tv Markets Now FOX Business October 22, 2013 1:00pm-3:01pm EDT
market. adam: don't forget it is jobs tuesday and the delayed implement report shows slow job growth. in 140,000 jobs in september, far fewer than the 180,000 jobs added in august. lori: here with us at the top of the hour of how certain they should be with the jobs come in from demand for truck drivers. bureaucrats and salespeople. adam: first we want to see how the market is doing. we will head to the floor of the new york stock exchange. nicole, i saw ups hit a 52-week high today. maybe that has reversed. nicole: will watch a lot of the names related to the transportation index. we are going to talk about the bigger picture, looking at the dow, nasdaq and the s&p. some of the tech names have turned negative today while the dow still holding onto a gain of about 40 points.
hitting an all-time high. today at six an and a half momes at the moment, 1751. we got in the jobs number for the month, so that obviously was backdated but we finally got it. now the idea is the fed is not likely to taper. you mentioned the transportation index. we saw it hitting an all-time high for the day, for the year. up 30% getting a lift from fedex in particular which got an increase from jpmorgan and delta lifting earnings as well. you can see it to the upside. back to you. adam: thin thank you very much, nicole. lori: u.s. job growth losing momentum last month. employers added 138,000 jobs in september. the august upward revision only 9000. all that well below estimates. so where did we see growth? in transportation.
specifically school bus drivers accounted for 23,000 new jobs created last month. temporary jobs are also big gainers. michelle girard now. great to see you, michelle. the research points out school bus drivers are in demand. >> the school bus driver thing was a reverse of what happened in july when all the school bus drivers fell off the payroll. that wasn't even necessarily a net gain if you look back. i think in general we just did not see hiring across really any category of any note. i will say the one bright spot was a nice 25,000 gain in employment. otherwise across the board from professional business services, the retail, which had a relatively large gain but only 20 some odd thousand. in every category very disappointing job gains.
that is why i came away saying this is a lackluster, almost lousy report. lori: if you look at the unemployment trend, 22.7% improvement from 7.3%. labor participation rate held steady, still at a generational low, obviously. that is not uplifting but to the on implement rate improve for the right reason? >> if you look at it on and on rounded bases, 7.27 up to a 7.23, even less than meets the eye. we did see a gain in employment in the household sector that outpaced the gain in the labor force but both were very small. a gain in 133,000. and actually that is a very small given how volatile that number is. i even think in the household survey there is this overall
feeling that the labor situation is not really improving very significantly. lori: it is important to remind everybody this survey was taken before the government shut down, so what is your expectation for october now? >> we had not even got into where we might be. i do think there is some chance obviously government shutdown affected the private sector. companies in the midst of the uncertainty may have decided to hold off on hiring. we could see softer numbers in october and november. presumably that will come back in a couple of months. we have the january 15 deadline out there. while many don't think we will go down that road again, the uncertainty may cause businesses to stay i think in a more conservative mode. the economy is unlikely to strengthen significantly between that one.
lori: it is a fair points to make many analysts and economists are pushing their expectation for the fed to begin tapering well into next year because of this report. we will check back in with you again very soon. thank you for your time and insight. one the other story everybody has been waiting for, apple's event is underway. we want to go to robert gray with what we can expect as the ipad roge mini get the same chis the ipad. robert: adam, right now we know tim cook is on stage. opening up talking about the iphone that launched last month. talking about the most successful launch in the history for the iphone. interesting because there has been a lot of speculation about soft sales for the iphone, particularly the iphone 5c. they are lumped together to make the 9 million mark better than the 5 million which was a prior record for the five launched a year ago. now to what we're expecting in terms of new products of the
iphone, we still have a lot to cover with what the tagline is. expectinrespecting the ipad to headline the event. something about the mac pro, the operating system, maverick, launch date and price for that. i cloud software, apple tv as well maybe. the larger ipad expected to be a little bit a slimmer format for that. the screen will stay the same, slated to be lighter, thinner, smaller frame, the bezel. more colorful. think of the new 5c. they launched the different colors. processor making it twice as fast as the predecessor for the ipad. it could be in the ipad mini as well. fingerprint sensor for security and online purchases. just like the iphone 5s. there are some folks who think it could be in the smaller one as well. also expects to see the faster
processor. new colors and improved camera. and a crisper display be at catching it up to some of the competition which has similar displays already at lower price points. apple pricing in a premium product where the rivals have gone for the market share. certainly not the most profitable of products. they called it out in the earnings report in the last sec filings the margins were lower. that of course is one of the reasons we saw the stock sink last year with concern over the margins going forward. back to you in the studio. adam: that will be a big topic of discussion if apple needs to cut prices, lower the margins for the long-term growth. you are on site, we will check back in with you a little bit later on. apple is not the only tech company making headlines. nokia and microsoft releasing new tablets of their own today. debudebuting the first tablet de
and new mobile phone models today. the tablet, 2520, equipped with a 10-inch screen and will run a special version of microsoft windows 8 operating system. the second versions go on sale today. the second surface has been slimmed down and now double battery of its predecessor. the surface falls in the forest, does anybody here it? having tough sales problems. lori: think we have a better chance of hearing the tree fall in the forest. also, in the midst of earnings season. we had a lot of dow members reporting. united technologies, travelers, dupont reported before the open. beating profit expectations but they missed on revenue. in the report each company give investors a bit of good news. dupont reporting higher sales while united tech lower in the guidance.
another stock we are watching as netflix. shares soaring to an all-time high and earnings before reversing course reversing a gain of 10%. while many firms raised their price target on ratings and results, s&p capital cost netflix to a cell from a hold, and we could be seeing some profit taking since the stock has tripled i so far this year. netflix says third-quarter profit tripled and added more subscribers around the world. adam: oil prices below $100 for the second straight day. phil flynn in the trading pits of the cme. the latest supply data is still weighing on prices, isn't it? >> it is. oil prices are just getting lower and lower and lower. we are on the low of the november contract in 9811. that contract expiring right now. there is a lot more oil to
deliver than people want to take delivery on. that is very bearish right now. interesting thing if you look at the brent crude, still not seeing the widespread. over $10. part of this is because the bodies are not very happy with us. they say they will change their dealings with the united states because they were unhappy with connection syria. talking to iran. i don't trust those guys. the mortal enemy. causing the markets to go up. in the u.s. we may not care because we are producing a lot more oil on the wti side. back to you. adam: thank you very much, phil flynn. lori: your holiday present may be coming at the gas pump this year. estimating gas prices will continue to fall in the holiday season eventually reaching national average of $3.15 per gallon by the end of the year. about $0.20 per gallon lower than the current national average which is $3.36 per gallon.
currently 24 states with gas available for less than $3 per gallon according to aaa. adam: the very latest on the obamacare exchange website. tested and failed. but they launched anyway. elizabeth macdonald talked to the chief engineer with 44 years of experience and he said you cannot fix the problem quickly. lori: coach stock breaking below $50 per share. the headline concern after another week quarterly earnings report. adam: have you covered on the announcement. boy rumored new ipad and ipad mini be enough to fend off competition or the 20 million itunes subscribers they announced they have? the tablet market down 14% year-over-year in the fiscal third quarter. when we made our commitment to the gulf, bp had two big goals:
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government contractors and reaching out to civilian companies that could potentially get the job done faster. lori: with problems disrupting the government health care exchange website, the white house is lood fast. elizabeth macdonald looks at how serious it really is. before the hearings are coming up bu about what happened with e health exchange, why there are so many problems. we turned to a corporate executive with a long pedigree of a long history working at xerox, 44 year veteran anthony federico has 44 patents to his name. one of his friends invented the computer mouse that microsoft copied. he has been the chief engineer. chief engineer at xerox. were the problems in your opinion glitches, or are they fundamental? here is what he said. >> clearly a fundamental problem. i don't see how that will be fixed anytime soon.
it has to take weeks to months. software works when you test it. there was no rudimentary testing done because there are no available fixes. >> what he is saying is he is not well acquainted with the contractors who worked on the exchanges. in other words asking why not ibm, why not the smaller contractors for such a big launch involving potentially 30 million people coming into the health system. we do basically consumer testing and customer testing just to find out what's going on. is a type of questions they can potentially ask.
lori: this was perhaps one way they could keep costs in line, not testing it. >> they spent $400 million already on the contractors launching the site. i had to tell you something, if money is an issue, why not get it right the first time and why not spend more money to fix it quick mark we hav?so many peopln government contractors. it is brave for this executive to come forward and talk to us. adam: as we do every 15 minutes, time to check the market. nicole petallides on the floor of the new york stock exchange. you're looking at some of the big losers today. nicole: i'm looking at some names that are here and under some pressure. let's take a look at coach and groupon. the shares have been sinking on the earnings and the quarterly report, they did see their sales
slipping in north america. they face intense competition against michael kors and that has been a competitive for them. as a result they're having to lower their numbers going forward. and then there is groupon, those shares have been sinking today. triggering the circuit breaker earlier in the session now down 7%. there was an analyst over at itg from the second quarter saying a warning of the drop because of what they have seen with a slower trend, so that is not good news for groupon. back to you. adam: nicole, thank you be it lori: apples big reveal. the tech giant get set to unveil the latest gadget ahead of the crucial holiday spending season. adam: the battle over martha stuart entering the final round, the latest of jcpenney and macy's thrown the last punches. lori: jpmorgan still hesitant.
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so far? trading down slightly right now. robert: that is not a surprise. we have seen the shares moving lower since tim cook has taken over on the day of the announcement. now 507. moving back the announcements today, tim cook talking about the iphone, talking about itunes and the app store. more than 1 million apps available on itunes saying they have 60 billion app downloads through itunes. $13 billion earned by developers thus far. going on to say the competition is confused, they are chasing at the notebook, apple tim cook also noting 9 million iphones sold in the first week reiterating something they noted of daily guidance after the first weekend of sales, but that is going to combine the 5s and the 5c models in there together.
still waiting as the show goes on inside. adam: that is the big news to point out of the 1 million apps, 900,000 are versions of angry birds. thank you very much. lori: wor or candy crush. adam: that is the other 100,000. lori: jcpenney stealing back the partnership with martha stuart media. they agreed to eliminate martha stuart claiming exclusive rights. under the deal martha stuart living's will continue to sign products for the window treatment. jcpenney also gave up the 17% stake in martha stuart's company. adam: apple has announced the new mavericks operating system will be free on mac computers for users. that is good for the faithful users.
70% year over date. >> this is a stock if you are in the market, you know chesapeake. july 2000 through 2008, $65 stock. a peer juggernaut. they ran into serious problems offering more or less left. probably forced that. and all the sudden coming on up a loss today, downgraded by capital one. using any kind of valuation metrics you want. the peg ratio 0.3. they are changing their focus because nat gas has a tight range looking more into liquid. focusing specifically on liquids
where the big money is. lori: is it safe to say any of these energy place exploration place may be good given the climate with so much potential? >> it depends. i liked them a lot, i love where they are, i love the position. my favorite coming into the year was confidential resources but it made a big move, so we cashed out of that. this is maybe more volatile, but the last four insider transactions, 480,000 shares and i like fact they are putting their money where their mouth is. they will remember that and probably take it up higher. it was so hot, my phone went off. lori: that was your subscribers. adam: charles payne, thank you very much. >> jcpenney, they sold? adam: they are negotiating with macy's right now a settlement to get this whole thing cleared.
rollout of obamacare. we are getting teased in the media for saying glitch, glitch. this thing is plagued with problems. the bottom line people can not get their health insurance through the affordable carct. adam: a lot of people are registering on exchanges but even fewer are able to purchase and that is a problem. lori: absolutely. let's get update on the markets. 55 point gain for the dow jones industrial average at the moment. let's get down to the exchange and nicole petallides. nicole. >> good afternoon, guys. the dow jones industrial average is up 5points right now. certainly a great gain on wall street. s&p 500 up almost eight points. it is worth noting that the s&p 500 today hitting all-time record high. tech-heavy nasdaq moving to levels we've not seen since the year 2,000. the dow is doing nicely with plenty of green on screen as well. as we talk about the s&p 500,
portfolio managers have to mimic exactly the names in the s&p 500 and we have transocean, rig, going into the s&p 500, replacing dell on that index. that will happen and go into effect on the close of trading on october 28th. dell's deal to go private is getting near completion. shares not moving to too much on del. keep eye on rig, transocean that is the one portfolio managers will have to purchase ahead of that october 2th date to mimic the s&p 500 index exactly. back to you. lori: we love our index funds. that's for sure. nicole, thank you. >> thanks. adam: apple has just revealed that mavericks will be free and available today but no new announcement about ipads just yet. joining us to break it all down, roger kay, founder of end point technology associates and michael rose, tech expert and lead editor of 2.0.com, the
unofficial apple blog. welcome to you both. let me start with roger. pricing on mac book pro laptop at $299. why are we wasting time with tim cook and apple talking about laptops and free operating system on a pc when it is all about mobile? don't they need to get into the discussion about mobile? >> no. need to build up the momentum and anticipation for the great big announcement. so this is the small stuff, the housekeeping that takes place first and get that all out of the way and then they will show you the new stuff. adam: all right. in a second, we'll come back to that issue but michael, the fact that mavericks will be free to apple users how important is that? >> it is very important when you talk about adoption and up tick of users for new operating system. apple has been pretty consistent about ticktock for new versions of mac os-x and brought along a lot of users for the ride.
as you get to maturity in a operating system there are fewer big ticket features to drive unit adoption. as mac os-x gone down from $29, now to free for upgrades, you will see more and more users thinking is it worth it for me to making the leap and moving to the new version? adam: is it important if you are an apple customer if they keep you through their universe that operating system, you will use their mobile systems and that is the where the future money will be made? >> absolutely. apple's ecosystem is second to none when it comes to movies, music applications and being able to have the consistency across the experience, whether apple tv, ipad or the mac is very important for the company. it is a consumer business now. it relies on consumers making choice ever minute of the day where they get the media choices applications, and in order to drive the consistency, mac app store and ios store, all the
pieces have to work well together. adam: we expect an upgrade to traditional larger ipad and ipad mini perhaps, perhaps they give us the same fast speed chip in both but they face real competition. i don't want to say the surface as of yet will be competition for them. microsoft is a huge company. their operating systems you can't count them out even though they have a very small market share when it comes to tablets? is that a problem for apple or are they looking elsewhere? >> this is the kind of problem apple likes to have, a competitor with 2% market share is fine with apple generally speaking. they do have to keep an eye on google, however. google wall the partners is managing to field a pretty healthy ecosystem for tablets and tablet market is distinct from the smartphone market in that apple still dominates. well, dominates pretty closely and whereas in the smartphone market they have really fallen a bit behind samsung and google and the rest. so, in this case, this is
apple's game to loose and they really need to play it pretty strongly here. i suspect they will. adam: roger, smartphone competition, i want to ask you, you pointed out that the expensive smartphone market in the united states has matured and saturated. it will be about the mid price to less expensive smartphone. is apple poised do that in emerging markets or will they fall behind? >> apple has been very careful to avoid the low end in almost every case. they do have the mini, which is their bid on the computer side to do something lower priced and lower capability but apple really likes to hold the premium position. even as you saw in the 5s and 5 c rollout, they were reluctant to drop down very much with the 5 c. as a result the 5c is gone off badly and lucky for them the 5s done well to make up for it. i think financially they will be fine. they don't like to do something
cheap to get more subscribers. they would rather sell nice hardware to people who appreciate it and willing to pay for it. adam: we'll stop the conversation for now at that point. that is where we bring it up. a company known as a hardware company, does it have to cut its prices, slim its margins in order to insure its future growth? that is where we pick it up. right now, roger, and michael, thank you very much. we'll come back to you as soon as we hear more news from the apple event right now in san francisco. lori: in the meantime, some news in the banking industry with jpmorgan close to finalizing a $13 billion settlement but that doesn't mean the bank's legal fight is over. fox business senior correspondent charlie gasparino is next with what may have class action attorneys drooling. adam: we're all over the apple announcement. the company's big release that microsoft, remember them? their latest surface goes on sale and nokia gets into the game too.
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adam: apple may be the big event of the day but we can't forget about the record settlement against jpmorgan that should be finalized in the next few days. charlie gasparino is here now for an interview with tom gorman, securities lawyer at law firm dorsey whitney to discuss what threats jpmorgan still faces. charlie. >> tom, how are you? thanks for joining us.
>> thank you for having me. >> this is kind of i think of course everybody is focused on the $13 billion this current deal, we think would be done that this is the week it is finished but there is the future, private litigation that could come out of this. a lot of that resolves around the concessions that jpmorgan is going to have to agree with, the facts in this settlement. just how much, how important is this? where do you see this thing going? >> well, there's two open questions here. one's the criminal cases we can come back to if you like. the other is what you brought up, that is so-called, admissions that the government will extract from jpmorgan. they're negotiating those now and, what they say in them, and how they say it, and what they go to can be all important to potential liability down the road in the future in class actions for jpmorgan. >> you know, listen, the stock, we, our audience is shareholders. they always want to know how to
play a stock. if you were a shareholder this has got to being biggest thing on your plate if you're a jpmorgan shareholder because this thing could cost, is it possible we're talking another $10 billion here depending what they agree to in this? >> there is possible there could be a lot of exposure in the class actions but i don't look for these admissions to have that kind of character. i think you will see admissions that are more driven by straight facts, something like what the bank did with the cftc. they won't have the kind of intent elements that the class action people need to prove their case because, remember, the statutes that the government chose to bring these cases under are the, s&l era statutes. >> interesting. >> they used the proof burdens for the government but that doesn't necessarily means it eases the proof burdens for the class action folks. these will be helpful but not necessarily definitive. >> even before we had an
administration in bed with the trial lawyers, we do know the obama administration is very close with the trial bar there is movement afoot in the obama administration to get banks and people they, the people that they cut these deals with to admit something, even in another era. class action lawyers did pretty well. isn't the class action aspect of this kind of a bigger risk now than it ever was before? >> it is clear that the class action bar is watching these things. they want to see what is going on and these will help them. there is no doubt. just a straight set of facts admitted by the bank is going to help the class action people. >> right. >> the key to most of these class actions they're brought under securities law, they need to prove intent. >> right. >> that is not the same standard that the bank is being held to here by the government. >> i gotcha. it helps but not the bullet that can really damage the bank is essentially what you're saying? >> that's right. >> okay. so let me can you this though. you've seen a lost these cases. i've seen a lot over the years
where firms pay up a lot of money. there is usually a structural change at the bank because of this. i mean, is jamie dimon, is he going to lose his job or part of his job? there never before been a time where i see a ceo paid 13 billion or something on this magnitude and escape unscathed. >> that's true but, you got to take a look what jamie dimon's doing here. remember, he is the one who inches taughted this settlement and it is clear what his goal is. >> right. >> he wants to move past this and get the bank into the business of running the bank, and not running their litigation. so he is moving hard to get there. he is also spending 6 more billion dollars. >> i know. how does he escape, how does he escape not giving up his chairmanship on this thing? >> i think it is a very difficult question for shareholders to look what is going on here and you look at the string of settlements they have and whole series of cases. >> right. >> and not say there is something wrong with the way the
culture is playing out here. i think shareholders have a tough choice. >> you think it is more than a theoretical possibility that he gives up his chairmanship based on what you've seen in the past, correct? >> i think there is real possibility there will be real issues here he will have to deal with and we'll see if he can survive. >> tom, like to leave it there. tom gorman. thank you. >> thank you. >> okay. lori: all right, charlie. adam: thank you very much, charlie gasparino on top of the jpmorgan story. when it is finalized i'm sure you will it first. >> i try to have it first. i never guaranty results. i just guaranty that i try. lori: you spoiled us because we expect it. >> i learned that from my days covering fidelity at "wall street journal." adam: charlie, thank you. lori: quarter of. let's go ahead and check the markets. mark newton from the floor of the new york stock exchange. mark, the jobs report delayed though it was, set the tone this morning and stocks are up. likely the fed pushes that taper beyond what even most people were expecting before the report. >> that is what is interesting
that the jobs report came out and it was somewhat abysmal and markets are jet again at fresh highs. we backed off the highs to some extent. nasdaq was briefly negative. at this stage of the rally it will be tough to chase growth names that had very big runs. stocks like netflix are still down $60 from earlier highs. you see things like u.s. dollar hitting fresh lows. crude oil breaking reports. right, the 10-year is getting hit as well. that is moving down across the curve in any number of different maturities. >> mark, that says to me the fed will have real tough time with exit strategy here. that is to your point why the market is rallying, right? bad news is interpreted as good news. so with the fed likely on hold for, you know, say qe infinity, do you agree with that or do you think we will be able to see the fed back off, take the foot off the pedal in an orderly way? >> i think it will be difficult. moves to 3% without any
indication, that was not on reports of tapering itself, but only thoughts of potentially tapering of interest rates had one of the biggest moves in recent years. when they finally start to announce it that could be a little troublesome in my view. lori: we have the fed next week with another meeting. looks like it won't be as important perhaps given the outcome of the jobs report. what do you think the drivers for the markets will be for next couple weeks here? >> that is tough. a lot is based on the fed at this point. the government shutdown is hyped us. that's a problem. we lack a real cat activity at this point. a lot has been pushed off into next year. there seems to be a lot of complacency. s&p had very little selloff. it is up 100 points from the lows we saw nine days ago. dow is up over 600 points. we never got a correction. interestingly enough you're starting to see a little bit of stabilization in some of the defensive sectors and that could often be a warning sign. look at today's leaders, utilities. saw a big move in telecom in the sector. consumer staples are showing signs of strength.
it is not usual risk-on sectors we're see when dow is at new highs. lori: transports is big leading indicator strength to come. we'll see what happens with the economy and earnings and if the disconnect widens between the two. mark, thank you so much. adam: we're still waiting for apple to announce its ipad upgrades. today's launch can't come soon enough. shares down 17% in the past 52 weeks. lori: is today's announcement living up to the hype? not so far. as you saw shares flat-lining since the event began. our apple experts join us as the ipad maker struggles. apple shares, the tablet market is down 14% year-over-year and in the third quarter. ♪ when we made our commitment to the gulf, bp had two big goals:
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lori: all right. 50 minutes into apple's big event today. so far no word yet on the highly-anticipated new version of the ipad and ipad mini. well it is not just adam and i and you folks waiting. look at investor reaction since the event began. shares down $2.36 or half of 1%. welcome back our panel. roger kay, founder of end point technologies associates and michael rose, editor of the 2i.com, unofficial apple blog. thanks for waiting through the hour. roger, you commented apple has to build the excitement, get the suspense going to come out with the big reveal and steve jobs obviously was famous for the big surprise and really wowing the audience and apple fans. what is the likelihood we eventually hear more than the latest version of ipad? >> well, i think the likelihood is relatively low. i think what you will note is that, since tim cook took the
helm, there really haven't been the one more thing type of endings to these presentations. and the other thing is that apple's supply shape has gotten a lot wider than it was in the early days. they're a big company. they have a lot more stuff and so as a result there is a lot of leakage. pretty much we know everything that is out there. if they have a surprise, well, i will be surprisedded. adam: all right. let's go to michael. do you think apple needs to cut prices in order to improve its market share and further down the road readdress the profit issue? it has so much cash and still as one of our guests pointed out earlier would still be able to mint even if it cut prices? >> you know, it goes back to the point roger made earlier about why apple is successful and how it positions its products to really address part of the market willing to spend those discretionary dollars on technology, works better, looks better. you can't necessarily hit both the value side and the premium
side at the same time. and, to the point of the iphone market share or the cell phone market share, apple and samsung are still only smartphone companies actually making money on smartphones. everyone else is sort of at a stand still or losing money in the sector. so even if apple continues to aim the higher end of the market, apple strategy tends to grow that opportunity, rather than to target those low-margin products that really consumers don't care one way or another buying a cheap phone, they will likely buy some other cheap phones than yours. it is commodity business and apple doesn't want to play there. lori: roger, what do you think about the overall company strategy? in last couple years we haven't seen anything new but really just upgrade of iphone and ipad? strong sales of course, but no new life-style changing iconic products, would you agree? >> yes, what i think you have to understand that, you know, how many times in one lifetime will wet get entirely new product market like iphone opened up
and ipad right after? every, two, three, four years, apple will come up with new product market that will be a multibillion-dollar market. that may be, but most of the time they will do incremental announcements and making improvements what they have got better and the kind of thing they should be doing and they will be unable to establish new markets. maybe ever again. lori: steve jobs, is the the bar high. michael, roger, thanks for joining us for the hour. sorry we didn't get the announcement of iphone. adam: we have ceo affirm that wants to replace the starbucks barista with a machine. are you worried your job will be replaced by a robot? your responses coming up next with tracy byrnes and ashley webster. you don't want to miss this. capital to make it happen?
ashley: welcome back, everybody, i'm ashley webster. tracy: and i'm tracy byrnes. no help wanted at all. anemic jobs number, bad for main street. wall street on the other hand is higher as traders again see no fed tapering ahead. we are all over the story. ashley: keep the cheap money coming. the robots by the way, they're coming for your job as well. oh, boy. we'll talk to the ceo of a firm that wants to replace your favorite starbucks barista with a machine. >> i want to buy one for my house. brings us to the twitter question of the day, are you worried your job will be replaced by a robot? tweet us @foxbusiness#mkn m. ashley: much more ahead on tablet wars. what is new from apple with its ipad. we hope to find out literally in minutes, on the same day by the way, that nokia and microsoft launch theirs. we'll have that and so much more ahead on this hour of "markets now." tracy: it is top of the hour and
time for stocks. we head to nicole petallides on floor of the new york stock exchange. up 65 and new apple products, i could potentially buy myself a robot, what could be bad today, nicole. >> the dow is up 65 points. that is a gain of almost half of 1%. s&p 500 trading to highest level of 1759 and change. nasdaq is highest level since the year 2000. some of the names pulling dow up, walmart, disney, caterpillar. 30 names in the s&p 500 reporting earnings, some which already came out. we're following key names. some are under pressure such as coach and radioshack. other names doing so well, like netflix which hit a new high. that was certainly worth noting. watched delta moving higher. that is just to name a few. we'll look at some retailers that will be open on thanksgiving in case you want to shop after eating your turkey. back to you.
ashley: turkey. thanks very much, nicole. appreciate that. tracy: we've got to talk more about this apple event which is still underway and robert gray who we miss and love is there with the latest and the greatest. what is going on, robert? >> well, i'm listening and tim cook is back on stage talking about ipads right now as we speak. we just heard about updates to the so-called productivity apps, i-life and i work. if you have an ios device or a mac. they told 170 millionth ipad this month. going on to talk about how other companies getting into the game but saying that is contending that ipads are used four times more than other devices. we know the android from google, that operating system is clearly gained the most market share and batterer in out with a report this week saying they would have almost half of market by end of next year. something to watch as ios much smaller part of the market. we're anticipating that he will
announce new i pads and larger format ipad 5 and ipad mini 2. we're expecting mini color iterations, a smaller frame for the larger one but keeping 9.7-inch screen if you will. for that and the smaller format. expected to have a faster processor, same as the large that would make them both some, twice as fast as the prior versions. so again he is on stage right now. i'm going to plug back in and listen. we'll come back and as soon as we have news on the ipads. tracy: i love my pin any, i said before. valentine's day present. ashley: perfect size. >> i use it all the time. i love it. coming up in 25 minutes, we have tom forte's on this and tablet wars. so keep it here on fox business. ashley: today's september jobs report underwhelming. economists fell short of expectations. the markets are happy as the key fed indicator may hold off
tapering. kind after good news-bad news situation. we have pnc financial gus faucher. unemployment rate dropped to 7.2%. mainly is it not, because more people dropped out of the labor market all together? >> actually this month we had more people looking for work so that is a positive. we had an increase in the size of labor force. we had increase as measured by household survey. the unemployment rate fell for the right reason as opposed to august. tracy: government shutdown, consumer confidence still not at levels, we're coming into a holiday season you would think we would see some job growth and as a result, we're not. so that is why, pretty much can expect no tapering until at least 2015 at this point, right? >> i think the job gains in september were definitely disappointing. they don't include the effects of the government shutdown. october is likely to be weak for that reason. in terms of tapering i do expect
the fed will start to reduce their purchases sometime early next year. they're purchasing $85 billion worth of treasurys and mortgage-backed securities every month. they will probably start to reduce them in january, once it is clear that the shutdown didn't have permanent impact on the economy. gradually reduce them over the course of next year. ashley: what about the report did you like? we had slight rise in hourly wages. of arage work week, 34.5 hours that held steady. is there much to get excited about in this? >> one thing i noticed we had a gain of 20,000 in construction employment. that is area that has been weak. we've been expecting to see gains in construction employment because of the recovery in home building in particular. so the fact that we saw job gains there is a positive. lots of jobs added in business and professional services including the 20,000 gain in temporary services employment. so that's on indicator that more
permanent hiring may be around the corner. finally there has been some concern about the full-type, part-time mix. we saw a nice gain in full-time employment. a drop in part-time employment. looks like that worry is perhaps fading somewhat and employers are indeed hiring full-time workers. tracy: fading or potential blip? because there is still so much concern about there about obamacare and how it will affect small businesses, how they will pay the bill, and heck, how they will log online and get the thing all together. >> that's right. there has been some concern about that. i think more likely there was a temporary blip in part-time employment and we will see more full-time employment over the longer run. certainly there are concerns that small businesses have about the affordable care act but i would expect once we get into 2014 those concerns will largely fade and we'll see most of the employment growth in full-time employment is typically the case. ashley: but, gus, if i'm a business owner out there and i've seen what has been going on in washington and still very
uncertain now about the environment, economic environment, and we know we could have this showdown again in washington in what, three months time or less, that will not make me want to hire. so in the short term do you expect any significant improvement in the labor market? >> i don't expect to see an improvement. we've been averaging about 145,000, 150,000 jobs per month recently. i expect we would remain around there for the rest of this year. that excludes the impact of the shutdown which will make the data a bit choppy in the near term. we expect stronger job growth in 2014. no question but tax increases and spending cuts weighed on growth this year. concern about what is going on with the shutdown, the debt limit, the standard & poor's downgrade we had and now the news from fitch but i think we will get through that. i don't think anyone in congress wants to see another shutdown. so i think that will provide some more certainty and i think the job market will look better in 2014. tracy: gus, charles payne is
with us, i will throw this to you, charles. you talk about main street all the time. main street is still suffering at the end of the day. we're getting glimmers of hope in the economic data but is anybody really feeling it at home? >> no one is really feeling it. that's why we see things like credit card debt going down three months in a row. main street, people are smart. they learned a valuable lesson the hard way and not taking bait of lower rates. you know what, automobiles we'll see that come to grinding halt. comparisons will be tough. people saying you see it in housing. fact of the matter, first-time buyers in the mid 20s. that is 20% of all sales, that should be north of 40. but i got to tell you, guys, other than this jobs number was really disappointing. ashley: we have to cut you off. we're knee deep in the middle of the apple event in san francisco. robert gray on ipads. >> ashley, just announcing it right now, the ipad air. this is known as the ipad 5, the fifth generation coming out. they're on stage right now.
phil schiller with apple on stage, talking about it, showing video, comparing it side by side as we anticipated, a smaller the frame outside of the screen on the ipad. even smaller than many folks were anticipating. 43% smaller. almost half as small. the format size. the larger ipad is getting smaller but the screen staying the same, 9.7-inches there. and it is thinner and lighter as expected. more powerful. they will call it the ipad air, ashley. get back to you in the studio. ashley: there you go. robert, thank you very much. reading more of the dimensions, ipad air, has retina display which everybody wanted. incredibly crisp pictures. only weighs one pound. that is what people expected and that's what we're hearing. >> that is enough to get excitet there. ashley: just in time. tracy: i think so, is that a hint? tracy: just saying, anybody out there. ashley: not a subtle one.
gus faucher, charles payne thanks for joining us. let's take a break now. as apple unveils new devices coming up in tech minute we'll talk about a senator trying to limit companies abilities to track you on your tablet and cell phone. tracy: plus are you worried that the row pots will come to get you or at least get your job? tweet us. we'll talk to a ceo that has a plan to replace your favorite barista, with a machine. i love this. ashley: isn't that cool? tracy: i love it. ashley: oops, down for the count. hair-raising experience. new promising treatment for baldness. we're live in atlanta with the hairy details. tracy: as we do every day at this time of day, look how oil is trading. it is falling thankfully for at least commuters like myself. of $97.87 a barrel. we have not seen that for a long time. i for one am totally seeing this drop at the pump. it's a good day.
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ipad air they're dubbing the fifth iteration of larger format ipad. it will be thinner and lighter as we anticipated. it will weigh about one pound. it will have much smaller best sell which is the frame around the screen as anticipated. that is 43%. that is half the format size of the prior iteration. it will have the a7 chip in there. it will be twice as fast. and continue with the 10-hour battery life. something very important to most of the users out there. it should have twice as fast wi-fi, depending on the hot spot of the zone you're in. pricing coming out now, 499 bucks. it will shep on november the 1st. trying to get it out ahead of holiday shopping season there. noting very clearly and calling it out of host of countries that will be available, november 1st, china for very first time will have it available on the first day. clearly trying to build market share in china there. they will have an ipad 2 that
will start at 399 bucks. no real details. they pulled it up after demonstration about pricing power. thinner, lighter, faster than anticipated. twice as fast, wi-fi. of the price, still 499 bucks. still pricing it for the premium market. tracy, back to you. tracy: robert, i love it, white, space gray around black. >> why space gray? i don't understand that. tracy: i'm asking. i'm asking. ashley: that is one that i have heard. tracy: maybe you go back inside and get more details and learn the background behind space gray. robert gray we'll be back to you. ashley: we have robert gray. we don't need space gray. space is black, anyway. look at apple's stock. we're talking so much about the company, what is the stock doing today? slightly lower but now moving slightly higher. , 521.42. literally flat today.
pretty much on the flat line. we'll follow the stock as well as we get more news out of san francisco. let's check on markets as a whole. nicole petallides on floor of the new york stock exchange, watching groupon, nicole. >> i am. another story coming out of the california. watching groupon shares which are sliding right now down 7.6%. that is drop of 81 cents at 979 a share. turns out they have been trading to the downside. and actually trips the nasdaq short-circuit breaker today. all this came on a report from itg investment research where they believe there is actually some risk to the third quarter domestic gross billings estimate based on the trends they have been seeing and so with that type of news that really spooked investors and then you saw the market selling off. groupon in particular, one thing that is worth noting that groupon is a great performer. groupon year-to-date is up 101%. there isn't an investor out
there who wouldn't want their shares jumping 100%. certainly today coming under some pressure and tripping the circuit breakers over at the nasdaq for groupon. back to you. ashley: nicole, thank you very much. we'll be back to you of course at the bottom of the hour. tracy: all right. jcpenney cries uncle in its battle with macy's over martha stewart merchandise for the world's biggest store is still not satisfied. we'll look at the legal wrangling ahead. ashley: buy on the rumor, sell on the news, you've heard that before of course. netflix shares tumbling. dennis kneale is ahead what is happening with yesterday's high-flyer. tracy: if all you want for christmas is cheap gas prices, looks like santa is listening. sandra smith at the cme on how low gas is going to low. ashley: keep the center button on the sirius/xm radio to fox business. thank you for listening. we're on channel 113. we'll be right back. it's a growing trend in business:
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anticipated. they have an a7 chip, go two times as fast, twice as fast on wi-fi. 10 hour battery life apple says. 499 bucks will be the price there. it will ship on november 1st. available in the china first time on the release date. that could be of importance to investors out there. the ipad 2, 399 bucks for that iteration. it will have a smaller bezel or frame. it will only way one pound but screen size stays the same. they're unveiling the ipad mini just moments ago. 7.9-inch screen the same but will have retina display same as on the ipad, full sized. they run the same software as the ipad air. a7 chip will be inside as well. that will be for times in fast as processing with the ipad mini, original last year. it will have eight times the speed for loading graphics, five megapixel camera in there. come in silver, white, space gray and black. they are going to start at 399
bucks with the retina screen, tracy. 299 bucks for the original ipad which will stay out on the market as well. also showing off new covers as they talked about. we've got a lot to cover was their tag line, getting colors in there as well. back to you. tracy: robert, i seem to be only one interested in all these products because the stock is falling. down about $7. ashley: down 7.18 right now and droping. >> we're waiting for one more thing, guys. we haven't gotten it yet. tracy: seems apple shareholders are waiting for one more thing. robert gray, i'm excited about the space silver mini coming out. >> bet they're more interested in numbers and couldn't care less about features. so, but, hey, the stock is down still, $6.70. not a good day so far. fighting over the domestic diva. ahead of friday's deadline, jcpenney makeing a deal to scale back the martha stewart items they will sell. still up for discussion though is the legal fees penney's must
pay macy's. former trial lawyer and fox's gregg jarrett joining us. greg, thank you for being here. >> thinner, lighter faster, isn't that what robert gray said any want to be that. i want to be thinner, lighter and faster. former trial lawyer. don't hold that against me, okay? ashley: say it with the greatest of respect, believe me, gregg. listen, jcpenney you were saying this is another lasting leg fasy of ron johnson who came in, screwed it all up and then left. >> talk about a guy who screwed the pooch. tracy: yeah. >> ron johnson, the gift that keeps on giving, right? forever and ever. this is the guy who goes over to martha stewart and says, oh, forget about your deal with macy's. let's do a deal with me? and of course you can't do that. i mean, an exclusive means, oh, gosh, i'm sorry, exclusive. right? so -- tracy: this become as victory
for macy's. total loss for jcpenney. >> huge. tracy: are they thinking jcpenney is going to shut the doors anyway, we might as well get the hell out? >> jcpenney's is finished. have you been to jcpenney's, went last week to times square, jcpenney. nobody there. nobody there. ashley: nothing in times square is empty. that is quite a feat. >> last person out, turn out the lights. and it is really sad because this is a venerable company. tracy: big open question now still is, jcpenney still might owe macy's lee fees and stuff, right? >> they do, absolutely. tracy: we don't know the amount? >> the amount, is to be determined by the judge, right? but i would think that if you steal somebody's property, you're going to have to pay a huge amount of money and that is what happened here. ashley: gregg, we know ron johnson make a mistake here but didn't someone look at the case to go ahead and take it to
court? surely they would have cut their losses? >> i would think lawyers involved in this whole thing and board of directors would have taken a look at this thing, hey, wait a minute, this doesn't make sense. let's get rid of this. let's pay some people some money. ashley: right. >> but they didn't do it. and so it has gone all the way to, and this is the classic case of, lawyers getting scared because it is not a jury. it is a judge. and the judge said, you better fix this thing or i'm going to hammer you. >> yeah. >> so the lawyers got a case of the for-reels, they said, all right, we better settle this. tracy: either way they're getting paid. jcpenney will pay somebody something and those lawyers will not walk out empty-handed. >> the lawyers are big winners always especially in the big law firms. tracy: unfortunate. we are not holding that against you. ashley: going to say former trial lawyer, gregg jarrett, we love you still. we think you're terrific. >> former. ashley: former. tracy: recovering. still recovering. >> well-put. ashley: thank you, gregg. appreciate it.
tracy: well the tablet wars are on. the newest ipads just revealed but lots of new cheaper competition out there. so are they apple killers? ashley: coming up ahead in tech minute, will anyone use blackberry's bbm instant messenger on an iphone? probably not. tracy: can you? ashley: we'll tell you about the company's hail mary play. tracy: i didn't know you could. still want to hear from you on twitter. the question of the day, are you worried about being replaced by a robot in your job? tweet us your answers. we'll put them up ahead. the dow is up 58 points. don't go anywhere. [ male announcer ] the founder of mercedes-benz
ashley: we have about 90 minutes until the close on wall street. a lot more green than red. the fed probably will keep taper around for at least a little longer. let's get to nicole petallides down on the new york stock exchange. it looks like it is getting a lot of action right now. nicole: we watch apple today. it shows you about a $28 range from top to bottom. this back half of the day is when we have been getting the latest on apple and the new ipad. we do have specific stuff to show you. it is nowhere near where it was back in september of last year. we are show you different charts over periods of different times.
you today 3.1%. virtually flat for apple. you are seeing major market averages jump. the s&p 500, for example, is that new highs today. i will show you something. if you are an apple shareholder, you are not complaining. take a look at what has gone on here. look at this. green, green, green. in 2009, 146%. 2011, 25%. last year a gain of 31%. i do not think that the apple shareholders can clamor too much. however, right now, they may be feeling a little disappointed. tracy: it is always that way. they typically drop on the day of big announcements. this apple event just wrapping
up. we have two technology rivals tried to steal the thunder by releasing tablets of their own. nokia is releasing its first ever tablet at and event in abu dhabi. all right. you had a three prong approach to apple introducing new products. your first was the phone upgrade, which you were right about. it came out a few months ago. here we are with the tablet. part two. part three is tv. are you happy with what you heard? >> in general, the news is more significant than i expected. they are rebranding the ipad. they are offering consumer price
points from $299-$499. they are really focusing on software. if you have one of these apple devices, you will get a lot of free software from apple. i think that is very important. tracy: it sounds like you came out of there pretty happy with all of this. it seems to me that the timing is pretty decent. this should bode pretty well for the company. >> well, it is not unusual for the stock to trade up in advance of a major announcement. the stock had a nice rebound. i anticipate over the next six months, it will approach our target. that is not unusual. tracy: are you worried about these tablet wars going on from
the competitors out there? they are certainly trying to get in and get in cheaper. >> amazon is my favorite stop. i like all the changes they have made to their lineup. they are trying to differentiate on service. if you have their tablet, you can very easily hook up with someone and customer service to improve the experience. i am not really told what microsoft strategy is. i still think apple is extremely well-positioned. tracy: they definitely have some competition out there. let's talk about your third prong to making apple better story. apple tv. did you expect to hear that at all today? >> as you pointed out, i think that there are three phases of innovation. the next generation of iphones.
today was the tablet refresh. phase two. next year we will hopefully see phase three. the i watch and then an apple television. tracy: do i buy apple? >> yes. tracy: am i buying amazon today as well? >> amazon reports thursday after the market closes. give or take 40% of their sales come from outside north america. they increase their hiring for the holidays by about 40%. by amazon as well. tracy: chelsea advisory group. thank you for taking the time to be with us today. >> my pleasure. thank you. ashley: day with the theme. time for your technology minute. blackberry has a roll out of its
bbm messaging app for android and iphone devices. a code of conduct, that is what charles schumer is unveiling today. the senator wants to protect shoppers who are being tracked on their cell phones through stores. his efforts to improve transparency go back to july when he went to the federal trade commission looking for action geared the practice is currently not restricted in the united states. the end of an era. nintendo will stop production in japan. the low-tech, but so much fun console arrived all the way back in november of 2006. they will now compete with sony and microsoft.
not as powerful as the playstation or xbox. it is also a lot cheaper. tracy: you know, the kids are over it. i do not know what it is. they told me the other day they played it when they were younger. ashley: that explains why i liked it. tracy: your christmas present may be coming at the pump this year. ashley: are you worried the robots are coming to your job? tweet us. food for thought had. we will tell you all about it. ♪ [ male announcer ] imagine this cute blob is metamucil.
♪ >> i am melissa francis with your fox business brief. officials with san francisco bay area rapid transit (will be running out full-service in time for the afternoon commute. unlimited service began early this morning. amazon raised a minimum order for customers to qualify for free shipping. it is now $35. it is the first free shipping increase in more than a decade. tonight on "money", martha
ashley: are you worried your job will be replaced by a robot? tweet us. give us some of your thoughts. your responses will be right at the bottom of the screen. a company called -- wants to replace your favorite starbucks teresa with this robot. it is not just your average vending machine. joining us now is the ceo. tell me about this machine.
we all see the office coffee vending machine. it is basically mud water that comes out of these things. >> we call this our coffeehouse. it is a fully designed coffee system that allows the customer to order coffee from their smart phone. we use only the highest quality ingredients. it is all fresh roasted beans in the machine. ground to order. all fresh dairy. all very high-end, gourmet products. the customer controls their coffee experience. ashley: the customer experience, it is kind of nice to go in and sit down. this is a whole different kind of culture. >> that is right. we are creating an experience where the customer controls it. we are putting the coffee houses in areas that cannot necessarily support a coffee shop.
it allows the customer to have championed quality coffee. ashley: how do you make a championffee? how do i know what will be top quality? >> early on in the company's history, we had a champion on our team. we calibrated the machine to follow the moves. we control that last part of the process where the coffee is actually made. when you put good quality product in and you control that last set, the customer gets the coffee that they ordered. ashley: how does the cost compared? am i saving money? >> you are saving money in certain situations. we use only the highest quality
products. our prices are competitive. ashley: where can we find these machines? where are you now and where do you hope to be? >> we are on the second version of the system at the university of texas. we have fairly strong demand. we are targeting places like airports. we have been approved at the austin airport. we are targeting corporate offices. these are areas where 24 hours a day q do not have access to a champion level of coffee. ashley: i will be looking for one here in new york city. >> new york is on the list. >> thank you. we appreciate it. tracy: drivers may be getting a special gift this holiday season in the form of cheaper gas
prices. if the average price expected to fall to its lowest level since 2010? sandra smith has more in today's trade. more good news. sandra: great news for us. great news for the retailers. maybe we will buy more presence. gas prices will fall to $3.15 as an national average. right now the national average is $2.34. that is a drop of about $0.34 from a year ago. we are already paying considerably less. we will be paying less at christmas time. oil prices are down. oil is at $98 change. the eia put out a note yesterday. inventories are up.
that rendered lower prices. opec is calling for less demand. that lowered prices. it is a marriott of things. refineries are producing more. tensions over in the middle east have ab. we are already enjoying saab three dollars gasoline and over 24 u.s. states. the lowest prices are in missouri. you can find $2.66 at the pump in some parts of missouri already. enjoy it while it lasts. tracy: i certainly am. thank you very much. ashley: just a long way to drive, unfortunately. [laughter] ashley: let's head back down to the new york stock exchange. mark new and is joining us now. i guess the jobs report was such that it does not support taper and the market is reacting
accordingly. >> yes. people continue to push stocks higher. we are off a little bit from our highs from earlier. stop like netflix now down over 85 points. we have gotten to a level where it is difficult to make this game going forward. we saw little signs of correction. the taper is postponed until next year. the debt debate default has been pushed off also. we have real complacency. we are at levels where indices are somewhat overbought. you see utilities, consumer staples.
ashley: interesting stuff. mark newton, as always, thank you very much for joining us. >> my pleasure. tracy: dennis kneale is a had on whether the company can sustain its mammoth growth. ashley: you are where you live. dividing the country into three regions. we love new yorkers. that is coming up. ♪ when we made our commitment to the gulf, bp had two big goals:
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ahead of itself? it is up more than five fold in just the past year. in the past quarter, u.s. subscribers are up 4%. overseas customers of 10%. stock up 46% just in the last month. netflix brags it is in over 40 countries, but only 40% is overseas. international lost $4700 in the quarter. reducing profit by 47%. netflix is getting a lot of buzz for orange is the new black and house of cards. viewers binge on the new shows. for the first time, netflix has begun deducting a higher portion of the cost much sooner.
that new accounting reduced profits by $27 million. that is a big hit. tracy: i am still stuck on "orange is the new black." ashley: i have seen the whole thing. dennis: i wonder what attractive lesbians in prison caught on with audiences. [laughter] tracy: i am on the treadmill in the morning. those 55 minutes fly. dennis: it is a washington drama. weren't they doing that back in the 1950s? tracy: they are doing that better now. [laughter] dennis: i think it is clearly good for the buzz factor for that stock. they have admitted they do not get that many new prescribers.
tracy: great point. ashley: thank you, dennis. tracy: you saw it already. ashley: i have. it is great. mapping america's personalities. two researchers did that by collecting 12 years of research. the study divided the country into three regions marked by distinct personalities. americans living in the north central plains in the south tend to be friendly and conventional. the free spirits reside in coastal states like oregon, california. here we go, the temperamental and on on on and habited live in
new york. tracy: new left out the best part. the temperamental people happen to have more money than the people who are really kind to each other. ashley: that is true. tracy: blame the road rage. ashley: coming up, apple unveiling the new ipad air. a new desktop operating system. coming up in the 4:00 p.m. our. cheryl casone coming up next. do not go away. ♪ (vo) you are a business pro.
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liz: hello, i'm cheryl casone in for liz claman. it is the last hour of trading. many investors are brought to -- processing of the details from apple's big reveal on the west coast there's a lot happening right here on the east coast. of region major indices are up today despite the weaker than expected jobs report for the month of september. a sign that the fed will not taper its bond buying program as early as expected. i'm not talking a lot next year. one that has a meteoric rise, take elected netflix. releasing better than expected earnings after the bell. the stock surged more than 9%. several analysts have suggested the video streaming company may be overvalued. this is a loss