tv After the Bell FOX Business October 30, 2013 4:00pm-5:01pm EDT
earnings. still the stocks going into the close. [closing bell ringing] bells are ringing on wall street. david: they are indeed. looks like we have a down market today. it was flat-lining before the fed came out with the decision. this is not a huge loss. nothing terribly unexpected. although there was a slight improvement in the sentiment. a lot of people were thinking the fed would say because of all the bad economic news, the economy is not growing fast enough. in fact the fed was saying there is risk on the downside but not as much as the market was hoping for because they want money printing to continue. as a result of all these things, the market is down. dow jones industrials trading down. 64 points to the downside. zip 500 is down 8.6. a little more percentage wise. nasdaq more than that percentage wise. the ones hit the most were small and mid-sized caps represented by russell 2000. that index is down 1.3%. liz: time now for your front page headlines. federal reserve policy-makers
announced they are maintaining the pace of bond buying program known as qe. they did not give any clear hints when they could begin tapering but "the wall street journal"'s jon hilsenrath immediately reporting that a december taper is not off the table. david: he knows what he is talking about. the adp report, the jobs report for october disappointed investors. adp saying customers hired 130,000 new workers. that is the newest in six months. economists and forecast expected an increase of 150,000 jobs. liz: did you see general motors shares rising after the automaker posted better than expected third quarter profits. inflated pickup truck numbers helping to lift north american results. revenue rose in europe for the first time in two years. david: speaking of cars, number three u.s. automaker chrysler reported higher third quarter earnings up 22% to 464 million. it confirmed its full year sales forecast of 72 billion to $75 billion. liz: nike's stock geting a jump
today after an upgrade from morgan stanley. it raised the sporting goods company to overweight from equal weight. david: the chipmaker intel could sell its online television project, intel media to verizon communications. the tech blog "all things d" says both sides are now in advanced negotiations. we have a lot of earnings reports just about to come out. can't afford to miss a minute. "after the bell" starts right now. liz: breaking news. kraft is out with its numbers. let's get to dennis. >> kraft with a huge pete on earnings but a sizable miss on revenue. kraft coming in at 83 in earnings per share. that is a beat over the expected of 79 cents but revenue comes in at $4.4 billion. that is a miss, down 200 million almost shy of the 4.6 billion that wall street was looking for. so kraft looking good on earnings. not looking good as much on
revenue. lately wall street has been kind of underrewarding a profit beat and overreacting and punishing a revenue miss. wall street almost lately is looking at top line every much as the bottom line, liz. liz: yeah, you know what? when you see the organic net revenue growth outlook consistent with previous guidance, not surprising we see the ask a little higher than the closing value. let's get today's market action. todd horowitz and adam mesh. he says we're in one of the biggest bubbles ever. so what, man? let's profit from it. andrew down in the pits of the cme i will talk to you first. >> this was a very interesting day. we came out what we would have thought they would not basically taper and rates staying the same and the market rolled over. we're extremely overbought up here. we have a new all-time high, new high of the year of 1757 in s&p fight hundred futures.
a little digestion when the market rolled over, volatility index, vix, didn't top at all. i think momentum to the upside is going to continue. strong earnings from gm. starbucks. i'm longstar bucks. long visa as well through call spread. we also have facebook that will report any minute. david: hey, andrew, we do have somebody reported right now, todd, i know you're chomping at the bit to get in here. dennis what are the starbucks numbers. >> 63 cents a share in earnings, better than 60 cents per share that wall street expected so 5% better. revenue coming in 3.8 billion. wall street wanted 3.81. i might miss the second digit on that. david: it is trading down a little after-hours as a result. sometimes the numbers look better but as a result of the guidance things are bad. andrew, you were looking for starbucks to move a little higher. are you surprised going down after-hours? >> it is not over until it's over. david: that's true. >> they're implying a about a
4-dollar move in starbucks between now end the week. i'm on 83, 84 bull calls after earnings. chart of starbucks is great. same thing happened to dunkin' donuts and gnc. sold off and buyers came in and drove them higher. david: we should mention that the coffee price, while demand may be picking up in places like china which wasn't expected earlier in the year, coffee prices have come down. so their costs are going down as their revenue is increasing. so it's a surprise that it is coming down. liz? liz: we should mention they have got a 26-cent per share cash dividend that the board of directors is declaring. that will be payable november 29th. usually market likes something like that. we moderate ad bit. we've seep the stock pretty much where it closed at the moment. david: they have been listening to us. liz: let's get to todd horowitz. give us your thoughts. we have two-pieces of data out of kraft and starbucks. these are food companies, and
also have the fed. what matters? >> i think first thing we look at is earnings growth in kraft. again they missed on the top line. we keep ignoring growth, revenue. fed is ignoring growth, revenue. they continue feed the free money system. i think what we'll see free money will become diss is truss in the future unless they start to taper. eventually good becomes bad. there is too much reliance on bad news that allows market to rally. think about it, we rally on every bit of bad news. adn bummers this morning. missing earnings, we rallied. amazing factor that bubble continues to grow. liz: i'm interrupting you. we have facebook numbers. din necessary, how did they do. >> facebook in a great beat, guys. earnings of 25 cents per share instead of wall street expected 19 cents that six pennies is a big beat on a percentage basis. revenue coming in $2.02 billion. that is versus 1.2 billion a
year ago. that is 2.02 better than the 1.91 billion wall street was looking for. this obviously means facebook is going great guns especially in the shift over to mobile. 40% of their ad revenues i believe now fully from mobile. a year ago they were almost know where on mobile. liz: they are smart and the stock is jumping exponentially. we need to just point out here the whisper number alone was 21 cents. not only beat estimates from consensus and whisper number of 25 cents a big move here. i look at this, todd, i say wait a minute. david, you just interviewed the guy had outlook very negative and bearish. david: his outlook bass based from forrester, his outlook was based on their deal with marketers. they're only passing on less than 20% of the times that you click on the like button for various advertisers. they only pass on 20% of the that. the todd the incredible thing isings, with their advances in mobile, that was the big question a year ago everybody
said well, facebook looks good, what happens if they can't translate to mobile? they have translated to mobile. 40% increase in mobile ad sales. doesn't that bode well for the company? if you look at after-hours price, $56. this stock ended at 49. it is now trading 56 after-hours. you must think it will stick with this, right? >> facebook looks great. the chart looks great. since the stock dropped down with the initial problems to the 16 level it has done nothing but jump up. it will be similar to the linkedin model for social network. it has nowhere to go but up. if you own symptom, put stops in to protect some of that, but this stock in general looks great. dynamics are great. liz: there is more. dennis, daily active users and other data points. >> that i don't have but operating margins exceeded wall street estimates. they came in at 49%. the thing about facebook, under understand that stock is up so much from the low 16 if you're an analyst who watched it go up
you want to start hedging a little bit and raising some worries the way the forrester guy did. but the key to facebook i think, once they have more than a billion people in the tent, how good of a job do they do converting that into new kinds of revenue by selling them stuff and selling ads to reach them? facebook is clearly succeeding where previous one-hit wonders like yahoo! had failed. liz: here we go. mobile daily active users 507 million on average. for september 2013. monthly active suesers -- users, 1.19 billion, david. an increase of 18% year-over-year. is this like mark twain, reports of my death are greatly exaggerated. david: right, right. by the way we do have even though investors are chomping at this stock after-hours there is question whether we'll stay here. a question about the competition. whether they have looked seriously at the competition. a lot of people say nothing can compete with facebook. they're too ingrained in the world culture right now in the social media culture but there
are some competitors that are beginning to nip at heels of facebook. one is snap chat. we'll talk about the competitors in the mobile market and everything else from a guy who has by the way a $54 price target on facebook. that looked ambitious at the beginning of day. right now it is pale in comparison to what the stock is doing. todd, we want to look at the market in general,. facebook was infamous for the ipo the way it was mishandled in many ways particularly the price point. has gotten over that clearly. but there are a lot of other stocks and ip offs to you -- ipos say this market is overvalued. >> i think in the month of october we have 28 tech ipos, 19 which never made a dime which they have been in business. when you look at picture, the that has dot-com bubble written all over it. if companies don't have real earnings and growth and can't make money, how are they so valuable? why would you jump in and buy
those when they have no value? that is it another issue that comes to me there is a little bit of a bubble here. i'm not ready to short the market because certainly it looks to go higher but it looks tenuous up here and i would be careful. david: todd horowitz, nickname is bubba. you're bubba horowitz as long as you don't mind that. andrew keane, we'll come back to you for the s&p futures closing shortly. thanks guys. liz: showtime for facebook ceo mark zuckerberg. he is taking bows. how much will the stock rise after the blowout earnings report? it is jumping now but will it hold? we look inside the facebook numbers, particularly important mobile app figures. david: president obama's health care chief, kathleen sebelius going on the hot seat on capitol hill. i'm sure you saw some of that this morning. is the obama administration losing the pr battle over the affordable care act? >> tonight is mischief night. it has a name. like night before halloween. many americans are excited to dress up for halloween tomorrow,
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david: in seven seconds the s&p futures close. go back to the cme. what are traders there doing, andrew? >> i think they're buying them into the close. use today's stock, 1757 in the futures. i think we go higher than here. this is pull back that should be bought. every pullback should be bought. i don't think the news was dramatic. until the next fed meeting in decent, i think heads one way, higher. david: hope we see you before then. andrew, thank you. liz: facebook just reported blow out earnings beating street estimates with whisper numbers. head lack to lauren simonetti watching the tape. >> this stock one we're talking about now and certainly we'll talk about tomorrow. shares are rallying in after-hours. this stock closed up to $49. nearly 5for the bid/ask.
this is huge double-digit percent gain. look at some of the fundamentals here. in last quarter, q2 41% of ad revenue came from mobile. facebook got that up in q3 to 49% of ad revenue is coming from mobile. that is a nice jump there. a 25% year-over-year increase in daily active users. and an 18% year-over-year increase in monthly active users. now 1.19 billion strong. revenue by the way of 2.02 billion was a 60% increase of the back to you. liz: okay, lauren, thank you. david: here with more on facebook's earnings is tom forte, telsey advisory group managing director. also dennis kneale is still with us. tom, let's talk about mobile first of all, about a year ago everybody was wondering would they be able to make the jump top mobile ads. it seems clear they made the transition, no? >> definitely. if you look on percent of advertising revenue, they reported that 49% of their advertising revenue or about
$882 million, came from mobile in the quarter. and it wasn't that long ago, that the march quarter of last year where that was zero. so i think that they have definitely proven that they can convert their advertising on mobile and, i think that is why the stock has done so well last quarter and initially after-hours today. liz: initially after-hours, up about 13 to 15%. that was the first spasm. monthly active users up 18% since the last gauge. tom, is that enough to satisfy markets? >> so you bring up a good get question. i have to consider the investor expectation in the stock given it was so much higher than when the company reported last quarter. i do think 82 million, that 49% of sales coming from mobile will satisfy a lot of investors. the question now becomes when do they start doing video advertising and when do they start advertising instagram? david: tom, yesterday had on yesterday reporter or the analyst from forrester reports, who came out with a report
saying that fb wasn't giving marketers enough bang for their buck. what do you think about that report? is it true? are they getting some kind of feedback from the marketers that won't be positive? >> no, i definitely think if you look at the big change last quarter, was that the company improved the quality of the mobile ads. this was evident in the pricing. pricing on mobile ads significantly improved. the challenge for facebook and basically anyone in the social networking space with advertising, trying to make the ads more contextual, content you are more interested in reading rather than newsprint of the facebook made strides in the area and that is their ultimate goal. david: if i could be precise, what forrester was saying facebook was falling down putting marketers and users together. they were not passing on enough information to the marketers. what do you think about that charge? >> no. i would say one of the huge competitive advantages for facebook is having more than
1.1 billion users and having a lot of information and then being able to come up with very targeted ads towards that audience that would be one of their core strengths i think. liz: dennis, we know from a company like netflix, that very successful stock stories can stumble when they make bad moves. facebook has to be careful, does it not? talking a lot trying to monetize instagram which is superhot at the moment. could they risk possibly alienating some of their favorite fans when it comes to trying to shove money through that opportunity? >> well, yeah, they do face that risk. all capitalism does that of course, liz. a couple other strong points here though. the analyst was saying 40% of the ad revenue was mobile. actually i'm checking. it is 49% of the total ad revenue at facebook was mobile. that is up from 40% just last quarter. that shows you they are winning the switch to mobile. about the forrester concerns that facebook isn't doing good enough job of turning likes into market upside for advertisers. this is very important gap.
when i can't yahoo! was doing great guns years ago, when carol bart came in as ceo, she found they didn't have account teams to serve 10 largest account that is provided 0% of all revenue. tech companies were not good serving marketers. that is the gap forrester is worried about with facing book. but for now facebook would have a grace period. marketers don't have enough date to figure out whether the ads are doing good or not. when they start measuring through-put and realize whether it works enough we'll learn what environment is online ad most powerful? is it facebook where you hang out every day with your friends and talking spending a lot of time or instead a fast feed, blitz, a la twitter going public in week or two and that turns out to be better type of mobile ad so you get ad for pizza as you're passing a pizza place. david: sounds neat.
tom, you have a 5target, are you going to change that up it a little? >> direction alley it will go higher. starting in the june quarter they have a lot of operating momentum. i'm confident over the long time they will continue to make adjustments they need to make to advertising to outperform well. david: that is news. by the way, looks like steady, liz, at $55 and a quarter over that $49 closing price. it is getting close to the $58 target tom originally had but may upbeat that. liz: that is news. tom forte is widely followed on the street. tom, thank you. dennis kneale, thank you as well. >> okay. david: ben bernanke and the fed have spoken but they didn't give clear signals when they would taper. are they stuck in a policy they simply can't pet out of? we have at all star panel to weigh in on this. liz: president obama's top health care official, kathleen sebelius having to
answer tough questions about the botched healthcare.gov website. we take you live to washington to get the latest on the high-stakes battle and why investors definitely need to pay attention. stocks move on this. david: definitely. that wothat's correct.a rate. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally. at od, whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claims ratio,
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david: health and human services secretary kathleen sebelius facing some tough questions on capitol hill. she apologized for the botched rollout of the national health care website and vows to win back the confidence of millions of disappointed americans. liz: rich edson joins with us the latest from inside the beltway. that testimony's over. now what happens? >> now what happens is continued investigation from republicans in the house to try to find out what is going on with this website and obamacare and for the administration to fix it. health and human services secretary kathleen sebelius saying that by the end of november the website should be fixed but she says it is fair or
unfair for her to just assume that americans are going to believe it considering that october 1st is when this thing was supposed to be up and running. so she apologized for that. says the administration is work being on the problems. the hearing continued from there and a number of republicans would she then join the health care exchanges. she doesn't have to and she gets government care forker her job and didn't say she would. >> if it is possible to forego the government program, will you tell the american public i will go into the exchanges next year like everyone else? >> the way the law is written -- >> say that you're wrong on that, if you're wrong, will you, yes or no. >> i don't want to give disinformation to the american public. >> you what? >> i don't want to get disinformation. >> i want to research, if you're wrong will you go into the exchanges, if you can, will you? that is a yes or no. if you can will you? >> i will take a look at it. >> that is not a answer. that is not a yes or no.
>> more health care talk now in boston. president obama right now addressing those concerns or those questions that he lied when he said that he could keep your insurance if you wanted it. i promised you could keep your insurance. that was part of the promise we made ever since the law was passed insurers were able to downgrade an cancel your law. you have to replace your coverage. pinned it on insurance companies. if you're getting one of letters saying that the insurance is canceled, but shop around in the marketplace which the administration should be up last month. liz: do they have do do it in boston? there is a world series game. david: what is more important, baseball or insurance? liz: or traffic? david: kathleen sebelius claims she is responsible for it all. has she offered resignation because of screw-ups? >> no, david. republicans asked if other people with hhs would be asked to resign because of all this, she will not ask anyone to resign. she and her staff are going to fix the problems. >> all right. baseball is more important than
insurance, at least now. at least today. >> when the yankees are in it is much, much more important. david: bingo. liz: give me the indians. can we not forget? >> they're forgettable. >> we love you in boston too. we love you in boston as well. watch out, rich. liz: rich edson live in d.c. navigation powerhouse, garmin, you know the garmin, gets a nice pop after an upbeat earnings report. can it fend off google and apple are encroaching on its wearable business in the long-term? we're talking exclusively to garmin's money chief. david: also no tapering for you. no tapering by the fed this time but will there ever be a good time for this fed to tighten up? we have an all-star panel standing by to weigh in on today's announcement and what it means for your investments coming up. ♪ when we made our commitment to the gulf, bp had two big goals:
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i break my back around here. finally soone's recognizing me with unlimited rewards! meetings start at 11, cindy. [ male announcer get the spark business card from capital one. choose 2% cash back or double miles on every purchase, every d. what's in your wallet? i need your timesheets, larry! liz: time for a look at today's market drivers. stocks did fall with the s&p retreating after hiting a brand new intraday record high following the federal reserve's policy statement. the central banks says it will continue its bond buying program as is, left the low interest rate policies unchanged. energy and consumer staples were the worst-performing sectors. we have lots of action in
the metals pit, up, down, all around. copper posted its biggest climb in five weeks on declines in inventories and signs of increasing demand in china. silver ended the day at 22.94. copper closing at $3.32. payroll services firm adp reported private sector did slow in october. employers added 130,000 jobs this month. that is the smallest gain in six months. david: as liz just told you as expected fed decided to continue its 85 billion-dollar asset purchasing program, money printing. when and how will they get rid of all the assets? what happens to the markets when they do? joining us christopher thornberg, beacon economics founding partner. michael cox, former federal reserve bank of dallas chief economist. diana fuerth got roth. boy, what a crew. thank you gain for coming in.
christopher, first to you, i know the market was kind of disappointing because i thought the fed would talk down the economy. instead they talked it up a little bit. how it is the fed continue to justify a policy that clearly is not getting the economy to move very much. >> that is a good question. i think the answer is market. when you look what is going on with quantitative easing, 59% of the money they're pumping into the economy is sitting in banks in form of excess reserves. it is nothing more than an accounting transaction and therefore having very little real effect on the u.s. economy. psychological impact is of course enormous. you know as well as i do what happened back in june with so-called paper tantrum. everybody went crazy when they suggested they might end it. the fed can't afford to do that with all uncertainties in the economy. david: michael, fed has a couple of mandates, unemployment and value of the dollar. one of the its mandate is not to
keep up the price of stocks. as much as we like it here in wall street to have stocks go up, that's not the mandate. the federal reserve chief is supposed to be somebody who doesn't care what the market is doing. he has two mandates and has to stick tonight. yes, but of course, one of the mandates is full employment and strong economic growth. the fed, with this keynesian leader feels that the way they achieve that is through demand policies. by keeping the interest rate low they can drive stock market values up. they can also send people out to get mortgages on houses. they can create demand. they believe, this fed believes that demand creates its own supply. they think that will help the economy. i disagree with them. if it would have happened, it would have happened already. we're only having less than 1% real gdp growth since december of 2007 on average the policy is not working. as your previous speaker said, it is just creating a giant bubble not only in stock markets but giant amount of reserves held at banks. when that pops we could have
enormous inflation. david: diana, so far of course the fed famous said we don't have inflation. in fact this new report says inflation has come down a little bit from its 2% target. so they're not worried about it at all. should they be? >> i think they should be because historically there has never been this much monetary accommodation, increasing money supply with no interest rate that has not been followed by inflation. so people who know about this such as professor alan meltzer of carnegie mellon university who writen a three-volume history of the federal reserve. david: he says inflation is coming one of these days. as christopher is saying, once banks start lending out money they're sitting on it will be hard to control that inflation. david: well, christopher, the other thing, people say, hey, look, we do have inflation. it may not show up in cpp figures because they don't include food and gas prices. when you think how food and gas prices rising does affect other parts of the economy, maybe we should put them back into cpi?
>> no. well we do keep them in cpi. keep in mind any economist who is doing his job is look both core and overall levels of inflation right now. we look at the core, only because food and energy put so much volatility in month to month basis. however if you look at overall inflation, including food and energy, it is not that high. i have to disagree with the two previous speakers. i do not think inflation by any sense is certainty. the federal reserve knows it has lots of ways making sure banks don't really dump all the excess mon money into the market quickly. they're paying interest rates. they can increase reserve requirements as they might need to. candidly it will take a year two years after the banks start a big lending surge before it turns into inflation. david: hold on a second, the question really is, what is the fed more afraid of? are they more afraid of the market's reaction what they do or are they more afraid of inflation? michael what do you any. >> well i think they're more
afraid of the markets right now because the real economic growth. going back to what chris said, look, in order to pull that money back out of the economy you've got to do reverse of what they have been doing. you have to he is the market-backed securities back, mortgage-backed securities back to the market. you have to sale sell the securities and government debt. frankly this fed looked very much like a crony organization wanting to prop up the institutions rather than put the debt back in their lap. david: there is another institution that the fed is accused sucking up to. diana, that is the aid administration itself the treasury. impression bernanke is sort of at the service of treasury buying up all the treasury bond an making it cheap for the treasury to borrow. what do you say to that. >> well i think that i think that is very, very possible. the fed is supposed to be independent but it is not clear that is really happening. what is really disappointing in the fed's statement today was that they are proposing
basically to continue this accommodative monetary policy until things get better. they don't seem to consider the possibility what they are doing is making the economy worse. we're now stuck at a less than 2% gdp growth rate. we have the lowest labor force participation rate since 1978. clearly what they are doing is not working but they don't seem to take any account of that in their statement except for governor esther george who dissented. there was only one dissenter. david: she is permanent dissenter it appears to be. christopher, diana, michael, thank you very much for coming on. appreciate it. good to see you all. >> great to be with you. david: liz, over to you. liz: without garmin would we all be lost? garmin is best known for the car navigation systems but the gadgets are not the secret sauce behind the company's strong earnings reports today. garmin's cfo will tell us what is driving growth. could be a brand new focus for the business in a fox business exclusive. digital dreams.
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>> i in a world dominated by google and apple maps is the garmin system for your car obsolete? if so, why does that even matter? why are we asking because the company hyped this technology beat earnings estimates earlier today, helped by growth in the fitness and aviation businesses and along with the marine division. joining us in a fox business exclusive is garmin's chief financial officer. the marine division? this is fascinating to us everybody thinks of garmin as the device you put in your car but talk about the marine and aviation business first if you could. >> sure.
great to be on, liz. i think the marine and aviation segments are ones that we actually created our business over 20 years ago and we're selling recreational marine products for the marine business that have done really well lately. from an aviation perspective we're innovating and bringing out new cockpits for the single-engine plane and biz jet market. liz: this is very crucial to point out this, is something you guys were in early, 20 years ago as you were with wearables. i have a garmin watch. satellite watch. now suddenly everybody is getting into the fitness band craze, et cetera. you were there early and dare i say among the first there, but here come the hounds at the gate, right? samsung wearable watch. everybody is trying to muscle in on this area. how do you win? >> well, it is interesting we created this category of products using gps as key technology, but we've been innovating for six or seven years in fitness and even
outdoor products. what we're doing recently, we're doing two technologies. the forerunner is a running watch we introduced new models on. liz: wait a second. give us that name again? the forerunner? >> yes, we came out with the forerunner 220 and 620 we'll sell into the holiday season and what we've done we have created smart watches for general use cases around fitness and running. what we added is technology that will basically bring the coach on to your wrist with the watch, deliver other running dynamics way above what we've done in the past with additional body sensor and information you need to build your fitness, fitness, as a life-style. liz: yeah. well, princess needs an upgrade. i saw the video. absolutely fabulous. does this mean, kevin, that you shift your entire business model away from the original garmin product that got stuck right there on to the wind shield or
the dashboard of people's cars and more to the wearable business which we just came from silicon valley and "3 days in the valley", back in september, that is all everybody is talking about? >> well it is not an either/or. it is actually both. we want to continue to drive the sales of our auto mobile business which are about half of our business right now. we're still making good profits in that but we see innovative areas like fitness, aviation marine and even outdoor product that is can drive growth for the next 10 years. liz: with what is your hiring outlook? we're asking a people a lot of about this question because a, the economy is really murky and b, we have the affordable care act, if you read the headlines it will cost businesses more to cover these employees so they're going to the par-time model? is that you guys? can you give us a window what you're doing and how you're dealing with this? >> garmin has under 10,000 global employees, we've been adding over last several years
even during some down times in the industries. and mostly where we're adding is in our engineering team. so we're continuing to add and continue to hire. so we don't see, we don't see real change there and we anticipate we will continue to add more engineers. we may slow down in some areas depending on various vertical markets. for the most part it is about innovating around core ideas i just mentioned. liz: okay. the new frontiers, you touched upon it just a bit. what else is in the pipeline that you can tell us about? >> well in addition to aviation, marine and even running devices like the forerunner i mentioned i will show you this new category of product for us. the garmin verb, an action camera just coming to market right now. so we're wanting to sell that not only into the holiday season now but really go into a brand new category of product for us, we feel pretty excited about. and so that's one area. then in addition to the garmin verb we'll also innovating
around another smart watch for golfing. if you're golfer, know golfers, bringing a smart watch capabilities where you can get text-messaging and emails on your watch playing a round of golf. that is the new product called garmin s-4. i. liz: i will ask you to make the sales pitch how do you convince me to use the verb as you call it versus the go pro which owns the market in many cases right now. >> we have a strong incumbent that owns a large market share. differentiated features we bought, extended battery life. extended high-definition 1008p camera. the ability to remotely connect with other garmin devices. at i mentioned battery life and also waterproof. working in water and not carrying a box. put the unit actually in a box. those are nice features we believe will help us he is units in this space. liz: all you will see me doing
and i am skiing is having that thing is falling. kevin, thank you. >> thank you very much. >> the garmin chief financial officer. this is a company, david, that was in so early on the ground floor, fighting very hard and successfully at least for now and winning. david: you love those gadgets. i love those gadgets anyway. i want some under my christmas tree. the tiffany network will cbs try to turn the news division into a news channel? if they do can they win over younger viewers as well? dennis kneale will bring that to you. a photo our reporter katy managed to get her hands on from the twitter road show. at the mandarin ballroom in new york. we're told it was packed in like sardines and several investors present told katy they were impressed with the pitch they heard. nice car. sure is. make a deal with me, kid, and you can have the car and everything that goes along with it.
liz: cbs news as digital dreams. it is developing a digital news service for delivering 24/7 video for viewers wherever they are and whatever is in headlines. david: old pal david rose is involved in this. dennis kneale? >> name dropper, dave. cbs in talks with distribution companies to carry the online
news service t would deliver news to smartphones, tablets, xbox, apple tv, youtube, other platforms. unlike nbc and fox, c about. s lack as cable news channel as extra outlet for its news division. entertainment programs moved to new programs such as hbo-go and netflix and other program apps, news shows haven't made the jump yet. buzz feed.com report that is the new online net is pet project of cbs news president david rhodes. may work in tandem with cbs i amter active underscoring online nature of this new net. my attempts never able to get a comment on ever reclusive news chief. call me sometimes, dave. is cbs news thinking too far forward. news viewers are older and less likely to watch online. if they build it will they come? tv is new generation gap.
compare ratings as nielsen ratings agency did, every month adults under age 25 spend 14 minutes on videogame consoles, compared to 20 second as month for people over age 56. watching video on phones, older adults spend half of six minutes a month younger viewers and elderly spend less than three months a month watching video on internet, while younger people spend four times as long. they are betting older adults will go online more and more to get their video. good luck with that one. david: i don't understand, david rhodes cut his teeth in television news here at fox. >> yeah. david: he was working at fox news. >> then he went to bloom which must have been culture shock. >> answer dennis's call, david. >> i am hear for him. we live in the same neighborhood. david: answer dennis ace call. plea to david rhodes. we shouldn't have to plea to david. >> thank you, david asman.
liz: family, david. >> absolutely. >> thank you, dennis. >> thanks, guys smell coming from a california chilly sauce factory is making locals sick to the stomach and they have had a belly full of the stench. we'll tell you how they're fighting back when we go off the desk. ♪ nches? 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. peace of mind is important when so we provide it services you bucan rely on. with centurylink as your trusted it partner,
so we can ke better health decisions. that's health in numbers. unitedhealthcare. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrft. (vo) meee-ow, business pro. meee-ow. go nional. go like a pro. we don't have time for stuff like laundry. we're too busy having fun. we get everything perfectly clean by tossing one of these in the wash. and that's it. i wanted to do that. oh, come on. eh, that's my favorite part. really? that's our tide. what'sours? david: it's time to go "off the desk." the city of irwindale,
california, the maker of saracha chilly sauce, only smart people eat saracha chilly sauce, residents seek to shut down the plant until the operators headache the smell go away the plant's neighbors says the smell causes headaches and burn their throats an make eyes water. other people tend to disagree. liz: the company also installed filters. facebook stock on a tear after the session. holding on to most of the gains after-market. both profit and revenue search surpassed analyst estimates in third quarter, giving the stock a double-digit gain in late trading before it slipped back a bit. different story at starbucks though. the stock fell, flip it over even though the word's biggest coffee chain reported quarterly earnings that rose 34% the company's profit forecast next year disappointed investors. david: kraft foods reporting earnings after the bell. third quarter profit rose 7%,
revenue declined, seems stuck at that level. visa payments giant reported water early profits doctor quarterly profits fell 8%. liz: "money" with melissa francis is. >> give me a ball mark what you spent on this web site work that individuals can not get to? what is your cost estimate? >> so far, congresswoman, we have spent about $118 million on the website itself and about $56 million has been expended on other i.t. to support the web. [screaming] melissa: it is almost worse than a horror movie. that is if you're not laughing in pain. congresswoman marcia blackburn is here to take us through the terror because your money matters.