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tv   After the Bell  FOX Business  October 31, 2013 4:00pm-5:01pm EDT

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bank of america merrill lynch upgrading them entirely. what a winner today. [closing bell ringing] liz: the gang at viacom are at the nasdaq. we have telecom indonesia at the new york stock exchange ringing in the bell and numbers down as we see. stocks finishing up with the dow jones industrials losing about 61 points here. in the blink of an eye went from down 50 to down 61 right now. s&p 500 down six points. nasdaq down by 10. could not hold to the gains which were small but still green. russell down half a percent. david: pourfor much of the day basically flat-lining. couldn't figure out whether it would be green or red but toward the end of the day it was deaf move to the downside. time for the front page headlines. jobless claims fell to 340,000. backlog of claims from california, remember that, distorted previous reports finally worked its way through the data, liz. liz: key gauge in the manufacturing active in the chicago area, pmi rising to 69.5
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this month. the highest reading since march of 2011. david: exxon's stock rose after the energy giant's earnings report. quarterly profits were higher than expected. output rose for first time in more than two years. liz: mastercard geting a pop from its earnings report. the pates company posted a 14% gain in profit as more people used plastic for purchases instead of green crash. david: tesla complete ad network of high speed superchargers enable drivers of the vehicles to travel between san diego and vancouver, canada. they cover highway 101 and interstate 5. liz: the federal aviation administration is easing restrictions of electronic devices by passengers on commercial aircraft. wi-fi and blew blue tooth connections will be allowed but cell phones must be switched off to airplane mode.
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"after the bell" starts right now. david: let's get right to it today's market action of the hank smith, three ways for investors to play the current bull market. he is an unrepent apt bull without chasing stocks. lincoln ellis, green square capital joining us from the cme. lincoln i want to start with you. talk about what happened to the movement of stocks. we saw it basically flat-lining today towards the last hour of trading. what made the sentiment of investors sour? >> well, you know we started out on a pretty sour note in the futures, not too scary given the halloween backdrop to the trading day. really bringing things into positive territory, positive move on jobs number. obviously that manufacturing number here out of chicago, the biggest move in three decade. talk about bizarre kind of trading activity? that made the facebook move yesterday look really kind of tame. and so really investors are trying to anticipate what egg
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going on with the pmis we get tonight. broader ism manufacturing numbers we get tomorrow and get a sense where the economy really is right now and how the impact of the shutdown is going to flow you there the system over the course of the next five or six weeks. liz: but, hank smith, with the fed still in the game does any of that data truly matter when you have the fed pillow that is inflatable with all the bond purchases still propping up these markets? >> right. it might mean something on a day-to-day basis but, or month month basis. we are in a secular bull market and the, the fed is, part of it, no question about it, but also fundamentals are a big part of it. that really gets overlooked here. we had tremendous earnings growth over the past four 1/2 years off of the recessionary lows. confirmed by dividend growth. and, the market is only starting to catch up to fundamentals this year?
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david: wow, hank. that is incredibly bullish statement. a lot of people say they far exceeded that but despite all your optimism you don't like utilities. a lot of people look at utility play, boy, those dividends are through the roof. you can't bo wrong. why don't you like them? >> well i think right now you're paying anywhere from 18 to 22 times earnings for about 2 to 3% earnings growth. that doesn't sound like a good deal and i don't think you're getting a good enough yield with the dividend to justify that valuation premium for such a low-growth industry. liz: lincoln, let me go back to you in the chicago mercantile exchange pits and treasurys. we just had byron wein of blackstone say, don't even own a single treasury. that is pretty shocking because a lot of americans own at least some in their portfolio. he said there is no point. what do you get about that, when we don't know at what point on the calendar when we see taper?
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>> we followed byron's lead, but led byron 18 months ago. we sold all our duration dependent assets. liz: smart. >> we're sitting in cash, looking for realistic, cash-flowing opportunities or dividend-paying stocks or reit, people that understand the fundamentals of the business and that the fundamental funds of those businesses are totally dependent on inflation, readily inflatable pillow, the federal reserve, more on the fundamentals hank is talking about in his thesis. it is important for investors to remember though that the fundamentals that are the basis around hank's assumption that the economy's going to catch up to the base beings of the growth rate we have seen in the previous part of the decade is highly suspect. i think we're actually going to be at much lower and slower wrote h growth rate and multiples investors pay for right now may not be
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multiples -- david: we're hawking to glenn hubbard about that. nobody knows the issue better than he does a little later this hour. you don't want to miss it. hank, back to you. to your point about valuation, there are some very strong companies out there that deep roots that haven't done that well in the past 12 months. it's hard to believe because it looks like everything's gone up but one of them is ibm. very strong company. has very deep roots in the economy but you look at 12-year chart. it doesn't look too good. you say that is one reason why it's a buy, right. >> well absolutely in the last 18 months gone nowhere except for trending down a little bit but we still think they are on track to earning $20 a share by 2015 that make this is stock ridiculously cheap. we're very encouraged by the recent increase in their share buyback. so this is a company where you're actually getting shrinkage of shares, tangible shrinkage of shares on a net basis and we think that is going to continue and that will be
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positive for shareholders. >> this is my point. liz: go ahead. >> so this is my point. the reason the stock goes up is because of the buyback, not because of the fundamentals, either for the operating environment for ibm or the fundamentals of the company. investors have to be very, very, very careful. liz: whenever you hear stock buyback, you see the stock go up, a, we don't know if they even follow through with that, right, lincoln? >> or cut 15% of the workforce and have upside surprise. it is on top line, sorry, on the bottom line, not on the top line. you're 2409 seeing organic growth out of companies. investors need to be very, very cautious. david: hank, what about that? you deserve a say in this. what about the lack of revenue growth? that is what he is talking about? >> look i rather see ibm take their prodigious cash flow, if they don't have an area to invest in return the cost on capital, buy back the stock particularly at these cheap
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levels. that is doing shareholders a favor as opposed to wasting it on some project or investment that will never return its cost on capital. i think that is a very positive shareholder move. liz: nobody wants to see cash wasted but if they can't get their act together and reach those promise that is they have made about the certain waystations on the earnings street, i'm just wondering, hank, is that really a stock people should waste their time with? >> oh, look, i think, look, last few quarters they have, they have not met their goals. they have not met expectations but this is a company that is vastly different than the 1/5 teen years ago and focused on software and services and hardware part is less and less important. that is where they have been having some problems recently. i think they will get through that. david: hey, lincoln, we haven't talked commodities yet. there is big news about gold going down. i want to talk about copper because to your point about the
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overall economic growth, copper is kind of the canary in the coal mine, right? >> copper is definitely been telling us that growth on a global basis is basically flat-lined over the course of the last three or four quarters. it will be interesting to talk to glen about that. i was in a meeting here yesterday at the federal reserve bank of chicago with him on global trade. there are a lot of indicators out there that suggest we're really not seeing the kind of bounce back in global trade we would have expected to see in the post-recessionary period. clearly, copper is one of those indicators that shows us we've got a lost room to grow, particularly in the emerging economies before we actually see the kind of global earnings top-line growth that translates into global consumption that would produce the kind of equity environment that would be very positive for hank's thesis. liz: last word, hank, your favorite stocks now. give us three of them. >> we mentioned one, ibm. we also like jpmorgan. we've talked about this on your
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show before. its stock has held up remarkably well given the headwind of all this fines and pennant talk. and thirdly we like unitedhealthcare group which is going to be a winner in this whole affordable health care reform act, however, it plays out. david: okay. you may, you may like first solar if you listen to these numbers. dennis kneale, they just came out with the earnings report. what are the numbers? >> nothing short of stupendous beat, dave. first solar, hot all year, coming in with earnings of $2.28 a share. wall street was looking less than a buck a share. they're double more than wall street estimates up from a dollar a year ago. revenues, a huge beat at $1.3 billion. david: i want to alert our viewers, they were looking zero, zero on the bid ask, either it has been halted or there is some
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kind of grinch in after-hours trading. we're checking on this right now but see anything else besides the big beats on forecasts for future growth? >> i could get it out there i would say the revenue had a huge beat, david. my gosh beat by 40%. $1.3 billion. david: wow. >> instead of 98 million wall street expected. -- 98 million. this company has been up 66% year-to-date. up 500% for the full year. my chart says it is up a teeny little bit after-hours in response. we'll see what the traders do after hours. liz: he has a big stake in first solar. david: once again we have to emphasize the reason why you're not seeing any action not because in the bid ask. not because there is not any action. there may be delay. this may be one of the glitches we've seen quite a bit of over past several months. liz: thanks, dennis. we have terrific guests coming up on "after the bell." among
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them, basf corporation. this is a huge conglomerate. ceo hanz engel, is here to tell us how his company is flying through global economic turbulence and making a bet on elon musk and tesla motors. david: president obama's approval rating sinking to a new all-time low in a "wall street journal" poll. glenn hubbard, former chair of the white house council of economic advisors, now dean of columbia business school. liz: unveiling a brand new branding campaign exclusively here on fox business. our facebook question, we want to know do you think the affordable care act will reduce medical costs or premiums or become a bigger expense to employers? log on to and let us know. ♪ [ male announcer ] what if a small company
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it's not the "fumbling around with rotating categories" card. it's not the etting blindsided by limits" card. it's the no-game-playing, no-earning-limit-having, deep-bomb-throwing, give-me-the-ball-and-i'll-take- it-to-the-house, cash back card. this is the quicksilver cash card from capital one. unlimited 1.5% cash back on every purchase, everywhere, every single day. so let me ask you... at's in your wallet? david: right now everyone is rivetted on what has happened to first solar. they beat tremendously in their earnings report. we don't see any movement on the stock right now through all of our sources. maybe lauren simonetti has heard a little more from the floor of the new york stock exchange. when are we going to see some movement in this stock after-hours, lauren? >> hey, david, we're here in the fox booth.
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i just got off the phone, waiting for a call back from the nasdaq why this stock is halted. regular session closed down 2%, $50.31. halted at 4:01 p.m., they report ad stellar quarter. eps of 2.2dollars, that is a big beat -- $2.28. looking at press release and guidance for the company. increase in net sales primarily attributable to business systems product revenues that included the sale of some projects in canada. back to you. david: lauren, thank you very much. >> i'm remembering the old bsaf commercials, where they said we don't make the products you buy, we make them better. this company reported strong third quarter earnings a few days ago despite negative currency effects. they had all the headwinds and fought through them. the company's largest affiliate is north america-based basf
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corporation. they have 1300 employees here. they're investing billions of dollars in tesla to help with the production of their cars. we have the ceo, hanz engel. test last, you guys are in everything. what are you guys doing for tesla right now because you have done already award winning work for them? >> with we do for tesla, liz, we provide coatings for them, which is one of our business lines, coating materials to make cars shine and look good. we entered into a partnership with tesla a year ago. liz: a year ago. a couple months ago i saw a navy blue tesla down the street in los angeles and the coating was so rich and sparkly, that the people were stopping and pointing. so whatever you're doing it is working. >> very nice to hear, thank you. liz: the company has done extraordinarily well with headwinds. that would be currency gauges. how do you hedge against all kinds of currency fluctuations
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when doing business in so many different countrys? you. >> first try to do what you do best, focus on the things you can focus on to run the business effectively as possible. watch fixed costs, typical things you have under control. yes, we are in more than 150 countries in the world and so we is to deal with a lost currencies. liz: what you r companies like yours deal with currency pairings, euro versus dollar, australian dollar versus dollar. >> yes. the net impact we have that we don't hatch sales and look at the net we have, and that is what we're hedging. we're going typically six to 12 months out to hedge cure rinse sis. liz: -- currencies. liz: natural gas, i want to get to that, big factor all you do with all the chemicals. it has become extraordinarily cheap. i remember nat-gas couple years ago was $14 per british thermal unit. now it can barely break $4 on a
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good day. how does that affect what you do? >> i bought natural gas in the fourth quarter of year 2005, 21 buck as million btu. that was right after the storms. now natural gas is one of the key raw materials we're using and utilities provided for electricity and steam. to put things into perspective, natural gas prices here as you said, shy of $4 on average this year. that compares to 10 and $11 per btu in europe and 15 to 17 in asia. that provides us clear competitive advantage here in the u.s. liz: that matters. i will get deep into this. listen, you have your cofellow ceo in chemical line, andrew live varies from dow chemical says it is not great idea to export natural gas to the u.s. for great profit. there is untended effect on companies like yours. where are you with lng? >> we're in industry seeing
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trade flows going in and out everywhere. we're importing 3 billion in goods and exporting 4 billion from the u.s. so on a topic like lng, we stand where we always stand which is on free trade. we don't think it's a very good idea to slow exports of natural gas down in the form of energy. liz: where are you hiring right now? >> we're hiring actually all over north america. we've increased our workforce this year from 16,500 people to about 17,000 people. liz: if i'm going into college right now, what should i major if i wanted to work at basf? chemistry? >> chemistry is good idea. chemical engineer something' good idea. economy is a good idea. a number of things. if you're bright and talented, come with the right skillsets we're happy to have you. liz: germans are incredibly intelligent when it comes to engineering and chemistry. do you think the u.s. educational system needs to get more up to speed? it is okay if you say yes.
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we need the truth here? >> the short answer to that is yes because we have, at basf we have no problem hiring chemists or chemical engineers. we have one other issue, i will explain in a second what we're doing about it, with respect to hiring really workers for the shop floor. because we need educate them. they don't come out of system where they have, what we have in germany which is appresent tisship where they learn on the job. so training happens at our sites in our factories. what we do to bridge that a little bit is we enter into close cooperation with colleges where we support. liz: good to have you, hans. thank you so much. >> thank you. liz: hans engel of basf. wonderful to hear the story what a great stock story too. thank you so much. >> thank you so much. liz: david? david: you have to help me talk my daughter into chemical engineering, okay? liz: okay. david: that will be a heck of a talk. the battle to attract the best and brightest business mind in the world. glenn hubbard, dean of columbia
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business school will tell us about his new rebranding campaign as well as what he is seeing in the economy and the fight over health care. also the obama administration is bringing in some of silicon valley's brightest names to try to fix the troubled website but maybe of little help to small business owners. a brand new blockbuster survey on how obamacare is affecting them a little later on. ♪ so i can reach ally bank 24/7, but there are no branches? 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.
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david: time for a quick speed read of some of the day's other headlines, five stories in a minute of the first up mcdonald's and kraft are teaming up to sell mccafe branded packaged coffee. it include whole bean and ground coffee as well as single cup
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options. test markets and pricing have not yet been disclosed. cutters sovereign wealth fund built a one billion dollar stake in bank of america. they started buying shares in the big bank two years ago. apple's share in the worldwide tablet market plunged 11% in the third quarter to 29.6%. research firm idc expects apple to regain its foothold in the fourth quarter from sales of i -- ipad air and mini with rhett tina display. google set up a online shop where customers can buy accessories that go with the device. the glasses will not be foresale. amazon introduceing a program called amazon smile which will donate .5% of your purchase for charity. the donations places will be on the website. that is today's "speed read." liz? buzz buzz. liz: president obama's singing
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to an all-time low and has he tries to get support for the health care plan. david: rich edson with details. >> for the first time this "wall street journal" poll find more americans disapprove the president's job. 42% of americans approve of president obama's work. 51% disapprove. the poll shows only 22% have favorable view of republicans. 37 do of democrats. messy rollout of some democrats calling for delay require everyone to have insurance. others admit language should have assured americans could keep the insurance plans. white house defends the president's promise that insurance companies not obamacare is to blame for cancellation of cheaper policies. >> it is important to know there is a fraction of a fraction, small fraction of the population that, is being told because their insurance company changed
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their plans in the last several years and they had no other choice but to re-up, that, they are now have new opportunities available to them to purchase insurance that meets minimum standards. and for which they are, they may be qualified to receive tax subsidies and tax credit as part of the affordable care act. >> obamacare discourages those bare bones plans and creates new minimum insurance standards. through regulation and analysis the administration has acknowledged the health care law would lead to cancellation of these plans despite the presidential promise. back to you. liz: rich edson, thank you very much. david: well, troubling new evidence today of the impact of the affordable care act on small business. the author of a brand new blockbuster study joining us for a fox business exclusive. liz: plus the crem day la crem of business schools, columbia, ranked number eight by the "u.s. news & world report", number
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five by "the financial times." the school says we have brand new branding campaign and boost the qualities of what we do. will it work? the dean, glen hubbard giving us and you the first crack at it. it's a fox business exclusive coming up in a few moments. ♪ she's always been able to brighten your day.
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liz: time for a look at today's market drivers. stocks fell into the red at the last moments of trading, as all three major indices end the trading day lower. the financial and utility names were the worst-performing sectors. gold falling nearly 2%, that is a big drop for both gold and silver. silver dropping nearly 5% as investors speculate when the federal reserve will begin the bond-buying tapering. gold closing at $132.70 a troy ounce while silver settled at 21.87. weekly jobless claims declined for third week in a row. this is number that you want to see decline. the california computer glitch worked its way out of the report. claims fell to 340,000. david: one indication of a declining business climate is declining number of applications to business school much recently
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those applications have come up but applications to columbia business school dropped 19% last year. which is why the school is trying to revamp its marketing campaign this year. liz: considering columbia has one of the top hiring rates for graduates of business program it has a top story to tell. joining us for fox business exclusive, dean hubbard, from the columbia business school. welcome, dean hubbard. >> thank you. liz: give us the tag line and why you came out of the new campaign. >> applications are up% year-over-year. our plan to focus who we are which is at the very center of business. this is a place where academic excellence meets real world every day, all the time. that is the plan. david: now i was reading an article by the way where they had been plunging 19%. that was last year. >> correct. david: but they have come back which is gratifying. however i'm wondering to what
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extent is the current environment with occupy wall street, all administration's attacks on business profits and insurance business and elsewhere, did, does that affect, you think the overall climate towards business schools? >> it might, but i think the real issue that more people are interested in entrepreneurship, in tech, in innovative parts of our economy and we like many of our peers are really retooling to do that we have a great on the on theship story to tell right into this market. liz: at the very center of business is your new tag lon. tell what your mbas offer from our organization versus other ones. princeton, harvard, wharton are all out there. tell us what would make a columbia graduate attractive. >> sure. there are several very great business schools. what is great about columbia when you're a student you have the academic experience and practitioner experience at the same time.
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by the time you leave to go into consulting or industry or finance or entrepreneurship you've done it. you had a real experience. that is why recruiters love the school. david: we talked about entrepreneurship, that is the heart blood of america. that is what makes our economy so different. i'm so glad you're focused on it particularly recently small businesses have been taking it on the chin. we can put up there. you can see quite clearly from 2010 to 2012 a 10% drop in the number of new business startups. how do you deal with that? how do we deal with it as a country and as individuals? >> well, certainly from our perspective at the school we're seeing huge interest in startups with our students working with students in engineering or medicine and plugging into the new york entrepreneurial ecosystem which is actually up credibly strong. as a country if we want to be serious about entrepreneurship we have to have policy that promotes it. david: how, specifically, specifically? >> we need a tax policy that doesn't penalize risk-taking.
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we need to make sure regulation doesn't crowd out a lost entrepreneurs. we need simpler, better health care policy than we have now, if we're serious. liz: okay if we're serious. let's talk a little bit what can make us more serious and where do we go from here? we do for example, today, see the president reaching out to the private sector. publicly-traded companies like oracle and google to help fix the website, website n the end we've got the best and brightest in this nation, do we not? how do we harness that and start the robust job creation? >> this is most innovative nation in the planet. not just my students here. i see the entrepreneurial spirit in every business community i'm in. what the government needs to do focus enabling research, getting the business community to have energy its needs and not getting in the way. we obviously could have the best minds in the business fix the technical props the president is dealing with today. david: by the way we just had lincoln ellis on. he is from the cme in chicago.
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they were happy to see you out in chicago recently. one thing he said of particular interest and bothersome to those traders, global trade hasn't really bounced back from the worldwide recession we've been in. some people say we're still in. how do you deal with that issue? i know it is beyond our shores but is there any way we can deal with that? >> that is a huge issue. global trade traditionally grown two times as fast as gdp. in fact that pattern has reversed. if we want to correct it, we need to change our tax policy to make the u.s. a more friendly base to invest in and trade with. and we need to make sure our companies are competitive abroad. these are big issues. they require really focus by the administration. liz: dean hubbard, back to as we finish up this smack talking among a lot of business schools in the mba programs this weekend. i was out to lunch and two columbia mba graduates, they're parents of kids and we were all at lacrosse together, oh, we're
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better than harvard, we're better than wharton. how do you get up to that level? you're at eight when it comes to "u.s. news & world report." how do you get up to the top five? you're in the top five for financial times. but what can get you there. >> there are a handful of great schools. the reason i think columbia will be in the upper group is the real experience we can deliver with who we are and where we are in new york. if i were going to business school today, where else would i want to be? other than in a global business capital with a great faculty. i think that is unique. david: people, a lot of nobel prize winners. robert mandel among them. >> true. david: a great, great institution. glen, thanks for coming on. >> my pleasure. liz: glenn is the dean of columbia business school. we have breaking news on first solar. it resumed trading of a hours following first-quarter earnings beat. lauren simonetti, take it. >> they're having a conference call as we beat. you can see the stock is moving in after-hours up four bucks from the close of 50.31. nice movement here.
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profit for first solar, more than doubling in the quarter. top line soaring because of revenue gains from california solar plant as well as some sales in china. but we do want to point out here, first solar has cut their full-year, not the profit forecast but their revenue forecast, so that is something we're also watching. but this stock keeps getting a bid higher as the conference call is on going. back to liz and david. david: 10% jump after-hours. liz: java jolt coffee prices. you mentioned yesterday. lowest in four years yet your morning cup of joe is still costing a pretty penny. we'll find out why later in the hour. david: like oil and gas. businesses were supposed to get a temporary break from obamacare, remember that, but a blockbuster report just issued by the national federation of independent business showing that small businesses, small businesses are the ones actually footing the bill for most of the perk that is are in obamacare. fox business exclusive. you do not want to miss with the author of that report coming up
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david: small businesses were supposed to get austriary break from the cost of obamacare. new report by national federation of business claims that the rising cost of health bills for small businesses is actually what's paying for all those new bells and whistles in the health care law. joining news a fox business exclusive interview is william dennis, federation senior research fellow, author of this study which i think, mr. dennis, is blockbuster report, we've been told time and again businesses won't feel the heat for obamacare for another year. you say they are. how? >> they are. the prices are going up. the clearly the major impacts
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will probably come next year. but we're already seeing that seeing prices rise. for example, 60, 64% saw their prices go up from 2012 to 2013. i should say their premiums, rather than prices. 29% held them steady and 6%, they actually did decline so -- david: let's be specific about it, excuse me, mr. dennis, i want to be specific what is driving these costs. >> sure. david: insurers now have a lot more to cover. the president is always bragging about the fact that now you know you have all these extra benefits you didn't used to have but they don't come for free. we've been mentioning, every time he said it will not cost another dime, how do you give more without it costing anymore? the answer is a lot of small businesses are paying for these new things by paying higher premiums. >> that's correct. we're also beginning to see some switches in plans that are,
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going to be required under this law. we're beginning to see certain plans phased out. in fact we are beginning to see that one year after passage. that some of the plans, small employers had were being phased out and new ones adopted and those new ones generally met the specifications, the minimum benefit packages of the affordable care act. david: so they, the small businesses are forced to offer some of them would offer less than what they were in order to pay for higher premiums for everybody but what, how are they paying these higher costs? what are they cutting back on in order to pay for these higher costs? >> well they're cutting back, the most common thing that they're cutting back on own profitability. we found that, two out of three with, with price increases were cutting back on their profitability. they're also cutting back on business investment.
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of course, that is something that given our current economic conditions that we would prefer not to do. 30% are passing on some costs to consumers through higher selling prices. and then employees are also paying for it in a lot of different ways. things like increased deductibles, wages that been frozen or perhaps are not going up as rapidly as possible. david: right. >> cuts in non-health benefits. so there are a variety of ways and, everybody in a sense is paying the bill. employees are paying the bill, employers are paying the bill and consumers are paying the by. david: we're talking about fewer startup companies, fewer new businesses. i imagine this could be, we can put up the chart again, i imagine this is going to be cutting back on a number of new businesses as they look a the cost that is they face? >> well it will a bit. i wouldn't say that is the biggest impact by any means. there are a lot of factors going
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into the cuts in business startups. david: finally, mr. dennis, as to the law itself, eventually these businesses are going to have to be much bigger part in what obamacare is as it rolls out. there does seem to be a lot of confusion still as to exactly how that will affect businesses. do businesses know how to plan for a full rollout of obamacare? >> no. confusion. confusion is something really a prime aspect of this time we're in right now. when you are affected and not sure they're affected and vice versa. for example there is something called aggragation rules which many small business that is are affected don't understand or have never heard of. quite simply that is, if you own more than one business, you have to foot all the businesses you have together for purposes of this act. david: yeah. >> and those rules are
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extraordinarily cop plex and have really not been well-addressed. and when you, when you look at where these people are getting their information, small businesses are getting their information, they're clearly getting it from a variety of places including the general news media but one place they're not getting it from, government. david: hard to get a straight answer from anybody on this we have to leave it at that unfortunately. we want to have you back, this is first year of a three-year study. >> that's correct. david: you will track the same business, abouthundred businesses. so it will be very interesting to see as it rolls out how these businesses do. william dennis, from nfib for coming out. very important study. appreciate it. >> thank you. >> liz? liz: david, forget about touch-screens. how about controlling every computer, tablet, even smartphone you own with just a few simple eye movements? we'll tell you about some revolutionary new technology when we go "off the desk." profits at coffee chains like starbucks are up and coffee
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bean prices meantime are plunging. so why does your cup of joe still cost the same? because they can still charge you the same. we'll go to chicago to find out the real story. stay tuned. >> ♪ 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 trapp 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. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do.
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>> starbucks earnings rose 34% in last quarter. during this quarter profits could get even bigger boost from plunging coffee bean prices. the prices are at lowest level since march of 2009. the loyest decline in coffee bean futures in 41 years. david: but? liz: still costs the same. david: still costs same when you go in for the morning joe. why is that? jeff flock joins us from chicago. maybe he has an answer, jeff? >> i will certainly answer the question. -- ask the question. can you smell the coffee. that is a rab ba can bean for those who know the coffee. that is historic lows. look at charts so you know what we talk about. i have a master roaster, dennis jackson here. the a rabaca beans, here is one of the reasons profits may not be up and why coffee still costs the same to us, these are the
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beans but they are better than the typical market, right? >> this is considered specialty coffee. >> guys like starbucks and you particularly guys like you, seminole roasters, buy the high-end stuff. that is not where the prices are declining? >> that's correct. a lot of the lower prices are for the commodities market. we buy specialty coffee which carry as pretty heavy at this premium. >> i want to look at charts for starbucks and green mountain. those are two companies we know. they do benefit though somewhat, brian, from the reduction in overall prices because they use some of those beans. >> absolutely. they certainly do. like we were saying, our company doesn't really do that well overall because of there is so much that cops from the farm, from the picking the coffee to transporting it, to preparing it. >> small piece of pie. >> absolutely, small piece of the pie. >> howard schultz of starbucks told our charlie brady a while
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ago this is really small business, actually, the coffee bean what we actually sell and what it actually costs to put it out there. if you're coming to place like this, guys, get into one of these bag, you don't get it in starbucks, you can see, look at that stuff? isn't that nice? look at coffee beans. david: i can almost smell it, jeff. i just barely smell it. >> what you didn't see, making coffee, pouring hot water, french dip style. the best way to do it. hmmm. >> i'm not a coffee drinker, what can i tell you. >> you're not a coffee drinker. >> chocolate. >> only one in the building not shaking. jeff flock, thank you very much. liz: i will get you started on sank after, jeff. david: for many it is hard to jump rope more than a minute. i bet you could. liz: oh, yeah. david: a nine-time world jump rope champion ability will likely put your playground skills to shame but you will not believe how many she did. that is coming up. wow.
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liz: let's go "off the desk". who knew jump roping was professional support. david: wow. liz: youtube video of the champion gone viral. don't you wish she had a buck for 70,000 views in two days. she attends ohio state university, is nine-time rope skimping world champion. captain of the u.s. national jump roping team.
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david: usb plug, that allows you usetory have i-activated log-in. liz: keep your eyes on fox business with "money" with melissa next. >> think about this if you needed surgery would you bid out to surgery to doctors and hospitals other places in the company, people you never met just to save money? it is happening more and more, because even when they say it is not, it is always about money. melissa: sure, we all love going online to find the best deal but usually talking about a hotel room, a flight a television. would you feel comfortable accepting online bid for hip replacement from a doctor you never met? it is newest wave in comparison shopping and the


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