tv Countdown to the Closing Bell FOX Business October 24, 2013 3:00pm-4:01pm EDT
the stock. lipid over to apple. apple has been in the big news today because of coral icon, that stock is still holding gains one.33% for apple today. coral icon saying he would like to see the bigger stock buyback. we are on the cusp of several record highs across the board from small caps to the dow jones transport. you need to watch the s&p right now. 1754 is the record. we are one point away from that record. watch it, we could see it in a minute. we are picking ford as a crucial story today. releasing strong third-quarter earnings announcing it is now profitable in all of its regions except europe. everywhere else they are doing beautifully. nondenial of sorts on whether he
has been approached to replace the outgoing microsoft chief. repeating the same line he recently said to me via e-mail. three or four weeks ago now. "i love serving forward." does that mean you would not love serving microsoft? a little bit of a look now. getting close to three years of $18.02 pennies. now $17.84. look at the homebuilders. a lot of you are looking at it coming down. looking at all of these names getting a boost releasing better-than-expected earnings. rising to an average of $310,000 talk estimates $299. we have mi homes.
try point putting out a bid the other day, but all are leading g the center is higher. again, bring up lower mortgage rates helping sales. according to freddie mac, the 30-year fixed mortgage rate hit a three month low. for those of you who thought you missed the boat, you haven't. average in 4.13%. the 15 year fell as well. not bad. we have to get back the breaking news of apple losing a key employee to tesla. apple under pressure from coral icon wanting to use apple's mountain of cash to buy back stock but he has to convince apple to do that. nicole: he has to convince apple, shareholders and a whole bunch of others of this is the right thing to do. hhe's a billionaire activist investor. he recently increased his position. he wrote a whole note to
tim cook containing how good their dinner was, met with the affiliates, he boosted his shares and he owns 22% portion size now. he says all of this, he talks about this with tim cook saying it is obvious we believe the company is undervalued, and with that actually pushing once again for $150 billion stock buyback. by the way, that is the letter. in the meantime over at pimco who basically is saying he should just leave apple alone. spend more time like bill gates. he is had to help people, not yourself. this is an internal battle of the billionaire certainly. in the meantime a lot of the critics are saying why doesn't he just leave apple alone? having to listen to what he is saying, he is a huge shareholder and holds a lot of clout.
1.3%. this year use of the underperfog the market virtually flat. back to you. tracy: a good thing the egos doo not get involved. nicole: it is pretty amazing. liz: thank you, nicole. watch this s&p level. we see how positive things are at the moment. u.s. consumer confidence numbers hitting an eight-month low. let's bring in the traders. mark newton, we're less than a minute away from the all-time high for the s&p. does this surprise it happened as quickly as it did? >> it certainly does. nine of the last 10 days. in the face of decreased consumer confidence. getting much worse than expected this morning. the jobs report tuesday and last
month were dismal. resilience. up 100 points or so. the dow up 600 points. five more trading days left, pretty amazing. investors looking at microsoft and amazon after the close. close to 180. companies reporting so far. 80% of them have each revenues yet those levels are so far depressed that the bar is so low at this point does not mean as much, i don't think. liz: we have the ceo of the nasdaq in the next hour. he is only speaking to us. everybody counts the company out because i missed out on the twitter ipo. we will talk about that in the big beat, but back to what mark newton just talked about. there isn't a lot of resistance, so you look at the transports,
transports are looking unbelievably strong. going into seven out of eight. stunning to me what is going on here, but what, does this concern you at all? something we have asked every day because the market keeps going up at some point could we see a correction? >> you have to wonder if it is going to continue on the s&p 500. i'm looking at what is going on, s&p 500 little rickety starting to feel top-heavy. we made a massive move very quickly. we are not seen the volatility index fall anymore as the s&p rallies. i want to see the s&p hold 1754 to a three days before i am willing to buy that we will be making a run at 1800. the 1750 level is a key level. i would be shocked if we are
able to hold for the next couple of days. too much malaise and too much friction for us to move a lot higher. liz: if there is a move higher, there is a move lower in oil. you really do call this. you have been very closeness when saying 95 is the next way station. looks like we mad may at some pt in the next day or two as the trend continues go below $97 per barrel. what is at the heart of this? >> a matter of supply and demand, inventories not getting any help. the market was much above $100. it was a nervous feeling in a market that was unfounded. at $95 before any of those geopolitical issues took place in the market went up with the uncertainty. we're now getting back to where we were and now we have a look at things like the weather coming into play, the wind
hinting on the driver force to determine where we go. we may have seen it. we may now trade between that at 95 and half up to 98. we are going to have to sell this market, no reason for it to go above it unless something comes out from the outside. liz: he has been right. great to have you give us perspective. >> even a blind chicken finds a piece of corn. liz: that is cute. i had never seen a blind chicken, but thank you. with all of the headlines, remember jpmorgan. tesla and apple this morning. today jpmorgan getting hammered.
do you think regulators are being too tough on financial institutions which mark at least one senator does not think so. asking them to be more aggressive. peter barnes with the story of a senator sticking up for the consumer here. speaker that is right. a major critic of big banks and has pushed back on the suggestion that they are too big to jail, and she is now turning up the heat on the federal reserve, stepping up their enforcement of financial crimes. while her letter yesterday to agencies appraised them for recent landmark settlements, saying a great deal of work remains to be done to hold institutions and individuals accountable. strong enforcement is an important deterrent and transparency is crucial.
she goes on in a letter to ask the agencies to supply her with a number of criminal cases they brought against banks including their executives. number of criminal convictions and other metrics. she suggested a much smaller agency has done a better job of criminal and civil enforcement with a small budget for a special tarp program. bringing criminal charges against 144 individuals including 92 senior officers. as far as response, the federal reserve says it's got the letter and plants respond. the sec and the occ failed to comment. liz: she has said if she has been on the side of consumer and that is what the constituents wanted. the closing bell ringing in 50 minutes. we have that long to see if we
can hit that all-time high on the s&p 500. we are so close. we have a huge fox business exclusive who cannot afford to miss. earnings revenge is sweet for nasdaq. bob greifeld next hour. talking about the top and the bottom line. he is going to clear the air after the nasdaq lost out on the huge twitter ipo listing. also, can you imagine the sense of snowflakes? how about pumpkin, christmas, smells like money for the man behind yankee candle. on what he is expecting from holiday shoppers this holiday season. the stock hitting an all-time high. he is with fox business. tdd#: 1-800-345-2550 trading inspires your life.
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they are calling it a massive fraud. we have had this company on to talk about their business. their insecurities, their phones. the shares are worth zero. halted multiple times throughout the trading day because they were so unbelievably volatile to the downside. 47%, and we now have the fact the law firm does announce is investigating potential securities fraud claims following muddy waters report. this is a chinese-based company. you have to know there has been accusations about many chinese companies that they are not transparent, their numbers are little bit fudged. we don't know the situation, we are just reporting facts because it is dropping exponentially today. total opposite. our next guest has gone small and they are working. up 30% year-over-year.
what companies do they love now? associate portfolio manager and principal. don't let his look of all business suits get you down. you have a nice performance. on par with the russell 2000. >> it is a contrarian value investor, is hard to keep up in a market that goes straight up because we are looking out-of-favor ideas and the market is not discriminating now so everything goes up. low-quality stocks and good quality stocks. liz: i could go look at the russell 2000 over the past year to date and not pay any fees or i could go with you, pay some fees. yet i am coming out a little bit lower because of the fees. tell me why it would be in off years he would outperform i should go with you instead. >> we talk about it will get technical upside and downside, how much of that upside do we give you, when the market goes
down, how much less of that downside do we give you? our history has been we protect you very well in the downmarket and that is how we have made our money. liz: a lot of people who do what you do, they don't even match market on the upside years, which is annoying. we try to let our viewers understand you shouldn't pay somebody to lose your money for you. you are able in down years to outperform. >> history has shown that. our hope would be when we hit the next air pocket, there will be an air pocket, we will outperform and our investors will be pretty happy. liz: what is your strategy? >> we look for companies with rocksolid balance sheet, businesses earning high returns on capital and we try to buy those whe we can find them on s. on sale sometimes there is a problem, it could be real, it could be perceived.
work could be short-term. he wants to know if we're getting paid to take on the risk of the problem. liz: look at them today. record high after record high. i love his first pick, i have followed them for many years. they are a specialty semiconductor in pennsylvania. >> the lowest end of semi conductors, but an industrial market, consumer auto. kind of everywhere. they should be up more. coming off a real typical bottom. so if we actually got a recovery, the stock and the earnings should go a lot higher. liz: this man, what a leader, but he was the scientist. he was hired around
world war ii. world war ii to create metal testing. you got that genetics when it comes to the company. i worry the bigger guys might swamp them. >> they are an acquirer of smaller companies. because they are at the bottom of the food chain has to be a scaled business. liz: as we cycle through that one, i want to get to your third pick. it is down 26%. >> a lot of women on them. it has been very successful over time. they have moved to department stores, that has created channel conflict. liz: should i worry it is at tj maxx on sale? >> the ceo is part of the family, he just stepped down
because he knows they need professional management. if they get great people in there, the brand is going a lot higher. liz: the total return fund is returning 26% year to date. not bad. good to see you. liz: not bad. the closing bell ringing in 39 minutes. and vision the smell the holiday. the new owner of yankee candle. this company owns mr. coffee. he loves this company now. we will get his take on the holiday shopping season and the consumer. the stock has hit a 52-week high yesterday and the rest coming off of a makeover of the most famous sports arena on the planet. you heard about it here first a couple of days ago with the ceo of madison square garden. the big reveal was today. sky bridges?
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liz: these milestone banks are like ochs office milestones. it made or money than the only film during labor day where it was a chick flick. morgan stanley has achieved an important milestone like that in the bedroom place goldman sachs. charlie is so mad at me. charlie: who is the hotter chick? liz: right now james gorman is the hotter chick. charlie: i like jennifer aniston. liz: oh, stop. not her. charlie, you're here to explain. charlie: blankfein is like pamela anderson, right? liz: that is absolutely pamela anderson. charlie, i need you to explain something. wait, wait, charlie was on "the daily show with jon stuart.
look. >> you know who must be thrilled to hear this news was market analysts and business reporters who have finally seen justice served. >> what is up with this incredible $13 billion shakedown of jpmorgan? this is arbitrary and political hosing. i think it is a sophisticated shakedown. >> justice department needs to scout. >> they are at war with american business. >> this was a jihad against jpmorgan. [laughter] >> it is a shakedown, witch hunt, scalping jihad. >>charlie: i like to get my face like this. i hate the fact i am even next to jim cramer. that is beside the point. i want jon stewart to know i have changed my mind. jamie dimon is evil. he is like bernie madoff we had i agree with jon stuart.
his brother works at the new york stock exchange. his brother is the greatest guy on earth. a great guy. maybe i should tell larry this to tell jon stewart, "the daily show." i am not 20 and unemployed. who else watches that stuff? liz: trust me, a lot of people. everyone in the media. charlie: 20 and almost unemployed. in any event. i have changed my mind. jamie is as bad as mad madoff. i now believe jamie dimon is bernie madoff. now we will get to my story. my story is actually good. i have changed my mind. this is a real story, you know
what a credit default swap, hard to talk about credit default swap. put up a translator. it is an insurance policy on debt. mostly since the financial crisis, goldman sachs credit default swaps have traded below morgan stanley. people are buying more credit default swaps because the bet is morgan stanley has worse risk management than goldman because those swaps are the insurance policies. except over the last couple of months that range has been narrowing in this week a fairly interesting milestone. if you think this is exoteric, it is not. both companies are talking about it. liz: behold the translator. charlie: a fixed income. it is basically an insurance policy. i buy it as insurance, i buy
more of it, the price goes up. liz: people buy it when they are investing on the net. they buy it as a hedge. charlie: why would they buy more hedges on goldman sachs now? liz: they're worried about goldman and less worried about morgan. charlie: last week you and i were talking about how they were walking around. that is what it was like during the financial crisis. now look at what it is like now. liz: flip it over and you will see behold. how far morgan stanley has come. charlie: that is what it was yesterday, that is what got people talking. what is interesting is that is 115 rather than 155. that may have been my fault, but i think 115. liz: what should our viewers take away from that?
>> premiere of oa brokerage fir. we deal with people average investors, this is what is going on in wall street. these are sophisticated investors saying the wall street firm that has a right business model starting with morgan stanley. if you are an investor, this is saying the risk management is better. and that basically it has got the right mix of what it does, mean the advice they brokerage channel and investment bank as opposed to the trading model that is out of favor with regulators. liz: this has taken more than a year. >charlie: he took over in 2010. announced switching over in 2009. it is a fairly interesting, i know james is feeling really good on friday because morgan stanley stock was up.
better earnings then goldman sachs, which was worse than expected. this is like another indication. we have a fairly detailed account of this on foxbusiness.com. my producer wrote it up. walking you through it in a little bit more detail. a significant milestone for morgan stanley. liz: charlie cook, we have the head of yankee candle, doing the smell of holidays. charlie: i am a big candles guy. liz: i can see you in the bathroom in the tub with the candles. the smell of cannoli. the closing bell in 28 minutes. yes, who better to ask then the owner of yankee candles, founder and executive chairman. martin franklin. he is in florida because, you know, god for bid.
wait until you hear it, it is the smell of snowflakes. today the big unveiling. we give you an exclusive inside look at the completely made over stadium. we will take you inside the red carpet. three years ago i did that. and the best, of course. taking you there after the break. look at the hair. long back then. should i go back to that or keep it short? >> you cannot even come in here unless you have momentum that is like real momentum. [kevin] paul and i have been friends...
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under its umbrella, this company is the perfect company to give you the sense of what the consumer is doing. one of the most popular items now comes in three different flavors. okay. i am hungry. cinnamon, ginger bread and something christmas. bartend, it is never too early to talk about the holidays. >> that is right. liz: you are just now making sure that this company is absorbed into the jardin company brand. >> you know, yankee candle has been a great company for a long time. if it ain't broke, don't fix it.
we allow them to continue what they are doing. they know how to gear up for the holidays. they have been doing a big thanksgiving push. it hits home with a lot of us. the turkey and stuffing essence of candles. they are giving something to troops for christmas. they are proactive in trying to employee active service veterans coming back from act if duty. we have an affirmative action program. that is a great program.
they really do touch the consumer very well.e that. people should patronize the company just for that alone. i love this one, snowflake cookie. and mary marshmallow. have you smelled these yet? >> i am probably not the best person to do that. i don't have the best sense of smell. liz: down in florida, what can you do? let's get down to the consumer. they will spend less on halloween. it translate to something like a billion less.
surely you are getting a sense of how the consumer feels leading into this season. >> i have said this often. some of it has to do with the unique positioning of our products. i believe that skis do really well when there is lots of snow and less well when there is not much snow. the government actions aside, this is a consumer led recovery. you have a lot of big things that will happen in favor of the
consumer. people are really up in spending again. you have $4.7 trillion worth of mortgages that have been refinanced at lower rates. you house a whole series of indicators that have freed up and stability in employment. they have really helped the core consumer. liz: i am with you. i think a lot of the ceos that complain about the d.c. disaster, almost in a way use it as an excuse. your stock is hitting an all-time high. clearly, you are doing something right.
liz: i thought that fossett had it tough with 79 companies. you have 100 plus. keep it going. we will be looking for the snowflake candle. >> thank you. liz: martin franklin. closing bell in 15 minutes. two huge names getting sad to report earnings after the bell. microsoft and amazon earnings reports next. ♪
garden. it is finally complete after three years of massive effort. you heard it here first on monday. >> we built a brand-new arena inside the iconic interior of madison square garden geared the world's most famous arena will also become the most technically advanced arena. liz: today was the day that they unveiled some of the tech knowledge he. they have skyboxes suspended from the ceiling. >> the most famous arena in the world. >> i have seen springsteen here 12-15 times. i have seen you to half a dozen
times. i have been coming since the 80s. how many great knicks games have i been to. >> madison square. forget about it. the best. liz: we love it. an unbelievable amount of technology and architecture. fox business on the story. we have some big technology names. we are gearing up for amazon and microsoft results after the bell. we are bringing in tom ford. he is senior analyst. i want to start with amazon
>> well, okay. the likelihood that we could drive a truck through their guidance in the fourth quarter is quite high. yes. their guidance is usually very broad. to get to our $400 target, i am actually very proud. walmart, target, costco. long-term, we think amazon can return to the 7% margin. tom will stay with us through the 4:00 p.m. hour. as soon as the numbers come out, he will be back. >> the story is about who will be the ceo to replace steve ballmer. they are facing pressure.
expectations are so low. they have a good number there. for microsoft, we will be hearing more information on who will replace steve ballmer as ceo. liz: tom, stay in the chair. we will come back to you as soon as the numbers come out in the 4:00 p.m. eastern hour. let us check out some of today's biggest market losers. >> we are not too far off record highs. up 30% this year. how about some of the leaders on the dow jones industrial average today. home depot, visa, dupont, some
of the best performers on the dow today. a lot of the homebuilders doing very well. visa is up almost 4%. that is adding 25 dow points. everybody thinks the fed is not likely to taper. there is so much going on. you are not too far off record highs as well. a lot of winners to speak of. liz: great to see you. thank you. we have "the closing bell" ringing in less than five minutes. bob griese held on the battle of the exchanges. how he plans to correct the perception that nasdaq is not the place to go for big technology ipos since their loss on twitter.
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went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. liz: okay. look at that s&p. we're not there yet. we're not at 12754, nicole. we keep looking at it to see if 1 1/2 minutes we can get there but you have big tech earnings on deck. >> we certainly do. we're watching amazon and microsoft very closely as we await the earnings. as we noted we see tech doing so well. we'll see what they bring. look who is here? david asman join being me for "after the bell." david: hey, nicole. tesla is down a bit. wait a minute, tesla is up 5%. what am i saying. it was up 5%. see what happens when i come in late. >> we love you, dave.
you're on top of it. and the truth is goes back and forth. very volatile stock. it is up 400% this year. they hired an apple vp to come over there. a big deal. liz: a little bit of a brain drain. or tesla being aggressive. our viewers get to decide. shares of a chinese fell come company, we're watching this -- telecom company. last time we saw a stock fall 45%, nq mobile, getting hammered after a website muddy waters initiated coverage a strong sell. calling the company a massive fraud. look right now the market doesn't care whether it is true. it is just trading on that. >> here's the story. that is such inside baseball, liz. i can appreciate the story. traders are talking about it all day. the mobile services company based in beijing. they have offices in dallas. muddy waters says the whole thing is fraudulent. they say they are false allegations.
the stock dropped exponentially from $23 to 12. what will happen tomorrow? [closing bell ringing] david: health insurers are down as a result of the obamacare hearings for the second day in a row. generally speaking, liz, things are good. liz: indeed. here come the bells on wall street for a day where the dow was up more than 100 points. we still close up a pretty decent number here. up about 93. s&p up just under six points. look at that level, 1751. just about 3 1/2 points away from the all-time high, david. look at russell small caps. they continue their unbelievable effect. david: is there a sealing to the market? doesn't seem to be any today. time for the front page headlines. we have to start with carl icahn. he boosted his stake in apple to 4.7 million shares as part of his campaign for a 150 billion stock buyback. that is about all the cash they have on hand. unlikely they will use all of it