as i said, i am not getting short, i am just not going to add to positions. i am going to step back a little bit and see what evolves. liz: let's get back to energy. today is another big day for oil. >> from a technical standpoint, this was the perfect storm here. we are bride of -- it is a market that has no reason to be sold aggressively. the wti spread is now common to almost nine dollars. that is unprecedented for over a long period of time. liz: explain that to people.
you mean it is shrinking. it was $11. >> it was not that long ago that we were trading from $20-$25. >> we have a number that we have not seen in a long time. close to nine dollars. that is quite a move from where we were just about a month ago. liz: before we go, you have watched the markets for a long time. has it ever been is difficult to anticipate where we may go? >> it reminds me a great deal of the.com market right frankly. as i said earlier, the fact of the matter that this market is trading higher because things are so bad, the central banks have to ease is counterintuitive. the fact of the matter is, i am
very afraid to add to any long positions, butoo scared to short anything. i have not seen this since 98- 98-99, probably before you were born, liz. liz: thank you very much for that. there is a huge push to get into the luncheon session where tony blair is. he is a huge draw here. a lot of people want to hear what he has to say. let's get to jcpenney. racking up more cash. suddenly everybody believes in this company. this really began last friday. nicole: it really did. we watched this on friday. the first was last friday.
the big news is confirming what we talked about friday at "the closing bell." that was the financing from goldman sachs. it will help the company fund operations, help pay down debt. we note jcpenney's has been ogling. ron johnson is out as ceo. george soros, now the fourth largest stakeholder in jcpenney. they are working on bringing this back. liz: here we are at the milken global conference. this is truly the gathering of the world most successful people in investment, in finance, also
overall. many big thinkers here as well as world leaders. my next guest, we really wanted him on. he knows an awful lot. he will give us a window into how the truly wealthy invest right now. he is ubs global head of investment. he is joining now. more than 2 trillion. people want that window in the house. still hoarding the cash on the sidelines or calling you up more and more saying let's put it to work. >> more and more people talk about putting it to work. in the 130 billion that we invest discretion only, we are
definitely moving more overweight inequities. you have to get comfortable with tina. there is no alternative. over the longer term, inflating asset prices and you have to participate to equities. our wealthier clients do not like the volatility of equities, but more and more they realize they have to get used to this. liz: it feels like 1998. it does, but yet you cannot find it in certain regards. >> that is certainly true. this year things are a little bit back to normal. everyone is complaining again. they are complaining about europe and the austerity. in the future, they will be able
to say, well, i was concerned about both sides of it. you raised the concerns. you have to know where to get off or not get exposed. you want to take risks in the equity markets. what we have done is underway the euro. we believe that is the first place that wiil start. liz: you are underweight the euro at the moment. where else are you underweight? >> we are underweight the canadian equities versus the united states where we have a long position. that is how we had it. the reason we are underweight canada is much of their index is related to real estate and commodity prices. commodity prices have fallen, i am sorry, the banking is tied to the real estate. we do not like the index right now. on the united states, that is
our favorite overweight. we are seeing the clear support of the federal reserve. on the s&p 500, we do a six-month target. our target is 1625. there is not necessarily a lot of upside there. we look at the mid-cap stocks, where we think you can do a little bit better. they are more physically exposed and they are more focused on u.s. than domestic industry. as we see these larger companies, they will start buying these up. liz: what has been your best investment play? does that continue? >> we think that the japanese equities can do better.
we looked to the japanese exports for that. the best play that we have had and the one that we continue is with high youth. we have really pushed those spreads down. now, it is a controversial trade. we think that this can continue on a risk-adjusted basis. we think investors can still make some money. liz: i want to make a point about what has happened at ubs. you've suffered a 20% drop between 2008 and 2010. you have found your way again. he is smiling. how did you guys do that? >> i think putting the client first. we focus on performance for our clients. it is a new world. it is not just about putting money in switzerland. it is about getting money for
our clients. liz: you are doing the right thing. thank you very much. great to have you on fox business. it is these great minds that really matter here. closing bell is ringing in about 45 minutes. we are live from the milken institute for the entire hour at the beverly hilton hotel. we will hear from the former bank of america, on the biggest thing she is most worried about in the markets and high financials. stay tuned. ♪ i turned5 last week.
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hotel. we are at the milken global conference 2013. it is about 70 degrees here. sunshine bouncing off the palm trees. let's get right to sandra smith. she is in the chicago mercantile exchange. sandra: from palm trees to snow that is expected in the state of iowa. that is causing some concerns for planting. in today's open outcry session, corn prices closing limit up. they rallied the most they can rally in a single trading day. corn, soybeans, wheat all skyrocketing in today's session. we may see another rally tomorrow. farm equipment companies doing well today.
also watching gold prices. gold up $15. there are widespread expectations that central banks around the globe will keep these. oil broke its losing streak. that to you. liz: i do not want to rub it in, sandra, but here is a look outside our window here. why do we ever leave california? it is just gorgeous around here. no wonder everybody comes here. it is so much easier. listen, we will take both of them. they both have gigantic gatherings here in the united states.
let's get to some political news. president obama has tapped its transportation secretary nominee. rich: at an indoor ceremony, because it is raining at the white house, so thanks for pointing out the weather in california. he has been chosen to lead the department of transportation. perhaps a move away from the department of transportation current secretary, ray lahood. take a listen. >> our top party as a nation is doing everything we can to grow our economy and build great jobs. one of the best ways we can do that is to put americans back to work rebuilding our infrastructure. that is why i propose a fix it
first program to put more people to work as soon as possible on our most urgent rep. rich: this is what the psident has in store. $50 billion one-time shop for infrastructure projects. $1 billion for a new air traffic control system. this is still something that has to go through the senate confirmation. the head of the transportation committee basically saying that it looks forward to remaining committed. once he has been confirmed by the senate, a good time for him, i look forward to working with mayor fox to achieve these goals for our country. back to you. liz: thank you very much,
richard adamson peered we are about 37 minutes from "the closing bell." we are bumping up to a possible record for the s&p 500. coming up next, live from the milken institute in beverly hills, california, sallie krawcheck on which job she has had that help women get ahead. she has worked at a lot of important banks. ♪ it's monday.
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liz: welcome back. just to get you a perspective of what is happening here, there are about 140 different panels and roundtables that people are clamoring to get into. the topics are everything from the future of trading to the real fiscal cliff. how about the future of money, the digital wallet. then there is the $2 trillion battle for your living room. i was honored to be asked to monitor a panel. where are the women in business? i just finished monitoring our panel. sallie krawcheck was on the panel. she has seen just about every aspect of the financial industry. she kind of joked. i have been fired three times, call it what you want. i asked her what it takes for
women to reach the fleet week. how hard is it? >> the research, as you know, i like to call myself a recovering research analyst. the research is very clear that nothing bad happens when women, people of color are in senior management roles. in fact, the things calm. great things happen when you have women in senior management roles. liz: of all the places you have worked, which places have done it the best? >> you know how stephen o'mara says he does not see color?
what they saw were results. they saw very plastic organization. you would get ahead. my first big promotion i got was when i was pregnant with my daughter. i kept thinking, do you see i am pregnant? they did not see all the political persons. liz: it really comes down -- >> i think it does. we all tend to fall back on that we want to put the best person in the job. sometimes they look like a middle-aged, southern female.
it is hard for meo make that stretch. this diversity leads to better teams. it is not just is it the best person, but putting together the best team. liz: what worries you about the banks right now? bernanke said there are still vulnerabilities in the market. >> no doubt about it. no doubt about it. individual investors believe it is risk free and cash. there is risk backed up by no capital. what could go wrong? we have seen what could go wrong. it is not a good market or a bad market. it is a very, very bad market.
money funds remain a vulnerability. bank capital. it is interesting, we have so many discussions about the details. we have not really stood back. thanks have enough capital. liz: imagining the worst case scenario. i thought that is what the stress test were four. >> they are a good test towards it. we would have to bail out the banks or choose not to bailout the banks this many times every so many years. the 100 year floods seem to be coming much more often. liz: we could go on and on. you are telling me, if jpmorgan or goldman sachs did not find itself in some forest situation, there would be some real trouble there? >> i think we should all cross our fingers very hard that we do not have to answer that
question. those institutions are very large. if they were to fail, there would be significant distraction to the economy. today, they get paid in equity. we need to go back to first principles. how are reinventing them? how are we judging them? liz: where is the systemic risk that we do not see. i am worried about the french banks in the u.s. exposure to them. >> you worry about all of them. it will be something that we do not expect. analysts were saying, where in the heck is cyprus? people are all over it. if you go back in time, there
are a lot of people talking about the subprime issue. the subprime thinkers, researchers have recently showed, they were buying real estate for their personal account right before the downturn. liz: sallie krawcheck calling it out and saying money funds, money market funds may be the next worry some bubble. interesting to watch. when you have somebody like sallie krawcheck saying it is buyer beware, we want to make sure that it is on the record. closing bell ringing in 25 minutes. encouraging news for some homeowners today. we break down the hottest housing numbers next. the local my mantra?
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"countdown to the closing bell" live from the milken institute in los angeles. liz: paul anka, i mean, you've got to love that. having my baby? that's a big draw. i'm telling you, they have everybody from all areas here, and this is, of course, beverly hills, land of the studios, land of disney. and disney sure proved its mettle today, blasting its way to new record highs and, of course, that's a may major partf "iron man" iii. clearly, this is a precursor of what we're going to see when it's released here. >> reporter: that's right. big, big deal here, actually pushing disney to all-time new record highs. dissey has been a momentum player. it's hit a new high 22 times this year, 11 in april alone. iron man iii came out, and full throttle did so well over the
weekend, actually slightly better than the avepgers. 1.8 to the upside, obviously, great news. buy ratings for both, and, you know, iron man iii did better than the avengers, and they brought in worldwide $1.5 is that what iron man iii's going to do? we'll see. certainly, we've seen disney on the rise, and tomorrow robert downey jr. will be on the floor, iron man himself, so we have a lot going on. we're watching this stock which is a name hitting an all-time high like many on wall street. back to you. liz: love superheroes. thank you so much, nicole. and we've got a couple of superheroes trolling the area here for the milken global conference. magic johnson has just been mobbed. he's running a panel called winning the battle against aids. i ran into him, and there were so many people trying to do
selfies, i thought, well, i can't be embarrassed, i can just ask him. he was so gracious, and he is not only the tallest person there, but everybody was trying to mob him to get pictures with him. and there are many different panels. of course, michael milken has a very important place in his heart for health care issues, trying to solve those issues. but there are a lot of reality panels here. they are very hot, oversold. let's get to to real estate. the thurm of perspective homeowners who actually signed contracts to purchase a home, that hit a three-year high in the month of march. so we wanted to take a look at which housing markets are red hot this year with the biggest jumps in home values. and, by the way,l.a. is at number eight. home values are up about 22% year-over-year, san jose's
median home value was more than any of the largest metro areas in the entire country. next up, well, it was of one of the hardest hit, right? las vegas, nevada. it was blasted by the housing collapse when home values dropped nearly 60%. of but the city appears to be making a comeback, still a long way to go but up about 22.3%. and the top spot goes to phoenix, arizona. home values in phoenix have risen 24% over the past year. no other metropolitan area's housing market has grown more quickly than phoenix, arizona. let's get to the battleground stock. push me, pull you with a lot of wealthy guys. herbalife is expected to report earnings after the bell. we're going to have those numbers as soon as today come out, but two hedge fund titans, of course, as you know, have been clashing over the nutritional supplement company. can we expect to see a shake-up in the earnings report?
adam shapiro has a preview. it's got to be one of the most closely-watched stocks, right? >> reporter: oh, yeah. wouldn't you love to have a billion dollars that you could bet or fight with a buddy of yours? i don't know if i would call william ackerman or carl icahn buddies. betting a billion dollars against herbalife. shares today are trading up roughly 1%. they're trading at $38.73 right now. but herbalife is off of its annual high of $72.99 because mr. actman says this is a company which is a pyramid scheme. he's actually calling on the sec to investigate the way they do business. carl icahn buying a very large stake in the company not too long ago. he believes in the company, has two of his own choice members appointed to the board of directors last week by shareholders. fist quarter -- first quarter net sales expected to you by 60%, earnings per share expected at $1.07 with revenue of $1.1
billion. 70% of the revenue takes place outside of the united states, so we'll be looking to see if currency exchange hurts them at all. although mr. actman would say it's a company be that should be dead and done, it is far from that. back to you. liz: thank you very much, adam shapiro. coming up after the bell today, we're going to have full earnings coverage on herbalife, but also buffalo wild wings. it tends to be gyrating depending on what sports event is surrounding it. those two on "after the bell." closing bell ringing, we're about 15 minutes away. apple, is the stock holding up the -- [inaudible] growth fund? it's been shrinking, pretty wild ride here. howard world, chief investment officer, gives us his latest view of apple and what other stocks he really likes right now. ♪
♪ ♪ liz: welcome back. yeah, that's site i'm looking at right now: palm trees, the global conference here at the milken institute, beverly hills hotel. a long, storied history here. we've got the s&p 500 one point above a brand new high today. the number to beat is 1593, we're at or around 1594. my next guest says he thinks even with all of these records broken recently that the market has more room to grow.
howard moore, gamco growth funds portfolio manager with a lot of exciting names. he's joining me now from stanford, connecticut. yet another record? this doesn't worry you at all. >> no, i think it's great. stocks are still not overpriced. i think that stocks at the end of this year should be priced at 15 times earnings of about $116 on the s&p 500 which would be a 2014 earnings estimate. because december stocks are going to be discounting 2014 expectations. they're not going to be discounting what happened in 2013. liz: and that said, you are piling into some names that you call growth. and one of them is apple. and since we teased it, i want to get right to it. despite the fact that the stock appears to be shrinking, and now they're doing a massive share buyback and adding to dividends, you still call apple a growth stock? >> apple's a cheap stock, and i think apple's growth is going to
resume in the fourth calendar quarter of this year. in the meantime, though, the biggest news with apple is this share buyback. this is a $60 billion buyback. they're going to buy back 15% of the shares outstanding between now and the end of 2015. if they were to do that on an even basis each day, there's about 700 trading days, they'd be buying around $85 million of stock, apple stock every day for the next 700 days. and i think they're going to front end load that purchase, because they think their stock is cheap. i think they've been in there buying the stock the last two days, including today, and i think they're buying it aggressively. liz: okay. oh, they're buying today. let's get to some of the other names. you're still purchasing apple, but you're also liking ralph lauren and tiffany along with priceline. why to you like these names? >> sure. well, first of all, all three of these stocks have lagged the overall market over the last 12 months which i think is important. the s&p's up about 14% in the last 12 months, these all have
been less than that. in the case of priceline, this is the leader in online travel, it's run by jeffrey boyd. he's the architect of the turn around of priceline after the dot.com bust earlier in the 2000s. priceline has three great brands. they've got priceline.com in the u.s., they have booking.com in europe and agoda in asia. they're pretty weak global economic environment in recent years, we think they're going to continue to do well even with a less-than-perfect environment. we think 12 times, this is a good cannes to buy a stock that's still growing close to 20%. in the case of tiffany, we see a company selling at ten times, a company that will benefit from the wealth of higher stock prices, better growth prospects in japan. and in the case of ralph lauren, terrifically-managed company. this is a company that grew right through the recession, the great recession of 2008. we think this is a great play on
global consumerism. liz: okay. sorry -- hi, how are you? i'm just here with boone pickens. boone, of course, interrupting the interview, as always, because the world revolves around boone. >> it is a big deal here. liz: it is a big deal, and we're thrill today see you. boone, of course, an oil man but into natural gas, very good friend of the fox business network. howard, back to you. tell me not to be skeptical about the share buyback on any level. i look at that sometimes as a little bit of alchemy when companies are very interested in maybe juicing sort of their stock. and yet you say this is a really big deal for apple and can that we should enjoy in the and embrace it. >> yeah, this is a big deal. and a lot of companies, companies like ibm and berkshire hathaway, many others have been very successful with this form of financial engineering which is what it is. but, you know, apple was under a lot of criticism for having its big cash pile and not using it. now they're putting it the work.
let's not criticize them, let's embrace this. thai raised the dividend 15%, they're going to buy back $60 billion worth of stock, they're going to continue to grow their business. their earnings comparisons, i think, will go positive once again in the fourth quarter calendar of this year. with new products in that quarter which will be their first fiscal quarter this year and throughout all of 2014 they're telling us there's going to be a good product, new product momentum. so i think stick with apple. it's five times. the market's about nine times. if it just went to six times, that's a 20% increase in the share price. i think these shares will go through 500 in no time. liz: right, right. and he says watch out, -- watch out for q4. that's when you'll see it. howard, gamco growth fund portfolio manager. and, of course, a slight small appearance by boone pickens.
closing bell ringing in five minutes. tomorrow in the 2 p.m. eastern hour i am speaking with honor to former british prime minister tony blair. that's right, he's joining us live here at the milken conference, so we really hope you don't miss this. and who else? look, we're live for day two with aol co-founder steve case. he's really been an agitator, in a good way, an agitator for smaller businesses along with ford executive group chairman bill ford. ford coming out with great numbers recently. but we're not done here yet. in the next hour, billionaire investor jeff greene, totally self-made in real estate. what's he investing in now? believe it or not, it's the very thing that blew up the markets recently in the past couple years along with westfield group co-see know peter -- co-ceoople peter lowy. we gave people a sticker and had them show us.
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liz: welcome back, everybody. the dow jones industrials chopped off just a few point from that great lead it saw earlier but still up 88 points. again the s&p 500 in these last couple of seconds, david, that we're really watching. got to see whether we hit that record once again but it looks pretty close. david: all right. this is david asman from fox business headquarters here in new york. as you can see we went from a triple digit gain to a high double-digit gain. it is trading a little bit higher now. let's go straight to nicole petallides at the new york stock exchange. i want to talk about technology here, first of all. apple having a great day but not just apple. microsoft, ibm, all the rest of them. what is going on with tech? >> techs really led the way. apple went back and set new highs we haven't seen in many years, since 2000.
apple broke through the moving average. [closing bell rings] whether this is false conviction or a breakout. david: bells are ringing on wall street. disney is up 27% this year. all the indices are in the green. the dow managed to fight its way back to triple-digit gains. the dow with 102 points. looks like settling a little bit on the high side. i think we'll stick with the triple digit gains on the dow. s&p edging closers. a lot of folks said we wouldn't reach 1600 for the year. looks like we might be getting it in april. nasdaq coming up big-time. technology stocks as we mentioned having a good day. microsoft, ibm, all are doing well. all the tech stocks are doing well. in fact it is the largest sector gain of all the four