tv Countdown to the Closing Bell FOX Business November 5, 2013 3:00pm-4:01pm EST
and we're sharing whate've learned, so we can all produce energy more safely. our commitment has never been stronger. ♪ ♪ liz: good amp, everybody, i'm liz claman. it is the last hour of trading, and if you are one of those people cheering just as the dow jones industrials after being down 117 points then turned positive, happened precisely around 12:26 eastern time, it would have been a short celebration because it then crossed the unchanged line some 50 times. we could see that added to the next hour. without much more than disappointing earnings to follow, the markets have sort of been having a tough time finding direction. two names looking ugly at the moment, tenet health care
sliding 32% after the hospital operator recorded higher expenses. the is stock is down about -- the stock is down about 10% right now or $5.01. delphi reported better than expected profits but got tarnished by investors after it cut its fore or cast for the rest of the year -- forecast for the rest of the year, it stands at $54.99. now, arguably one of the most closely-watched earnings reports of the entire day will be tesla which which reports after the bell. the second these numbers come out, we'll have them. we also have two of the smartest guys around on love it or loathe it. tesla, they have very different takes on this stock. love the car company or hi it's really too rich -- or think it's really too rich in its valuation. even if you don't own the stock, tesla's almost stock market theater. it's just so interesting to watch and to hear what elon musk says. he will have a conference call,
we'll be following that, but the second those numbers come out, we will be watching it, the stock moving higher in advance of those. speaking of trading lower, many technology stocks are retreating today, but two companies are shining. we thought we'd pull out those. down beat day otherwise for the sector but, nicole, these ones had pretty decent numbers or at least outlook earnings. >> reporter: aol and pandora both up about 9% at the moment. let's see where they are right now. aol up just over 9% at 42.24 and pandora media also a great gainer, up 9.5%, 28.08. both of these names coming out with numbers, aol better than expected quarterly sales, looking good as we noted, to the upside, and it's up about 43% this year. and then there's pandora, right? you want to know how many listeners they have and want to see that increasing, well, they did exactly that. active listeners were up 20%, so by the end of october, 30.9
million -- 70.9 million. how about the hours listened? that also improved, 18%, so 1.47 million hours listened, and that's good news as well for pandora. really the high point of the day was 28.19, but it's up over 200% this year. back to you. liz: i just love how people try and count this name out because apple is somehow getting into the music business when it comes to streaming radio. no. i mean, come on. they were first in, they are winning. watch pandora as we do for you. thank you very much, nicole petallides. you could call the markets flat right now, but that does not tell the whole story, does it, traders, about what's been happening all day today? teddy weisberg, 122-point swing just in the fist half of the day -- first half of the day. >> yeah. i think, but i think that the real story, liz, is the fact that they had 'em pinned down pretty good, and here we are basically even. now, we have an hour to go, but
i think it just reinforces what we've been talking about, that the underlying bias for the market, the lines of least resistance continue to be up. and that -- when we get these selloffs and, of course, 100-point swing isn't really a selloff, but every real dip has proven to be some sort of buying opportunity. the real question for all of us is where are we going when we exit earnings season which is really not too far away? liz: i agree. again, you say that the bulls were pinned down by the bears earlier today. this was like buster douglas coming back from tyson. i know there are viewers who remember that fight. phil, you may or may not be one of them, but what is in the market psychology at the moment? i mean, this was a tiny dip. i'm with teddy on this. every dip no matter how small seems to be a buying opportunity even with the span of a couple of hours. >> yeah. and the day traders have beene,
taking advantage of it. every time come down to about 16 50, that's been around your buy mark. 17630, that's your -- 1760, that's your sell mark. it's all a lot of taper talk, rumors here and there. if you look at earnings, there's been about 375 companies that have reported, 76% of them have beat what analysts' expectations were. the key is, do we get two or three economic numbers that, you know, either miss what the estimates are, or do they beat them exceptional? that's the next direction in the market. liz: you can see the direction is down for crude, and when you pull out light sweet crude specifically, ira, it's not so much that people invest in barrels of oil, okay? we have a lot of investors out there doing basically equities. you look at what happened today in the after market session they've continued to fall. does that bode poorly for, sort of, price strength starting tomorrow?
>> well, you know, let's look at the bigger picture, you know? we were sitting here two weeks ago when goldman said oil's going higher, and i said i think this is the top, and everybody laughed at me. but, you know, $93, it's still a sale. we're going to see a seven handle pretty soon. i really think that we're a 25-year high domestically, eight million barrels a day nestically. we've had six, seven, eight weeks of inventory. fundamentally, we're swimming in oil. i don't see anything geopolitically in the horizon, so i think if we're going to look at technicals, fundamentals, this is still a sale. >> i'm not laughing at ira, i know teddy isn't either. he looks like a spark plug that'll bite you. ira's tough. those oil traders, i've been in the pits with them, they'll strangle you with phone cords. [laughter] it's true. thanks, good to see you. we've got some breaking news. you thought regulate ors were only picking on jpmorgan?
brand new fines, fox business has learned, are about to be levied on six global banks as we understand it for their role in the rigging scandal calls libor. this is a major deal. the banks are accuse of manipulating these rates that underpinned trillions of dollars in loans and derivatives worldwide. liz macdonald has the breaking news. >> reporter: jpmorgan chase, deutsche bank, hsbc, royal bank of scotland, society general and what we're hearing is within the next month or so the e.u. antitrust regulators could reach a set respect with these banks. we're hearing the dollar amount of the fines could be in the hundreds of millions of dollars. here's the problem for the banks, the e.u. is allowed to slap these banks with fines that, get this, could amount to 10% of their global revenues. that is under e.u. antitrust laws. you could see these rate-rigging probes come to a conclusion next
month over possibly the libor rate-rigging scandals and the probes with these six banks. barclays also is cooperating, and a top e.u. official last month called what the banks are doing here, quote, shocking. giving it back to you. liz: and maybe we can put those banks up again. jpmorgan, doing bank, credit agricole and a couple of other foreign banks, correct? >> reporter: that's correct. liz: down about 2% for for deute bank, the others down just fractionally at the moment. we should mention, too, that barclays already paid a massive fine for its role, its traders' role in the libor scandal. why does libor matter? because in a way you could argue that mortgage rates in the united states is indirectly related to the rates set by some 13 banks back in the day. what a shock that some of the traders on the low end worrying some of -- worrying some of this. tesla has offered electrified
investors, just look at the stock over the past year. shares up some 460% over the 52 weeks. so will tesla's earnings report after the bell give this high-flying stock a new charge? and by the way, if it misses, look out below. we have a bull versus bear debate. you get to decide. and t-mobile u.s. has ripped up the wireless industry's playbook. it is stealing hundreds of thousands of subscribers from the big boys with its uncarrier strategy, as they call it. remember 7-up had the un-cola strategy? u.s. chief financial officer wrackston carter joining us live to talk earnings and the company's game plan in the next round of verizon and a, the, and, the.
you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an chitect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪
♪ ♪ liz: the power mover of the hour is a company called gt advance technologies. shares of the tech equipment maker are hitting an all-time, intraday high surging from 19%. only a $10 stock but, hey, that's a big move, nonetheless. this after the company struck an agreement to supply sapphire material to apple which the phone maker then uses in its new
fingerprint readers for its iphone 5s. just give me the necklace. gt advanced will produce the material made out of sapphires at an apple facility in arizona and expects to employ some 700 people. that's good news for jobs in arizona. chinese technology giants are looking to buy their way into silicon valley. social networking and gaming company ten cent holdings, we've talked about them, is the latest firm to venture overseas making a bid for the popular snapchat. joling kent, i'm surprised nobody else has snapped it up yet. >> that's right. we're not sure how they'll be relevant down the road, but very hot, and ten cent continuing to make big moves on that front, trying to build a strong presence on the u.s. tech scene. the company that became famous with qq or chinese domestic messaging service is set to lead a fundraising round into snapchat. this move comes after it led a
$150 million investment round in e-tailer fab.com and joined a group of investors that sunk more than $2 million into act vision blizzard. it's acquired purchases in riot and epic. and alibaba has been making big moves too, it recently invested $600 million into amazon rival shoprunner. so why do these chinese companies care about american start-ups? these big checks help pave the path to winning over key american users for the their own chinese products. ten cent's wii chat has users mostly in china. there's a huge potential to wreak into that market here. -- break into that market here. buzz, it could also be interpreted as a chance to compete with alibaba's answer to snapchat. u.s. companies could cash in as well, ten cent and alibaba offer potential opportunities for
american tech companies to penetrate into china which has mostly been off limits due to censorship issues. they both have strong relationships with the government to perhaps foster some business partnerships that could help american tech names cash in in china down the road. we reached out to ten cent, they haven't gotten back to us yet, liz. liz: okay. we'll wait to see. >> yeah. liz: my 12-year-old snapchats, that's it. >> it's pretty cool, i like it. liz: do you do it? >> i do. liz: you're young. you're a young pup. thank you very much. we have all used google, that, i'm sure of, to help us figure something or other out. but it's not always as successful as we would like, so now google has launched a network of live video-based help services called google helpouts where it's fascinating, you can actually pay a real expert to help you solve a problem. we just showed icing a cake. you can call the top take icer and pay a little bit for that,
right? google has more than a thousand experts available now to give tips in subjects ranging from tech, cooking and fitness. i find this fascinating. let's take a look at some problems those experts are helping you solve. for example, worried about getting the perfect fit for your business suit? an expert can help. $2.50 per minute. aspiring models can help you master the perfect pose for $25 an hour, and just in time for the holidays, the christmas cookie sos for $1 per minute. and, of course, google itself has to make some money out of this, right? the search giant will take 20% of every transaction. okay, start thinking what you need help with. closing bell ringing in about 34 minutes. tesla coming out after the bell, we're going to tell you everything you need to know ahead of the bell, ahead of those numbers. it's a bull/bear debate. even if you don't own the stock, you've got to watch it because it is a hot stock. one of the best performers on
the s&p 500 over the past year. ♪ ♪ mine was earned orbiting the moon in 1971. afghanistan in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commitment to serve current and former military mbers and their families is without equal. begin your legacy. get an auto insurance quote. saa. we know what it means to serve.
sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. pop in the drum of any machine... ♪ ...to washny size load. it dissolves in any temperature, even cold. tideod pop in. stand out.
liz: we're counting down to today's e earnings story after the bell x it is tesla. the hotly-anticipated third quarter results, shares of the electric car maker up some 456% over the last 52 weeks. we've had people calling it the most amazing company, and we've had them on calling them a cult stock, stay away. people should not be getting into cultings. anyway, we decided to pull in a bull versus bear debate in advance of the numbers. our bulker craig irwin and our bear, david dietz. david's chomping at the bit because david's been here before saying sell this thing, and that was pack in august. so i'll go to craig first, wait on david and hear what he has to say. you have a $240 price target over the next 12 months and an outperform. are you worried about these numbers today or that there may be stumbling blocks in the future? >> listen, every technology company has things that don't go
their way over time, but tesla is incredibly well teed up to continue meeting expectations off into the horizon. liz: david, they are about to come out with something i want, and that is a crossover suv. they have come out with some research company saying that the model s is the bestseller in the top 25 wealthiest zip codes in the u.s. how can you not like the buzz a about a company that's actually making real things? >> liz, we love buzz, and we loved it back in 1999, and we love tesla today. but the fact of the matter is you still have to pay attention to how much you're paying for that buzz. the numbers are simple yet very scary. basically, they'll make about 21,000 cars this year, the market cap is close to 25 billion. basically paying a million dollars a car, compare that to gm at just $16,000. i don't love tesla, 35 more times i love gm. it's that simple.
liz: craig, i just changed my mind. change it back. >> you know, i think that he's making an interesting point, but he's looking backwards. so tesla's an interesting company. it's a growth company, it's a technology company, and people look at this through the formulas and through the rigor of analysis you'd use in detroit are really looking backwards. tesla has visibility, well, basically, they're a parity on drive train costs, they have visibility on the costs of cutting their drive train in half next handful of years. they're not just going to produce one or two cars, they're going to have the same number of horses in their stable as general motors or ford or possibly, you know, bmw off on the horizon. there's no reason you can't see the really impressive growth and the really significant technology advantage -- liz: dade, you looking backwards? is that true? >> of course we're looking forwards, and that's just as scary. i moon, for example, right now one of the key metrics we're looking for after the bell here is profit margin.
16-20%. but the higher they are, the more the competitors come in. you've got bmw and mercedes, you know, launch car that's going to be half the price. that's a great brand name, great distribution network. that's a problem, too, and of course, it's great than the 1% look at this car, and in order to have the type of breadth the fellow guest is talking about, they've got to lower that price, and they're going to do that with ultimately the gen 3, $35,000, but the profitability's going to shrink dramatically. liz: craig, the bmw, i saw one on the street finally, and it's sort of a smaller vehicle, and it is electric, not at all on the same level as the luxury tesla, but i'm with david on this that bmw has a very established infrastructure that can churn these things out. it's got an established name, and i'm just wondering if everybody turns tail and runs to a bmw instead of a tesla? >> you know, i like the i3, i saw it at the showroom in london
in april. i'm impressed with their styling. but what i'm not impressed with is the cost structure of their drive train for this vehicle. we're talking 55 cents a watt hour for their drive train, tesla's is less than 26 today. bmw has purpose-built cells. the history there is the volt and the leaf have had tremendous trouble bringing down costs to their cells. tesla has jumped into the consumer supply chain, and they have visibility based on what pan son toic already has on the shelf to probably around 14, 15 cents a watt hour. bmw i don't think ever gets there with the approach they've taken. liz: david, he made me change my mind back. >> no one fails to impress your neighbors by getting a bmw. here's another thing which is kind offed here, you would think if, in fact, the fellow guesses correct, you would see some sort of weakness in the price of the major other automakers, you know, your toyota, your gm, your
ford. but they're all trading at 52-week highs. liz: let me then just put this forth, david. the cool factor is untouchable when it comes to tesla. now, this may very well be east coast/west coast. what about an international plan with suddenly the russians want in on this. it is like sitting inside an iphone. a friend of mine had it, a lot more successful than i am and afford one of these, and he was so excited about it, he actually had read the manual. >> well, there's no question about it, the ultimate appeal to the international set is going to be tremendous. of course, there aren't too many great zip codes over there, and we're all on pins and needles. will they have sold 500 or 600 in norway? obviously, they're a long way to go -- liz: norway has the largest sovereign fund, they have tons of oil money, but i get it, you know? if you're talking about france, they may not be spending this. ful as we finish, craig -- as we finish, craig, in the end is it
looking too frothy, a little too cultish? >> so where people are really missing the ball on tesla, if they're already at parity today, why would they be selling at a premium when they're a $35,000 car? why not sell at a discount to comparable vehicles? if they are selling at parity or a discount without factoring in the roi of, basically, much cheaper transportation costs because you're not using gasoline, this is a winner, and that's what people believe. liz: you're saying it's a winner, david's saying it's way to rich at this point. guess what? both those guys are going to stay there, we're going to old you over to the next hour when the tesla earnings break, we'll get your opinions, so don't move. somebody will bring you coffee. >> thanks. liz: you're welcome. closing bell ringing in 32 minutes. t-mobile, well, right now it's up more than 50% over the past year. this company added one million, adding one million new customers and beating the street's
estimates on revenue. we're going to sit down with t-mobile's cfo braxton carter, find out what he calls his un-carrier strategy. the future. he says you'll want to dump your carrier after you hear this. and why is the russell 2000, the small and mid cap index, outperforming the bigger, more well known peers like the s&p and the dow? we'll be speaking with a money manager who says it is no fluke. he was in in the early years. it's been going on for quite some time. he's going to extract three major names he says you can't afford to -- you can't afford to own right now. stay tuned. ♪ ♪ when we made our commitment to the gulf, bp had two big goals:
help the gulf recover and learn 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. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we' sharing what we've learned, so we caall produce energy more safely. our commitment has never been stronger. [announcer]...if you think the best bed for one of you might be a cpromise for the other one... [woman]ask me about our tempur-pedic. [announcer] they're sleeping on the newest tempur-pedic bed... the new tempur choice... [man]two people.two remotes. [announcer] firmness settings for the head,legs,and back... and with tempur on top,that famous tempur-pedic comft comes any way you like it! [woman]ask me about the lumbar button. [man]she's got her side...and i've got my side. [announcer] tempur-pedic.the most highly recommended bed in america.
it's lots of things. all waking up. connecting to the global phenomenon we call the internet of everything. ♪ it's going to be amazing. and exciting. and maybe, most remarkably, not that far away. we're goingo wake the world up. and watch, with eyes wide, as it gets to work. cisco. tomorrow starts here. tdd#: 1-800-345-2550 life inspires your trading. cisco. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration io action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned maet experts to help sharpen your instincts.
tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. ♪ ♪ liz: it's a no-fly zone for shares of major vacation companies trending lower following an earnings guidance miss on which company? nicole is bringing them down. >> reporter: orbitz worldwide, they're also the parent of cheap tickets. when you look at orbitz, not a good day here for the earnings. you can see really they had lower profits and also despite the fact that year to date it's a real winner, today orbitz worldwide is down 19%. and that, obviously, is on the weak earnings report in addition to the fact that they paired the revenue forecast for the -- pared the revenue forecast for 2013. in the meantime, they've had a great year, up over 170%, but when you talk about orbitz worldwide and you talk about the costs they've been facing, marketing costs in addition to some incentive-based pay, that's
some of the reasons why we've seen orbitz worldwide to the we're also keeping a keen eye on expedia and travel zoo in the same sort of zell m, right? booking your tickets for your trips and such, and it's been weighing on them. it starts to spread and now expedia down 1.1% and travel zoo has also been under some pressure. so the group overall not that great. and i have to say orbitz has done well up to this point. it had a great quarterly report for the second quarter, but it certainly is weighing on travel zoo. right now down 1.5% and expedia down 1.1% as we noted, orbitz worldwide down nearly 20% today. back to you. liz: thank you very much. for the s&p it's not doing much today, let's be honest about that, but it has continued a relentless push higher all year long surging some 24% so far this year. one money manager with $4.5 billion in assets used to have under $1 billion in as tet et,
but -- assets, but by investing in both the mid and small caps he's now at $4.5 billion. forget the s&p, he says, there's much better money to make out there. change that board to the russell 2000 battling it out with the dow and the s&p, crushing both of them, outperforming both the s&p and the dow, again, the buster douglas versus mike tyson discussion here although joining we now is dan veru, executive vp and co-chief investment officer. we hope that the career will be a bit longer for these names than buster douglas. >> yes. liz: but the russell has truly outperformed all in a way. >> because it's really the best expression of what's going on in the united states. the economic growth that's occurring right here, right now. liz: some people would argue that there isn't economic growth, but you say this gives you the actual evidence that there is. >> you've got to remember that statistics like gdp are an average of a lot of different factors. companies are an expression of
corporate profits. so corporate profits remain very, very solid moving in the right direction, and the economy is moving in the right direction. it's moving very slow. i would say despite, you know, anti-growth policies coming out of washington not because of them, counteracted by the fed's extraordinary liquidity measures. think of it as a freight train slowly gaining momentum. and the best way to get exposure to that is own small cap stocks because you're getting exposure to the u.s. economy versus the s&p which might give you more of a global expression of -- liz: when you talk about the freight train, though, i worry that the fed at some point as it tapers will pull out some of the track. does that derail this small and mid cap train when that happens? >> the only way they'll remove the liquidity, in my opinion, is if there's economic statistics to back it up. and in that case, you know, you'll want them to taper and remove some of that liquidity to prevent inflation.
right now there's no inflation anywhere, and, you know, i just think that this is the best way to play this. and the other thing that's interesting, when you have the differential between the s&p and the russell 2000 being as wide as it is this year, it typically tells you next year that economic growth is going to be stronger, and stock prices are likely going to remain in rally mode. liz: so you've done extraordinarily well starting with companies when they were small caps. that's what dan does, he starts when they're small and follows them through their success. a great example, i'm going to throw this out because for years you've been talking about wyoming. when you first started investing in them, $100 million -- >> $100 million of equity capitalization, it's now about $5.5 billion. again, position the company for further growth. liz: so dan is here to come up with three new ones he certainly hopes, and we've got three names we want to let you know he truly
feels are going to go from small to mid cap to perhaps large cap names. >> we right. liz: we can start with bill barrett corporation. this is a natural gas operation. >> it's rocky mountain natural gas but what doesn't get enough attention, and it's just starting to, is their ownership in the formation in the united states which really adds an oil component to what otherwise was a natural gas company. >> it's already up over 48% over the past year. we still like it here. >> we do. we think the net asset of the assets get us at least another 20% move from the current price here, possibly more. liz: let's go to this animal health company, do people love their animals more than they love humans? >> my dog, scotch, gets treated like royalty in our house. liz: oh, gosh. >> they're actually a larger cap name, it's in our mid cap portfolio because it's north of
ten billion equity capitalization. this was a spin-off from pfizer corporation, their animal health business. they just reported today and actually raised the, they raised guidance, basically, on a forward basis. still a relatively new company, so the shares are down a little bit, certainly not problematic to me. i think it's an attractive entry point. liz: and finally, the yield. dividend plays still reign at certain points, especially when they return some nine plus percent, and that is new mountain finance corporation. >> it's a business development company run by an excellent group here in new york, the new mountain capital people led by steve kalinski, a very, very well regarded private equity fund. this is a company that is essentially making investments into small to medium-sized businesses. you have over a 9% dividend yield here -- liz: love that. >> and i believe that yield's got upside, about a $600, $700 million capitalization.
i think the bdcs are a little misunderstood as an asset class, and i think they should be owned. it's one of my top personal holdings as well. liz: puts his money where his mouth is. dan veru, pal said capital management. crude oil, so we showed this at the top of the show because to see it hit a four and a half month low rather interesting. yes, wednesdays we get u.s. inventories, and we saw that rise, weaker demand drives the commodities price lower. sandra smith makes sense of it as we look forward, sandra. >> reporter: an unbelievable move to the downside that we're seeing, and most analysts say it's going to continue through the rest of the year. we're looking at more than a dollar drop in crude oil prices today. we've dipped below $94 for the first time since june 26th, and a lot of analysts had put out notes saying that $t 0 is -- 90 is just around the corner, and that points to lower gasoline prices, arbob, which this is yor
wholesale gasoline price, it too took a dip today, and that's translating to lower prices at the pump. aaa reported overnight, liz, that the national average dropped to $3.24. many u.s. states are now seeing their state average drop below $3 a gallon. aaa says they anticipate the national average to go as low as $3.10 by the end of the year, so overall very bearish environment. liz, you mentioned that supply inventory report globally, domestically oil production is up, demand is down, and we're working our way into that slower time of the year when we use less oil and gasoline. and also, by the way, this is a stronger u.s. dollar scenario. liz, there's anticipation that we're going to see the fed curb its stimulus or taper as everyone calls it. that's strengthening the u.s. dollar and putting pressure on a lot of these commodities. so there's a lot of bearish forces at work and, liz, anecdotally, i was talking to patrick over at gasbuddy.com,
and i said people are going to start to wonder what this happens for the restaurant tocks, retailers -- stocks, retailers, and he says for every penny in a gallon of gasoline that translates to $4 million savings for the american consumer. so you have to think that that's going to to be a few extra pennies in everybody's wallet to go spend maybe going out to eat or shopping a little bit more ahead of christmas. not a surprise we're seeing those restaurant stocks hitting all-time highs and retailers doing very well. some up double digits as we close out the year.% liz: and where are those speculators? suddenly they're put in cryogenics and frozen again? there's -- speculation's always there, right, sandra? >> they're there. right. right now they're speculating that based on the supply and demand of the fundamentals of this market that oil prices should be lower, so speculators bet on the way up and on the way down. it's a natural function of the
market. liz: sandra, thanks for putting that into perspective. closing bell ringing in 17 minutes. t-mobile u.s. proves it can snatch customers away from much larger competitors like at&t. we're asking cfo braxton carter what's in the secret sauce because they added more than a million customers during the quarter. and what about merging? remember that talk about merging with a, the and, the? now he talks negatively, the ceo does, but we'll talk about t-mobile and what they're planning. plus we're getting ready for tesla's earnings. we just heard two experts try and stick it to each other on whether they're going to live up to the hype. they'll be back to help us go behind the numbers. tesla's moment of truth is just around the corner, and we want to welcome our xm sirius satellite listeners. if you're on the road, thanks for listening. ♪ ♪ you make a great team.
it's been that way since e day you met. but your erectile dysfunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you cabe more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immedte medical hel for an erection lastg more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
liz:, the mobile u.s. shaking up the entire wireless industry with its, quote, un-carrier strategy. earlier today i was talking about how 7-up used to have the un-cola revolution? this is the un-carrier revolution, and customers are joining. the company released earnings and numbers today saying it added one million customers in the third quarter. it is leading the industry in customer growth for the second consecutive quarter. let's bring in braxton carter. he's t-mobile's chief financial officer to talk about this. what is it? what's the number one thing? was you've had a whole bunch of ideas that you've come together with such as all kinds of free megabytes for tablets, but what potentialized in customers minds that i'm jumping to t-mobile? >> well, first of all, liz, it's
really a pleasure to be here, and the un-carrier strategy is really resonating with consumers. and on top of that, we're executing very well with it. this is our second quarter in a row with over one million net additions. and i think a particular note, on the branded post-paid side of the business, we put on more net additions -- liz: sorry to interrupt, but can you explain what branded post-paid means? >> yeah. so it's a traditional post-paid customer, you know, high credit quality, high scoring, paying their bills in arrears versus a prepaid customer that's paying their bills, you know, up front. liz: okay. i got it. so let's go to the plans that you've come up with, because you came up with one that was free data for life, 200 megabytes, i'm uncool -- [laughter] totablet users all that free daa per month.
it's pretty fascinating. of this, some people got charged $10, and i'm less interested in that than i am. how are you able to do this and still make a profit? >> you know, liz, it's -- what up-carrier is all about is up dressing the pain -- undressing the pain points out in the industry. as jobs said, you know, a stupid, air -- aarrogant approach to customers. the simple choice launch, with what we did with upgrades with jump which was quickly copied by all the other competitors in the, you know, nation. and more recently, you know, iphone launch, the 5s, the 5c, and now unleashed tablets, a tremendous opportunity. do you know that 90% of the tablets that are currently sold are never connected to a wireless network? and it's insane. it's not -- it's happening because people are worried
about, you know, overcharges and huge bills. and what we wanted to do is really shake it up by giving 200 megabytes worth of free day to to every -- data who comes in and buys one of our ipads or tablets, so we're very excited about this initiatives. liz: i want to get to the phones, and just right off the bat, what's your best selling phone? you sell a bunch of them. >> we really do. you know, 88% of our sales in the third quarter were smartphones. and it's the icon cantic devices, it's the, you know, the iphone, it's the galaxy that's really driving the demand. and it's amazing what's happening in the ecosystem. the consumers really desire and demand the best smartphones out there, and we have the full lineup for them, so we're very pleased with that. liz: i was on your web site, and you've got blackberries advertised. what must you think about what happened with blackberry yesterday? they just seem like a company in disarray. how important is it for a company like t-mobile to have
blackberry survive if you're still, i assume, selling some of these? >> well, i think a healthy, you know, choice in the, you know, lineup of handsets is good for all consumers in the u.s. and it's still, you know, a very loyal group of people who utilize the blackberry. it certainly shrunk tremendously over the last several years -- liz: yeah, i'm sure. >> but we are very supportive of what they're doing and wish them the best of luck. liz: we have to go, but i can't let you go without asking what i would have asked john ledger, your ceo, and that is merging. a lot of mergers have not gone through such as you and at&t, but what about a dish or a sprint? you know, linking together with them? is that out of the realm of possibility? >> well, you know, the great thing about our company is we have tremendous momentum. you know, we're shaking the industry up, we're changing the traditional paradigm, and we are
totally viable. of course, for our shareholders we'll always look at anything that has strategic enhancement and value creation, but we're really focused on executing, keeping our heads down and creating shareholder value. that's what we're all about. liz: braxton, thanks for joining us. you're always welcome. thank you. >> it's been a pleasure, thank you. liz: braxton carter, chief financial officer of a company that's shaking up the industry there. closing bell, we're six minutes away and right now the nasdaq is the only index in the green. we're going to take a look at the big winners when we come back, and stand by for tesla numberings. ♪ ♪ @?? [ tires screech ]
who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade.
liz: when the dow doesn't know what it wants to do, having crossed the unchanged line 54 times we turn to the nasdaq which does have leaders here. the one index higher by six points. regeneron pharmaceuticals, facebook up 4%, cat at that maran and cognizant up at least 3% but so is tesla. tesla is coming out with numbers in just a minute. our resident car guy is coanchor today because david asman is out. >> i wish i had a tesla but my brother has one. he think it is the most amazing vehicle he ever brought. he is in atlanta. i'm in new york. liz: tesla, cillo, these are names that are expected to report in just moments. look at stocks as they trade to the close. >> let's look here, liz and adam. seeing up arrows. tesla up 33:00/4 of 1%.
sill oh a feign of 3.1%. >> tenet sliding in the read after reporting third quarter results. what is the issue? >> health care stocks were under pressure throughout the day. tenet came out with third quarter results. saw the profits slide. they experienced higher expenses which got cut into their numbers. liz: hertz plunged into negative territory. this is a tough business these days. >> they too faced higher expenses, liz. hertz is down over 10% today adam: pandora getting a boost after reporting listener hours. what is going on. >> win-win, win, pandora is up. liz: here come the bells but in the end pandora is a star. we're watching for tesla. nicole is watching for it. as we look and see as we finish
up it is really the dow jones industrials, guys that has jumped up, down, up, down. [closing bell ringing] it was relatively flat until last couple minutes t was down 117, not 17. adam: the fact we came back is pretty remarkable too. we're looking forward. we'll talk about jobs numbers on friday. we're talking today about tesla. how can you avoid twiter? liz: we can't and we won't. s&p is something to watch because as you see at this level, 1762 you're still in very nice territory for the year. the nasdaq punching out a of gain of three points. we lost three in the minute 1/2 i said we were up six. russell 2,000 losing about half a percent. adam: talk about the front page headlines. a jump in service sector activity. institute of supply management index rose to 55.4 even though much of the federal government was shut down in the first 16 days of october. liz: billionaire steve
IN COLLECTIONSFOX Business Television Archive Television Archive News Search Service
Uploaded by TV Archive on