Transcripts For FBC Countdown To The Closing Bell With Liz Claman 20160421

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career of one of the best and well-round artists of all-time. a true businessman as well. on the campaign trail, guns, transgender bathrooms and the pc police as all five presidential candidates hit the major states with huge primaries five days away. special report host bret baier weeds through the fluff to tell us the real important stuff. who's gaining steam ahead of super tuesday 3. and markets are sliding in the last hour, hit session lows falling below 18,000. the dow down 93. right now it's just punched back above 18,000 by two or three points. a couple of dow 30 points reporting less than stellar earnings. the dow off session lows, want to make that clear. we are less than an hour to the closing bell. let's start the "countdown." we still do not know at this hour why prince died at the young age of 57, but as we follow the story, we know that millions and millions of people around the world are mourning the man known as one of the most original music stars in history. we want to quickly let you know that the markets, yes, at session lows, the dow down about 131 points, now down about 92. just four points at this moment above 18,000. yesterday we were 1% away from all-time record highs here. teetering below that at the moment. but travelers insurance is the problem here, shaving about 44 points off the dow. the company reported profits of $2.33, well below the estimate of $2.55. the company cited huge losses in texas due to hailstorms during the quarter. travelers down 5.5%. we warned you it might happen, and it has, sun edison has filed for chapter 11 bankruptcy with liabilities outweighing any kind of strength of the company 16.1 billion in liabilities and failed acquisitions about the success of the moment of that stock trashed the company. it is now a 34 cent stock. go ahead, bret? it looks like we were so close, unlikely that we will close at all-time records. what's the one thing that's going to put them into record territory? we've got todd colvin at the cme group. why we were down 131 points on the dow when we had a couple of days of strong moves on the bulls? >> i think a couple of things. one the earnings announced that we're getting are good but not great, and earnings season typically gives us a not so hot, not so cold type of environment in equity. we see little movements up and down. likewise, we have a federal reserve meeting next week where the fed is going to issue a statement that says why they're not raising rates again. the stock market, while they like the zero percent interest rate environment, they're starting to scratch their heads and say are we going to raise rates in the stock market doesn't like a confused federal reserve. they like a fed that's adamant and has a focus. the fed is starting to disconnect from what they're saying and i think that's a problem with equities. you've seen the vix creep up, on very low levels. liz: yeah, right now the vix is up about 4%, and what does that mean? nothing. treasury yields climbing to three week highs. i saw 1.87% as a print. there isn't that much fear in the markets. let's talk to investor viewers at this moment, are stocks a good time to go in while we're at record highs or wait for a pullback once again? >> i think that a couple things, yes, equities hang on the highs until there's a catalyst for them not to, and i think that buying equities at these levels when there is no news, when you get around major events like fomc, stocks get sticky, and i probably would not be a buyer here, wait until after the fomc and see what the knee-jerk reaction is to the statement. liz: teddy, give me your thought here, we had mario draghi, does europe matter at this point? it kind of does, he went out there and said i'm in it to keep things loose. we will not see higher rates, do everything we can to stimulate and the dollar went up and we had the euro go down, that does tend to help our stocks, does it not? >> that's right. the secret sauce of the market since yellen had that talk in new york at the economic club, you know, when she threw in the towel and we talked about it that afternoon, the trade is a stronger oil, weak dollar, and reinforcement of the dovish position as far as interest rates. you had half the message today, but the conflict is this whole thing about negative interest rates, and i don't think anybody really knows what the impact is on the economy, but as far as the stock market is concerned, the trade is weak dollar, better energy prices and no change in position vis-a-vis interest rates in this country. ultimately probably economic disaster but for the stock market, it's good news. liz: we'll see, and we know the negative rates are not good for one group, that's the financials. they're moving slightly lower today. good to see both of you, todd and teddy. back to the story about prince, it is a shocking loss for the musical icon who is only 57 years old. his real name is prince rogers nelson, confirmed to have passed away at his home at the studio and housing compound he had in minnesota. the cause of death is still not yet been determined but last week prince had been on a flight home from atlanta when the pilot was forced to make an emergency landing in illinois so the artist could be rushed to the hospital. he was complaining of difficulty breathing. prince was one of the best selling artives of all-time. look at business of prince. 100 million albums sold but the accolades much further than that. "rolling stone" ranked him 27 on the list of 100 greatest artists of all-time. 7 grammy awards, a golden globe, academy award? he won an oscar. first artist to have number one single, movie and album all at the same time. one of our own here at fox knew prince, lauren green grew up in the same neighborhood in minnesota. you knew him? >> shocking on so many levels because i knew him as a kid i grew up with. and he wasn't prince, he lived on the same block and we played in the same circles but i wasn't close to him. we went to the same grade school, same high school. he didn't become prince until later and i realized he's famous. i know that guy. liz: that's the guy. >> he was such a consummate musician but a great businessman, and persona on the stage showed he understood the industry to know how to get the best out of it. that's why he was so helpful to other artists so he could help them rise to the stage as well. liz: people don't know, he was 5'2". >> it was odd, when we actually talked [laughter >> how tall are you? >> 5'10". he was a tiny man but so much bigger on the stage. liz: looks bigger than life. >> i know at paisley park, he had a wardrobe department with patterns they would make all of his clothes and his shoes so he really had custom made a wardrobe that made him look larger than life. liz: again, i used that word original to the script because for me, prince was such an original, so unique, only one of a kind. he didn't knock off everybody else, everybody tried to knock off him. he had all the songs and went through different eras, "1999" is completely different from "purple rain." my favorite was "raspberry beret." were you in the videos? >> i was in a video called my name is prince. you can youtube it but i played a newscaster, i was not in a skimpy outfit on the stage. i was type cast as a newscaster. liz: you would have been fine every way. your favorite song, knowing him would give you a different prism with which you were looking. >> my favorite is "purple rain," it spoke who he was and hoped for in life. a wonderful product of minnesota. liz: and stayed there. >> and that's a testament to the culture of minnesota, he's not the only one who stayed there. terry lewis, the recording studio who produced a lot of the janet jackson's albums stayed there as well. other people stayed there because of the rich culture of music in minnesota. not just pop music but classical as well. liz: lauren green. wow, you really have a link to him that is so much more than a gosamor thread. sorry for your loss and the loss of prince. >> sorry for minnesota for its loss. probably the most famous person to come out of minnesota. liz: during her years at mtv, fox business' kennedy covered him extensively. tonight she's going to devote her entire show live to the life and death of one of mtv generation's biggest stars. prince, dead at age 57. we're coming right back. it's intelligent enough to warn of danger from virtually anywhere. it's been smashed and driven. it's perceptive enough to detect other vehicles on the road. it's been shaken and pummeled. it's innovative enough to brake by itself, park itself and help you steer. it's been in the rain... and dragged through the mud. the 2016 gle. it's where brains meet brawn. lease the gle350 for $599 a month at your local mercedes-benz dealer. show show me more like this. s. show me "previously watched." what's recommended for me. x1 makes it easy to find what blows you away. call or go online and switch to x1. only with xfinity. . liz: republican front-runner donald trump stumping in the keystone state at this hour, hoping to re-create his big win in new york, in all five of next tuesday's super tuesday 3 primaries. and it looks like he's got a chance. the latest polls out of pennsylvania show mr. trump leading competitors by double digits. 40% followed by ted cruz with 26%. we've got team fox business coverage on the trail, connell mcshane in harrisburg, pennsylvania where trump will hold an event tonight, and blake burman in frederick, maryland, where ted cruz blasted trump today. connell, we will begin with you. are the crowds expected to rise here? >> reporter: yeah, should have a nice crowd here. at one of the patented trump rallies which begins this evening. i'm sure that lead in the poll, that 14 point comfortable lead makes the campaign happy but less important here in pennsylvania than any other state because of the unique way the delegates are allocated across this state. 71 statewide but the winner will only get 17 tuesday night. it's not a lot. 54 delegates out of pennsylvania will essentially be free agents. it's created this interesting dynamic in the presidential race, in particular, in this state, which is an important one. the trump campaign trying play the inside baseball game of politics that the cruz campaign is known for, trying to play catch-up and stick to the true identity, what got you here if you will. we're starting to see two trump campaigns emerge, and one will sound in harrisburg a lot like maryland sounded last night. watch. >> i'm winning by like 300 delegates. i'm winning by -- [cheers] i mean, to me, though they don't count it, i'm winning by millions of votes, millions of people have signed onto vote for trump because they want to make america great again. >> reporter: he still rails against the system. goes after his opponents. we still hear lyin' ted. we hear crooked hillary, all the thing that trump has been doing for weeks. the other side of the campaign emerging, we saw it in florida with paul manafort working the rnc meeting. we see it here in pennsylvania, from what we understand a couple of members of congress locally are working, trying to get friendly delegates on the slate, getting people friendly to the campaign to run and d-delegates from pennsylvania. an area where trump struggled in the past he's trying make a move, trying to catch up with cruz. doing well in the polls here but the delegates are important to watch all the way to july and the convention. liz: yes, it's the delegate count, the nest of delegates that can you acquire. connell, thank you very much. as connell mcshane goes work that end of the story, senator ted cruz in maryland that we're watching at this very second trying paint donald trump as a liberal consumed with political correctness, but will cruz's attacks make any difference? blake burman in frederick, maryland, outside of the weinberg center for the arts where cruz just spoke, correct? . >> reporter: ted cruz was here earlier today. we're in frederick, maryland, a commuter community here, about an hour away from 1600 pennsylvania avenue. outside of the d.c. beltway. before we can get into ted cruz, the story involving him today also involves donald trump because earlier this morning, donald trump was on the "today" show, had an interview with matt lauer, and lauer asked trump about the north carolina lgbt law, which essentially says that to use a public bathroom, you have to use the bathroom of the sex listed on your birth certificate. and trump said he pretty much sided with the fact that north carolina shouldn't have taken up that law, basically saying he opposes what happened in north carolina. ted cruz got wind of it, and here at his event in frederick, a couple hours later, went after donald trump for that very comment, essentially saying that trump was cowing to political correctness. here was cruz in maryland earlier today. >> a few months ago donald said he could be the most politically correct person on earth -- [laughter] >> and i guess he's showing us what that looks like. i am waiting for anticipation for the new baseball caps, make pc great again. [ laughter ] reporter: cruz, afterwards, liz, put out a statement saying trump is essentially a liberal elitist. this is something we have to watch over the next couple of days to see if cruz pounds this one. and also whether or not it actually matters for donald trump at this point. here in maryland, for example, trump is up by double digits and come tuesday night, it is potential, there is the potential that cruz finishes third here. the way the state is set up, winner take all by congressional district, trump could walk away with all of the delegates potentially with cruz and kasich getting none. liz: that's a stretch. if ted cruz is trying to paint donald trump as politically correct, donald trump would be the first person to say i'm not pc, i'm not politically correct. >> reporter: yeah, that's the argument. that's what he's built up and trying to hit his strength. liz: you're our strength on the campaign trail. much more at the bottom of the hour. we have fox news' bret baier on the democrats and the battle between hillary and bernie. what's going to happen there, if perhaps bernie drops out. will we see his fans coalesce around hillary? bret's going to give us the insight. closing bell 40 minutes away. the dow is back down below 18,000. take a look at the dow 30 heat map. ibm is the leader, up about three bucks, but the laggards, we told you about travelers, verizon a bit of an issue here, the nation's number one wireless carrier telling investors today that the strike of 40,000 workers is expected to hurt in the current quarter. yes. those people and those people striking certainly will ding the numbers. that's what verizon says. the stock is down 4%. up next, president obama wrapping up his visit to saudi arabia as the uproar to release the 28 classified pages from that 9/11 report remain front and center. we have found one of the few who has read those 28 pages of documents. the former u.s. ambassador to saudi arabia here live, next on "countdown." please stay with me. >> there is information in there they think the public needs to know. i can't imagine why this administration has refused to declassify these pages. . liz: we have some breaking news on the apple v. fbi story. the fbi director james comey is speaking at aspen security forum in london and revealing that the agency paid $1.3 million to break into the san bernardino shooter's iphone. he added that even though this is the largest ever publicized amount for a phone hack, he thinks it was, quote, worth it by using a third party to hack the phone, the case against apple to unlock the phone was dropped by the u.s. justice department, but the revelation is coming out. 1.3 million dollars to crack open a terrorist's iphone in the horrific attack months ago. president obama speaking to the press in riyadh, saudi arabia following meeting with king salman. the president stressing importance of the u.s.' cooperation with the house of saad. >> our intelligence sharing is vital in fighting against terrorism, and has consistently improved. we're starting to see the need to cooperate on new threats like cyberattacks, for example. liz: while he was talking about those types of threats, the president's visit to the kingdom was the subject of much sharper criticism as a movement is growing on capitol hill to release 28 classified pages from a congressional report that many believe ties members of the saudi government to the 9/11 attacks. few people have read these 28 pages. the man on your screen is one of them. the former ambassador to saudi arabia, robert jordan. welcome, ambassador. i know you're not allowed to reveal it was under cloak-and-dagger that you read these things, are our fears grounded that it ties the saudi government to the 9/11 attacks? >> i think it's been reported from several sources that there is no smoking gun. i think i would agree with that. having said that, it's very important to declassify these 28 pages. when i heard about the pages in 2003, i said i needed to see them, and the cia said no, you can't, you don't have a need to know. i said are you kidding? i'm the ambassador to saudi arabia. they brought a young guy out from washington, let me see the pages and he took them back and i went back to d.c. my conclusion is that there are things in there that i think the saudis would want released, that americans want released. i think the press needs to see this and congress needs to see it and make their own judgments but there has been reporting that the staff director of the 9/11 commission saw the report and asked the investigators to join his staff and further investigate what was there. they said they finally came back with nothing. i think we need to know more about that. we need to see those pages. liz: congresswoman nancy pelosi agrees with you. she thinks they should be released. in fact, she's strongly supporting the release of it. she has not read them. you are among the few who have. people are very upset about this, there have always been the black helicopter rumors and conspiracy theories that the saudi government was squirrelling away people, and look, osama bin laden, from saudi arabia. do we have something to worry about with the saudis? if we do, why would we share any information with them on anything? >> i think it is very important for us to remember that senior levels of government, the saudis have been a steadfast ally. yes, we have many disagreements with them but as winston churchill said one time, the only thing fighting with allies is fighting without them. we've desperately got to have allies in the middle east. and as imperfect they are, they're what's there. i also believe there is anything in these 28 pages that should suggest that the saudis should not remain an ally, that we shouldn't share intelligence with them, and they have certainly shared intelligence with us. liz: do you trust king salman? he has recently gotten power. what do you think? >> generally i trust him. i worry a bit about entrusting so much of the kingdom's business to 30-year-old deputy crown prince. i know the crown prince, mohammed ben-aief, the best of those. liz: the shot has frozen with the ambassador. we will try and get it up. he's clear in saying, he's read it, feels it needs to be released but there is no smoking gun that he feels ties the saudi government directly to the 9/11 attacks. our thanks to ambassador robert jordan, former u.s. ambassador to saudi arabia and apologize to our viewers for the ghost in the machine there. closing bell 30 minutes away. hillary clinton speaking in connecticut on gun violence ahead of next tuesday's primaries. can she keep her new found momentum going in next tuesday's big blue state blitz after her decisive win in new york? fox news senior political anchor and special report host bret baier helps handicap super tuesday 3. that's next on "countdown." >> blame the victims, blame the victim's family, blame the victim's neighborhood, find somebody to blame instead of saying you know what? we have too many guns in this country in the wrong hands. [applause] yahoo! essentially flat today, after the company accepting preliminary bids to be performed came to an end on monday. the top bids came from verizon and buyout from cpg. others are bain capital and former yahoo! ceo. the u.k. publisher daily mail failed to submit an offer, though they say they may join forces with another company to make a play for yahoo! bids on the table between 4 and 8 billion dollars. the internet company released earnings tuesday, bit of disappointment. revenue dropped 18%, fell below a billion dollars. that's the lowest since marissa mayer became the ceo five years ago. keep it here on fbn. we'll have the earnings on yahoo! starbucks and visa. . liz: breaking news. 24 minutes before the closing bell rings, take a look at aeropostale. why are we look at aeropostale? under armour is ua, jumping about 8%, and i want to tell thought power of steph curry is definitely helping them. the warriors signature line is credited for footwear sales at under armour surging 64% in the first three months of 2016. overall athletic sales up 13%. big winner today. hillary clinton big winner in the new york primary and hitting the campaign trail with pockets stuffed with ammo in the form of cold hard cash. hillary's super pac is planning a $90 million attack on the gop the day after the california primary june 7th, and while hillary clinton is not explicitly telling senator sanders to wrap this up, she wants him to know his supporters are not as loyal as he thinks. this morning, saying just like her supporters backed president obama in 2008, when she had to drop out, sanders' voters will do the same. >> from everything i've seen, both personal conversations and research that has been done, just as it was with me, when i dropped out, you know, the vast majority, senator sanders' young supporters will look at choice. the choice will be pretty stark if either of the two leading republican candidates become the nominee, and i'm comfort that we'll all join together. liz: we're joined by fox news' "special report" host bret baier. good to see you, bret. >> hello. liz: hillary clinton is very confident what she articulated will come to pass. sanders' fans will move to her once he gets out. will that happen? they seem to be different on policy issues. >> they do, if you look at exit polls from new york, it's telling. in that, 7 in 10 democrats said they would support the other candidate if the other won, and that's not the same in the republican party. 4 in 10, 3 in 10. i think there is coalescing that would happen basically because the republicans, whomever they choose won't be in line with the democrats. but to get motivated, all of those young people, the momentum that bernie sanders has, that will be a challenge for hillary clinton. liz: interesting thing to see because, you're right, the republicans seem to have a lot of scorched earth between them and, of course, you have donald trump not helping that, he doesn't care because he calls ted cruz lyin' ted and says horrible things about everybody else, but there isn't so much scorched earth between bernie sanders and hillary clinton. that said, how much longer can bernie sanders hang in here? >> listen, i think he kind of hangs in for a long time. he's got a lot of money, liz. he's raising $40 million a month, almost, and that's on small donations around the country. he has 15,000, 20,000-people events. we'll see this next week how his tone and tenor is about clinton. if it is still pointed, you will see that this race is still really engaged. if it's not, i think it's the beginning of the end of the race but he'll still be around. the other thing to remember is there's another primary, the fbi primary. what the fbi decides to do with the clinton investigation, and that's hanging in the balance. liz: the e-mail investigation does cast a large shadow at points of this race. let's get to, of course, let's move on and step out on the republican side, donald trump pushing once again for ted cruz and john kasich to get out. there's no way they can reach 1237. they say he can't either. do you see either of those two finally letting go. the white knuckles holding onto the edge of the cliff and saying i'm out. >> i don't, i really don't. i think of them, john kasich would be the one potentially who would. i don't see it, there is still this hope, this narrow, narrow path, but this hope that they can, on a second, third, fourth ballot, somehow convince the convention delegates that they're the ones that can beat hillary clinton in the fall. i think donald trump has a chance to get to 1237, and if not, he'll be short, but could get there before the first ballot. liz: but the never trump -- everybody said that was going away the never-trump push, you have the political action committee, $8 million they've raised and ready to throw out there? >> yeah, and picking states selectively. they didn't run any ads in new york, obviously. they're going to run ads and do groundwork in the states coming up. liz: great to see you, i'm wearing purple, mine is in honor of prince. what was your favorite prince song? >> "1999," "little red corvette" maybe? liz: i like "raspberry beret." you can watch bret on "special report" week nights at 6:00 p.m. eastern on the fox news channel. watch fox business' coverage of election 2016, super tuesday 3.0, april 26th, coverage begins at 7:00 p.m. eastern. the dow is down 107 points. we're at 17,988. guess what? we're also coming right back. it's more than the cloud. it's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next. and i quit smoking with i'm chantix. i had a lot of doubts going in. i was a smoker. hands down, it was, that's who i was. after one week of chantix, i knew i could quit. along with support, chantix (varenicline) is proven to help people quit smoking. chantix definitely helped reduce my urge to smoke. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some had seizures while taking chantix. if you have any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse or of seizures. don't take chantix if you've had a serious allergic or skin reaction to it. if you have these, stop chantix and call your doctor right away as some can be life-threatening. tell your doctor if you have heart or blood vessel problems, or develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. decrease alcohol use while taking chantix. use caution when driving or operating machinery. most common side-affect is nausea. life as a non-smoker is a whole lot of fun. ask your doctor if chantix is right for you. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. 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[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. . liz: taking you live to a helicopter shot of paisley park. this, of course, is the area, the compound, where prince, the musical genius artist was found dead this morning. fans are apparently beginning to gather here. this is minnesota, an area outside of minneapolis where prince was raised. did all of his music here. prince passed away at the age of 57. we have a little more detail coming in from the sheriff's department. he was found unresponsive in an elevator in the compound. officials to no avail, and he was pronounced dead at his home. and, of course, this after making a trip, emergency trip to the hospital last week after he had difficultly breathing. there were reports he had a really bad case of the flu, but prince, at this moment, is being remembered as one of the musical geniuses, not just of his time but of all-time. joining me now is a man who met him when he was just six years old. lee hawkins. you were a little pup. >> yeah. liz: you met prince because you're from minnesota. >> i'm from st. paul, minnesota, i live down the street from dez deckerson, his guitarist. i am a musician myself, this is a big impact on me because creatively he was such a genius, he played every rhythm section, instrument, and oftentimes would record a whole album and then create a musical group to support that album. liz: a perfect example of that is morris day and the time. >> yes, the family, appalonia six, vanity six. the minneapolis sound was a signature sound that pretty much dominated the music industry and r&b and pop in the 80s, michael jackson adapted that sound, that keyboard sound from minneapolis. liz: the world is littered with musicians with terrible business people. he was a brilliant businessman. >> when he had his first record for you, he was 18, it was released when he was 20. if you look at the liner notes, produced, arranged, composed and performed by prince. prince didn't leave any money for anybody else and he was self-contained, that increased his value to warner bros. which set him up for the master record chgs prompted him to change his name like a symbol and liken it to a slave arrangement. liz: now he has the catalog. what happens to the catalog? >> the rights reverted back to him in 2014. whoever his heirs are will get that, but also, he is an owner in title. what a lot of people don't realize, he pulled all of his music off of streaming services like spotify and apple music. liz: we gotta go. you just saw him this summer? >> i saw him this summer at paisley park, he hosted a party for the national association of black journalists. >> he was a quiet man. >> yes but he was a musical genius and a mysterious figure to support that quirkiness. liz: lee hawkins of the "wall street journal." tune into "kennedy" tonight at 8:00 p.m. she'll focus on the life and death of one of mtv generations biggest stars. it will be a live broadcast. live guests. a real tribute in remembrance of prince. prince gone at age 57. we will be right back. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class. now receive up to a $3,000 spring bonus on the e350 sport sedan. innovative sonicare technology with up to 27% more brush movements versus oral b. get healthier gums in 2 weeks guaranteed. innovation and you. philips sonicare. save when you buy the most loved rechargeable toothbrush brand in america. a grwas seeing theing the different discounts.ice it had like a manufacturer discount, it had a usaa member discount. all of them were already built in to the low price. i know that i got a better deal than i would have on my own. usaa car buying service, powered by truecar. . liz: now to the breaking news on aeropostale, the struggling retailer shares are halted at this hour. go to the new york stock exchange where adam shapiro is standing by. now a 15 cent stock. >> it gets ready to file for bankruptcy. 800 stores nationwide trying to reorganize and deal with lenders. this stock has been down, 32%. year to date 46%. if you look at 52 week performance, 800 stores, the teen clothing retailers they are having big trouble as everyone knows. liz: that's amazing, they're everywhere and it's a 15 cent stock. adam shapiro thank you for bringing that breaking news. from that to the fact the markets are close to hitting record all-time highs, we look at this, u.s. mortgage applications rose to nine week highs as home prices jumped better than expected for february. so what's the better investment? if you had to choose between a thousand shares of a favorite stock or the house next door, which one should you buy? joining me, mortgage genius barry habib, to the shares of microsoft, under armour, caterpillar or the house next door? >> i think overall the housing market provides a better value. overall right now. the general markets themselves when you take a look at stock market, it is a little pricey, risen 16% in a little over two months. maybe it's due for a breather. you have a p/e ratio near all-time highs. earnings declines for seven straight quarters. you have a lot of things that are perhaps warning signs out there that maybe it's due for a little break. on the other hand, the housing market has good things going for it. prices have come up. but everything you look at points to the fact that there's a lot more to go in the housing market. laws of supply and demand, have you very low inventory. 1.75% of the homes are for sale. near historic lows, you have to go back to 2012 and 1994, both great times to buy. you have to worry when you get to the 3 or 4% like 1986 or 1998, nowhere near that. near the highest levels of all-time in many areas. >> looking at existing housing, numbers came out yesterday. >> yes. liz: you had the northeast jumping 11%. >> correct. liz: existing home sales are doing well, the midwest up 9.8%, is it better to go to regions that aren't as hot to get better deals? >> even regionally you have to break to down locally to the local job market, the local supply and demand. wherever i go, everybody is saying barry, there is not a lot of supply. people are ponying up sometimes paying more than full price. when you look at the expected rates of appreciation, a, they're sustainable, b, in the neighborhood of 5 or 6% which is healthy, if it's less than that, people don't get excited over 4% appreciation, but can change your wealth picture after seven or eight years. and the other thing is home ownership rates are low. people say that's a bad thing. it's a good thing. you have to worry when it's high like 2004 and 2005. liz: then everybody is in there. >> bingo. there are so many more renters, the home ownership equation is cheaper but have you renters who can buy homes and the quality of loans is good right now. if you watch the big short, the go-go dancer who bought five homes are and a condo! you don't have that now, the buyers are qualified. the rates of delinquency are very low. liz: barry habib says forego the shares of xxx stock and move onto the house next door. great to see you. on wall street, value investor bob olstein has made brilliant calls himself, now make a new call. the case for active investing. listen. >> i believe it's people's jobs to find active managers. the governor of pennsylvania says there's no risk in the indexes. well, the indexes were the ones who bought enron, they bought worldcom. robot investing, that's the du jour of the day. liz: bob is going to be on "wall street week" friday. but in the meantime, a guy who disagrees, tom lydon, ceo of etf trading. you say better to go with etfs, baskets of stocks that win for themselves. >> liz, if i own a mutual fund company i'd put the hate on etfs as well. scared to death. 200 billion dollars came out of mutual funds last year. 125 billion went into etfs. people want diversification, transparency, they want low cost. and that's what etfs are giving investors, they don't want to pay the high fees. lack of transparency and the underperformance. liz: buffett is on your side, he'll always win if you go into the s&p inde get to your favorites right now. you like guggenheim. power shares, footsie, u.s. 1,000. looking at those two, tell us what the threat is that is common here. that would help our investors. >> bob's point, if you buy s&p 500 and happens to be a beg weight with equal weight, 500 stocks having equal weight with the going again him rsp they are equally participating in performance as opposed to top 10 stocks on owning 18 percent of the allocation. cap weighted indexes. really are old, we're doing a shift with the smart beta movement and more and more coming on. smart beta was grandfather of smart beta 10 years ago with rob and ftse rafi. fundamental investing and value investing come to the etf marketplace. they have done a fantastic job. liz: 970 hedge funds closed shop past couple years. it is very difficult to say, active managers that you pay a lot of money to, do better than index. tom lieden of etf trend.com. looks like closing bell rings. we do not hold the 18,000 level. [closing bell rings] color the market purple not red, in honor of prince. david and melissa. david: stocks ending the day down triple digit the. hi, everybody, i'm david asman. melissa: i'm melissa francis this "after the bell." new at this hour, super tuesday round three we're five days away from voting. candidates out in full force, ted cruz goes on the attack, targeting donald trump for his comments says trump is bowing to political correctness. the world mourning the loss after pop superstar, prince. he was found dead at his minnesota estate. police investigating the cause. david: let's stick with the story. fox's julie banderas has all

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