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tv   Markets Now  FOX Business  September 17, 2013 1:00pm-3:01pm EDT

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nicole: hey, adam and lori. nice to see you guys. we are watching a market that is pretty volatile. of course, when you talk to traders, they are very focused on what we will hear from the fed over the next few hours. 15,549. yesterday we were up 118 points. do not forget, we have had two weeks of gains. the moment of remains to the upside. who will be the next fathead is a very key thing. another thing we have been watching very closely is a ten year bond. just reading a note talking about the fact that the rally has been somewhat leisurely. we have had a ten year that has
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behaved pretty nicely. adam: we will see you again in 15 minutes. lori: sandra smith has today's trade. sandra: he has come out with a huge bullish forecast for the stock market for not only this year, but next year as well. they are making very bullish calls. if you missed the rally that led up to this point, they say there is still a lot of group to go. s&p 500, 1900. we are at 1705 today. he is calling for a 200-point rally on the s&p. dow jones industrial average, he
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is saying it will go to 17,100 next year. he is saying this will not be without volatility. it will not be a straight up arrow from where we are today. their long-term forecast is very bullish. weaker dollars have been boosting those big cap international names. that is where they say you should put your money right now. the one thing that is for sure is the lack of investor confidence. they say it will be even more off to the races. be in stocks over the next year and a half, not gold. they have a much better position. it is down about eight dollars. back to you guys.
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lori: u.s. stocks, the way to go. adam: the most immediate impact on your investments depend on the market committee. another issue, is the white house list of candidates to replace bernanke. peter barnes has the story. peter: expecting the fed to start reducing its monthly quantitative easing bond purchases. well, maybe not. >> the data has not been that good. retail sales disappointed. the dollar strengthened which weakened u.s. exports. all of this is bad news. interest rates have gone up a lot since june. they may be worried it will slow down the housing recovery.
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peter: a cut of 10 billion to $15 billion a month. that may not sound like much, it would signal the beginning of the end that the fed started back in the financial crisis when it began five years ago. we also have larry summers bowing out in the race for federal chairman. janet yellen, if she is the president's pick, it will probably give her a little bit more swogger at the table at this meeting. [laughter] adam: she is not that tall, if i recall. peter barnes, thank you very much. lori: today's economic data is the last stop before tomorrow's statement.
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core cpi up 1.8%. confidence held steady. that is the highest reading since november 2005. we have senior economics for deutsche bank with us now. first, if you would address today's economic data. will it be impactful at all? >> i think that their minds are largely made up withat the wi dot ts meeng. it i alrdy pcedntohe market. the thing of removing the band-aid has already taken place. you might as well just follow through. this is certainly not a tightening of monetary policy. this is just easing the foot slightly off the gas pedal.
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despite the back of the mortgage rates, which is about one and a quarter percentage points, homebuying conditions are still very strong. housing affordability is well above average. the homebuilder sentiment theory is holding in at the highs. if the housing market was at the press of collapse, don't you think that homebuilders would know it early on? lori: how would you say that average investors or everyday people see or feel in their investments or everyday life? the fed will stop buying assets by ten-$15 billion. >> i think that they are already seeing that. it is priced into the market, as i mentioned. we are already seeing that.
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we have seen some volatility in that equity markets as stocks have really liked the quantitative easing medicine from the fed. as the fed pulls back, stocks may need to retrench a little bit. it will be more driven by economic fundamentals and this very aggressive medicine coming from the central bank. lori: 17 or 1900? >> we are looking for the lower end of that spectrum for sometimes towards the end of this year or middle of next. lori: if you do not think that the federal monetary policy is a risk, what do you see as a risk? obviously, we are just coming off the syria story.
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we also have another budget battle to watch. >> if the budget battle goes very wrongly, that could impact business sentiment and maybe consumer confidence as well. we have been through this drama read times in the past few years. the real risks, as we look at the economy are things that would impact the domestic economy. something like rising oil prices could be a risk. that certainly was the case going into the serious situation. in this sense, it has gone from risk to modest economic
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stimulus. the other events, which would be an unknown, would be something that would threaten business confidence. we have seen that job creation has been decent over the past six-12 months. i would say about 150,000 jobs per month. that is poised to accelerate. lori: let me squeeze one more quick question. what is your 2014 estimate? >> close to 3%. adam: you heard him talking about the homebuilder sentiment. it's held steady in september. they remained unchanged at 58 after four straight month of gains. the august reading was revised down. in the reading above 50 is viewed as favorable. the flat reading is the result
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of rising mortgage rates. lori: china is nipping at the heels of the u.s. when it comes to coffee. it is about to become the number two market for starbucks. the coffee chain has plans for two new flagship stores in beijing. one of which will be 4000 square feet and two stories. adam: a big win for chevrolet. the chevy silverado. gm took top place sounds like the perfect new model. it also gets the best mileage in its class. the silverado barely beat out the dodge ram for that top spot. lori: gas prices hit a new record today. it may sound troubling to you.
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it could be worse than what you have been paying. adam: steve ballmer said to leave microsoft. lori: gunning for tesla. the new plan to zoom past tesla in the electric car race. take a look at metals as we head to break. ♪ ♪
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♪ adam: it is time to make some money with charles payne this hour. we have a weatherford international. charles: they have drilling equipment. unconventional oil. really heavy oil. it is up to 39% of the total package. it is not a novelty. soon, this will be where we get the majority of our oil from. this stock needs to be a lot higher.
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it has been a whole lot higher than this. i think it will go to 1675. my target is $20 or less. the valuation metrics, forget it. extraordinarily cheap. screaming buy from those sort of metrics. they really have some products that are in demand. their plunger products, their artificial lip products. europe, any industry -- adam: we keep hearing about the increased production of oil. is demand worldwide still stronger than what we are producing? charles: hence one of the
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reasons the price is where it is. there still is a supply and demand problem. the assumption is maybe a couple of years from now everything is flying on all cylinders. gas prices probably will -- adam: you can cover. charles: that is why i am on the show. i really think this one will be a big one, guys. lori: thank you very much, charles. let's check in with new called petallides. nicole: tesla was talked very much about. everybody has a lot of confidence in it. the story today is general motors. they say they are creating a
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model that will cost roughly $30,000. not compared to tesla's $70,000. it will get 200 miles out of just one charge. of course, everyone will have to do their homework. what is interesting, though, you do see both of those names to the upside. gm, just to give you a year to date, is up 27.5%. lori: not too shabby. adam: we will talk about gas prices. the summer driving season may be in the rearview mirror. the number of days that price has been over three dollars. the average price of gas topped three dollars per gallon for 1000 days starting back on december 203, 2010.
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it is the longest streak ever. aaa says get used to it. lori: they say it is a tax on the economy, it is a tax on you. i really think it is. adam: you could lower some of the taxes on gas and make it a little easier for the consumer. lori: oh, yes. if we had a better idea of what gas would be going forward, you could just plan your personal budget a little bit better. adam: that would make things easier. we will put that on the list will be talked to the man upstairs space. lori: we are on "unsustainable ground." adam: why an extra pillow and late checkout may cost more next
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♪ >> 22 minutes past the hour.
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i am patting him down with your news minute. the gunman who killed 12 people yesterday it was being treated for mental health issues. he had been hearing voices and suffering from paranoia. the crippled costa concordia crews shift is vertical again. the ship slammed into a reef in january 2012. thirty-two people died. the homeless man in boston is being seen as a hero after he found $40,000 turned it over to police. he said he never even considered keeping the money. edward david think james for an extraordinary show of character and honesty.
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those are your news headlines. adam: thank you. the congressional budget office is out with a dire warning for the nation's budget saying the united states that is on an unsustainable path. rich aronson joins us now with more. rich: when you look at the next 25 years, the congressional budget office says it will be 100%. it is 73% right now. we add to the debt each year. it is on a unsustainable path upward. it has to do with the entitlement programs. medicare, medicaid and social security. >> we have a fundamental choice
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on whether to cut back on those programs or to raise taxes to pay for them. so far we have chosen to do very little of either. i think the projections will keep looking like this. rich: john boehner saying the president and the party should be honest with the american people about the fiscal challenges that we face. the administration says the plan from a couple years ago still applies. they say it has to include revenue and tax increases. when it comes to solving fiscal problems, that that feeling is not the right venue. >> it can be used as a lever to force major policy change like the delay of the affordable care act. that just is not reality. they have to start dealing with
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reality. rich: republicans are still formulating their offer. back to you. adam: sounds like business as usual in washington. lori: your corporate credit card bill maybe a little bit higher next year. coming together to have higher rates. 5% higher. that is according to a survey at nyu. more companies will send employees to limited service establishments as opposed to luxury hotels. let's take a look at the lodging sector and how it is favoring today. not a lot of big movers. adam: microsoft. boosting the dividend.
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it makes shareholders forget that you kind of blew it with tablets and playing catch-up with mobile phones. we will speak with someone who can answer questions about microsoft. tracy: take a look at the components. which shares are driving the index and which ones are dragging it down. we are back right after this. ♪ [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense.
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lori: eight's been 15 minutes since we last checked in with nicole. let's go down to the new york stock exchange to see what caught her attention. delta is one of those shares. >> that's right. it has a nice recipe today, okay? not only has it been added to the s&p 500 recently and this month, but also today jpmorgan
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has some positive comments, oil is to the downside. that make as winning day for deltagen. let's look at it right now. 23.24 is where it is trading. it is up half of 1%. it was raised to overweight from neutral at jpmorgan. raised the price target from $22 to $26. they said quote, it is really doing a great job. better than amr stand alone networks and most networks. this is great news for delta which is up about 17% this month. as i noted it went into the s&p 500 and up nearly 100% for the year. back to you. adam: nicole petallides, thank you. microsoft announce ad dividend boost of riffly 22% and new stock bier back program. before shareholders have a chance to question management when ceo steve ballmer calls it quits. joining us, norman young, an
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analyst at "morningstar." this announcement today surprised dress source. -- investors. not dramatically the stock is is up and florida, what, the next 10 years? >> that's right, adam. it has been roughly flat for about the last 10 years if you go back that far. this was not a complete surprise. the 40 billion-dollar reauthorization was about to expire on the last deal. so they need ad new share repurchase authorization. and dividend increase was probably a little larger than people expected. it was in the realm of a comfortable margin there. adam: there was one article i read was valueact capital which has a seat on the board. was there pressure to up the dividend? you want to reserve your cash. >> right, no that's a good question and look, valueact is definitely an activist investor but for the most part they typically take a longer term view. maybe they had had a little
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something to do with what happened here today with the dividend increase but look, they're typically invested on a three to five-year time horizon. what they compare about more is the competitive positioning with microsoft products and technology. adam: let's talk about that. 7.2 billion to buy nokia. in the united states we don't talk a lot about the microsoft phone system. it is usually in android or apple. over in europe, aren't sha, doesn't it have more traction and couldn't the acquisition of nokia give them the kind of propellant to go faster and forward that would make investors like valueact happy? >> you make a very good point there. in the u.s. they're still kind after distant third place. windows phone software has decent market share in places like great britain, germany and mexico where it is approaching one or two in market share. the acquisition of the nokia handset business is really microsoft doubling down what they perceive what is important to them strategically. certainly till will be easier
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for them to make strategic decisions depending on hardware and what they do with the software. if anything it should help going forward. adam: $77 billion in cash roughly. how do you get this company to get its share price up? it has been flat as we talked about for several years and nothing seems to give it a boost. >> no, that's a good point. the important thing to consider, look, share count has actually come down by about 20% over the last 10 years. the dividend has increased every year since the end of the recession. revenues have grown almost threefold since, over the last 10 years. and that net income has also grown. so look, they're kind of proceeding and building the company fundamentally when it comes to numbers. but i think the problem of course, everybody sees this, strategically, they seem to fall behind on a couple of important levels. adam: given that in mind do you hire from within to replace steve ballmer or do you go without? a former apple executive or someone else? >> that's a difficult question.
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i don't know. i suspect though they will probably be looking for somebody with a little bit of both. maybe somebody with some experience runing a very, very large multinational technology software and hardware company. and maybe somebody that knows, look there are a lot of different moving parts here at microsoft. maybe hiring someone from the retail side may not be the right fit but they certainly need somebody to figure out what they need do next. especially since they recently announced that reorganization in july. adam: on thursday do you think you will get a list of names of serious contend officers. >> i doubt that. adam: on that i give you the final word. norman young, thank you very much. >> thank you. lori: the u.s. department of justice and securities & exchange commission just out with some of the agencies looking at jpmorgan. up next, what jamie dimon has to say about his bank's regulatory issues. charlie gasparino has exclusive details next. adam: no bull here on fox business. why this magazine cover may be the key to whether you should
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buy or sell right now. first take a look at 10 and 30-year treasurys and how they're moving. any last requests mr. baldwin? do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps,'s taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your wallet?
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>> i'm cheryl casone with your fox business brief. consumer prices barely rose last month as the cost of energy
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fell. august consumer prices increased by .1 of a percent. the estimate was for a rise of .2 of a percent. take out the volatile food and energy component the core cpi was up .1 of a percent. that matched estimates. weakest holiday sales since 2009 as consumers are cautious about the economy. shoppertrak rise of 2.4% of november and december sales. compared with 4% back in 2011. holland will buy 37 lockheed martin joint strike fighter jets. holland is the 7th country with a firm commitment to buy the next generation f-35. deliveries are beginning 2019. that's latest from fox business, giving you the power to prosper.
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lori: litigation continues to mount against the nation's largest bank. what is jpmorgan chief executive jamie dimon telling his employees? charlie gasparino is here with more details. >> there's the public statements which he made. they are kind of interesting. you can read them. they're on online. i won't get into them. private statements what he is telling his closest executives and spread across the firm. more than a few analysts are getting the word. what dimon is telling to sources close to the company, he believes regulatory issues even as they mount, are contained. he has some sort of ring fence exactly what they are going on. knows what they faced on the "london whale." he knows what they face on mortgages. he knows broadly what comes down the pike. he will spend money to prevent future problems. that is where a lot of his attention is doing these days. doing what we were first to report here on fox business network, constructing what is known as regulatory moat. it ring fences the firm in a way
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that it is very difficult for these sort of issues that occur -- the "london whale." maybe those guys mismarked purposely the positions, trading positions. that is what they have been indicted for. but it started out as a screw-up, right? they got in over their heads. they bet too much on a derivative. this regulatory moat is supposed to be a sort of a stopgap to prevent stuff like that happening again. at least that is what dimon is telling people. maybe it is wishful thinking. i know this, banking executives he is pretty good. most able of all of them. if anybody can run complicated bank it is him. that is the how he views it. they have a ring fence around the regulatory issues. they know they will pay billions. they have basically put capital and money aside to pay those billions. it is future that he is really worrying about. that is what will end, they think they have enough money in place to erect a system that will prevent this. and erect a regulatory system
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that is second to none in on wall street. that they will be the model for regulatory systems of, a moat that will prevent stuff like this from happening. multiple checks and balances. don't ask me exactly what it is. i will tell you this. this is affecting people. i talked to lower level executives there that have to transact business in the past when you jump through three hoops. it is now 40 hoops. it will slow down business but many more regulatory compliance check is. adam: if you're shing down business and not able to manuever quickly and flexibly as these institutions need to move, how are the investors going to keep that stock price? >> well, that's a good point. there is always a business aspect. it's a give-and-take. it is a tradeoff. what we i will say when we get him on, we'll get him on at some point, the tradeoff we don't suffer the sort of reputational damage of the "london whale" which we've been talking about this for almost two years. but, you know, maybe we shave a
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few billion off our profits. remember jpmorgan is incredibly profitable bank. adam: right. >> just existing they churn and burn a lot of money. they lend. they can borrow at very low cost and lend at a higher cost. given their size and scale, they make a lot of money just that way. and i think what's going to happen here, is that, there may come a point, with your deeper question is, you know, okay, is it going to be profitable enough and will they have to break up? adam: well you've got elizabeth warren yesterday with peter barnes said, introduced legislation with nine cosponsors to break apart -- >> remember why she wants that. she didn't think the things should be together. adam: glass-steagall. >> she has a problem from a regulatory standpoint. dimon will look at the structure and how much money they put into it. at some point, you asked the perfect question, are they, will they make more money being broke up, smaller, two separate banks? that is an issue he will have to
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deal with and everybody on wall street will have to deal with. jpmorgan is the model for what regulators are going to do to anybody at these big banks in the future if you step out of line. lori: meanwhile what are you hearing? latest handicapping on the next fed chief, if there will be a next fed chief a after bernanke? >> there will be another fed chief. anybody that thinks bernanke will stay longer -- adam: he wants out. >> i just don't see it. there is always a possibility but i don't speak to ben bernanke but just based on what i hear, is janet yellen. there es an outside chance for donald cohn. we were first to report that at the fox business network that tim geithner has been prodding, pushing for don kohn. "the times" followed today and we pushed that last week and week before that. it has to i think go to yellen. some people say possibly roger ferguson. here is the problem, janet yellen you may disagree with her policywise, in terms of
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experience, she is the most qualified. adam: don kohn was there for years and years. >> even on paper if you look at what she did and her policies, she looks like to be the most experienced person at the fed right now or in contention. i don't know how you don't give it to her. unless you don't like her. it is possible the president has no chemistry. here's the thing. you're not supposed to have chemistry with the fed chief if you're president. it is an independent agency. you're not supposed to be friend with that person. adam: as if everything in washington is independent. >> right. adam: charlie gasparino. >> that is the way it is supposed to happen. lori: thank you, charlie. adam: we do this every 15 minutes. we're supposed to check the markets and we'll do that on the floor of the new york stock exchange. mark newton with gray wolf execution partners. we've been joining this rally yesterday. we were up triple digits. we're up 45 points now. the market seems to be waiting for the announcement tomorrow. or will something else take the headline? >> i think this is definitely
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what is on traders minds this point. market rallied last 12 out of 14 days. dow has been up almost 700 points. if history in any guide the past 12 months it pays to sell into the move as you approach the fed meeting, or directly thereafter. we saw that in june and july when the market dipped the 4% after the whole month of august right after the july meeting. after minutes in february, march, april and may, that was also particularly important. typically we see a lot of volatility as the fed tries to communicate the message. a lot of people wonder how can we taper when we haven't met the economic targets the fed laid out? that brings up a lost interesting points about bernanke's legacy. whether the fed is concerned with these asset imbalances and bubbles potentially by having overcome mow date tiff mop terri policy at this point. there are a lot of things to keep in mind why we could taper even though the economic data isn't where we want it to be
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yet. adam: mark newton, thank you very much. >> my pleasure. lori: it may seem like time to sell when you see a bull on mainstream magazine cover. but in fact the opposite's true. in the latest issue of "time" magazine the cover depict as bullish-looking bull, with the title "how wall street won." market watchers see this as a indicator and inside it says the market is vulnerable to a crash. over 65 years the bull appeared nine times and on average stocks rallied almost 13% after one year. adam: sounds like the miniskirt theory. when hemlines are going up, market is stronger. when they're coming down -- lori: i didn't realize there was a correlation although i heard that saying before. i'mmpressed you follow skirt lengths. i didn't know you had such fashion acumen. adam: turning to other fashion acumen, technology companies making future easier and producing big profits but we'll go back in time with a auction
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house for prehistoric investing advice. lori: i've been looking forward to this one for weeks. as we head out to break look at some winners and losers on nasdaq. but don't go anywhere. dinosaur bones next.
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lori: it is an auction that is poised to make history. the bones of two dueling dinos are being put up for auction by bonham late they are year. it could be the most valuable sale for bonham's. the natural history department consulting direct tore joins us right now to give us more detail this is fascinating, tom, bones,
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dueling dinosaurs could fetch anywhere 7 to $9 million. what is behind the fascination with these particular fossils? >> these are the two best articulated, most important signisticly excavated dinosaurs in the past 100 years. they killed each each other 3 million years before the end. age of dinosaurs. these two had a death battle which ended both very quickly, so you have almost 100% complete skeletons for both animals. adam: dueling dinos, just to give a people perspective how large, if you buy it and put it in your house, 30 feet across? >> when they were found in the browned, one with his foot, triceratops has his foot on the tail. they're 30 feet from one wend end to the other end. mounted specimens of a triceratops would be 25 feet long. nanoteranus, 25 to 30 feet long. this is really important point
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in palentology history. this is almost two 100% complete dinosaurs. most complete dinosaurs found in north america buried together after a death match. lori: this is such an important piece as you describe. what if the person buys it at auction and stores it in his or her home and doesn't share it with the public. don't we lose out? >> i don't think that will happen. most dinosaurs are prepared and then mounted of the these dinosaurs were left in the original jackets because of scientific context is important. soft tissues and skins, what not like the two big dinosaurs joined the dueling dinosaurs in the auction on november 19th in new york. tyrannosaurus rex skelton and triceratops are being prepared three dimensionally mounted. adam: most likely purchaser would be a museum or research institution? >> i think a museum probably would be the final two
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dinosaurs. it is matter of finding a proper benefactor to put the money up like they were able to do for sewage in the 1990s. lori: how do you mary the wonderful finds? i know you spend half your time in the field doing archaeological digs or fossil digs, i don't know how you characterize them. >> right. lori: other time putting together auctions to work with potential buy officers. >> someone needed to do this. the scientific community and commercial side of palentology community have been butting heads for some time. we need to come to the middle. they excavate the dinosaurs out of the ground for their livelihood, better than museums could staff. museums don't have funding to fund this excavation. bringing in commercial entity that bring it in professionally and scientifically, and hopefully bring the two together are the best marriage. adam: these, this not particular
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item, individual bones get removed from the scientific research field if individual investors buy them. is there a problem with that or is there plenty to go around? >> really important scientific specimens such as this i don't think that happens. you know, first of all, the critics need to look at these specimens. they need to understand, they were scientifically collected. the data there, the site, the original site from dueling dinos came from is still preserved for any scientific investigation. you can not criticize something that you haven't seen. lori: do dinosaur bones appreciate in value? so if the dueling dinos go in the range of 7 to 9 million at the upcoming bonham's auction, if they were to hit the auction block in 10 years would they appreciate in value? >> absolutely. >> okay you. >> understand the work that goes into preparing these, will add millions of millions of dollars of value to the specimens. but i doubt they would ever go to the auction block again. they need to find a scientific home. once they're there they will not
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let these go. this will be a center piece with any major museum. look what happened to the field museum. they saw the most amazing tyrannosaurus rex that had been found. lori: i could talk to you all day. good luck with the auction. we'll check back with from the results. >> thank you. adam: we're 24 hours from the highly anticipated fed decision but christopher zook says no matter what the fed does it is too little too late. he will be here with tracy byrnes and ashley webster next on fox business. "markets now" continues.
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go national. go like a pro. does it end after you've expanded your business?? after your company's gone public? and the capital's been invested? or when your company's bought another? is it over after you've given back? you never stop achieving. that's why, at barclays, our ambition is to always realize yours. ashley: welcome back, everybody. i'm ashley webster. tracy: i'm tracy byrnes. investors on edge as the market waits for the fed's decision and chairman bernanke's news conference. we've got one money manager, christopher zook says even if the taper comes tomorrow it is already too late. ashley: collision course in washington. the congressional budget office sending a dire warning on our
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debt. it comes as lawmakers are gearing up for the big fiscal fight. we'll get the latest from capitol hill just ahead. tracy: our special series, america's shale boom. dominion resources finally getting approval to export natural bass to some of the world's biggest markets. we'll have a interview with chairman and ceo thomas farrell. all good. now time for stocks. to nicole petallides on the floor of the exchange. we head down there every 15 minutes. looking good, nicole. >> we've been up roughly 50 points today. not too much volatility but holding on to gains nonetheless. dow up one quarter of 1%. s&p you have half of 1%. bank stocks, drug stocks doing well. transportation index is higher. oil and gold are pulling back. the 10-year, 2.85%. got to take a look here at microsoft. that has been a leader on the dow jones industrials and
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there's a couple reasons why. first of all they announced they raised the dividend, 22%. that is five cents to 28 cents. so that's a big deal. coupled with the fact that they're moving forward with a share repurchasing program, a new one worth $40 billion that has no expiration date. the current one expires on september 30th. up half a percent for microsoft. back to you. tracy: stuart varney will be very happy, nicole petallides. see you in 15 minutes. ashley: at this time tomorrow the federal reserve will announce its latest policy decision, potentially slowing its $85 billion a month bond buying program. all this comes as janet yellen emerges apparently the frontrunner for the chairmanship at the fed. what does it all mean for the markets that continue to move higher? let's bring in chairman and chief investment officers at caz investments, christopher zook. thanks for joining us. you argue this is crunch time you could argue for the rally as we await eagerly what the fed
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says tomorrow. what is your expectation? >> i expect they're going to taper and i expect they're going to lay out a plan how they're going to exit the buying program entirely. that is what the market is going to be focused on. if there is a clear definition when they're going to exit and how long it will take them to be out of the bond buying business, i think this market probably sells off. ashley: you know, 40% of the growth in the second quarter came from housing. do you think with that in mind that the fed, as it looks at its treasurys and its mbs purchases, that it will perhaps just maybe leave the mbs alone and just cut back on treasurys? >> i think that's a very good possibility. the housing market recovery is still very tenuous. it is delicate. if they're going to pull something back, i think it is going to be treasurys first. then it would be mortgage backs after that. i think they will try to lay expectations out when they will be gone completely and let the market do what it should be doing on its own.
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ashley: have equities priced in the taper? >> no, i don't think so. we think the taper itself has been priced in but not the full exit of the fed from the buying program. so we think there is expectations that this just continued stimulus will go on forever. that's why we saw the rally yesterday when summers resigned, pulled himself out of the running if you will. the market just needs that additional stimulus to be able to justify the valuations that we have today. we're not seeing it in profit growth. we're not seeing it in cash flow growth. we're not seeing it in revenue growth. they are hopeful buying is continued so they haven't priced it in if the buying goes away. ashley: the all-important question, how should investors position themselves with this hanging over the markets? >> sell when you can not when you have to. you need to be reducing risk and pull back exposure. we're basically a 2 on scale of 1 to 5 with five most bullish.
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doesn't mean we're running for the hills going to all cash. we're not doing that we're putting on position, reducing positions putting more cash into the portfolios or hedges to give us the ability to not suffer the downside in the event this market were to, you know, gain some momentum on the downside which we think is possible. ashley: all right. we got your scale on the screen now. you're, let's just say cautious, very cautious. we talked about housing. would you, what would you see with housing stocks right now? would you move in or out? >> housing stocks we think are good long-term values. we would prefer to buy into them at a little bit of a pull back from current levels but we believe the bottom is in place and the fundamentals will continue to improve for that business. it is simply a supply and demand issue. as the supply gets chewed up by the natural going of demand we think profits will continue to grow and they will be able to lift gradually from here. we're very long-term investors.
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we would say three to five years from now it is very easy to see those stocks could possibly double from current levels. it is very hard so find a lot of stocks we can make that claim about in other areas. ashley: are you concerned about inflation at all, christopher? >> we relrye hard. we're afraid when time comes inflation will spiral upon itself and it will be very difficult for the federal reserve to take actions to slow that down. we don't see near term inflation. we are more concerned inflation out two to four years from now. that again is why the fed needs to get out of the bond-buying business because they're setting us up for potentially a bigger problem later. ashley: great information. all will be revealed by this term tomorrow. christopher zook, thanks so much for joining us. we appreciate it. >> that for having me. tracy: speaking of which, tune in tomorrow at this time. like ashley said we have full coverage and the fed
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decision and ben bernanke's big news conference starts at 2:00 p.m. eastern. you can't afford to miss it. there might be cake. ashley: we hope so. congressional budget office is out with a dire warning. all they seem to do these days. it has numbers to back it up. they report that the nation's budget is on unsustainable path, no kidding. with the national debt 7% of the gdp. no, it is not greece but it is not heading in the right direction. rich edson live on capitol hill with more. rich. >> ashley, debt-to-gdp ratio over the next few years we're head in the right direction and we're headed in the wrong direction permanently. that is if congress does absolutely nothing to solve this problem. look at long term projections. we're seeing debt-to-gdp ratios, approaching them, we've not seen since 1954, 1946, at the end of world war ii. if congress continues to do what
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it normally does and basically, you look at these numbers. the congressional budget office says this amounts to a very familiar warning. >> the bottom line remains the same as it was last year. the federal budget is on a course that can not be sustained indefinitely. >> the bulk of this according to the congressional budget office, we all know it is all entitlement spending, debt servicing. that will begin to eat up a larger percentage of the budget. 25 years from now interest payments will double as a percentage of gd. and more money on debt and entitlements will continue to drive other types of government spending and like building airports and roads out of the budget. more budget negotiations on capitol hill by beginning of next month. treasury department says we'll exceed the borrowing limit. that is something that the treasury department they say they will continue issue warnings about the debt sealing. >> i take comfort from the fact i don't believe there are any responsible leaders who think that default is an acceptable
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option. i'm nervous by the desire to drive this to the last minute when the last minute is inherently unknowable and the risk of making a mistake could be catastrophic. >> lew and the obama administration say they refuse to negotiate on the debt ceiling. meanwhile house republicans are trying to figure out what their opening offer is going to be if they want to negotiate the debt ceiling increase. ashley: here we go again. rich edson on capitol hill. rich, thank you. tracy: diana furtgoth-roth says you can blame entitlements for the cbo projections. senior fellow at the manhattan institute. i love having you here but seems like we're always talking about how they are screwing things up in washington when you come, diana. here they are, right? >> if they weren't screwing things up and you wouldn't invite me. if everything were fine i wouldn't be on the show so i'm happy i'm here. tracy: to your point it is all about the entitlement spending, right? it keeps going higher and
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higher. >> it really does. as people live longer, which is really good news, we have more great grandparents out there, they're drawing more social security and more medicaid, more medicare payments. so we need to recalibrate those programs. we need to raise the retirement age and contributions or cut do something. we heard from the deficit and resumed increasing from 2018. tracy: they're saying entitlement spending will be 14% of gdp by 2038. the problem though no one wants to address this in washington, right? this is really the bulk of our problem. we, other costs have come down. yet we can't even have a conversation about entitlement spending in washington. >> it's very difficult for politicians to cut back on anything. one solution is devolve more
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perhaps to the states. food stamps, to, or medicaid. rhode island and indiana made great steps in reducing medicaid costs. social security if you made indexing formula if you index the payments, not to wage levels in the economy but to price levels, something like the cpi, then you would find the costs of program rise a lot more slowly and the program eventually gets into balance while raising retirement age. >> the other thing that stood out, for me was the net interest payments come 2013. up to 5% of gdp. that is just to cover the loans we have. everyone makes -- >> exactly. >> interest on cars and mortgages and things. 5% of our gdp that is an incredible number. >> it really is. we benefited past few years from low interest rates. the normal interest rate is 5%. as soon as we hear from the fed and start rising to more normal levels we'll find the budget is
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even more out of balance and debt-to-gdp ratio gets higher. >> is there an optimal level out there? we have to have some debt? we all get that but where should we be? >> well, it really depends on both interest rates and the level of gdp growth. so we want the debt to be such that our level of gdp growth can manage the interest payments. so there is no optimal level but in the '70s and early '80s, it was closer to 25, 35% of gdp. that is what we need to be heading back towards. tracy: interesting how the fed will determine this as well. >> right. tracy: rich edson said they're coming to the negotiating table on a lot of things. how do you negotiate this one? i know, democrats want to increase spending. republicans want to bring it down. decrease taxes. how do they come to the middle and start to talk about taking care of this? >> i think what we can do and what they could do is start by talking about how to redo entitlements in the out years, so people right now won't be hurt but we make plans for 5,
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10, 15 years ahead. if we talk about raising retirement age in five years or 10 years that will not be nearly as difficult saying i will raise it next year. so that is one thing we can do. we need to make changes in the out years, as the cbo report shows that is where the problem is. politically it is not so difficult to do it in the out years. they have to come and agree. tracy: and good luck with that. since they continue to mess up i know we'll see you soon. thank you, diana. >> thank you very much. great to be on. ashley: sad but true. we've got some news now. go to the skies. boeing where the aerospace giant right now test flying its very latest dreamliner. this is the new 878-9. this is -- 787-9. this is considered the stretch version of the high-tech plane. it took off seconds ago in everett, washington where boeing is based. it is 20 feet longer than the dreamliners currently in
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service. which means you can put in more passengers. has room for 290 passengers. 40 more than the current production model. by the way it can go 300 miles further than the current dreamliner plane. that means boeing can charge more for the plane. airlines can charge more for extra seats. this video provided by boeing. they do such a good job of that of course. why wouldn't they. this is boeing's stock last couple days, hitting new highs, soaring if you like, up another 1 1/2% today at 117.31. the dreamliner of course has been struggling as we know from its inception. now they're starting to get these things rolling out and there you go. 290 passengers. tracy: stretch. i like that. ashley: the stretch limo version of the dream lineer. >> remind me after white stretch limo for my senior problem. ashley: i can picture that. tracy: can you? come on, huh? >> not a surprise. tracy: straight ahead we've got the latest in our special series america's shale boom.
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exclusive interview with dominion resources chairman and ceo. his first interview since the company won approval to export natural gas to the world's biggest markets. ashley: first let's look how oil is trading. and it is down, down 1 and a third%. we'll be right back. she loves a lot of the same things you do.
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[ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? tracy: quarter past. bottom to get a check on these markets. nicole petallides on the floor of the exchange. a big retailer making big moves today, right? >> indeed i do. we're talking about sycamore partners, private equity firm. they're no stranger to retailers, tracy and ashley. we're watching aeropostale today. now we're seeing aeropostale jumping big-time. it is up almost 21% at the moment. traded as high as. sycamore partners is holding 8% of this teen retailer. they did something similar with talbots only to later move forward and actually try to buy the rest of talbots. now the question what are they doing?
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what are their plans? there is talk that sycamore may communicate with the company's management about future plans. they certainly think overall aeropostale is an attractive investment. those are their words. back to you. tracy: definitely their words. that would not be the words of my children, nicole petallides. ashley: interesting. the gauge for the teens across the america, tracy's kids. time to make money with charles payne. this hour it is all about the bubbles. we are revisiting soda stream. chars, this is a stock you've been recommending. >> billions -- ashley: what is he have fer vest end about this? >> i think shorts in there deeply. i don't like the shorts. it is interesting. they have redesigned their machines. do you have one? ashley: no, never seen the need to put bubbles in my drinks. tracy: when you can just buy it prepared. >> you can make it cheaper. let me tell you something. we went to a high, one of these real high, fancy, expensive
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restaurants a couple weekend ago. one of these restaurants where it's expensive. when they brought out the sparkling water i knew that was soda stream. hold the phone. don't bring out a nice carafe with no label. they charged me the same amount as if it was regular. new design, i looked at it. it is really nice. this guy named behar he designed it. he is the chief creative officer for jawbone? have you seen some of their products? revolutionary stuff. we have to get them on the network. they're doing amazing things. that debuts in london later this week. meantime they're doing exin order narrowly well. this company keeps figuring it out. they figure out new things. new partnerships. cap bell's soup. things like that. >> bubbles in soup? come on. >> make it with the emergency. i'm joking on that part. tracy: really, campbell's soup?
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>> i was just joking. gas refills up 8%. flavor ares up 8%. they have a lot of flavors like country time lemonade. guidance from the previous quarter, they raise guidance. i'm looking for another leg to the upside and shorts are in it big-time. we'll see what happens. i think people will be excited when they see the new design. ashley: love the old soda stream. >> i feel bad because if tracy doesn't have the product because i'm a little nervous. ashley: yes, really what does that tell you? >> whirlpool went through the roof. you said i have whirlpool, the stock exploded to the upside. ashley: thank you, charles. >> see ya later. ashley: what kind of power you have. impressive. tracy: god willing my washing machine doesn't explode best end of the day. soar seeing costs of college, speaking of exploding, picking a school is all about money. gerri willis is here next with a look at schools offering the best return on investment. ashley: first let's take a look how the u.s. dollar is moving
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right now. generally mixed. lower in europe, that's for sure. the euro and pound moving higher. so is canadian dollar. peso flat. japanese yen down a little bit. ♪ no two people have the same financial goals. pnc investments works with you to understand yours and helps plan for your retirement. talk to a pnc investments financial advisor today. ♪
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>> at 24 minutes past the hour i'm patti ann browne with your fox news minute.
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the gunman who killed 12 people at the washington navy yard had his federal security clearance renewed in july. this despite a record of violent behavior involving guns and a history of mental illness. 34-year-old aaron alexis reportedly had been hearing voices and suffering from paranoia. the former navy reservist had been treated for his mental health issues since august. the rains have stopped in colorado but search efforts and damage assessments continue the floods have left as many as eight people dead and hundreds unaccounted for. helicopters are dropping supplies and airlifting people who need help. the crippled cost at that concordia cruise ship is vertical after dramatic 19 hour operation to pull it up from its side. the ship slammed into a reef off the coast of tuscany. it is believed to be the biggest ship hoisted up right after capsizing. those are the headlines on the fox business network.
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back to you, ashley. ashley: fox's patti ann browne, always appreciate that. with 5,000 degrees granting institutions narrowing down the right college is no es task. money is playing a crucial role. gerri willis looks at it this week as part after user's guide to education. gerri. >> picking right school is critical. you're thinking harvard and your kids are looking at list of party schools to figure out where they are go. 4500 colleges will give them a degree to choose from. it's a long list. one is a good match. things you should look for at a college. look at spending per capita on education. now this sounds like a no-brainer, right? reality so many schools are not spending on education. they're spending on student union, climbing walls. fancy gyms, you name it. you want to make sure money is going to instruction. you will pay hundred of thousands of dollars over time.
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alumni giving a good proctor & gamble system are people who graduate from the university successful? you want to know proportion of alumni actually giving money back to the school. that is a good way of judging. face it schools don't put out how many grads are getting jobs typically. doesn't happen that way. two more ideas. freshman retention. a lost schools see freshmen leave after that first year. that's a bad sign. and graduation rates. 47% of kids are not graduating in four years. tracy: whoa. >> it's a huge number. that is the last thing you want to have happen, have your kid drop out, right? you pay for two years. pay for three years and don't even get the degree? that would be a disaster. so we're talking about this tonight. it is something that i feel very passionate about. the costs are too high. we have to find ways to bring the costs down. a trillion dollars -- ashley: it is out of control. >> well, there are a lots of strategies using. the mooks we talked about. not all the training can get you
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college course credit. >> to tell people what that is? >> if you're on line and studying online with academy or another one great accredited resources that's a great way to do it. you have to make sure you get credit for the courses. ashley: right. >> two years in the community college and then go to more expensive school. tracy: i've seen a lot of that. >> i know people doing that right now. ashley: yes. >> guess what? when you get that letter and tell you, you start to see what the costs are, that is a sticker price. tough negotiate from there. you've got to go out and get more scholarships. you have to go out and negotiate that amount of money. the world has changed. we'll talk about it all week. ashley: great information. good stuff. thank you, gerri. don't miss "the willis report" tonight at 6:00 and 9:00 p.m. eastern time right here on fox business. it is all about education this week. affordable education. tracy: yeah. fingers crossed. in some utopian world of affordable education. straight ahead we have the latest in our special series, america's shale boom.
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we have the interview with a dominion resources chair and ceo. first interview since they wan won the ability to transport natural gas to the world's biggest markets. ashley: look at the s&p. abercrombie & fitch, that is tracy's favorite. up 3%. we'll be right back. nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans.
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♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. ♪ tracy: 90 minutes until the close. nicole petallides on the floor of the exchange. >> reporter: watch out for trading of pandora. it is hitting a new high of $25.13. year today, a stellar performer up 173%. a new ceo last week, but today we're talking about the fact that they're planning a stock
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offering with up to $450 million. the plan on using that new money for working capitol, leather is for acquisition and other companies, products, technologies. of course pandora is almost a decade old. 72 million users, listeners to be more specific. and also, they make most of their money from advertising. so one that we will continue to watch. tracy: thanks, nicole. see you in a bit. ashley: oil closing down for the third straight day, down a dollar and $0.17 today to $105.42. joining us from the pits of the cme with today's trade, sandra smith. >> reporter: hey, ashley. a couple of things going on. syria on the back burner. the u.s. and russia got together and agreed on something on those chemical weapons over in syria, and that is on the back burner. well that happens, the third straight day of losses. now below $105 per barrel. when hundred and $4, that would
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mean that 6-$8 premium has come out, the syrian premium has come out of the price of oil. no one is talking about it dipping below $100 quite yet, because there are still global supply concerns that have posted to that level. nevertheless, more than a dollar drop. also the fact we're talking about the fed meeting tomorrow. if we do see tapering by the fed board just been billion, you could get a stronger dollar scenario which would push the commodity prices as well. some traders say that is leading to the father -- further sell-off in oil. gold prices down $7. a rally yesterday. of course larry summers was all the news. nowwit has resumed their decline. five out of the past six trading sessions we have been to the downside. $1,310 a troy ounce. of course, the cost of living rose less than expected. that means inflation concerns are on the back burner for now and do not have gold being used as a hedge against inflation
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defense. both commodities moving to the downside. ashley: down even more. thank you so much. appreciated. >> reporter: thank you. tracy: not to our special series . americans tailbone. the latest company -- well, not giving away the lead again. chairman and ceo joins us now in his first interview, really big decision was made. you have the right to save yourself. >> how are you? tracy: i'm great. you must be better. stella's the big news. >> well, we did get an export license, not free trade agreement was issued by department of energy last wednesday. so it was big news for us. very excited about the possibility. our customers are also very pleased. japanese folks and people from the company -- country of india, long term customers on those contracts, important allies to the united states.
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we're looking for to help serve their gas needs. tracy: non free trade countries which is what we have been waiting for approval to be able to export to these countries. you are the third approval this year following a 2-year pause. you think maybe this is a new trend? to you think that they will start speeding approvals? >> i hope so. the interconnect comprehensive studies under the debris law. they did that. they have been moving along. on average there will look to take u.s. 60 days. hopefully they will continue on that trend. tracy: your pending some sort of regulatory approval. it is not a total ban deal. >> we still need approval from
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the federal regulatory commission, environmental related permit which we look -- works to get the first half of next year faugh. tracy: this is down. so this is -- merrill lynch the bay area. >> southwest of washington d.c. and baltimore. tracy: this has to mean instantaneous job creation, right? >> is going to create 10,000 jobs in maryland alone. it is going to increase property taxes and howard county alone by $40 million to and tens and tens of millions of dollars of income taxes for the state of maryland. it is a great project for the state of maryland. it is going to be great for our important national allies, and certainly good for dominion resources. tracy: no doubt, and the stock clearly shows that. what is next? do you have another approval waiting? >> we need an air permit for power generation on the side and then we are ready to go.
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a design of the contracts, the construction contracts, contracts, the long-term contracts with our shippers. we are ready to go. as in as we get these last two permits. tracy: are you moving into other areas, other areas of your business? you're going to put other properties up for approval for the government to get back on the list misspeak? >> we will not do any more export permits. this will be our export terminal. it will be the only one -- i expect to be the only one approved on the east coast of the united states, at least for quite awhile. we have an existing facility and have to import. we have a lot of the infrastructure already there. we have a lot of other parts of our business, gas pipelines and storage, a very large electric utility in virginia, north carolina, and merchant power generation. we do business in 15 states. tracy: there is not a whole lot that you can say bad about this. cost-effective, environmentally sound.
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the you think that all this will kind of show the administration that this actually really is a good idea for the country is all? >> the demonstration believes that. that is what the study shows, and that the secretary of energy has said that. president obama has said that. they recognize both the environmental quality and enhancements that come from using gas whether it is for power generation, and i think they recognize that the economic benefits for exporting gas are going to be great for all americans and great for our allies and our balance of trade. tracy: 10,000 jobs is nothing to sneeze at. congratulations. i'm glad you could be year. >> thank you. ashley: despite the recent string of failures treatments for a specific types of cancers are getting a new push. one analyst says there are ways that you can profit from this. he will be along next to talk about it. tracy: as we do every day at this time of day, your ten and 30-year treasurys. down one basis point.
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your 30-year is moving slightly as well, down two basis points. we will be right back. ♪ ouncer] surprise -- you're having triplets. babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. [ male announcer ] now, taking care of things at home is just a tap away. ♪ introducing at&t digital life... ♪ ...personalized home security and automation... [ lock clicks ] ...that lets you loser to home. that's so cool. [ male announcer ] get $100 in instant savings when you order digital life smart security.
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limited availability in select markets. ♪ ...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... we're making it. ♪ >> reporter: i'm melissa frances with your fox business brief. cyber attacks against small businesses are on the rise. a new national small business association survey found 44 percent of their members say they have been the victim of
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cyber attacks. the average cost of a single cyber attack came to nearly $9,000. consumer prices rose in august increasing by just one-tenth of a percentage. the estimate was for a rise of two tenths of a percent. coming up at 5:00 p.m. eastern on that money we have a health care expert from the manhattan institute with health care exchanges about to open, big companies like aetna, united healthcare, cigna, either not participating on just a few states. we will be cut the options were exchanges really look like for you. that is the latest from the fox business network, giving you the power to prosper. ♪
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♪ ashley: in today's medical dollars report drugs to treat cancers, we are talking about treating cancers tied to genetic
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mutations. biotech companies cannot get into this market fast enough. a lot of disappointment, but is starting to pick up. biotech analyst joining us now with some names that are on the brink of this new drug frontier. thank you for being here. this is a very specific type of cancer we are talking about. these other ones that are inherited genetically. up and tell fairly recently there has been a lot of disappointment with the drug treatment. why suddenly this turnaround? >> what we are talking about is specifically the breast cancer gene which was recently very famous by angelina jelly that decided to have a double mastectomy and remove both breasts because he carried the mutation in a very high risk of developing breast cancer. two years ago there was a big disappointment with the product. they thought it would work on breast cancer. it ultimately did not. in the me found that the issue is 2-fold. the drug was not potent than
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they were developing it for the wrong indication or segment for breast cancer. they did not target the specific the station. since then new data has come out that said that about 10 percent of women have this mutation. the drug is very potent, very well tolerated and much better than came out. ashley: the end result, not a cure, but does it prevent the growing expansion of the cancer? >> exactly. the hope is that this would give women who have ovarian cancer and breast cancer and frankly been tinselly patients with lung cancer and other forms of cancer an option is set at taking chemo which is very toxic and nonspecific. this will be a target medicine approach that will be very potent and lead a much higher tumor shrinkage in better outcomes. not necessarily a cure, but a lot of help. ashley: your projection of these drugs, not cheap, so from between $12,515,000 per month. >> that's right.
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the recent data and the reason drugs if. aided 10,000 month. the most recent and most comparable product is 11,000 month. that is specifically for lung cancer. these drugs will be even more targeted. and remember, the patient populations are not that big. this segment of the market. ashley: very narrow. >> and develop personalized medicine approach with the diagnostic. so the proposition for the insurance companies that you're only paying for 50, 60 percent chance that the patient will improve. ashley: how far away are we from these getting approval? i know that after zeneca, if i am correct, looking for regulatory approval in europe on one of its drugs. >> that's right. they felt their initial data was not positive. they went back and really analyzed and felt that the date it was very unique. the european authority to encourage them to file. we think there will be approved by the end of next year in europe.
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the u.s. we're not looking for approval until deep as the 17th. astra zeneca is in the league. ashley: and the like those companies most because they are really ahead of the game? >> yes. specifically a focused company on cancer. they have three drugs in development. it is a pure plan cancer. they're moving to l.a. stage for breast and for a very cancer. i am iran is right behind them. they're more of a diversified company. it fits their strategy. focusing on rare inherited diseases. true patient populations we can charge a lot of money with a high margin. both of those are great way to play. ashley: apparently doubled in just the past few years. going very well. fascinating stuff. thank you so much for being here. it will continue to follow it and hopefully you can come back with better news on this front. tracy: investing. it is a quarter till. time for stocks as we do every
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15 minutes. we had to the floor of the new york stock exchange. gray wolf execution partner joins us now. do you go home tonight long, short, empty-handed? what do you do? a meeting tomorrow. >> it is prudent to take at least some money off the table. historically that has been the proper thing when you see runups. one of the more anticipated fed meetings this year. a lot of people think they have not figured out what will happen, but there are scenarios. not exactly going to taper bites in our 15 billion. right now we see a lot of strength in capital goods and semiconductors. materials is the sector to mention. particularly weak. crude oil has fallen the last five or six days. at least minor signs of stability in the middle east. that is putting some pressure on commodities. the index down to the lowest level in a couple of weeks. materials being particularly hard hit by that, one sector to avoid in the near term.
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tracy: not exactly what the market wants, it could potentially tank. i would be nervous. thank you for your time. >> my pleasure. ashley: wait-and-see. tracy: but it is so fickle down there. fed officials putting the microscope on inflation this week as they decide whether or not to taper. what inflation are you talking about? >> reporter: did you know, tracy, computers and of this stuff that goes with them have declined in price 10% of the course of the past year based on the cpi? i am accompanied partly responsible for that. what is that man doing and why is he saving you money? would tell you in a moment when we come back. ♪ my customers can shop around-- see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors,
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treatment options and estimates for how much i'll pay. that helps me, and my guys, make better decisions. i don't like guesses with my business, and definitely not with our health. innovations that work for you. that's health in numbers. unitedhealthcare. i'm, like, totally not down with change. but i had to change to bounce dryer bars. one bar freshens more loads than these two bottles. i am so gonna tell everyone. [ male announcer ] how do you get your bounce? [ woman ] time for change!
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ashley: this cpi numbers are out one area showing a huge drop, pc and accessory prices. live from a manufacturer that has had an edge of the competition. >> wanting to do this story for a long time. engineering lab and the company called covert technologies, making machinery that makes and recycles those printer cartridges. i have which fisher with me, clever technologies executive vice president. you take those of cartridges and put them back to work. >> we take them apart, replace any parts that need replacing, clean them up, fill them, reseal them, but the back of the marketplace for 20 percent less than you pay for the equivalent oem cartridge. >> 20% less. what they are doing is making the machinery that does all that stuff right now. take a look. twelve month price changes. as you can see, inflation is pretty much debate. if we even look over the course of the past five years, go out
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to 2008, inflation is really not there. that has an impact on what the fed may decide to do. why is that? well, mainly because of specific areas. one of those is computers and peripherals. that is down 10% of the course of the past year. >> we would like to take personal responsibility for that >> reporter: it takes some bite out of the profits for companies like h-p and cannon which used to say that printer cartridges that you made or not as good. >> they're not release saying much at all because they cannot. all of our factories worldwide are certified. all of our cartridges, subject to third-party testing to demonstrate that we meet or exceed the original oem specifications but make a ticket pretty serious. the engineering lab. a lot of people doing a lot of work making sure those cartridges but that they get just the way are supposed to. in their case 20 percent less cost than the folks at hpv and cannon, the rest of the printer makers which is one other reason cpi held in check in addition to
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all the lack of economic growth. ashley: interesting perspective. tracy: it's like all these people out there who say they read penthouse is for the articles. it will be barred because the magazine publisher friend finder networks is filing for chapter 11 bankruptcy protection. this is blowing my mind. the need to restructure the company's debt. according to court papers the company listed estimated liabilities of $500 million to a billion dollars in assets of less than on the $10 million. friend finder has not turned a profit since at least 2008. i read this this morning. i was like, i bet this is like the last jeep free home form of recreation out there. ashley: there is the internet now. that's all i'm going to say. tracy: so much for good journalism. ashley: i don't know what they're talking about.
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coming up on the countdown to the closing bell, not more on penthouse, an exclusive interview with founder, chairman , and ceo of asset management. his finest up on averagever 20 pce. wil tel uswhee i puttg h mon today. only on fox business. ♪ um... where's mrs. davis? she took an early spring break thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay. persons a and b are flying to the bahamas. how fast will they get there? don't you need distance, rate and... no, all it takes is double miles. [ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what's in your wallet? this is so unexpected. always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron,
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ge is revolutioning power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪ into the future. nascar is about excitement. but tracking all the action and hearing everything from our marketing partners,
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the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. ♪ tracy: good afternoon. it is the last hour of trading, and at least right now anything can change, the nasdaq does not look like it is going to spoil the party for a second day in a row. investors can think estocada that named facebook. social media giant poised to break its 2-day losing streak after a counter fitzgerald analyst started pounding the
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table on the stock saying that it is positioned to benefit from of all things economic recovery. up more than 5 percent here. 4478. game $2.27. trading volume above 68 million shares right now. let's get to another nasdaq traded stock, tesla, the luxury electronic car maker sees the competition in his rearview mirror today. the "wall street journal" reported that general motors is developing an electric car. this time will sell for about $30,000. that 30,000 of price tag is less than half the price of the s which starts at about $70,000. you know what, earlier in the day tesla was higher. it is down marginally, a tiny bit. a fraction. $166. this is a massive year-over-year gain. general motors moving higher. $0.54 to


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