tv Countdown to the Closing Bell FOX Business December 27, 2013 3:00pm-4:01pm EST
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and also the technology-heavy nasdaq appears to be this a bit of a holding pattern on this light day of trading, but there are a couple of widely-held stocks worth mentioning, you know the names. take a look at apple, one of those stocks, again, that has had a strong year compared to the major averages not as strong, but still we're down 0559 -- 559, and there's your intraday chart as well. also down a bit many this retail shopping environment u amazon. take a look, rough week, down more than $5. remember, amazon and many of these big companies were winners over the holiday shopping season. maybe some investors are saying let's take a few profits here. and also you're going to want to watch as it relates to shipping issues with ups and fedex, the story we covered for you yesterday on count "countdown to the closing bell." let's get to our floor show and get the experts to weigh in. joining us on the new york stock
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exchange, mark newton, gary at the cme group and jerry grossman over at the nasdaq. all right, mark, let's talk about really just today's action, certainly, friday isn't going to spook anyone. but is this a sign of things to come as we have two trading sessions left, actually? >> yeah, brief stallout, slowdown. we've had six straight gains ever since the taper was announced, and we're still seeing good strength in energy and materials which is important because those groups have lagged the majority of the year. now we're seeing some reversion in the month of december where we've seen commodities reach the highest level since october. the yield's getting over 3% in the ten-year, could serve to spook people, that is psychologically important. we're set to close at the highest weekly closing basis since 2011, so that's also somewhat important. cheryl: you know, mark, at the top of the show i was actually comparing the markets that we've seen not just today, but really this year with the 18-mile mark of a marathon. and you get to this wall, and
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you kind of have to take a little break, but you still finish a strong race. are we going to end this year on a strong, high note barring any catastrophe? >> it's been tough betting against it, so i'm going to have to say, sure, that's likely. what'll be interesting is look at the first full week of january because that often times sets the tone for the next year, so 2014 it'll be interesting to see how we start off given we're so overbought on many different levels, but, yeah, that is important certainly. cheryl: all right. let's move over to the cme, and the question in particular today as we looked at all the inventory data coming out is one of the things we're going to have to face in the new year is the farm bill. that's one of the major pieces of legislation that has not been dealt with, the farm bill. talk to me about that and how everybody's feeling in chicago today. >> well, they're looking forward to be passed off to another month or two until everybody gets back together from their holiday sessions, and then they will address it. nobody wants to see milk at $8 a
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gallon, so they will address that right away. some of the other issues that we have to look at also is tomorrow is the last day for a lot of seem to be getting tear unemployment checks through -- their unemployment checks through the government. the following week we're going to see on that jobless claims and the unemployment claims, i'm sorry, that these numbers are really going to start coming down, but are they real numbers as far as the unemployment is concerned? and with that, we're seeing the dollar dropping down today, we're seeing the euro, we're seeing the british pound taking off. i mean, we're seeing highs. the euro tried to break the 139 range. we saw the pound break over the 165. the yen got down into that 105. we're seeing a lot of turmoil going on right now, and next week with this unemployment number is really going to be key. again, back to that farm situation, the farm bill, we're going to see that slumped over until they can really get into the meat and potatoes of it, pardon the pun. [laughter] cheryl: pun well taken, actually, i like that very much. let's go over to jeff grossman
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down at the the nymex. big news today with the inventory, it was delayed for the christmas holiday but came out 11 a.m. eastern time today, and oil was the big surprise. i mean, it was a double miss from what analysts expected that drawdown, and that took us over $100 today. >> well, it's about time. everyone's been figuring it was a fait accompli, and we finally got there. in fact, it's almost healthy for markets, and it's testing and teasing at a number to finally breakthrough, and now we have the ability now to maybe have that healthy selloff this market may need if it's able to go to higher territory. i'm not exactly overly zealous about the market going much higher, i see tremendous resistance, about a half a dollar to a dollar or higher. but i will say this, the heating oil has been the driving force if the last few sessions. it has carried us up to the last couple of sessions. i think if there's any more weather, it's going to take that and natural gas possibly to new
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highs. cheryl: the other backdrop going back to oil for just a moment and, of course, opec. they want to leave production levels the same, and most international bodies that come out and speak in the oil markets are going to say that opec, their targets are way too high, maybe as much as a million barrels per day. how do you gauge that information as a trader, an opinion? >> the real wildcard and swing factor here will be iran. because, again, if they really get online the way they're talking about, adhere to all sanctions and everything that's been talked about, that's about 10% of the world's reserves there. so that could put a real amount of oil onto this market and take us down to numbers i still think we belong in which would be back to the low 90s, mid 80s. but, again, we have to get through the next three to four weeks here weather wise before anything could come to fruition in that situation anyway.
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cheryl: that goes back to the farm bill, gary, and is we were talking about commodities, investing in commodities yesterday with a guest we had here on the show this new york, and you have to say the weather that we are going to see play out and, again, the subsidies for farmers could affect the commodities market, especially the grapes market, in -- grains market, in a negative way. >> well, one of the things that's helping the grains market right now is the u.s. dollar falling off, so we are exporting a little bit more. but the weather is key. this coming weekend we have some extreme cold weather coming in. the winter wheat crop could be in peril right now. there is a lot of concern about that. there's also concern about the waterways, the mississippi freezing up in the northern sections right now where they won't be able to transport it south and get it to the bolters so they can export it. there's so much going on, we also have south america as we take a look down there, they've been having a lot of rain, now they're getting back up into their 90 and 100-degree weather, and they're looking like they're going to have a bumper crop, and the livestock what's going on,
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there's a virus going on between 500,000 and a million head of hogs that is a concern right now. so we're going to be looking at prices probably climbing in hogs, and now they're cutting back production on livestock cattle. so we're going to be looking at prices coming back up. there's a lot to look forward to. happy 2014. [laughter] cheryl: gary, it is not going to be boring. jeff, mark, gentlemen, thank you very much. nice to see you, of course, on this friday. happy holidays to all of you. >> have a great weekend. cheryl: you too. it's going to be a cold weekend, we should also say, for much of you out in the northeast and it sounds like in other parts of the country as well. all right, well, there is also big news today about the tboft surveillance programs. a federal judge ruling that the national security agency program to collect records of millions of americans' phone calls is lawful. rich edson is live from inside the beltway with the latest on this developing story. >> reporter: cheryl, the controversial program gets legal reassurance only two weeks after another federal judge questioned its constitutionality.
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in a decision, u.s. district court judge william polly says, quote: technology allowed al-qaeda to operate decentralized and plot international terrorist attacks remotely. the bulky telephone metadata collection program represents the government's counterpunch connecting fragmented and fleeting communications to reconstruct and eliminate al-qaeda's terror network. new york republican congressman peter king is the first lawmaker to weigh in saying, quote: today's decision is a victory for the patriotic men and women of the nsa. more importantly,ves a vital weapon for the united states in our war against international terrorism. the american civil liberties union sued the government in in this case. the aclu says the judge misinterpreted the relevant statutes, and it will appeal the decision. less than two weeks ago, u.s. district court judge richard leon found, quote: surely such a program infringes on that degree of privacy that the founders enshrined innthe fourth amendment. judge leon gave the government the opportunity to appeal that
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decision before requiring nsa to end collecting datas on the two americans who sued. matters of such significance usually wind up in front of the supreme court. no timetable on that. cheryl: oh, gosh, this story does not end. rich edson, thank you very much. live out of washington for us, rich edson. and, you know, become to the markets here in new york -- back to the markets here in new york, you've got what we call a social media slump today. from twitter to facebook, also shares of groupon. lauren simonetti is standing by on the floor of the new york stock exchange for her on what's happening with these names today. >> reporter: yeah, social media is slumping. let's take a look at twitter. this is what everybody is talking about. for a couple of days now, this stock is selling off about 10% now. the level is 66.21. analysts did cut the company to an underperform rating, maintaining the $46 price target which is still $20 below where the stock is trading today. the investment group says that twitter is higher bo its
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analyst -- above its analyst price targets than any other stock in the s&p 500, so it really is valued pretty high at this point. cheryl, take a look at some of these other social names that are all down, and some of them down pretty sharply. facebook, linkedin, yelp and groupon all with a red arrow today, cheryl. back to you. cheryl: well, lauren, stick around because later on we've got colleen taylor coming on from tech crunch, and she's got some fascinating insight into what she thinks twitter is worth. it's a surprising interview coming up. lauren, thank you very much. stay with us, we've got a lot going on on this friday. first full week -- excuse me, last full week of the year of trading. closing bell ringing 50 minutes from now. it has been a terrific year for stocks, you didn't can't deny it. how can you protect your gains for 2013? coming up next, we're going to the talk to a money manager with $15 billion under management about specific strategies to play the market as we get into
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2014. and as stocks are no longer your thing, how about investing in, oh, yeah, a private island. uh-huh. we've got the founder of an international real estate broker, that's a fox business exclusive. you'd be shocked, you'd be shocked how much some of these islands go for. you don't have to be a billionaire. you can own an island, trust me. ♪ ♪
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♪ ♪ cheryl: our power mover of the hour is tech strong. this is the parent company of cessna, you know, the aircraft? the stock is higher by 1.25 percent, announcing it will buy beechcraft corporation for $1.4 billion. they exited bankruptcy earlier this year and was seeking buyers for the plane business which has been losing money. credit suisse and morgan stanley in this deal and then jpmorgan was the financial adviser. there is txt for you. text, get it? stocks are trading lower today on light holiday volume, but overall it has been a boom year for equities.
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markets are posting double-digit gains for the year. many bulls though are now calling for the rally to continue into the new year. one fund manager with almost 15 billion in assets says it's time to take some profits and bulletproof that portfolio. randy bateman, huntington fund's chief investment officer, here from austin, texas. hi, randy, how are you? [laughter] >> great, cheryl, and happy new year to you and the fine folks at fox. cheryl: i just actually came back from texas a couple of days ago. i have to tell you, this has been a heck of a year. we have had a wonderful runup in equities, but why would you advise clients to maybe move some money off the table when there doesn't seem to be anything pulling to a pull -- pointing to a pullback for 2014? what are you seeing that we're not, randy? >> i'm not seeing anything that anybody be else is not seeing, but what i do think is very important to recognize is the fact that we've had a booming market not just this year, but really since 2009, late 2009. we've really seen a really strong recovery in in this market. and i kind of equate it to let's say we're right in the middle of
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the basketball season as well. if you're a good college basketball player and think you're going to get drafted by the nba, your agent is going to tell you first thing to do if you get drafted, take some of that bonus money up front and buy you some insurance on your knees, on your back, on your neck -- [laughter] it's a rough sport. and that's what i'm saying do now. you've had a wonderful year. you've we've had a big bonus in this market. take some of it and buy some insurance, and there's a lots of ways you can do that. cheryl: okay. thousand you've got me worried about my knees and my feet and my ankles, so what kind of insurance do i need to buy right now? [laughter] >> okay. well, you know, there's lots of ways you can go about it. you can pick individual stocks that you can buy puts on and still participate in the market if you vary the degree to which the put is in the money. one of the things you might want to do with your entire portfolio, however, is buy some insurance which hike just the s&p 500 -- which might be just
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the s&p 500 etfs, the spiders, itself say. you can purchase a put due in june, the markets trading about 183 on that. you can buy the puts at a 181, so slightly out of the money. and it costs you, oh, maybe $6 to do that. you can cover an entire $100,000 portfolio for a little over $3,000 and still give you a little bit of of upside. it just seems like to make sense right in here. we don't know what the market's going to do. there are some headwinds with regard to taxes and regulations that's going to occur, and to me, the best thing to do is take advantage of the largess that the market has provided us over the last few years -- cheryl: it has. >> host: -- and let's go for it. cheryl: some investors look back over times, especially maybe a year ago when the dow was sitting at the levels that it was one year ago to today, 25% higher, and they think, gosh, i wish i would have stayed in the entire year, and a lot of people actually didn't.
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on a more positive side, are there sectors you're overweighting right now? several people coming in with 2014 calls with sectors like financials or industrials, what do you like right now that you would put must be into? >> you know, there's a couple of scenarios that we're trying to look at, and one of those is what i mentioned earlier, increased regulation. and i think traditionally when you have increased regulation much like after the sarbanes-oxley law was passed, you see merger and acquisition activity. a lot of small names simply cannot compete and want to merge with a larger competitor. a great company that's going to participate in that is ever corp. partners out of manhattan, providing investment banking research and advice. another area -- cheryl: you mentioned ever corp., but when you were on november 7th, you brought in tractor supply, tsco is ticker. stock is up 9% since you picked it, and i'm curious, hey, being from texas, do you still like
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the stock now? >> yeah. that's another theme that we're playing is the agricultural area. we to feel that farm income has grown pretty dramatically over the past few years, it's actually doubled over the past four years. you've also got fracking that's taking places in the rural area so, consequently, you're seeing a lot of capital in the rural environment that hadn't been there previously. you can do the traditional things like caterpillar and deere and the fertilizer companies, but we're trying to look maybe a little bit deeper in terms of the deeper pockets that the farmer has. what is he going to spend his money on? cheryl: especially if the farm bill comes through, and we just had somebody on a few moments ago saying they expect that to get polished off and pushed through in washington. brady bateman, huntington funds chief investment officer, thank you, have a great new year. >> you bet. and you as well. cheryl: i'm going to have a good
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year, everybody, 25% on the dow year to date. closing bell ringing 40 minutes from now. well, ka-ching, this is a shopper's paradise. bargain hunters hitting the malls, but will the post-christmas sales give retailers reasons to celebrate? we've got an in-depth look at the entire holiday shopping season. and also investors looking for a place to unwind after this year's bull run might want to consider owning one of these. yes, coming up we talk to an entrepreneur who's going to tell you how to buy your own offshore haven as in your own island. fox business exclusive interview coming up. ♪ ♪ ♪ this is the quicksilver cash back card from capital one.
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again, the dow, the nasdaq and the s&p a tiny bit off from yesterday's record close. again, new highs for all of the indices last night. well, do you think that owning a private island is just for billionaires like richard branson and larry ellison? well, maybe not. what if i told you you can actually own an island for less than a new york city apartment? joining me now in a fox business exclusive is chris, private islands incorporated founder and ceo. chris, thank you for being here: how much can i get an island for? give me an example. >> well, we've got islands in all different price ranges. our least expensive is 35,000, but you can't build too much on that, and it goes all the way up to 200 million, which we have -- cheryl: where are people buying these islands? like what part of the world? >> well, we have islands for sale everywhere. the hot spots are bahamas, belize. we've got a great, fantastic property in panama for 400,000
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u.s., and it's developed. it's got a beautiful little house on it, it's completely rent bl, it's a fantastic property. cheryl: okay. 400,000. let me ask you this, if the average person, as you say, could buy an island if that's what they wanted to do for themselves, a lot of people need bank credit. can i go to my bank down the street to get a loan to buy an island? is that an issue for the buyers coming to you? >> generally speaking, the bankings won't lend money for private islands. they're usually cash purchases. but it depends. like in some areas like in georgian bay just a few hours north of toronto, then you might be able to get a bank loan. but these are generally cash purchases. cheryl: what is the rate of return on an island? i mean, obviously, you're a broker, you've probably bought and sold a few islands, i'm assuming. is there a profit to be made on selling my island once i'm ready to get rid of it? >> well, private islands inc., we sell about 15-20 islands
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every year, and it really depends on why they're being purchased. i mean, if they're not build -- they're not building anymore islands, so they do appreciate. the values go up significantly, depending on the region. and also depending on when the island was purchased, right? cel cheryl okay. well, that's certainly a good point. but, i mean, real estate to most people is not just where you live, it's an investment property, especially if it's on an island. you know, one of the things we all made jokes about in europe was that greece was the greatest place to go buy an island and, actually, there were a few islands that have been sold in greece. what is that market like now? >> well, you know, the greece -- the market in greece has always been a little problematic. there's a lot of red tape, very hard to build on any of the islands. and what happened was there was that german politician that made that comment, well, you know, before germany bails out greece, they should sell off their islands. and that's how we ended up with another 12 private island
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listings in greece. but it's not because they were having financial problems, it's because they learned about our company, and these island owners said, hey, let's try to sell the island. the truth is you can't do much with these properties. there's just too much red tape and, you know, they're beautiful looking properties, but you can't build a lot on them, so you're just not going to make your money back. cheryl: about out of time, but i do want to ask you is it true angelina jolie bought brad pitt his own island this. >> >> no, that was a rumor. actually, we have that listing, it's called pet rah island. the asking price iss20 million. we've gotten a huge number of inquiries because of that. unfortunately, though, the rumor is not true, and the island is still for sale. go to the web site and inquire. cheryl: okay. chris curlow, thank you very much. interesting concept, something to do with all the money we made in the markets this year. thank you, chris. >> you're welcome. cheryl: all right. if you're watching this, you can deal with your returns.
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closing bell's going to be ringing, we've got 31 minutes to go. it may have been a merry christmas for retailers, but will it be a happy new year? we're going to go live to chicago for a reality check from one of the city's top shopping destinations and talk to one of the most respected researchers in the retail tracking business as well. plus, amazon wants to forever change package delivery by using unmanned aircraft, but it could be just the beginning of a robotics revolution in the delivery business. coming up, we're going to tell you about a potential game changer for international trade. ♪ ♪ ♪
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to defend or return to their 52 week highs from earlier this week. let's go to lauren simonetti on the floor of the new york stock exchange. >> reporter: hi, again. the defense companies are turning in a solid performance today in the sense that they hit some new 52-week highs. you see that for lockheed martin, general dynamics as well as raytheon. here's the news. according to several published reports, the obama administration is supplying iraq with a hellfire missile to fight al-qaeda, and that is made by hock heed martin. so d lockheed martin, so one of the reasons why lmt hit a new high today, just a penny below $150 a share. cheryl: all right. thank you, lauren, we'll see you in a little bit. looks like shoppers skipped brick and mortar stores this holiday season, foot traffic falling about 18% from last year. that's according to shopper track, but it's not necessarily as bad as it seems. jeff flock is in downtown chicago with more.
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jeff? >> reporter: oh, shopping, the magnificent mile here in chicago. and you're right, i'll tell you, talk about shopper traffic. put those numbers up. as you just said, cheryl, down 18% on super saturday alone. that's the saturday before christmas when you think all the procrastinators are out there. but take a look at what sales did. even though traffic was way down, sales only down less than a percent. what does that tell them? well, the folks at shopper track say it may mean that we're all shopping like men, at least the stereotypical notion of how men shop which is to say in a very focused way, go in and just get what you want. take a look at the numbers for the season. again, traffic, shopping traffic in the bricks and mortar stores down 21%, but sales only down 3%. now, of course, and this is just sales in the online -- in the bricks and mortar stores. online, of course, it was a really good year. sales about 19.2 billion dollars for the year, at least since
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thanksgiving. that's up 21%. the other thing that they found as we check out the sales here -- this is banana republic right here, the gap inc. if you want the stock -- people go not to as many stores as they used to go. so a more laser focus to the shopping, and shopper track thinks the reason for that is people research their purchases online and then go out and get just what they want. so maybe all these women are shopping like men this year. there's a guy who said hello. cheryl: oh, wow. you know what? he just wanted to say hello to jeff flock of shop business. i shop like a guy. i do. i've got my list ready to go, i'm targeted, it's on. so there you go. >> reporter: and you know what? i shop just the opposite way. i shop like a girl. [laughter] i go and i go, oh, wait a minute, look at that. i forgot what i was here for now. all right, i think i'll buy something different. how do you think i got this scarf? [laughter] it's a nice one, he says. cheryl: oh, jeff flock.
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thank you. >> merry christmas, happy think year. cheryl: oh, you too. [laughter] all right, how about a slightly different take on the holiday season? our next guest says it was quite a merry christmas for retailers. according to mastercard advisers spending pulse report, this year's holiday season grew by 2.3% compared to just.7% last year, and that is from november 1st to christmas eve, december 24th. let's bring in sarah quinlan, hello, you've let me for boston where it's going to be colder, but we'll talk about that later. um, what was it, what was the drive behind the numbers? last time you were here in studio, it was a couple weeks ago here in new york, you were only seeing jewelry. now we're seeing this huge jump for that last minute shopper, for the retail numbers. what happened? >> well, we call it super saturday for a reason, and really there was this early
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surge of thanksgiving shopping, and then there was this late surge over the weekend, and people really came out and went and shopped. and in so doing, they actually brought the numbers back, and we actually saw that great surge in terms of spending which led to this 2.3%. and the other thing that people did is we have anover all retail sales number comparison to how the commerce department quotes it of up 3.5% for the period as well. so you can really see people went to restaurants. there was a social part to the season as well. cheryl: that's really interesting. i wanted to ask you about luxury because even during the great recession luxury usually would stand the test of time, but luxury came in the flat this year. what do you make of that? >> i actually think it's extremelying. i think what this is saying is one of the things we know, there's some new research that's come out of johns hopkins that's talked about how people spend. and they break people into categories of their income, and what's interesting is higher
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income people tend to spend about half and not all of their money. and so i think albeit we've seen this huge wealth effect and surge in terms of stock prices and real estate prices, it only translates into so much shopping. that being said, our sector insights report which is the ten or so retailers in a given sector which in this case would be luxury apparel and accessories is actually up over 9% this year. so there's also a distinction between the overall every shopper this america and that sort of smallish sector where we have actually seen some focused spending. cheryl: for the consumer certainly the fact that you can get tvs for $200, and i'm talking a 47-inch tv. great for the consumer. but the electronics segment overall, and and i'm thinking directly on a best buy, an amazon, that actually didn't quite perform as it had last year. is that simply an issue of price, or is the electronics market maybe saturated at this point? >> i think it could with be a little bit of both, but for
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clearly, you know, you've had new products being introduced this year; consoles, tvs, you know, iphones, the ipad air, etc. but it wasn't enough to translate into any growth in the sector over the holiday period. but we know from spending pulse in november that electronics was down 15.8% in price. so i think that it's really a price times volume game. cheryl: you know, one of the things that happened in particular with online shopping, and we saw -- i meerntion i'm not sure if anybody could have predicted the jump we saw in online shopping, but it affected the shippers and a lot of these big names like walmart or amazon, they missed those promised delivery dates. where do you see this story going? you're the one that's got, frankly, your finger on the pulse. so what do you see with thisesome. >> well, i think what's very interesting, you know, this whole sense of e-commerce and the growth of it is very important. remember, the base is growing all the time. so we saw, actually, low double-digit growth numbers for
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the holiday period in e-commerce. and what's interesting though is that, you know, because they say the base is growing, that means that number is getting very large. and we actually have to, obviously, have the channel that can take it all the way through to the home. and that's really still being delivered. and, you know, and developed by all the retailers at the moment. and and i think that's a challenge. but i think that they understand this point of moving from, you know, the shopper wants to be in bricks and mmrtar as well as in e-commerce, so the retailers that can bring both together are really going to have the most success going forward. but remember also, e-commerce is still 40% of spending will never move there. so we're not saying that the whole world is going to have to go to that type of logistics because, you know, restaurants, gasoline spending never will be online, as we know. cheryl: one of the things we wanted to ask you, too, in the year in particular because we had this big surge in online shopping, we're expecting 15% returns coming in, again, for the online retailers. maybe that's good for ups and
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fedex, but are you surprised by how high that number is now? >> well, it's higher than the numbers we actually see in spending pulse, so i would be quite surprised if it actually comes in at that number. i also think, again, you know, it goes back to the discussion you were having with your reporter before about this targeted shopping. and i think that one of the great things we know is people really can target in e-commerce and know what they're going to purchase. so i think i would expect the returns would be about the same of where they've always been. cheryl: all right, sarah. from what you've seen now in this december data, november/december, was there one particular sector, retail sector that you think is going to pop? sporting goods, luckily, jewelry, apparel, what do you see the -- luxury? >> jewelry was the clear winner for the holiday period, and clearly everyone decided this was the year to spoil themselves and maybe other people they gave gifts to as well. but clearly, spending on jewelry was the hot seller. that being said, i think if
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we're thinking post-holiday, you know, i would expect to see a surge in men's and women's apparel because they actually were negative year-over-year. so i would think you'll see huge promotions to try to clear that inventory, so that really would be the opportunity for the shopper out there. cheryl: everybody was buying for their kids, they didn't buy for themselves. >> exactly. cheryl: sarah quinlan, thank you very much. good to see you, mastercard adviser, have a good holiday. >> hey, happy new year. cheryl: you too. closing bell ringing in 16 minutes. this is it, the rise of the drone could transform global commerce. but could we be on the brink of a revolution on the high seas as well? coming up next, the potential for a breakthrough that could come straight out of a science fiction movie, seriously. and the little twitter soared after its ipo making it one of the most successful of the year. but it's not quite highed today. we're going to find out why the
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cheryl: all right, so after all the christmas shipping delays, it could be time to send in the drones. remember the amazon drone? well, the online retail giant is working on an unmanned aerial vehicle that could deliver small packages right to your front door. ceo jeff bezos says those drones could carry box withs weighing up to 5 pounds. then there's google which has just bought boston dynamics,
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it's a company behind what you're seeing on your screen, the big dog, the four-legged robot? this beast seems quite capable of delivering packages in difficult terrain, even this snowy and icy weather. just imagine one of these showing up at your doorstep. and now the british engineering giant rolls royce, get this, wants to take drone technology to the high seas. the financial times is reporting that the company is predicting the first drone cargo ship will enter service in the next decade on local sea routes under the control of just one jurisdiction, so all kinds of stuff happening. rolls royce acknowledging it could take said for remotely-piloted ships to be used on international routes because of the complexity of global shipping rules, but you never know with all the technology out there. ♪ ♪ cheryl: sos has twitter become too hot to handle? the bluebird soared to record highs yesterday, but it's baffled analysts.
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it's even provoked one to, excuse me, to downgrade twitter stock from neutral to underperform because, quote, we believe nothing has changed to the fundamentals to justify the sharp rise in shares over the past few weeks. now, the stock is actually trending to the downside today. we can take a look at that stock trade on your screen, and one of the things that's happened with twitter in particular since the ipo, an amazing runup, but now we're seeing pressure on twitter, and we'll get that stock up in just a second. let's bring in reporter colleen taylor -- there we go. thank you, guys, down 12%, it's a big drop. let's bring in colleen to break this all down. that's the big question, can twitter deliver on the promise of twitter? pause that's what all these -- because that's what all these investors are buying. what do you say? >> i think when we think about twitter, especially the larger public, they think of this microblogging platform where people tweet about what they ate
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for breakfast or kim kardashian shares pictures of her baby, but i think the real potential and what some smart investorsors are seeing is the potential for twitter to really build an ad network that goes beyond itself. now, back in september just a few days before twitter announced plans for its ipo, twitter said it bought a relatively small ad-publishing network called mo pub and a couple of weeks ago, twitter's mo pub just released its first ad platform that works in the way that google's works. you don't have to be on google for google to make money off of ads, and twitter is building a similar thing. i think that's why people are optimistic about this company. it built the native ad network that a lot of people thought facebook was going to build, and turns out it's coming from twitter. cheryl: but do you think this type of strategy for twitter will alienate those faithful users that love the fact that they go on twitter? we are seeing a lot more promoted tweets in our feeds
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now, do you worry they're going to say, you know what? i'm going to go find some place else to talk about my breakfast and the pair of shoes i just bought? >> there is always a danger of alienating users with ads, i think so far what we've seen from twitter has been a really, really smart, sensitive ad strategy where the ads really do make sense. they're pretty well targeted to you as a user. they're not those blast belly fat banner ads that you see on some other social networks. they're actually pretty directed and pretty targeted. but i think that long term it makes sense that the analysts are saying, you know, we need to be a little bit cautious here. was even with all the potential, this is still a stock just with potential. twitter is a company that isn't profitable yet, isn't making money at the bottom line. mo pub, they're just on track to make about $20 million this year, so we're not talking billions -- cheryl: not bad though, colleen. >> potential. cheryl: all right, i do want to
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ask you really quick, i want to switch gears to personal assistant software and technology. apple has had siri, siri's been out for a while, not that popular. thousand you've got google trying to compete. are you making a bet on either name right now? >> you're exactly right. siri's not the most popular thing. i think this might be a tortoise and the hare story, in the flashy thing that only 15% of apple users admit to using. and google being a little bit more of a to tortoise, doing the slow and steady situation. but these two companies are really very different, so we'll have to see. but i think that personal assistant apps whether it's google now or apple's sixer iri -- siri, i think those really are the future especially as we look at wearable devices with google glass and smartwatches. these are going to be devices we talk to, we don't type into. cheryl: google maps, we need that like we need air, i think
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for many of us in this country. colleen taylor, good to see you. >> thank you. good to see you too. cheryl: all right, closing bell, this is it, end of the week. we've got six minutes to go. the digital music revolution could be at a turning point with dozens of new entrants. coming up in "after the bell," we're going to talk to one player in this business who wants to take down big boys like spotfy and pandora. david asman on his way in right now. ♪ ♪ [ male announcer ] once, there was a man
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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: of right. teenine and i did for another hour. david: we are, let's go right to lauren and get the latest from the new york stock exchange. you have to talk about twitter. the big sell-off, but if you bought at the ipo price, you are
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pretty happy. >> reporter: the stock is now down 13%, given up more than 14 billion in market cap today alone. that means more than the size of a company of j.c. penney's is what twitter has given up today. cheryl: airline stocks dipping today, delta seeing a big loss. >> reporter: a lot of the airline stocks down, delta, united, american down, oil prices closing about 100 bucks. have not seen having quite some time. also some reports that libya plans to resume some of their oil exports. david: we will be talking about streaming music coming up. a person coming on who has a new company that plays to that markkt. pandora not doing too well, another downer. >> reporter: part of a lot of the internet stocks that are selling off. light volume, i do want to point out, though, today for pandora. it. cheryl: and really quick, and jumping on the deal, t-mobile. >> reporter: someone wants to
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buy t-mobile. at&t, now the parent of sprint. david: the bells are ringing. i would like to know, maybe charlie brady can tell me how many times it has crossed the zero line, but at least 30. cheryl: he is home and his pajamas. david: if he is, he will be shocked. and up and down day, barely going up and really going down. it looks like it is going to the downside, but it could kick up as this market settles. all of the indices are down, but in the case of the dow it is basically acquired line. it may change. cheryl: it takes at few moments to saddle, and this could be seven straight sessions of gains before the dow. david: if there is a one take increases will be the 501st straight gain for the dow as well-known. cheryl: it is looking good. we do want to bring your front-page headline. oil today.
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