tv Countdown to the Closing Bell FOX Business October 10, 2013 3:00pm-4:01pm EDT
points to the upside, session highs for all the major markets. so what is on the rise? well, it's everything. you've got named like unitedhealth group, nike, disney, boeing all currently leading the pack on the dow. and helping to power the nasdaq higher, you've got face abook, actually -- faithbook showing broad -- facebook showing broad strength now at $49.18, that is a nice 5% and change bump. so what exactly is going on in washington in that debt ceiling fight? have you been keeping track of this today? do republicans have a proposal that could end the stalemate? rich edson is joining us now from washington, d.c. with the very latest and the details change at every single hour. where are we right now, rich? >> reporter: we've got a little more information here, cheryl. the house will likely vote tomorrow on a vote that raises the debt ceiling to november 22nd and permanently ends treasury's ability to use what it calls extraordinary measures to extend the debt ceiling.
remember, we actually hit the debt ceiling back in may, treasury's been using extraordinary measures to extend it to this point. the bill would also require a bipartisan budget negotiation, and house speaker john boehner says he's ready to start negotiating. >> it's time for leadership. it's time for these negotiations and this conversation to begin, and i would hope that the president would look at this as an opportunity. >> reporter: as for whether the white house will accept the republican plan, white house press secretary jay carney indicated the president would. sort of. >> if they continue to talk about ifs and butst as the speaker said doesn't get us anywhere. we haven't seen anything from the house republicans yet. >> reporter: so on budget talks, we've been there before. democrats want tax increases, republicans want entitlement cuts. neither has shown a willingness to compromise all that much. cheryl? cheryl: all right, rich. well, the white house is going to see their plan later on this afternoon, so we'll get more details then, thank you very
much. of course, he's going to be busy throughout the evening for us. for the latest market reaction, let's get to our floor show. traders at the new york stock exchange, the cme group and, of course, the nymex. first to ben willis at the new york stock exchange, ben, you know, i don't think until today we really, truly saw how sensitive, how volatile the market is when it comes to the debt ceiling debate. but we are hopeful what happens tomorrow if this does not work out between the president and the republicans, ben? >> it won't be pretty. but this is a great example, you're going to want to save this in your files for an example of how markets trade on rumors. we've moved 200-plus points in the dow jones industrial average on a rumor that the government is going to finally do the job that we sent them there to do. it's kind of a quasi-voting booth, if you will. we're sending a very clear message to the elected officials in washington that this is what we fully expect you to do, and if you don't, you can expect what we have been doing in the days prior to this rumor. cheryl: well, you know, ben, our
correspondent in washington, rich edson, who was just on with me, he's the one that broke the fact that there was going to be in this proposal from the republicans, the six week extension. >> right. cheryl: but in my mind, that means six more weeks of short-term fix to a longer-term problem that really has not been solved. you still have two parties, frankly, at war then. >> you do, and that's not going to go away anytime soon because we've only extended this to november 22nd and actually made the next negotiations even harder in the whole discussion. volatility should be something that you should expect as an investor in this market. we're up close to 20% on the year on most of the major indices that we track here on fox business. that being said, when you get into this late in the game, expect volatility. 100-point moves in the dow should be probably a daily event as we go forward if not triggered because of what's going on in the debt debate, it will happen because of the tapering debate that i'm sure will come back to center stage
once this subject is put aside. cheryl: let's talk about what's going to happen with the dollar, ira epstein over at the cme, that's the big question as we move into the next fmoc meeting, and we're going to get the minutes and that tapering, you know, the dollar has been weakened by this, maybe not so much right now, but the dollar is probably likely going to have more pressure on it as we go through the rest of the month of october, correct? >> why are we limiting it to october? with the damage that's already been done, why not just say we're going to get through the christmas season. why would we give a christmas gift of tapering and wait until january, let the dust settle from this? today the unemployment claims went up 15,000. there's still a glitch, apparently, in california where 30,000 are known, but that's nothing. you're going to add another 15-30,000 on these furloughs to it right away. we've got to get through this. i don't think the american public is going to get a tapering christmas gift. i think they're going to get a nontapering gift, and i think
what happens with the dollar, you get a bit of a rally maybe initially off the good news3 coming out of congress and the president and then after that i think the dollar is going down again. cherrl: well, yeah. >> it doesn't have interest rates. cheryl: ira, that's likely, and we've heard that it may be after the first of the year, and that's likely going to fall on the shoulders of janet yellen who's now the new nomination for the fed chairmanship. i want to go to jeffrey grossman at the nymex and pick up on that samish sure -- same issue of tapering and the fed. obviously, with oil we're down about 103 right now today, do you think we see more pressure on oil prices not just because of the dollar but also seasonal effects on oil? >> oh, without question. the truth of the matter is today was a classic case of we were the followers unfortunately. the stock market showed some resilience, and we went up accordingly. we had a market that was testing the lows right around 101.50 area and teetering at that point because, again, we had a very,
very weak inventory figure yesterday and truthfully, the market still is under tremendous pressure here. it's still going to sale on rallies. today it got a little bit of a lift on like we said before, a bit of a rumor and speculation that things are going to get straightened out here. but again, we have a market that is not showing anything great. it was a little bit of a bounce. it's still in a down trend here, and here's one of the only positives you can look at, gasoline which has been pounded for the last week and a half showed some resilience. in fact, the hawk values, gasoline against crude oil, has bounced back a bit. so again, what i said a couple weeks ago about everyone getting that ten-cent gift at the pumps over the last week came to fruition, but i think that may have ended. so we're probably going to level off here on gasoline, and that's probably what concerns the consumer the most. cheryl: we'll take that. gentlemen, good floor show today. a busy market day but also a busy day for business news and especially when it comes to wireless wars, big news
breaking. t-mobile is at it again. they're shaking up the cell phone industry. and anyone who travels overseas, listen up to what is going on. joining me now is john ledger, he is t-mobile usa's ceo and president. and you are making a big move with a big offer. you're basically killing overseas. >> cheryl, first of all, i want everyone to know what a pro you are. while you were paying attention i was taking pictures and tweeting them out, but you went straight ahead. [laughter] cheryl: part of the job description, but your job is to take t-mobile and basically kill the competition. >> my job is to talk to people like you with that at&t phone and make sure you realize that wwat we're about is soing pain points. -- solving pain points. we've solved the number with no contracts and anytime upgrade and the big one is the fear that everybody has about crossing a border and facing the bill shock of overages and restrictions. what we've offered now to our customers is in 115 countries
free international data roaming and texting, and 20 cents a moment for voice calls. that compares to you, if you don't have a plan with at&t that's special, if you go over the border to canada and just use your phone one day, 30 calls, 30 texts, $1200. cheryl: i certainly understand your thinking here. what i'm curious about, though, one of the big problems for all the carriers has been all the different networks that are in different countries whether it's cdma or gsm, things like that, has that evened out? are things more level as far as playing fields from country to country? i would think that might be a cost issue for you. >> well, two things. first of all, we have roaming agreements all around the world, so this is not an issue of special roaming. most smartphones are quad band which means you can use them seamlessly. the issue is that 40% of the 55 million trips that take place, people turn their phone off before they leave. here's my favorite stat, 20% say they would if they knew how. [laughter] here's the last piece i'll tell
you about this, cheryl, which is about caal it three or four multiple billions of revenues in these restrictions. the gross margins that carriers are making on this is conservatively 90%. so, you know, getting this revenue stream down is not a big deal. it's just stopping the crazy way people -- cheryl: you're taking a shot at verizon, at at&t. obviously, you want to dominate, and it looks like actually losis in the last couple of quarters. so potentially they're going to t-mobile, thinking they are. >> well, news flash, since we announced on carrier phase one since, you know, call it april we have added more phone customers than verizon, sprint and at&t combined. so this revolution i call it around, it's really catching on. and i think it's going to be a tipping point. cheryl: also your stock, we should say, is up about 98% year to date, so investors are embracing you. let me and you this because it's
all about investors and who owns your stock, are you worried about profit margins? what if the competition doesn't bite? they say we're sticking with our cash cow of overseas? >> beautiful. in fact, you know, the biggest way of solving a problem is you have to acknowledge they have it. so as long as these guys keep their head in the sand, beautiful. i've only got about 12 or 14% market share, so the longer they wait as we migrate customers over, two other things have happened that are key. i also announced stateside international talk and text. $10, you can call land lines in 70 countries for free. and lastly what should scare them, we announced yesterday that our nationwide lte network is now 202 million pops, and speed testing faster than verizon, faster than sprint and in 10 of 20 cities faster than the one that's on your phone. cheryl: i was going to ask you about data, but you answered my question. there's a couple things i want to ask you about, first of all,
blackberry. this is a partnership. you're intertwined with blackberry, obviously. sec filing showing us the founder of the company wants to make a bid for the company. i'm curious what you think about that. >> right. and i know him very well, he's a brilliant, brilliant guy, and i think he's doing his best with blackberry. we need multiple alternative players. there is still a cult following of people with blackberries, especially in the business market. so there's a place for them. i'm not privy to the bidding for the company, but, you know, we'd like to see -- we have a good partnership with them, we have a good partnership with nokia and now microsofttand, of course, you know, you can tell what i'm carrying around my c phone -- cheryl: i see. >> -- including this watch i'm using to take photos. cheryl: i'm with you. we are kindred spirits and, obviously, we're going to be watching. and, again, we should say, you know, customers are going overr3 to t-mobile, so we're going to follow this very closely. >> i'm going to come back, and we're going to hold up your t-mobile phone. [laughter] cheryl: oh, all right.
well, we'll see. john ledger, ceo t-mobile usa. thank you very much for coming in. well, closing bell going to be ringing in 49 minutes. so here's another story we've been following, twitter. what's going inside twitter ahead of the ipo? turns out not all the founders were on the same page ii its early years. we're going to find out whether twitter still has a dysfunctional start-up culture. and how about an old-fashioned candy crush -- love this story -- hershey launching its first new candy brand in 30 years. we're going to have a little taste test. we'll be right back. ♪ ♪
♪ ♪ cheryl: so some curious details emerged from twitter's ipo filing. looks like the company's two founders, evan williams and jack dorsey, weren't exactly following each other. twitter's s1 filing that dorsey transferred control of his stake in the company to williams, so why would twitter's mastermind ever agree to something like that? let's bring in our panel. joining me is colleen taylor, tech crunch reporter. colleen, that's the question, why would he make a move like
this? why give up control just as the company that he founded is going public? why would he do this? >> well, jack dorsey was very important in the founding of twitter, but there have been some revelations recently that jack dorsey isn't the only person who came up with this idea. there are some other people who are now coming forward claiming that they contributed some key code and also even the idea itself. there's a man named noah with glass who was there at the early days. so i think with all of this controversy around the initial founding days and the initial founding idea, jack dorsey might have thought, you know, i'm going to step back a little bit at least at this moment. he still has a stake that's worth hundreds of millions of dollars, and so he'll do just fine. but maybe right now with the controversy it's time for him to take a step back. cheryl: well, what doessthat mean, though, for the company as well? jack dorsey, i mean, he's, again, a big stake in the company, maybe not as williams, but at the same time, you know,
pete, his name, the association of the name and this in-fighting, do you think that's going to affecting you know, the ipo? are people going to be concerned about this? you never want to see that when you're buying shares of a company. >> i think it's been pretty clear, twitter's ride has not been super smooth. i don't think the in-fighting is going to surprise a lot of people. it's kind of how these start-ups work, and this is one that just happened to be very successful. as far as him giving up his voting rights, i think he kind of had no choice. i mean, evan williams apparently was funding twitter for its first year more or less out of his own pocket, and as the operations were going on, he was kind of having a lot of control and a lot of slate on the board. i think at one point when he realized jack dorsey wasn't being an effective ceo in 2008, he was basically forced out. cheryl: well, colleen, maybe he wasn't being an effective ceo, and we saw this through the evolution of yahoo! over the last two decades, that maybe the person that found it with dorsey
creating the tweet, etc., maybe that person isn't the right leader, is that maybe the thing that's affecting the relationships now within the company? >> you know, pete made a really great point, and he's exactly right that every start-up when you get inside of it is a mess, especially in its earliest days. and so this is a big news story right now, but it's nothing that's too unusual. it's also important to mention that jack dorsey has a different full-time job. he's the ceo of a start-up called square which has raised millions, hundreds of millions of dollars and has a big opportunity ahead of it. and so for him to focus more completely on square, again, he's still going to stand to make hundreds of millions of dollars here, so the voting rights might not be as important to him. it's probably smart to step back and allow other people to control things. cheryl: you two are the tech experts, i am not, so i want to ask pete, first, to you your deal with comcast and this link that's going on between twitter and comcast and anybody that's got the television service,
basically, twitter and your television are now more connected. is this -- a, is the technology solid and, b, is this a good thing for twitter, can they make money off of this, more importantly? >> el, the second point -- well, the second point is the most important one. for its viewers, its user base whether or not it works is most important. they haven't deployed it yet, so we're going to have to see, but apparently the idea is you press one button from a tweet and you can actually see a television show that the tweet is about or a movie. it's a great idea. i mean, twitter is a very natural second screen app, so like, basically, you know, when the final episode of something like "breaking bad" happens or some big tv show is going on, people naturally flock to twitter. so generating advertising revenue is a no-brainer, this seems like a good step. cheryl: colleen, yes or no on this comcast/twitter relationship? >> yes. i think that as pete mentioned, second screen is what it's all about these days. i bet most of the people watching this program aren't
only focused on the television, they probably have a laptop in their laps or a mobile phone in their hands, so this is a natural partnership and, hopefully, it makes them some money because twitter is not profitable yet. cheryl: i could make a joke was i'm on -- because i'm on my laptop. colleen, pete, thank you very much. it happens. guys, thank you very much. >> my pleasure. cheryl: all right. well, it is time to trade the trends. here is a look at the companies trending on twitter right now,3 and this is according to stock twit. you've got to follow that, by the way. take a look at the companies that are trending right now. these are the tickers, and stock twit puts it out like a dollar sign, micron, google and microsoft are the three names they are watching right now. don't forget to follow this show, fbn countdown, and there's also an @cheryl can casone somewhere in there. 49 minutes to go until the closing bell, and dramatic new developments in the battle over blackberry's future today. we're talking to ledger about it a moment ago. the very latest on what could be
a game-changing proposal from one of the company's founders. also, house republican leaders are heading to the white house this afternoon with a new proposal to break the debt ceiling deadlock. but will it do anything to end the gridlock in washington? we're going to get the views from former paypal ceo bill harris. this is a fox business exclusive, and it's coming up. ♪ ♪
if youelieve in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a differenc join us. [ male announcer ] at edward jones, it's how we make sense of invesesting. cheryl: just a few moments ago i want tw you what happened on the dow. look at this, we're up 300 points on the dow. we are now, believe it or not, 13 points away from session highs. it was at 15,113, actually less than that, we were pushing right on your screen, almost at session highs for the dow. also i want to mention courtesy of lauren simonetti, she was looking at the s&p 500, only 11 stocks like literally two minutes ago were in the red. everything for the most part, though, the s&p 500 in the green. so we're having a heck of a day right now. all of this on the belief, the belief that we are actually going to get a deal in
washington. and, you know, house republicans did propose a deal today that would extend the debt ceiling for six weeks, but in return republicans want the president to begin discussions on longer-term budget issues. with no deal on the table yet, there's going to be one we think later today, what do ceos want to hear coming out of washington? let's bring in ceo of personal capital and former ceo, of course, of pais pga and intuit, you are a wonderful person to have on, sir. i am curious of what you make of this in washington. what are ceos saying? what do you want to say out of the republicans and the president today? >> well, i thinn the thing that we most want to see is the to the brinksmanship. we've got, you know, if you're trying to run a business, the enemy is uncertainty. it makes it difficult to invest, to grow and to create jobs. and so what we'd really like is a more rational process for the government to do its business so we can do ours. cheryl: but six weeks, i mean, that's, i think, the concern
here. six weeks is a temporary fix and what it seems to me the businesses wanted a little more certainty, i know investors want that. what if they agree to just a six week extension, do you think we're still going to have volatility in the markets? >> oh, sure. because just as you say, six weeks -- particularly for the kinds of issues that need to be discussed, long-term budget issues, prioritization of resources, potentially tax changes -- these things are complex and will take potentially quite a long time. six weeks is not a long time for this kind of, this kind of activity. the other thing about it is i would make a strong distinction between government shutdown or partial government shutdown on the one hand and the debt ceiling on the other. if we shut down the government for a while, it might be pointless. we're probably paying the people anyway back pay when they come back, so we're paying but not getting the services, but what we're doing is shooting ourselves in the foot. if we tamper with the united
states government's willingness to honor its obligations, to essentially pay its bills, i think we're shooting ourselves and our economy in the head. cheryl: all right. well -- or the foot or something. i'm sure all of these analogies are correct. at the same time, you know, business does go on on, and businesses are trying to go on, do their best. we're now into earnings season, that's kicking off this weekend. i do want to ask you about ebay. they just bought brain tree, and i'm curious what you make of this deal. this was your backyard, what do you make of the ebay teal? >> i think it's a great deal. it will do good things for that combination. i also think there's probably more consolidation to come. and the biggest reason is that in the world of payments size is very important. not only because there are scale economies, but also because there are network effects. you want, if you want to pay someone with, you want to go to the network where it's more
likely that you can pay that person and everyone else you want to pay. and so the size has, has obvious advantages. it's one of the reason why on the offline payment world which still remains 90% of the total you have, essentially, three players, visa, mastercard and american express. cheryl: there is growth there, and i find this astounding not just because this is transactions for the consumer, but also a potential advertising revenue stream for many companies. $235 billion in 2013, but they're saying 450 million people will be doing online payments by 2017. i mean, it seems to me that this is about to explode and be a lot more than that 90 %/10% ratio you're talking about, bill. >> absolutely right. and it's very early in the game. already it's big business, but it's still very early in the game. and so, first of all, online payments wwll continue on their toward path.
but secondly, more and more mobile solutions for offline payments will make their way essentially replacing so you can have a phone in your hand as opposed to a credit card in your hand. cheryl: well, bill harris, certainly this is a great day to have you on, you're a perfect voice for this, former ceo of thank you. >> thank you. cheryl: well, you know, staying on this tech theme today, you've got bidding wars for the broken blackberry company taking a dramatic new turn today as one of the founders boosts his stake and considers a bid. adam shapiro's on that story in the newsroom, and i had john ledger on earlier, adam, and he was, well, thurston hines is wonderful and we stand behind him, but this new bid has some real meat, some teeth, doesn't it? >> yeah. the former president and co-chief executive officer as well as the co-chair, we're talking about mike has' diswho already has bout 8% of the company and has now filed with the sec indicating interest in
at least acquiring enough shares to take back control of blackberry. the problem is that there's a november 4th deadline approaching by which time blackberry, which was soliciting bids, is going to close the books. you've got fairfax financial, no one's really confident that they can come up with the funding to close the deal that they first proposed. but what has been talking about and we talked about right here at 3:00 on monday, we talked with rob enderle about the potential to break blackberry apart. and there are companies, for instance, intel, that might be interested in partnering perhaps with a he novo or someone else who would want the blackberry deviccs because intel has what's known as the deep safe technology. they have a chip that would be dramatically more secure than anything on the market, but they have no home for that chip, to that chip could go into a device that they don't want to make, so you get a partner like he novo -- lenovo, they make it. patents have been valued up to
$3 billion in worth, on so top f they've got $2.6 billion in cash. so if you look at the fairfax offer, it's worth $4.7 billion. the intellectual property and the cash, it's worth more than that. so things are heating up, november 4th is the deadline. cheryl: that's not going to be a boring negotiation or a boring bid. adam shapiro from the newsroom, thank you so much. >> you got it. cheryl: 27 minutes to go. what a day. right now we're up 291 oints on the dow, and there's a lot of news breaking today. one fast food chain is literally giving away one of the newest additions to its menu. is it a sign of desperation? we're going to have that story, it's a good one. plus, it's taken hershey 30 years to launch a new brand of candy. what is it? thinkkabout it. we're going to talk to the man who is in charge of the global launch. he's going to be here, it's a fox business exclusive coming up next. ♪ ♪ [ male announc ] need help keeping your digestive balance in sync?
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ishares by blackrock. call 1-800shares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. call 1-800shares for a prospectus, which includes risk includes possible loss of principal. cheryl: i mentioned this earlier, right now best buy is the top performer on the s&p 500, leading the rally. let's go to lauren simonetti on the floor of the new york stock exchange. what a day to be down there, and i know you're also watching the s&p. >> absolutely. shares up 230% this year, 230%. here's the stock today, up 7.3%. it's hitting a three-year high right now. there's three pieces of information i want to hit on best buy. number one, the researchers are weighing in, and it's looking good. they say same-store sales very strong, consumers are starting to spend more than $1,000 at best buy. steve nicklaus consumers indicating they intend to shop at best buy up 9% this month year-over-year, consumers
wanting to shop at the discounters down 3%. that works out really well for best buy. and then best buy's going further and saying we want more of your business. they're starting on sunday a trade-in program if you trade in your smartphone, they're going to give you at least $100 credit to buy more phones at best buy. so we like that stock, and we like these stocks as well today. as you can see, capital one, the new york stock exchange, that's where i am now, wynn resorts, xerox all hitting highs today. what a great day, a relief day that we needed, cheryl. cheryl: all right, lauren, thank you very much. of course, we're going to see you very soon, still pushing highs for the dow and the s&p as well. well, it took 30 years for hershey to unveil a new brand of candy can, but today the company announced it will launch the lancaster caramel soft creams in the u.s. they're going to be doing that next year. joining me now from harrisburg, pennsylvania, the senior vice president of sweets and
refreshment and, steven, thank you so much for being here. you're launching the brand, managing the brand and also acquisitions around the world. you chose to try these caramels out first in china and not the u.s. why did you make that decision for hershey? >> well, we didn't really actually start as a test in china, we've been developing the product in parallel in both markets. the opportunity is terrific for us in both places. china really came first because of our commitment to the market and our international growth as well as just the dynamics of the market, the launch window hit us in the summer. cheryl: i think it's also interesting that i'm holding one of the caramels right now, and full disclosure to our viewers, i tasted one, t really good. [laughter] -- it's really good. >> excellent. cheryl: but the consistency is different in the chinese market here, and i also know that hershey is developing a lot of different new brands for international markets whether it's india or china,,other parts of asia. i mean, is it really that global story that hershey's pursuing
here? >> we are, we are very much so bringing our brands around the world, and we want to make sure that the offers that we have make sense for the local flavors and the local tastes. and what's great about lancaster as a proposition is we also have a formula and an approach and a soft texture and a wonderful caramel that we're going to be able to be bringing to the u.s. consumer starting in january. cheryl: okay. you're very good at this, and i have to say again it is good, but i do want to ask about price issues, and this could be an effect on hershey overall. cocoa prices, especially since 2007, up 45%. and it looks like, again, because of americans' love of dark chocolate and that's one factor and also some things happening with beans in west africa, that cocoa prices are forecasting to go higher. do you have a good hedge against cocoa prices? i mean, do you have a plan in place to deal with that? >> well, cheryl, we don't speculate on how we think about commodities or where we are from a hedging standpoint. our business model overall is pretty sound, and i would refer
you back to all of our filings and our general performance. we're doing pretty well right now. cheryl: well, you are. you're making some good stuff. i also know that the shutdown, believe it or not, steven, the shut down's going to affect milk prices, forecasting that milk prices could actually double in the month of january. but fair enough, i -- >> boy, i hope not. cheryl: well, we'll see. i do want to ask you, overall 30 years to launch a new product, it's wonderful, but is this a new turn for hershey after so many years of having the same products? is this a whole new game for you? i mean, do you think you're going to have a slew of new things coming out this next year? >> well, we've had a lot of innovation over the last 30 years and, in fact, over the last 100 years that we've been in business. cheryl: right. >> what's exciting about this opportunity is we found a space where our current lineup of trademarks and brands didn't really touch on, so it's really an incremental space for us that allowed us to bring a new brand. cheryl: steven, i've got
breaking news out of washington, i want to take us live out to washington, d.c. where we're having a democratic leadership press conference. let's listen to senator harry reid. >> after having slated an hour and 45 minutes with him today, i feel the same way. we are here. the government should be open now, we should be able to pay our debts, and as we've said and will continue to say, we -- if that happens -- will negotiate on anything, anything. and the president confirmed that today. >> will you accept the -- [inaudible] >> the house has a unique form of legislating. it's hour by hour. during the -- i don't know what's happened in the two hours i've been gone, but this morning before i got here it was floated to the press and otherwise three different proposals. i assume there's a couple more since then. let's wait and see what the house does.
when they send us something, we'll look at it as clearly and as closely as we can. under the same determination that we've made. open the government. there is so much pain and suffering out there. it is, it's really tear-jerking to say least. and so we want the government open. we want to be able to pay our bills. this is a situation where they do not know what a they want. -- what they want. i hope the republicans decide what they want, and we'll be happy to work with them in any way. i repeat for the fourth time right here, open the government, let us pay our bills, we'll negotiate with you about anything. [inaudible conversations] >> short-term deal that -- >> pardon me? >> would you accept a short-term deal -- [inaudible] >> we are going to look at anything they send us. in the last -- coming out of this meeting, we have two e-mails.
they've changed, the last we got, on how much time they want on debt limit. so, i mean, let's just wait and see because there are some rumors they want it tied to the cr. we'll just wait and see because they cannot decide what they want. one more question. yes. >> senator reid, up until now it's been very clear, you had this very clear position, the president had a very clear position which is we need a clean cr, we need to open the government before you'll engage in negotiations. the republicans were pretty clear earlier today they want to negotiate before you reopen the government, is that -- >> not going to happen. [inaudible conversations] >> what's your sense, are we any closer? cheryl: all right. so we have been listening, of course, to this quick little, a few comments from senator harry reid and democratic leaders. they have met with president barack obama. i do want to point out that house republicans are set to meet and, of course, the gop leadership as a whole are set to
meet with president barack obama, that's supposed to happen about 4:30 eastern time. the reason you're seeing the markets take off like they are is because the gop came out and said this is, john boehner came out earlier today, house speaker john boehner and said we're going to meet with the president, six weeks. fbn confirming this, you heard this from rich edson earlier today, that was exclusive reporting from our correspondent in washington that they were going to propose and they will propose today to the president -- this meeting has not happened yet between the gop and the president -- proposing a six week extension on the debt limit. so give us six weeks, pay the bills. but, again, a lot of this is going to be completely,3 completely dependent on what the president says. and if you listen to the language just now from senator harry reid, critical, doubtful, hour by hour, we'll listen to what they have to say. but, again, we've heard this rhetoric before and this back and forth between the democrats and the republicans, and the
stalemate, it's not over, everybody. all right. we are watching the markets right now for you, of course. off to the races, i do want to say here, on what we've seen from congress today that we may have an approval of this six week extension of the debt ceiling, relate the parties -- let the parties come together. but the rally, if this doesn't hold, what's going to happen to the markets? is this rally not going to hold? let's bring in mark spelman. we just heard from harry reid, he was -- i don't know if you could hear his comments over the microphones in the studio, but he was very, again, combative. >> sure. cheryl: this type of language is what investors are so skittish about. >> no question. cheryl: so if we don't get a deal today, markets open tomorrow there's nothing between the two parties, what happens? >> well, i think today is truthfully a real relief rally. i'm not convinced it's a fundamentally-driven rally. the market was down about 4% over the last come weeks. you -- couple weeks. you saw options, futures even individual stocks, the market
has been more bearish than it's been in a long time. i attribute this rally today as really a relief rally. i think overgoing to go sideways -- cheryl: i don't want to hear relief rally because that tells me that there's nowhere, there's nothing else that's going to take us higher. >> i tend to agree with that statement right now. i think right now you're going to get a better opportunity.% this game has just been pushed off. there's an inevitability we're going to have to come to an agreement, and i for one am not in the belief that tomorrow morning everything's just going to be terrific and copesetic, and even after that we're going to have lots of other issues right down the line. cheryl: as we've looked at the market, at the at tuesday of market participants -- attitudes of market participants as this shutdown continues, you have to wonder at the end of the day if the chatter that we're hearing about a potential default, us not paying our creditors, some analysts saying absolutely we're going to pay our creditors, don't worry about it. where do you fall? >> credit default swaps say there's a less than 2%, i don't
think anyone's interested in seeing that happen, i think it's really rhetoric. cheryl: at the same time, what we've seen out of washington is a complete disregard for the markets. >> sure. cheryl: we were going to shut down the ggvernment, we haven't done that since the '90, and -@we've done it. >> we've done it 17 times in the past too. i'd be worried about the earnings and impacts of the fundamentals on the economy, employment, housing earnings, all these companies that have 40% of their exposure to government, they're going to have a tough quarter going forward. that's what i'm worried about. cheryl: you're worried about the earnings. >> absolutely. how this impacts companies and their earnings and their cash flow and how they're going to operate going forward. you hit an air pocket, and everybody's popped down, and then they have to get right back up. so it's not a great thing for the domestic economy and certainly not for company fundamentals. cheryl: well, you know, shutdown aside, david asman and i are going to be hearing from jpmorgan tomorrow, obviously, one of the things we've seen in corporate america is they have cut and cut and cut. where are the revenues going to
come from in major u.s. companies? they can't cut any more. we don't see them adding jobs. >> right. one of the things a lot of companies, we're trying to concentrate on companies with european exposure as well because things are getting a little bit better there. the profit in the u.s. is, as you say, coming more from the operating margin line than it is from the top line. there's still some work to be done there, but i think overseas, in europe that's kind of where i'm looking for real top-line growth. cheryl: so you're going to go for, i mean, it's more of an emerging market story? >> not really, developing nations. cheryl: so maybe like europe, we've seen more growth in europe. >> absolutely. you know, that line has ticked up a little bit, and we're hoping, you know, through '14 you're going to get some better action -- cheryl: how are you feeling about the performance of audio line? >> the incoming growth fund, it's a balanced fund, it goes anywhere in the capital structure. we're very low as far as fixed income is concerned, still very
bullish on strongs, however -- stocks, however we have a highest cash value -- cheryl: 8%, right? that is fairly high, not that i've had someone come on that has 90%, but 8% is high right now. >> absolutely. and we're looking for a couple of pops to come down. we were 0% cash in november, and over the last three months we've been raising it as valuations and a lot of groups we thought were getting high. cheryl: you mentioned that you're still pretty bullish on equities. what about u.s.-based companies? and this has been the story for the last five years, unfortunately, u.s.-based companies that have that international exposure, coke coca-cola or something like that. they've had big boosts this year. >> sure. i think some of those staples names, they're a little high. the bar got reset when warren buffett bought heinz, and concerned. cheryl: or bdos, the commercials have been telling me. i keeppseeing those commercials. a couple other names you've got in the portfolio that you're going to stick with. >> uh-huh.
well, we're ooking at somm laggards, actually, that we're adding to, and one of those would be bce, the old bell canada which is very boring, but one of the problems with this stock has been the investment world has been worried that verizon or at&t at any given moment would bombard the canaddan wireless market and competition would explode. both those companies completely say they are uninterested in canada. i think that's going to give that stock some legs. i think you can get 20, 30% upside in the stock. by the way, you're going to collect 5.2% in the dividend yield in the meantime. in a portfolio of income-generating stocks, that's one i like. cheryl: mark spelman, thank you very much. >> thanks. cheryl: interesting take on all of this today. again, you know, a busy day for washington, a busy day for the markets, dow 292 right now. we've got seven minutes to go. are we going to hold onto this? this is a broad rally, but in a moment we will tell you which companies in the nasdaq are
really knocking it out of the park, and there is your dow, 293. we'll be right back. ♪ ♪ you really love, what would you d" ♪ [ wom ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a p maker. [ n ] i wanna be a pilot. [ wan ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪
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get live squawks right your trading platform with think or swim from td ameritrade. cheryl: want to show you the biggest movers where the markets arr higher and higher. want to look at liberty right now. liberty one of the biggest movers on percentage basis. looking at gilead. netflix up 5%, 303 a share. of the facebook again pushing towards 50 bucks a share. look at activiiion as well. moving higher. all the stocks especially on the nasdaq big movers. look at overall markets. what we have and what we're seeing have seen throughout the day as you heard exclusively
from rich edson the fact that the gop is extending an olive branch to the president. that meeting will be at the next hour, getting underway at the white house. markets want to see a deal. markets think today they will get a deal. tomorrow morning could be a whole another story or could be a better story. the news will continue to go on. i will continue on with you but i will bring in my man, david asman. david: good. fantastic. what a day to have you here. incredible, 299, we're just about ready to pop 300 on the dow. there we go. 300 points on the dow jones industrial average. we were talking yesterday to the cm e-trader in chicago. seems like a lot of cash-rich traders looking for opportunity. cheryl: looking to buy. david: if this deal takes places looks like will happen, only for six weeks. november 20 second they have to do this all again -- 22nd. there is a lot of cash in the marketplace ready to jump in. cheryl: we shall see.
tomorrow morning could be whole another story. a guest said this is relief rally with earnings coming in. david: 303 points on the dow. let's go to lauren simonetti on the new york stock exchange. talk a about a sector, banks are really happy. cheeyl showed us big movers, the breadth of this rally is i am -- impressive. >> all of these names in the green, really a strong day. i really want to point out when we started government shut down, the dow closed at 15,029. the shut down not affecting wall street. it is debt ceiling and default has people worried. we might have a deal. cheryl: we might have a deal. lauren, in the last hour you're looking best buy, the stock is jumping. top performer in the s&p. >> top performer today and top
performer this year. consumers are shopping there again. the discounts, they're not too much at this point. david: by the way a big office merger. office depot and officemax. they're merging. as a result their stocks are way up. [closing bell ringing] it is not the specifics of individual stocks. it is impressive as some are. the breadth of this rally. the dow jones industrial average is 316 points to the green side. look at that rally, folks. first time in a long time, cheryl. i remember all the indices being above 2%. again a very broad rally. cheryl: one of the best days for the markets frankly in months. if you look at the dow, nasdaq, s&p, russell as david just mentioned, above 2%. a lot of news is breaking. in 30 minutes from now top house republicans will go to the white house to offer the