tv Markets Now FOX Business November 6, 2013 1:00pm-3:01pm EST
could he be right again this time? adam: cash crunch at the u.s. post office, we know money is tight, but how bad are things today? we will ask the man in charge. postmaster general and ceo of the u.s. postal service joins us in an interview you will only see here on fox business. lori: it is a basketball court, no, a soccer field? an up close look at state-of-the-art stadium and big bucks behind stores, sports arenas all across the country. adam: we are seeing some solid gains on wall street, are we getting some moment, with what is happening tomorrow with twitter? nicole: that stadium looks cool. the stock market looks pretty good. we are waiting on twitter. the dow jones industrials up 97 points at the moment up more than a half of 1%. as we hit new record all-time
highs. right now down, tech heavy nasdaq down and the s&p 500-1767, a gain of one quarter of 1%. the momentum remains to the upside. tomorrow we are hearing a lot of momentum. i don't want to miss it, talk about it. 4.5%, $179 per share even now. it really is a standout as far as retailers. abercrombie and fitch under significant pressure. a forecast for the holidays that looks really good, so that is the good news and the latest quarter. also numbers coming in significantly. you can see the stock really reflecting that. back to you. lori: thank you, nicole. my first guest says he is not
buying shares. founder of the marketing stream that runs paid search ad campaigns for thousands of companies. you have done research on the effectiveness of online advertising and so fa for you fd concern of twitters platform. do tell. >> thank you, lori. i want to point out that twitter is far and away behind in terms of the ad platform capabilities in comparison to her facebook was a year ago when they went public. you have a situation looks like the market is willing to pay a very high premium on twitter essentially an advertising company as far as the revenues are concerned, and yet there seems to be a bit of a disconnect here because what we're seeing in terms of on the ground, finding it very challenging for direct response marketers to generate positive return on investment on the twitter campaign. lori: how far behind his twitter and what does the company need to do for advertising revenue?
>> absolutely. a lot of the ad options on twitter are both generating engagement on twitter. favorites, followers, this is great for big brand advertisers looking to generate air cover for their campaign. the value is a little bit more murky for direct response marketers or e-commerce. i think the key to improving the situation has to do with generating better ad formats as well as more precise targeting and tracking capabilities which for marketers to have a better sense of return on investment. lori: twitters ads are right there in the timeline where facebook is kind of on the sidebar. sometimes almost embarrassed to admit this, the ad has hit my
newsfeed because it is right there and the promoted sign is in the corner of that. that organic implementation of ads has to be worth something. if you look at the trajectory of aonline advertising growth. look at the growth report. >> you're correct to point out twitter ads are for more likely to be clicked on then facebook ads for the permanent edition. in direct response marketing is not just about getting a click, but generating, getting us to convert into a sale or a lead. where twitter is falling down is the intent is not in those clicks, sleigh are not turning to sales like customers and leads like other platforms. lori: would you write a snappier hoax, somehow incentivize a user
to click on that ad, what is your advice for twitter? >> twitter seems to be a better platform for softer sales. promoting some content you have created or it doesn't seem to be like it is not search marketing where you are clearly looking for something at that moment. just improving ad targeting capabilities will help a great deal. lori: you sold ads online for thousands of companies, so what are the most profitable for the companies you represent? what works the best? >> if you are looking do direct response marketing, it seems the intent is the strongest in terms of search advertising because you are connecting with the right person at the right time. a close second has to do with remarketing or retargeting.
the display ads maybe you search for a product and later on you are browsing fox business news and you see an ad for that product. very effective. lori: thank you for that example. talk to you soon. adam: despite the dow hitting an all-time new high, billion investmeninvestor warren buffets flashing signals. what kind of a warning? >> warren buffett has been giving speeches about the market signal since the '90s saying the market value of the wilshire 5000 stock index should not be more than u.s. gdp. it has been flashing this signal since march. the market cap at about 18.8 trillion, u.s. gdp is 16.7 trillion. this signal calls the bottom in '82. he used it to call the market
top in 1999 and called the market top in 2007. this is essentially like a big macro total price, total sales of the u.s. economy. so the fact that hit this signal in march, you wonder whether or not the stock market is in the late stages of a rally. lori: where does this fallout in terms of where others are looking at? >> look at how it performed when it called the market downturn. what they saw in '99 is the market went up and got wiped out by march of 2000. the market continued to go up, and then got wiped out in 2008, so the name of the game is for-profit coming in strong it at a price. cutting into workforce, how long can you do that move, continue to cut, when the economy grows you have to add to it, compressing profit margin.
adam: people have been calling for a real correction since january 1 and it still hasn't happened. is he getting caught up in that as well? >> he is saying this is a value indicator. he is a long-term investor, right? we know only twice before the last couple of decades it accurately called a market top in '99 and '11. adam: thank you. lori: it is still fun. it is not merely its search for a new ceo. cutting a list of candidates down to eight. ford ceo and
nokia ceo are still contenders. microsoft among the top gainers on the dow. more than 2% on the day.
climbing 3.5% about the highest level for the company since 2000, in fact. adam: arose biggest coffee chains that it'll hire at least 10,000 veterans and spouse of active military people over the next five years ahead of the holiday. five new existing u.s. starbucks honored near military bases will share a portion of each sale with nonprofit organizations reenter the workforce. lori: so political. adam: nothing wrong with what he will do on that. lori: u.s. postal service trying its best to get into the holiday spirit. the financial situation threatens to burn down
the house. the postmaster general patrick donahoe will be here. adam: tesla quarterly report not enough to win over investors.
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llri: election night 2013 is in the books. voters nationwide decided the fate of 31 ballot measures in six states. some with national implications. cheryl casone here to break it all down for us. >> not only did you have a very tight race in virginia for governor but you also had some of these referendums that were incredible. this was an initiative to tax legal distribution of marijuana to the city of colorado. it is now available in colorado but taxed at 25%. they approve that last night expected to go through. we will have to approve that as well. passing the state of colorado.
something else, that was here in new york. big business wanted seven new casinos opening in new york state. open to this point in the state of new york you have to go to a racetrack casino combo. now you will have freestanding casinos happening in new york state. now let's see what did not make it last night. this is genetically modified labeling. this was a fail at the ballot box. a win for big business. you had companies that thought t this. they spent $20 million to make sure genetically modified ingredients in a food comment will not be on that label. that would have cost of companies millions. and then, the other funding that happened in colorado last night. 11 counties in colorado that wanted to succeed from
united states of america become the 51st state. they wanted to call it north colorado. initiative started, this movement if you will because these counties sayywe are not in denver but you are ignoring our issues, they'd did make the petition fail in that county. so what was interesting about last night is very different states are looking at very different initiatives, but that will be a big revenue driver for the state of colorado. now we have got it. lori: at least it'll get taxed. thank you, cheryl. after big labor won big, we now learning health and human services department signaling plans to exempt some unions and businesses with the levy according to dow jones, propose exempting certain self-assured,
self-administered plans from the temporary reinsurance and 2015 and 2016. adam: nicole petallides is watching stocks first. tesla was opposed to be a beat on the earnings by investors don't like what they see. >> a couple of things to note here. what we are seeing, a huge selloff, the biggest selloff in one day since january 2012. plenty on tesla. a lot of people who are interested in seeing the stocks go down. so they are making some money today. they did come out with their numbers for the latest quarter. the outlook going forward was just below the 6000 mark for the model s so we will see. obviously for most of the shareholders. adam: elon musk in the past has
said they are ahead of the company. this is a good readjustment for them. breaking news, w we're hearing from cleveland federal reserve president in a speech moments ago she said the last jobs report shows the labor market is not firing on all cylinders. the fed is waiting on data to taper. raising caution on increasing monetary easing. lori: up 100 points, that is not going to hurt things. adam: tell us something we don't know. lori: maybe we should commence the taper or start hiking bank lending. twitter generating a lot of discussion not only the ipo, but website creator earning much praise from wall street. adam: oh, brother, where art
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>> 21 minutes past the hour, this is your fox news minute. health and human services secretary kathleen sebelius is acknowledging problems with the rollout of the healt health car, but testimony before a senate committee she also defended the law saying it is starting to drive down health care costs for conssmers. the white house promised the website will be running normally by the end of the month. extra police on hand as new jersey's largest shopping mall reopened for business today. prosecutors say 20-year-old richard shoup fired several shots inside the plaza before killing himself. he left a note suggesting he would harm himself. a connecticut judge will not release him while he awaits a new trial in his neighbor. the judge has lifted a stay that
would clear the way for him to seek bail later. those are your news headlines on the fox business network. adam: thank you very much. everybody is waiting for twitter's ipo, there is another tech company flying under the radar. making its debut today and joining us now is cofounder and ceo. thank you for joining us. those who may not be for my with what you do, it walks you through creating the website. you are trading right now $16.39 roughly open at $8.50, price at 1650. since this has been a successful day for you, but where do you go from here? >> we're excited, happy about the result.
imagine going back to working very hard, continuing to do amazing things for our customers. adam: we have talked about twitter, twitter, twitter. this has really been a wonderful season for ipos and going to the numbers of your company. 190 countries, 37 million registered users, you sign-up 34,000 new users per day. i would suspect people would want to get in on this. >> it is a new market, market always expanding. this is how you build your website, move your business. it is a fantastic opportunity. we are the clear market leader. it provides an amazing opportunity. adam: you're the largest operation platform on the web,
but your site allows you to create the web platform but the mobile version so the users would have the mobile interface as well, is that correct? >> absolutely. this is a big challenge, more on the larger companies that you get access, a lot of time it is pretty cool. very hard to build a really good mobile site. it works with any phone, a tremendous experience. adam: now that you are publicly traded you will have the joy of analysts and reporters in all kinds of shareholders going through your earnings reports asking all kinds of questions. how o you maintain that? >> i think they maintain that by doing what we did until now. we will continue to do that by creating an amazing product, marketing those to our customers
and creating a lot of volume. continuing to develop a fantastic offering for our customers we will bring fantastic results the market will like. adam: the irony of turn success to the industry all about the web creates something at a much cheaper price. and you can do it for free. thank you very much for joining us. >> thank you. lori: time to make a little money. shares of krispy kreme doughnuts hitting a new high. is that in opportunity? let's ask charles payne. charles: it is. trading at twice the price of the sales ratio, more than twice the price of both ratio, higher peg ratio and a bigger short position. they don't love krispy kreme, part of the reason remember the first go around when they went public comment was great but
accounting problems and some in-house hijinks to be quite frank i don't think ever left the company. they missed the estimate two of the last three quarters, the stock took a dip. the growth has been phenomenal. last time sales up 10%, the net was up 15%, operating income, they got relatively no debt right now running really well, maybe they will buy back or not. franchise business doing extraordinarily well. i think it has come full circle, never had that sort of that it had before. it was like amazing, straight up. lori: i remember the debut. they were bringing investment boxes down. it was such an event. what is the story quickly with dunkin' donuts?
why does everybody think they are overvalued? charles: they are. half the valuation, which is the wall street darling right now. krispy kreme has upside potential. actually said it in same-store will be significantly higher. very few people coming on board. i don't see any resistance. adam: deana who has more? charles: dunkin' donuts is inevitably bigger. maybe a starbucks or larger traditional players. adam: thank you very much get lori: thank you. the scandal and tonight justin timberlake takes the stage. so far profits are only a third of what investments expected. adam: just what are the options left for the u.s. ps?
lori: as we do every 15 minutes let's check the markets. keith bliss joins us from the floor of the new york stock exchange. nice to see you with the dow up 113 points at the moment. warren buffett out with a theory, calling this a top. what is your take. >> tough to call it a top. every time we called a top we've got run over. we have less stocks making highs as we push up to all-time high levels. but we touched an all-time high on the s&p and the dow as well.
market internals are weakening still support us taking it higher. we don't get overbought in the market until s&p gets up in 1805. in our work on quantitative side we see the market could move higher from here. lori: with the market at record highs you don't sound all that excited. you did there's a little bit more buying room according to your own analysis is this just, you know, a culture of another day, another new high? is the market totally disconnected from what the real economy is doing? >> we think so in some regards. it is tough to fight what is going on in the market. every time someone steps in and shorts the market they get run over. what makes us unease, despite what any model may tell you, anytime you hit an all-time high you're really in uncharted territory. you have to recalculate, recalibrate what you're doing. makes you nervous every time you do that we hope to push to new highs. i would be a little guarded in here even though our work says
we could go higher. >> great analysis. keith bliss. adam: holiday season revving up and you know what that means, a ton of mail. five million pieces of mail expected to be processed by the united states postal service this holiday season. can it help the bottom line? we have the usps ceo, patrick donahoe. great to have you here. you buys face a continuing financial disaster, that was the quote. before we talk about that, let's talk about something pleasant, holiday mail. every year we get stamps and you're here in new york to talk about the stamp. >> this is new stamp this year, gingerbread stamp. did the dedication today and we're ready for the holiday season. adam: we wish you the best for holiday season. let's throw water on that. the numbers are astronomical, the united states postal service lost, what is it, $20 billion last two year.
how do you get on top of this? congress is saying right this ship? when you put forth a plan people don't like, stop saturday delivery, consolidate post offices, congress says you can't do that? >> we've done a lot of things we can control ourselves already this year. as a matter of fact we closed 150 processing facilities. we eliminated about 500 delivery facilities and made big changes in 7,000 post offices from a on-time or time of day perspective. so we've been able to address those. where we need help from congress is addressing some of our long-term liabilities like retiree health benefits and six to five-day issue. adam: talk about the loss in a way i can understand it. you will lose about $6 billion this year. what happens, if you didn't have to make payments to future retiree benefits, because you're the only institution, organization in the united states that does it this way. if you were doing it way everyone else does it, what would the true loss be? >> our operating loss this will year will be about a billion
dollars. put the six to five-day change in we would make a billion dollars. we would be profitable by a billion dollars. adam: do it way everyone else does it pensions would be underfunded. >> no, no, pensions very interesting. we are, you read a lot about the health care pensions. that is one. we have three pension fund. one is overfunded right now. 80 billion-dollar pension fund. it is overfunded. we have 200 billion-dollar pension fund that is 59% funded and health benefits is 50% funded but if we enat that into medicare, just like everybody else does, it reduce that is level in half and we would be fully funded. adam: why doesn't congress allow to you do that? >> we're working on that. adam: i know you will get opposition though, from he will be the new president of the u.s. postal workers union. he is starts on november 12th. he already said we need to draw a line in the sand. we're not willing to cross and that means stop the closings. stop the calls for perhaps, business they would say
efficiencies. the laying off of people or at least not hiring as people retire employees. closing post offices. he says we're not going along with that. >> well he will be coming on board in a couple weeks and we'll work with him. we worked very closely with the unions. as you pointed out, we reduced headcount 320,000 in the last 10 years. 200,000 in the last five years alone. no layoffs. we know how to adjust our compliment going forward. but the key thing is forward. we know there will be changes in the marketplace the big opportunity for us is in the package delivery world. we think we will deliver packages in many zip codes seven days a week and cut back to five-day a week mail delivery. adam: he raises specter of privatization if that is a bad option. you bought up the marketplace. he points out in the criticism of management if you were to close post offices and delivery on saturday someone would pick up and do that. why would that be a bad thing? why not let fedex or united
postal service get paid to do it and let them do that? >> we already proposed to deliver packages on saturday. with the volume loss in mail it would not be a good idea for anybody to jump into that business at this point in time. the volume as contracted just like any other reasonable business, we should contract the same way. but grow in the package area. adam: well, mr. donahoe, we appreciate you being here. we love, the favored whipping boy i think of the american citizen all of us look forward to something in the mailbox. >> yes. thank you adam. lori: that's funny. you're my favorite whipping boy. adam: yes, i'm glad you acknowledged that she hasn't punched me today but that's all right. lori: for scrooge this holiday season, fox business senior correspondent charlie gasparino is here next with the outlook for banker bonuses. adam: a hammer comes down but dealers are unable to shout sold for some of the most prized pieces. we'll explain why. ♪ ♪
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indicators rose by .7 of a percent in september. that is the same increase posted in august. economists say that will mean the u.s. economy will grow modestly in october. layoffs rose according to outplacment firm challenger, gray & christmas. they announced plans to lay off 735,000 people. that is up 13 1/2% from september. pharmaceutical industry and financial sectors saw the heaviest job cutting. that is latest from the fox business network, giving you the power to prosper.
adam: big banks offering a mixed picture on bonus this year rather than the bloodbath a lot of people expected. charlie gasparino is here with the latest details on who is winning and who is losing. but first, charlie, any word on the much anticipated jpmorgan settlement? >> what we here is that the deal
is not inked. i want to make clear it is not inked but we what hear it is largely completed. this thing is all but a done deal. people close to jpmorgan tell us they're waiting for the justice department to leak the story when it's going to come. it could come later this week. it could come monday. my guess is they hyped of like to space these things out. they did the sac settlement, u.s. attorney for the so you were district preet bharara did that monday. if i was to bet, i would bet they do this next week, mon or tuesday. this thing, from what i understand, final terms that are just about there, $13 billion deal. largely what you're reading in the press. i don't think there is any sort of surprises from what i understand right now but this thing is just about done. jpmorgan knows despite the little hiccups it had they had to come to the table and the justice department is driving the show here. watch it next couple days. from what i understand this thing is done. adam: let's get to the other hiccup, bonus season.
>> there are mixed reports out there that bonuses are going to be crushed. i don't discount or doubt those reports other than this. we've been putting calls into bankers at the major firms. we're talking to analysts the last couple days. here is what we hear, much more mixed. it may be 20% aggreeate down but if you look at sort of in the whole it will be mixed. places like jpmorgan, goldman sachs, they will be at what they were last year or maybe slightly lower. adam: were they records last year? >> they were pretty high. but based on revenues, remember this is all based on revenues and profits, and percentage of revenues. 30% of the revenues go to compensation. based on revenue pictures right now, it will be probably about stable or, little lower, not going to be the massive decline that you've been reading in the aggregate, which is something like 20%. that is for banks like that. there are banks out there obviously getting smaller. credit suisse is betting smaller. barclays huge bank, getting smaller. those banks will take highest and biggest hits. from what we understand, sources
inside barclays telling fox business network, bankers are expecting bonus pools to decline as much as 30%. that's a pretty big deal and the reason why these are shrinking banks. these are banks maybe not exiting the entire business but they're clearly not growing. adam: are you hearing anything, this is just occurred to me, with mayor deblasio coming into new york city, any chance some banks may decide, you know what? may be time to put more cash in pockets of employees as we go forward everybody is expecting tax increases. >> mayor deblasio is most liberal mayor they have had and more liberal than david dinkins. i covered the dinkins administration when i was at other publications. it generally doesn't work that way. adam: okay. >> i think, first off we should point out, mayor deblasio when he becomes mayor officially in january and inaugurated taking over from bloomberg, wants to increase city income taxes on -- adam: people $500,000 and above. >> in order to increase the city
income tax and get approval of state legislature and governor. i don't think that will happen. he will have to figure out other taxes. adam: but bonuses as you say, if it is not quite the bloodbath, cuts people are anticipating, it gives him ammunition to continue class warfare to new york argument. >> i'm sure. we're in uncharted territory. never before has new york, listen, i think deblasio, i always refrained from calling president obama a socialist because he is not a socialist. if he was a socialist he would have nationalized banks and kept automobile companies. say what you want about president obama he is not a socialist. deblasio, i don't know because someone that actually went to, give aid and comfort to nicaraguans and you don't sort of say, that was a yuleful indiscretion, you don't back away from that, seems to embrace that particularly with rhetoric. whole campaign, sorry to get off on a tangent, his whole campaign was based on a false premise
somehow new york city, which you pay high income taxes, that people get welfare here -- wealthier fairly large numbers,. adam: large social safety net. >> take pieces out of welfare state that is land of inequality. this is false premise. can't tell where he is going. he is lucky that anthony weiner ran. if anthony weiner did not run and so fixated on anthony weiner being the perv he is, guess what? we would have paid more intention how insane this guy's politics are. adam: we'll move on. charlie, thanks very much. people breatheing a sigh of relief expecting bonuses. >> absolutely. thank you. lori: markets on a tear as you know. get check on the markets from nicole petallides on floor of new york stock exchange. >> we're hearing after the bell from both activision and qualcomm. we'll see how they're faring ahead of their earnings. what is interesting about activism, when kids at home say
cod, they are not talking about fish but call of duty. one of the most famous names in videogames. call the duty videogame surpassed one billion dollars in retail sales the day after its launch. they have sky landers games done very well. watch them going into the closing he will. qualcomm great indicator for the smartphone market because they make chips for smartphones. back to you. lori: thanks for telling the whole story. thanks, nicole. adam: tough night for christie's the reknowned auction house kicked off fall season with a poor start, one quarter of the impressionist and paintings up for auction went unsold. sales for the new york auction were estimated to reach $118 million. finished far below the mark at 144 million. some keeping eye on auction and high valuations and mixed quality seemed to keep potential buyers on the sideline.
this was second consecutive night of lackluster sales of christie's after a weak night of auctioning on monday. no truth to the rumor the bargain basement paintings will be on ebay. bad joke. lori: private money pouring into fund new stadiums when struggling municipalities can not. adam: so far mixed results. the scorecard for some of the biggest arenas in the country next. ♪ ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.
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islanders and home of miley cyrus's vma twerking scandal. why is this not turning a bigger profit for the barclay? is this signaling trouble for other stadiums? he has written about this as executive editor at "forbes" magazine. great to have you. >> great to be here, lori. lori: it is only on track for something like 25 million. what's the problem? >> well it's a little behind in terms of sponsorships but i think when you look at the loss figure that you cited i think it is because it costs a lot of money to pay off the debt that was used to finance the arena. costs over $50 million a year to pay the financing costs and the operating costs of the arena. first six months of this year there is a 6 million-dollar loss at the arena. but that said, we got to look at this. also as a means of increasing the value of the nets. the value of the nets have gone from $300 million with bruce
rattner paid for the team to probably in the neighborhood of 6, $700 million. so there is a side asset here that it is increasing in value. lori: sure. talk about the structure of financing these new arenas and big renovations as well. we're understanding the shift from public funding to private funding. tell me about that and what other arenas besides barclays are doing it that way. >> that is exactly right. if you stay here in new york, these buy lot bonds -- pilot bonds, payment in lou of taxes. those type of bonds were used for mets, citi field, new york yankees, and new yankees stadium. you exactly right about the shift. i think the big change to no longer where you see the bulk of stadium financing come from the public with the marlins new ballpark two years ago. that was finance almost exclusively with tax dollars, yet when the team started to falter, the team owner took apart the team, traded away jose
reyez, attendance plummeted, big problems. you will see at least 50/50 partnerships, what they're talking about with a new football stadium in atlanta. this is what is happening with the new football stadium in minnesota. the new football stadium in 49ers is almost all private money. this is way it is going. lori: doesn't private money behoove investors than sports fan? you took example of jose reyez moving from the team because they couldn't afford him, correct. >> correct. interest rates are certainly somewhat high but you got to remember those revenues are secured by sponsorships. they're secured by rentals of the suites and other premium seating. you don't know. it is a little bit of a gamble based on how the attendance goes. compare the yankees with the mets. the yankees are drawing over 50, excuse me an average of 40,000 a game. the mets are about 26,000 a game. so certainly the mets are a little bit riskier. lori: the finances of cities themselves, you mentioned plot,
mo property taxes. do cities get revenue from mostly privately-funded stadium ventures? >> they et revenue from ticket sales and concession sales and things like that. but they also own the building. the owners, sports teams have the operating rights but the city actually owns the building on these pilot financings. lori: mike, i really enjoy your writing at forbes. >> thank you so much. lori: we'll have you back again soon. >> thank you, lori. adam: the key to twitter's success, getting advertisers away from facebook. it is the social media darling's biggest obstacle. if they overcome it, we have martin hykenen from wedge partners. he says twitter's opportunities are endless. he will join tracy and me on the next hour of "markets now." 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.
tracy: good afternoon, i'm tracy byrnes. >> i'm adam shapiro if for ashley webster. the central bank may take further easing measures tomorrow tracy: someone taking responsibility in her testimony on capitol hill. health and human services secretary kathleen sebelius says the website experience has been quote, unacceptable and she is responsible, unquote. >> understatement. obamacare a key factor in the virginia governor's race almost costing democrat terry mcauliffe the election. should democrats be worried in future elections? it is our twitter question today. tweet us your thoughts. your responses are coming up. tracy: and instant competitor? billionaire carlos slim 610 million-dollar investment in an app hopes will rival instagram. we'll have details in tech minute. adam: forward. press on. tracy: but it is top of the hour. time for stocks as we do every 15 minutes, go down to the nicole petallides on floor of
the exchange. up 115, good day, nicole. >> we really improved with the markets. dow jones industrials as you noted, 115 points to the upside, and s&p up one-third of 1% at 1769. we're watching the dow hit a record high. s&p 500 may have a record close. we'll see if that happens. nasdaq down 10 points. dow components, hitting new highs, proctor & gamble, 3m and boeing, and consumer names and industrial names. you do have four dow components with new highs. let's look at jcpenney a name that really staged somewhat of a comeback since october. however still under a lot of scrutiny, down 5% at the moment, $7.89 a share. there are continued worries about the turn around plan they have been working on. we'll see how they do for the holiday season. they will be opening thanksgiving and black friday
and the like. analysts out there on wall street even denoting they're concerned about a turn around. bankruptcy court could be looming. you do have a lot of people that are still very wary of jcpenney's big turn around plans. we'll see, but for today, down 5%. back to you. adam: nicole, thank you. unacceptable, that is what kathleen sebelius told congress this morning about obamacare. >> in the last five weeks, access to healthcare.gov, has been a miserably frustrating experience for far too many of these americans. it is unacceptable. i am focused on fixing it and i am accountable. >> senator mike crapo is a member of the finance committee. he joins me now in an exclusive interview and, senator, you propose ad timeout to the senator to, to the senate investigating premiums and other failures regarding the law. what was her response and were you satisfied? >> well, as you have indicated she did take responsibility for
the failure of the website. my point to her was, that the website needs to be fixed, yes, but we've got to recognize the rollout of obamacare is having a lot of unintended or frankly i think intended consequences we've been talking about. millions of people are seeing their insurance canceled, they can't keep their own doctor as promised, the promised reduction in health care benefits or health care premiums not only evaporated but skyrocketing premiums in the individual market. frankly now the obamacare taxes are slamming the middle class, which was also promised would not happen. so i've suggested we simply need to take a timeout. stop the individual mandate, take time to fix the website but also go look to try to repair some of these incredibly difficult problems we're seeing develop in the health care insurance market. adam: let's break this down bit by built. the administration would counter, critics who point out
what is clear to everybody, that 3.5 to 7 million americans will have, the current insurance plan they may like and want to keep, they will have that canceled. what the administration is saying yes, that is being canceled but you're geting a better option. why is that counter from the administration not valid or is it valid? >> it is valid in some cases but even in the cases where it's valid that so-called better option is coming at an explosive price. the administration says that health care premiums are coming down. that is not, i think comparing apples to apples. what we are seeing in the individual market is that for those who can get a health care policy, even after the policy is getting canceled, that policy costs far more than ever projected to cost before the bill was passed. >> let me ask you about cost portion. in massachusetts the model. health care costs have not come
down. they pay the most per person in the country on health care. in the united states we go forward with obamacare. they don't have young people signing up. they are takeing a $95 penalty as opposed to paying higher premiums. that create what is they call a death spiral. older, less healthy folks signing up but not supported by younger, healthy folk paying into the system. potentially it collapses. what do you do? >> you described it perfectly. this is what we talked about when debating the bill. we're seeing it happen now. those who are younger are not just going to pay all these higher costs for no benefit. those who are older are moving into a system that is being undercut by the failure of the economics of the plan and the death spiral is exactly what we are seeing start right now. although the administration points to a lot of individual stories about people who are able to get health care, and there are people who are able to get health care with the exchange subsidies, the fact is that the impact as that rolls
through the individual market, from young people through middle-aged people to the elderly is going to have devastating economic impact. adam: senator, do we get the administration saying in perhaps a year, this isn't working, we'll just have medicare for all, one single-payer system, if you want something better you pay out of your own pocket? >> some have speculated that was intent all along. i can't tell you for sure if that was the intent. i can tell you that is where the pressure of all of this is driving. to a point where the proposal will be made, look, this isn't working, it is starting this death spiral that you've described and we've got to get out of it. the way to get out of it obviously have the government take over the control of health care or to have people who can still afford it, just pay for it out of their own pockets. that is not where america should go with the health care system. that is why i suggested today, we need a timeout. we've got to get in and start fixing more than just the website. >> senator mike crapo, we
appreciate you being here. this is difficult time on capitol hill. thank you for taking time to talk to us. >> thank you. tracy: the president's health care law a key factor in the virginia governor's race with its rocky rollout nearly costing democrat terry mcauliffe the election. will obamacare rear its lucky head in future elections. should democrats on capitol hill be worried. that is the twitter question and the one we talk to a reporter for "the hill." thank you for being with us. should this be a concern for the democrats? >> oh it is a concern to democrats, there is no question about that. mcauliffe's people are pushing back on the narrative that obamacare nearly beat him in the virginia gubernatorial race. we know from top democratic campaign officials this is on their mind, particularly as federal health officials struggle to fix the broken enrollment website. this is heavy lift particularly with midterms right around the corner. i think the obama administration is quite concerned. tracy: quite frankly, give it
another week or had the election would have been a week later, you never know how it would have turned out, right? it came back close with ken cuccinelli. >> cuccinelli had to quote with major gender gap. struggled to repeal to women which is perennial problem with the republican party. in northern virginia, many government contractors live there and that was particular case to him. republicans can draw two lessons from last night's election in virginia. obamacare is fertile ground for attacks on vulnerable democratic larly in purple states. no question about that. but not enough to carry republican candidates who have past troubles into success. it is not necessarily going to guaranty those wins although it could help along the way. tracy: love that purple states. speaking of women, let's talk about someone who has gotten a bun of women on this side, chris christie. 13%, sounds really lame but it's a lot, isn't it, as far as republican voters go? >> it is a lot.
he also made gains among minorities and among democrats. apparently a third of democrats in new jersey backed christie which is enormous for him. and i think that this all points to 2016. the perennial question facing chris christie. tracy: the tony soprano thing doesn't work outside of our state, right? that is my concern, for him. that, rough and gruff and i don't care what you think attitude works in jersey. that is actually how you have to talk to us but the rest of the world isn't comfortable with that. >> it's true but the conservative base might be because they really go for that kind of aggressive posturing that we see among a lot of tea party republicans. so it is possible his appeal could cross over to that side. i agree with you. a lot of people are worried
about personality. he comes off too aggressive and could put off women voters he attracted this time. tracy: i have to quickly bring it to new york. first time a democrat won the mayoral raisins 1989. what do you think of this election here? >> i mean it is a very interesting election and been 20 years and bill deblasio entering office with enormous vision for new york city. remains to be seen how much he can accomplish. critics and analysts wonder whether he can make a big stab in economic inequality which is what he wants to do. mayors generally don't have the power to make large economic changes. so he set a very high bar for himself and we'll have to see how he pivots from the campaign to governing because that is going to be his big challenge. tracy: excellent point. elise from "the hill." great stuff. >> thanks. tracy: we have update on a story we brought to you yesterday.
we talked about this, taxing marijuana in colorado. our guest said, the voters want this. well you know what, he was right. they voted yes for recreational tax. so the statewide proposition for 15% excise tax and a 10% sales tax on pot sales beginning next year, was approved by 2/3 of the voters. he was right. several cities voted in favor of special taxes on recreational marijuana. the statewide proposition is expected to bring in nearly $70 million a year which will, is supposed to go, mostly, to school construction and regulation of pot. i say supposed to because often times that stuff doesn't happen. >> right. tracy: you know how that goes? lottery was supposed to go to education too. adam: they just replace general fund spending with lottery funds. not an extra. tracy: well, in today's tech minute, a takeover target? computer-maker acer has multiple job cuts, worse than expected earnings. ceo that is saying, has at that la vista, baby.
adam: good management, good business model, good advertisers, a work in progress. coming up twitter's battle with facebook over ad dollars. >> as we do this time of day look how oil is trading. stuck above 95 bucks a barrel after weekly reports showed a smaller than expected climb in u.s. crude supplies. still really low though, $95.26 a barrel. we'll be right back. [ male announcer ] how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medil technology in the u.s.?
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but overall they continue to do well and the company affirmed its 2013 earnings forecast. so that is some good news there. and see duke right now, up 30 cents and 75 cents a share. what is oil doing himself? $95.24 a barrel. back to you. adam: thank you very much, nicole, we'll check back with you in 15 minutes. tracy: that time of day, got to make a little money. charles payne is here, looking at one of china's biggest online media companies. oh, yeah? >> we've done probably know i'm growing to say sina, right? we've done this 8/28, 9/20. she would have the wholes list. i do this with her and ashley once a month. here's the thing. it is china's twitter. even on its own, besides i think the extra hype that will probably come along with the whole twitter sphere tomorrow, last four quarters beat the
street. 150%, 75%. now, you can argue that they're expensive on some traditional valuation metrics, but the peg ratio which is how you gauge the high growth companies, 0.57, extraordinarily cheap. wall street thinks they are going to earn $2 next year. just three months ago they thought it would be $1.78. next five years expected to grow 100% per annum. 100% a year every single year for the next five years. it has sometimes, it has, trouble getting traction, whatever. it's a chinese name. >> what are they doing right that twitter needs to learn from them? or just luck of having 1.3 billion potential customers? >> that does not hurt. that does not hurt. i think it's a well-run operation. i think those execution numbers underscore the fact that it's a very well-run operation. you know you can go to the english version if you want to tool around there but it seems to be a great operation. they have a got a piece piece
that is really the twitter piece, if you took that out itself probably justifies were the stock is now and everything else is gravy. i think this is 100-dollar stock at very minimum. i come on once a month and still talk about it. tracy: you're getting in here? >> i still think people can get in here. our subscribers are on it. i wanted to update edison yesterday. tracy: oh, yeah. >> they did report. earnings were so so. the stock popped. it was up 13%. but now up at 6%. they're at 52-week high. we'll hold on to it. they will do something novel and spin off some of their power plants and solar plants to spin off free cash flow into another public entity. think that is a good idea. margins expanded tremendously which is what i always look. tracy: next time bring us john cena. >> you know he is my boy, right? tracy: what? >> i interviewed him. he went on that night to win. sew thinks i'm good luck. gave me the belt.
the belt was huge, heavy. let him know next time i see him. tracy: uh-huh. there is a fan in the building. please let him know. charles payne, thank you very much. >> the impossible dream or we thought how close is the united states to, energy independent? elizabeth macdonald joins us with her bottom line next. tracy: future fed chair janet yellen may be in for many years of interest rates close to zero. we have new research that supports these low rates. the dow is up 107 points. we'll be right back. [ male annncer ] it is more than just a new car...
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>> at 23 minutes past the hour i'm arthel neville with your fox news minute. secretary of state john kerry says the u.s. is providing an additional $75 million in aid to create palestinian jobs and help improve roads, schools and other infrastructure. the aid is designed to boost palestinian support for peace talks with israel. mike dug begin the newll-elected mayor of detroit, a city facing bankruptcy, suffering from violent crime and blighted neighborhoods of the he is also the first white mayor elected to the predominantly black city in 40 years.
dug begin defated wayne county sheriff benny napoleon. olympic swimmer ryan lock tee, suffered a torn littlement and sprained another after an encounter with overly enthusiastic fan. the girl ran toward lock tee who tried to catch here and the two fell and he hit his neon a curb. his doctor says he is expected to make a full and speedy recovery. those are the headlines on the fox business network. let's get back to tracy. tracy: i know that happens to you every day when you leave out of here, arthel. a barrage of fans. you watch your knees, girl. >> you too, girl. tracy: thanks, arthel. in 1974 president nixon dreamed of u.s. energy independence. >> we will break the back of the energy crisis. we will lay the foundation for our future capacity to meet america's energy needs from america's own resources. [applause] tracy: powerful voice in the oil
markets now says nixon's moon shot dream is finally being realized. emac is here with more in "emac's bottom line." who is saying this? >> ihs. this is run by daniel yergin, award winning expert in the oil markets. and he is saying essentially what he is seeing now is, u.s.'s level of imports versus everything that, you know, con soups, it, was at 35% in '73. it rose to 60% in 2005, 2006. now it is back down to 193 levels, u.s. imports of petroleum products. this is a big deal for the energy markets around the world, what he is saying. we already have basically citigroup out earlier in the year the u.s. will be energy independent in five years. this is ed moore saying that. basically that the u.s. will only be buying oil from canada in five years time. adam: this is amazing amazing wu consider the ramifications politically. you could have hour-long
discussion on that but financially, the input costs for businesses in the united states, we're growing to start seeing this i would imagine pretty soon? >> what is really interesting is, that the projections for the price of oil, citigroup is saying 70 to $80 a barrel in five-year's time by the end of the decade. price inputs is a big deal. the u.s. is pumping out the equivalent ever nigeria since 2008 according to this new ihs report. you know it also is widespread economic impact in terms of taxes, you know, 74 billion last year, brought back in to state and federal coffers. basically spending power of, you know, the u.s. consumer as oil continues to drop and gas prices continue to drop. tracy: amazing these guys back in '74 had this kind of foresight we could get here some day. what happened in between? adam: fracking. fracking is what happened. tracy: what happened? we were so close? >> now you have the imf and goldman sachs i saying you know
what, only two million jobs. there is no fraction in jobs yet but i'll tell you something, not anything to sneeze at, 2.1 million jobs in the oil sector. tracy: no. >> we need to be energy independent and there is opposition to things like keystone pipeline, keystone doesn't matter. oil is fungible. tracy: right, right. >> these numbers that are coming in from ihs and citigroup are really telling and really striking about the future of oil and gas markets. tracy: that is pretty cool, elizabeth macdonald. adam: emac, thank you. tracy: watching nixon in between the electric company back then. do you remember the electric company? adam: i remember the word game. do you remember that? tracy: nixon, electric company. adam: nixon. life in the fast lane over for elon musk? tesla earnings, i'm not dislexic, that was spelled wrong, sending shares plummeting. we're going to talk about solarcity. will they suffer the same fate
when they report after the bell? a preview ahead. tracy: twitter versus facebook, a battle for the tieders and -- advertisers and the key to making twitter profitable. we'll have an analyst who says twitter has done everything right so far. the dow is up 113 points. don't go anywhere. adam: we're going to turn it on. so ally bank has a raise your rate cd
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 o raise your ra 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. look at the dow 30, loads of green on the screen right now. nike has been up. nicole petallides on the floor of the new york stock exchange. would be looking at? >> i watching tesla and solar city. let's look at as low which cash and out with its quarterly
report and i have to say if they deliver a record 5500 model s luxury vehicle. but there were whisper numbers that were more than that. despite the fact that they beat the street with their quarterly report there was some disappointment. tesla is one of those stocks that is heavily shorted. actually had a circuit breaker over at the nasdaq. short-selling circuit breaker at the nasdaq earlier today said that is worth watching as well but you can see it to the downside. though tesla remains a winner 350% to the upside and solar city, anotherrelon musk beattie "after the bell" today. that is 400% so keep an eye on that selling to the closing bell as well. adam: two studies cleaning the best fed strategy to keep interest rates near zero until
2017, this would be longer than the 2016 target janet yellen has proposed. peter barnes joins us from washington with more on this. is this going around a market? >> these are definitely making in fed lending and in the markets and separate papers with what of caveat. two top staffers and a senior most economists that the fed in washington, william english and the and wilcox make the case for more aggressive monetary policy to stimulate the economy. for one thing right now the fed has pledged to keep short-term interest rates, federal funds rate zero until the unemployment rate drops to 6% which could take until 2015 or so but the wilcox and english speakers have some analysts predicting the fed could cut the threshold to 6% or less which means lower rates until 2016 or 2017. the peppers are called a blueprint for the janet yellen
fed. the papers presented a manifesto for monetary policy activism, he says. the lindsey group says the paper signals the fed could dial back its $85 billion a month of quantitative easing bond purchases but keeping of a fed funds lower for longer would be the fed's carrot to go with the stick but cut in quantitative easing. one economist thinks the papers could give ammunition to critics of janet yellen who don't like her dog vicious as the senate prepares to consider nomination as fed chair. >> this is not some issues she wanted raised now, this will complicate the process of trying to get her appointed as fed chairman. this is a very important debate and of the gutted is not clear they want to have it right now. >> ben bernanke and the minutes of the fed meeting have said the
fed is considering possible changes like these in its policy guidance. adam: thank you very much, want to talk about closing price of oil, breaking news, closed up $1.43, $94.84 a barrel today's regain of 1.5% reverse yesterday's losses by. tracy: twitter is expected to place its idea of this evening and it seems it has raised the price according to dow jones. shares may start between $25 and $20 now. a senior research analyst at wedge partner is believes twitter has done everything right has potential to keep going. martin joins us now. let's talk about the pricing we just found out, $28. do you think that is reasonable? could even go higher? >> it could go higher and it will trend higher when it starts trading who. they have done everything, a
great road show, management has come across credibly in stark contrast to facebook. we know what happened in that one. everything went wrong even though the stock has done better sense. the of the good job. they are presenting their business in a realistic way in terms of growth rates and i think people are buying into that and that is good at this point. tracy: can't help but wonder if it was reversed. twitters like a younger sibling that lawrence from the older sibling's miss 6. twitter is doing all right. you wonder if it would have been this way if it were the other way around. let's talk of revenue. three court is abusers from overseas but only 1-quarter government revenue to the table. is this where it the opportunity is for them? >> that is a big part of the opportunity and interesting to compare at that lot of companies in the interim space. facebook is an example, linkedin paula don't consider that social networking company and google
ten years ago. the start of the with three quarters of revenue from the united states hit tweet 3-quarters of users of various types were outside the united states. google is 50/50 and facebook moving toward that. twitter over time will lead toward and five years, maybe a little more from now, twitter will be close to equal from foreign markets in terms of revenue. the maturation of the market. tracy: does it bother you that the kids aren't using it? you follow the teenagers, right? they have moved on. even facebook 9 yes saying they are done with it. does that worry you? >> not really. we're talking mostly twitter but there has been a sort of concern about teenagers moving off the facebook needs group has moved up, in a lot of cases the target market for the advertisers. twitters a little bit generalized to say a more serious application usage but generally the age population is older. people use it for a variety of
business, special-interest and their own entertainment. it naturally gravitate to a little bit older. tracy: the world should begin 140 characters. that is the nephew ask me. are you worried that china will be a threat? competition coming in? >> there's a lot going on on the chinese market and we know from face book's experience it is blocked off from u.s. standpoint but frankly there are so many countries we don't think about in the same context that have huge populations they can grow from. indonesia is one. people think of that as a bundle of talent and the pacific but it is a huge population, philippines, turkey, israel, western europe. they have plenty of places to grow in terms of in what will be their targets out of the public company. they have ample opportunity. nice to have china. tracy: if i can get my hands on the stock you are saying to buy it.
>> you are going to be holding it for a while in terms of trading into next year. it will take some time. it will bounce around. a company going public as a life of its own, 90 days until they report a quarter and that is what i am here to watch. tracy: that is good. adam: pressing pause on the personalization push. the new glitch in the efforts to make yahoo! tailored to the individual user. tracy: ten billion might not sound like a lot when it represents the lowest annual amount venture-capital list on medical devices are spending. the reasons for the decline in our medical dollars segment next. the dow is up 115 points. we will be right back. my mantra. but with less energy, moodiness, and a low sex drive, i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to rmal in about 2 weeks in most men.
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or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. >> shares of microsoft hit its highest since july of 2000. the company is narrowing down its ceo search. short list of external candidates to replace steve ballmer include ford ceo alan malawi and nokia ceo stephen e. live. microsoft has three internal candidates as well. in october, challenger, gray and christmas at employers announced plans to lay off 40,730 people last month. the pharmaceutical industry and financial sector saw the
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adam: medical devices are taking a big hit when it comes to venture capital investing. what is behind the decline and are there signs the market will pick back up? joining us is marked mccaffrey to leave the practice, peer w.c. released a report, thank you for joining us to talk about this. software, software, software, the location of the investing world. people want to put their money in software, not medical
devices. >> if you look at the overall funding of the industry around innovation is clearly on his to beach 2012. 2013 is clearly a healthy year but when you look at the opportunities in the other sectors, software in particular, biotech also it is hard to beat those returns in some of the other segments that may be more capital intensive, maybe had more time to market, the tendency to suffer when the funds getting allocated. adam: no one would sneeze at $1.2 billion in 2013 going to medical devices but you look at $10.9 billion going into software and biotech and even mediant entertainment got $2.2 billion. will we see medical devices actually pass media and entertainment in 2014? any predictions on that? >> no predictions but there is good news on the way.
if history holds itself through the medical device industry usually follows the biotech industry by 12 months in the ipo market and so if the window stays open we should see a healthy amount of funding coming into the medical device industry in 2014 into 2015. adam: the desire for investors to look at capital or intrusive but with medical devices there is the huge market. we had a guy on yesterday talking about china and was dental devices, 1.3 million chinese needing braces and those -- not the devices but you get where i am going with this, that it will be a growth market for medical devices. >> absolutely. if you look at the trends around technology and the global opportunities around those trends medical devices fall right in line with that as the demographics of the globe start to shift and change i expect
medical devices will have huge opportunities and right now we are saying cyclical market that has people more focused on blog the software and biotech because again less capital intensive and the r o is are hard to argue with right now. adam: i am no genius but i would argue congress is going to address the tax on medical devices which cares a lot of people. has that played a factor in perhaps where medical device, venture-capital stands and where it is fixed will we see that as momentum to invest more? >> regulation is always an issue but when you take a step back and look at the medical device industry, back to 2005 has been acceding to billion dollars in investment for most of that period and even hit $3 billion in investments in some of the years in between and i would expect that to be a steady pattern and right now i think we
are seeing theeeffects of the attractiveness of that industry taking an effect on some other industries that are all little more capital intensive and have a longer model to get to market. i don't think regulation is going to play a large factor in the short term. adam: thank you very much for joining us. tracy: quarter till, kris cox as we have 15 minutes to head to the floor of the stock exchange. keith, your dog is on track for a record close. what is going on with the nasdaq? wide divergence? >> nasdaq is going to stall out a little bit. we see the technical and quantitative charts we looked at but it is still way up for the year and doing quite well. what is interesting is you are seeing a rotation happening today. the money is pouring in, defective machines, consumer staples, telecom and utilities
pulling out more of the growth in the news. that tells you even though the s&p and the dow marketing all-time highs people are cautious when you see the rotation of money in the defensive sector. tracy: goods and nation. thank you very much. adam: pushing pause on the push for personalization. the revamp was set to launch today only to be delayed by an unspecified problem. yahoo! assures fox business the revamp is ready and updated. yahoo!'s finance portal when ready will compare stock-indexes, portfolio tracker and content tailored to the user. shares of yahoo! at the e% in the last year. takeover target, j.t. weighing is stepping down taking the blame for poor financial results. the corporate president will takeover in january. the computersmaker reported less
than stellar third quarter earnings and will cut hundreds of jobs. it has been unprofitable, greatly impacted by the slowdown in global pc sales and playing catch up agenda backing mobile, video and picture sharing platform akin to instagram. the company is leading a $60 million round of financing that comes along with the ability to distribute the apps to america. is real has had several celebrity endorsements, toby mcguire, leonardo dicaprio, tracy byrnes and the real williams invested $6.5 million, the addition of sixty million pushes the valuation to be $1 billion mark. tracy: they are using it so i
would back the bad $2 to rub together, i would back the kids because they are using it. maybe on to something. how about this? stripped down. not adam. the future of your cable-tv package. it is going to look very different and dennis kneale with the internet invasion and the cable space is next but first take a look at today's winners and losers as we head to break on the nasdaq, ebay up almost 5%. we will be right back. my customers can shop around-- see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcar i get information on quality rated docts,
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>> remembers the cable guy? you could know him as the internet died because that is where cable is headed. dennis kneale is pondering the possibilities. dennis: your future is calling and its name is the internet. cable systems offer rich packages of dozens of channels but tomorrow they could be fat pipes that deliver on demand netflix stock health screening who streamed to get internet access. yesterday charter communications said internet subscriber base grew 26% last quarter. all of it from people getting access, no video and charter chief tom ellis telling analysts yesterday he is surprised so many customers went into an access without cable-tv channels and the service isn't good enough, it does reflect the future direction of the cable system business. contest meanwhile offers an
introductory package called internet plus, they serve internet access with hbo and a few local systems running for $40 a month and netflix in talks to ally with other cable operators fear net streaming on the box. this is going in a certain direction here. adam: this is bad for a cable? will it be good for cable? dennis: could be great for a cable with simplified. i don't have to strike deals with all these channels, just give you the plate and you figure it out. on the other hand it topples your rate structure and your ability to charge for a lot of channels. that is a problem. you got to figure out which way it cut. we always overestimate how fast the new approach a arrives and underestimate how did the incumbents are at fighting off the new stuff because time warner cable and hbo, they are doing a lot of that. as we talked about.
adam: thank you. tracy: come to go on "countdown to the closing bell" the second most anticipated ipo of the year gets ready to price the already got ahead of itself. i will talk to an expert who sold three businesses to twitter and is the overall market overvalued and ready for crash? two you hear what warren buffett look that. it is simple and could save you tons. the dow was up 117 points. liz claman is next. don't go anywhere. when we made our commitment to the gu, bp had two big goals:
help the gulf recor and lear from what happed 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 neweepwater well cap and a state-of-the-artmonitorins watch over all drilling tivity twenty-four-seven.
tesla shares tend% in after hours session, wall street, company hasn't promised anything but wall street has been expecting and hoping the customer will sell-off higher number of superhot model s deliveries, didn't happen. the sell-off continues and at one point even triggered a circuit breaker which kicks in when shares dropped too dramatically over shorts and of time. at the worst point shares of ted deutch dropped 15%. the stock is up 400% over the past year but it today's trend holds, down $25 at 151, it would be the electric carmakes a of steepest decline since a 19% on jan. thirteenth of last year but at this second you see tesla is down $25. let's take you to the time-warner story, the attainment dying reporting third quarter income largely due to the popularity of two of its cable channels,
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