Transcripts For FBC Markets Now 20131101

Starts now. Dagen i was trying to get your name in there. Connell hey, all right. Lets do this dagen mcshanes here. Connell yeah, thatll tease em up, get things going. Markets up, and, well, everythings good unless youre Kathleen Sebelius out on the road dagen or the driver of that ferrari that got crushed. Connell also not good. Nicole petallides joins us to start things off. Reporter and im good, im doing well here on the floor of the new york Stock Exchange. Dows up 61 points, folks, snapping the twoday losing streak weve been seeing. Dow jones industrials up 61 points sitting at 15,606. Dont forget we had a great october, right . Were up 2. 7 on the dow gaining over 400 points, so weve hit records this week on the dow, nasdaq and s p to speak of. Also lets just take a look at some longer charts comparing one week and one month charts as we continue to watch the action to the upside. Some of the energy names doing well, were watching netflix and jcpenney doing well, auto sales and thats soaring. Back to you. Connell all right, nicole, thanks. Dagen at the end of what can only be described as an awful, terrible week for obamacare, Kathleen Sebelius is trying to do damage control with a trip to memphis. Connell rich edson joins us with the latest on this. Reporter well, she and the administration continue to defend and sell law. She will highlight government workers in memphis, theyre paid to enroll americans in health care. Back in Washington Republicans on the House Oversight and Government Reform Committee say the results of day one of obamacares exchanges were pathetic. Administration meeting notes released by the Committee Say ongoing issues, high capacity on the web site, direct enrollment not working, va system not connecting, expeer oncreating confusion with credit check information, six enrollments have occurred so far with five different issuers. On those figures the Administration Says, quote, these appear to be notes, they do not include official enrollment statistics. Of we will release on a monthly basis after coordinating information from different sources such as paper, call centers and collecting data from states. The system is just too unreliable to figures. Secretary sebelius says her department will release them next month, and she also says she expects them to be low as americans have five more months to enrollment back to you. Dagen thank you so much, rich edson, in washington. Connell former governor of neww jerseys with us, we have these numbers, six people successfully enrolling on day one which sounds like a joke when you hear it, but it actually, apparently, was the truth. Then the second day or third day they were up to almost 250 dagen hey connell i mean, come on, would you want to trade places today with Kathleen Sebelius . No, thank you very much, i would not. And the other problem is those that did sign up, because ive been talking to people about this, they lose their current coverage as soon as they sign up. But the Affordable Health care act doesnt really start providing coverage until january. 14th, i think. Connell is that true . Its something youve got to look into further because ive heard from some people who found that. They actually made it through, they signed up and then were told by their insurers, okay, sayonara. Dagen do you believe the democrats and the architects of this Health Care Law really care its going that badly . Because it is law, its being implemented. If the rollout is terrible, what do they care . It is not going away. No, they care. They care a lot. Particularly those who are up for election. I mean, they are scrambling trying to figure out, the democrats, what to do, all the ones who voted for it. You know, i wish that the republicans hadnt shut down the government in order to make a point, because they could have sat back and let this thing crash of its own weight which its clearly doing. And the thing that startles me so is to have Kathleen Sebelius and to have the president say, well, we didnt know when you see things that are saying, you get examples of stuff that they heard that said, guess what . Were going to have a problem here. This is the biggest thing this administration has done. They put all their marbles in this basket, and to not be on top of it 24 7 to make sure you got it right, we havent ever unrolled or rolled out a big plan like this that hasnt had some glitches, fair enough. That happens. But to have it this bad, to have things fall off the edge this badly that is just connell you bring up a good political point, and that brings up a question about the future because a couple weeks ago we were talking about the internal war inside your party between moderates like you and the tea party people, whos the nominee, what does 2014 look like. How much has the last couple of weeks changed things politically, do you think . Its changed things a great deal. I mean, the republicans have done themselves a lot of damage during the shutdown, no question about it. Every poll showed that. Now theyre out of the front lines. Theyre not the ones with the spotlight on them. Its the democrats connell but that internal war is not over. No, its not over x im hoping that they dont go back at it when we get into these next rounds of discussions on the what we do about the deficit and what we do about spending. Its just not a smart idea to close things down again. Unfortunately, looks like were just going to kick the can done the road. Both sides are saying that, and that is really discouraging to the American People because we need to start to take some major steps, and both sides have got to give a little bit. Dagen so much has been made of the lack of truth on president obamas repeated statements about people keeping their insurance and that the administration, not just the president , but many people were press than forthcoming about the real less than forthcoming about the real impact on everybody that had insurance. Do you think that has an impact on i mean, again, the president doesnt have to run for reelection, but what about just democratic congressmen . Oh, absolutely, without question. Theyve lost their credibility too. Dagen you believe everybody everybodys hurt. The republicans hurt themselves earlier on. The democrats are really feeling it now. Its just as you run up to elections theyre going to be, depending on what happens between now and next november which is a long time away for the house and the senate, theyre taking it on the chin now, and they should be. I love hearing the democrats ship this, well, we really just want to get this right, and the republicans just stop trying to make political points, and im sitting there thinking if this were george w. Bush, you guys would have had connell thats always way. They sound so selfrighteous when they try to say were just going to try to make it right. Dagen the spin now is that these plans that people are losing, these insurance plans that individuals are being cut off from where they have to go and buy in some cases, more expensive policies. It was the evil Insurance Companies selling people fraudulent insurance or bad insurance, and then the people who were buying it were too stupid to know that they were getting ripped off. That is the talking point. And i guess theyre, the democrats calculus is that there is such a small percentage of americans, voters who will be impacted in this way losing their insurance and having to pay more, they just dont care. Well, i think anytime you Start Talking and saying, calling the American Public stupid, you better watch out if thats what youre basing it on dagen not stupid, but duped. Because the other thing is i was talking to, again, someone who drives a car for a living who said that their insurance, her actual premiums, monthly premiums would go down, but her deductible would go from 5,000 to 10,000. She said i cant afford that. Connell right. Theres no way. So every which way you look at it, there are huge issues here that need to be resolved, and how you can hold people to a date certain by which you have to have enrolled when the system isnt working is, again, something that makes no sense. Connell thank you, governor. Dagen governor, it was great to see you. Well see you soon. Connell all right. To the job market now because Goldman Sachs had some interesting comments this morning, essentially telling all of us that we need some patience. The new report says the labor market will need until 2017 to return to what are described as precrisis levels. So thats quite a while. Not great news, certainly, for job seekers. But maybe there are some stocks you might buy as a result of that if youre an investor. So thats the angle well take with joe who has more than 2 billion under management, he joins us. Always good to see you, thank you very much for coming on. Let me ask you, first, about the premise before we talk about stocks, what goldmans saying here. Do you agree its going to take a while . Theyre saying First Quarter 2017 before were, quoteunquote, back to normal. When you lump it all together, i guess i agree with it. But, you know, connell, we talk about this all the time. There are sectors, there are areas, there are geographic regions where jobs are booming. So when you kind of its kind of like the stock market, you know . When you look at the indices, theres one thing. When you lock at the names look at the names you do all the work on. So energy stocks, Energy Companies, things we like in that space, theres tons of jobs there. In technology theres massive amounts. As a matter of fact, they have problems finding jobs. So its lumpy, in areas, but in general were going through a transition. I also might add that theres an increased productivity in Corporate America today. Connell right. Emerald has just, weve just been through one of the big robotics conferences out on the west coast, and youre seeing robotics now being entered into the equation in manufacturing, in hospital and health care where you can make an investment of, lets say, at this one hospital in Silicon Valley theyre saving 300 on having robots do work of taking out soiled linens and keeping infection down. Connell bad news for people who want those jobs but good news for people who are investing in those companies, right . Tell me the company. Do you own a stock there . No, no, no. This is helping in the whole health care business, the energy business, the manufacturing bid. Connell okay [inaudible conversations] mostly thats private. Pardon me . Connell why were you saying maybe . Its bad news for people that want that goes to what goldman is saying, that the job market is going to be rough for a while. Will its in transition, connell. Its in transition. So if of a kid you have a kid going through school right now, you want to get him into i. T. , into this robotics. Geologists, you know, theres areas that are really hot. You and i have talked about cybersecurity. My goodness, they cant hire enough people in that space. So if you smart now, the problem is the legacy businesses. So when youre looking at car manufacturing, unless you really know how to work these robotic arms or fix em, you know, about mechanics, a lot of these trade schools you cant get into because theyre booming right now. So in that perspective, yes, i understand that when you put it all together theres a gap, but theres a transition. And i think that transition will end up being good. I think three, four, five years from now well be in a lot better space. Connell joe always finds opportunities. Big philly sports fans. Good job out of your guy victorino [laughter] oh, yeah. We trade him hit me where it hurts, connell. Dagen you always do that connell to joe . Dagen no, to everybody. [laughter] poke em when theyre down. Connell i dont know where i get that from. Craig kick em where it hurts. [laughter] heres some good news, walmarts starting its holiday sales offerings early. Thats right, early. Connell and then a look at what youre paying for gas. Prices still much cheaper this year versus the same time last year. Dagen and lakers star kobe bryant gets a nice paycheck today, but more than half of it goes right to the government. Take a look at oil prices, were going to talk about those gas prices coming up. And it is good news. [ male announcer ] it is more than just a new car. Mmore than a new interior lighting system. It is more than a hot stone massage. And more than your favorite scent infused into the cabin. It is a completely new era of innovation. And the highest expression of mercedesbenz. Introducing the 2014 sclass. The best or nothing. Introducing the 2014 sclass. So ally bank has a that wothats correct. A rate. Cause im really nervous about getting trapped. Whys that . Uh, mark . Go get help i have my reasons. Look, you dont have to feel trapped with our raise your rate cd. If our rate on this cd goes up, yours can too. Oh that sounds nice. Dont feel trapped with the ally raise your rate cd. Ally bank. Your money needs an ally. Connell we have some car stocks, auto stocks getting a boost. After some of the upbeat sales figures, nicole rejoins us. Youre looking at two of them for us . Reporter its worth watching these because the 16day shutdown of the government, some thought it might keep those october auto sales to the downside. Onnthe contrary, we actually saw some great numbers. General motors delivered 226,000 vehicles plus, up 16 over the last year. Ford october sales up 14 , the retail sales up 15 , and ford has seen the best october retail since 2004, so thats great news there. Gms stock today hitting a new 52week high, and ford year to date is up about 31 , gm 30 so, hey, tease guys doing great these guys doing great. Dagen retailers facing the shortest Holiday Shopping season in years, six fewer between thanksgiving and christmas, so the deals are starting early. Walmart kicking off its discounting today on its web site marking things down like tvs and tablets one month earlier than usual. Target also getting ready for the season, extending its price match policy and rolling out its buy online, pick up in the store option to all u. S. Stores. And if you think this is way too early, toys r us and kmart started promotions in september. You can take a look at some shares, how theyre trading today. Walmarts lower, so is target. Targets getting that new lays chocolatecovered potato chip. Connell there you go. Now heres a football business story for you. It began back in 1989, but it ends with the super bowl this year at the end of the season. Ridell will no longer be the official helmet. Over the past 25 years players were allowed to wear any helmet they wanted, but thats the only name you saw on whats called the nose bumper of a helmets. Roughly twothirds of the leagues players use these helmets, and the incentive was they were able to enjoy a steep discount on other equipment. So thats over or will be over after the super bowl. The decision comes as the leagues trying to minimize con suggestions and the lawsuits that come along with them which have been ramping up. Theres been a lot of debate about helmets, you know, about how much that has to do with the concussions that are taking place. Dagen made me curious, i started looking into who makes all these helmet, its interesting. Connell it is kind of interesting. Well, the cost of filling up your tank is i dont know if interestings the right word, but it can be frustrating or quite reasonable versus what the prices were last year at this time at least. Dagen isnt it great to be kobe bryant . Clash 24 million clause in his 24 million clause kicks in in his contract today, but government wont let him celebrate too long. Connell hell be all right. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer Energy Company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. At mites st t ho, march shell neville with your fox news minute. Food stamps are set to lower today for more than 47 million americans, now its expiring. Last year the average benefit per person was about 133 a month. A family of four on food stamps loses 36 a month. Captain kirk is the commander of a new Navy Destroyer that launched last week. No, not captain james t. Kirk of star trek firm, its captain james a. Curbing of the uss zumwalt. Hes probably heard his share of star trek jokes, you can imagine. And a wild, and i mean wild finish to last nights nfl game. The Miami Dolphins beat the Cincinnati Bengals in overtime when bengals quarterback andy dalton was tackled in the end zone for a safety g 2220 win. And those are your news headline from the fox news network, get you back to dagen and connell. Dagen thank you so much. Connell and i were debating whether it was a safety. Connell people were out dagen looked like one to me, but i just kept my mouth shut. Charles payne this hour, were doing something a little different, were going from football to basketball and kobe bryants big payday. Connell charles has become our sports correspondent. Kobe bryant is getting this lump sum payment which actually kicks in today, its the 1st of november, but a huge tax hit is being taken out of that in the state of california. Some people say, oh, poor kobe, but maybe that would make him want to play for the rockets [laughter] more and more i think athletes are considering this, you know . The money theyre making now you say, okay, maybe its not as bad. We know up until recently athletes, you know, have gone broke or really said, golly, have to find a new job or career, but almost 40 federal, 3. 78 for medicare and 13. 3 california. So 56. 7 of his income going to taxes, and its an environment of paying your fair share, you know . I dont know how much of the Public Services out in california hes using. I just dont think its that much. I dont think its 14 million worth. Connell not exactly a sympathetic figure, but we get your point. Thats the whole thing. No ones sympathetic except when it starts to trickle down. Ofof course, in france theyre starting to talk about not even having a soccer season this year. Connell 75 , incomes over a million euro . Yeah. 75 . And so now the owners dagen it was 90 before jfk lowered did you ever see how many people qualified for that though . Two of them. When people told me that, i went back and did the math. So few people had to pay the 90 , so it was a specious argument that we can absorb that dagen you dont know what koch koch kobes net tax bill will be, you might not pay the full raw rate. Yeah. But its, i mean, in this environment of fair share, its real, really tough. And, again, its hard to be sympathetic to someone whos dunking a ball for a livering, but personally, i feel extraordinarily overtaxed. If kobes got some loopholes, please share em. Connell charles is more sympathetic. [laughter] im a little more sympathetic. Dagen i wonder if athletes make job decisions we had a guy on Varney Company who talked about that, an agent. It makes a big difference over time. Connell i bet Dwight Howard made his decision on how much he hates kobe. [laughter] he just wanted to go somewhere where nobody would pick on him. Dagen i didnt say that because i dont want people sending me hate mail. I dont know, i think texas has the hottest women. Dagen well, were talking about kobe bryant, you know . Come on. [laughter] thats a big umbrella. That covers everything. Dagen no, were not going there. Man, my glasses fogged up. Dagen this dude knows more about gas prices than any man on the planet, tom kloza, he is straight ahead. Connell charles is losing it, he laughs so hard. Dagen because he looks at me and knows what im thinking. Connell yeah, thats scary. Janet yellen looking forward to her confirmation hearings on capitol hill. John taylor from stanford will tell us what he thinks about a yellenled fed. Its all coming up. First, some of the winners were seeing today on the s p 500. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 103452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Dagen two Energy Companies reporting earnings, chevron and first solar, Nicole Petallides looking at them. Nicole we have one apparel and one down arrow. Chevron is under some pressure, they came out with quarterly profit of 6 , and it was really the one area of refining and marketing and chemical operations none as downstream, 45 drop with a tough spot was for a reduction earnings that were not bad, slightly to the downside. Stock down 2 and 117 and change. Forceful reported Quarterly Report of the ubs raise the price target of 55 with a neutral rating and raised earnings outlook for the year so you may remember, today it is soaring f16 . Fifty dollars and 0. 42 a share. Connell but sales are up, and unlike a lot of other things but manufacturers say they can probably keep public borders. Dagen phil keating is live from Fort Lauderdale, florida at the International Boat show. Sounds like theyre a lot of optimism out there. There ought to be because the Consumer Confidence as far as the boating economy valued at 35 billion a year nationwide is as high as it has been since the Great Recession bottomed out for boat manufacturers in 2010. We are at the International Boat show in Fort Lauderdale, largest boat show in the world and confidence is extremely high, lot of sales and deals will be happening this weekend. Florida has 200 boat manufacturers, more than any other state and deep impact where they build three sizes of go fast boats, they tell me orders are so heavy if you order bonet now from them you cant get it delivered until into next year. Demand is that good and their boats are called go best for a good reason. We went with them 72 miles an hour on biscayne bay which i highly recommend for anybody who has the opportunity. It is like business is booming, the excitement is that, people are getting confident about what is happening. Two or three years ago wasnt happening. People like thinking of spending 400 on a boat, wasnt happening. Or you can spend 40 million on a jumbo yacht made by westport on the peninsula in Washington State and features a luscious bought on deck and if you get to shore feel like the tender, you can fly over in your helicopter. Connell look at phil on this thing. Is this across the board . Big boats, small boats, all whole thing . From small 15 foot fishing boat called the weight to these multimilliondollar yachts. Everything is looking good for but manufacturers. We went to the parretti group which has an office and arena and salesroom in Fort Lauderdale and based in italy, they put out 7 lines of expensive boats and the president tells me one of the milliondollar boats, they actually do get buyers who buy with cash. According to the National Marine Manufacturers Association america has seventeen million votes in use, 30 of all americans every year go out on a boat. 93 of all boats sold in the u. S. Are made in the u. S. And 76 of boat owners actually earn under 100 grand a year. You see a big boat like this it is opulent, full of wealth, crew of 10 or 12 people, just to be maintaining this ship but everywhere you look lot of people are getting back into boats primarily because the economy is improving as far as the manufacturers and sellers are concerned people are thinking about that hobby. In florida is great to have one or 8 friend who does. The thank you. Meghan is my fat sister on imus in the morning. She was about 300 pounds more than i do. Good news on but sales to great news for drivers from coast to coast the average price for a gallon of regular gasoline is 3. 27 a gallon. A year ago 3. 50. Chief oil analyst at gasbut. Com joining us on the phone. Great to talk to you. Is this news going to get even better as we head towards christmas . It is done to get even better. I feel like sunday crockett from miami vice. We are headed lower. We have started phase ii which is deeper than normal. The first phase was gasoline prices dropped independently and particularly in the u. S. We have a canyon of cheap crude oil prices as you get into the interior of the country. We have more good news to come for the next couple months or so. Dagen that kenyan of cheaper oil in the middle of the country, talk about how we always look at the price of light sweet crude but if you get in closer you do have much cheaper prices because of our Energy Independence. Absolutely. We are not necessarily completely independent but we are less dependent on global prices. If you want to run light sweet crude from north dakota that stuff is selling for 80 and change. The canadian crews as well as 60. Even the most crime u. S. Crude, sound like im talking about pot 30 years ago, but those blends, not by know about that, are selling for a discount world price of 9 or 10 a barrel. It is a great run for the country right now and i am suspecting that we are going to break 33 month record or so between now and veterans day. Dagen where do you think we can get below 3 a Gallon National average can stay there . National average i am not sure. It is probably 50 50 oral less but the reality is for most of the country if you dont live in connecticut, new york city, the pacific west coast, alaska and hawaii, we have 28 states for you to buy less than 3 and people who use the gas buddy apps which is the greatest apps in the world they are able to buy less than 3 in a broad swath of the country. Dagen you are only allowed to make a plug if you show up in person and where your white suit, tee shirt and no socks. I will start a new trend of wearing a fez or having a pencil mustache and cape. Dagen the mustache is already back. Mustache wax in brooklyn is a big seller. Good to talk to you. See you soon, have a great weekend, be well. Connell talking about driving, we have this ferrari story Dagen Mcdowell has been looking for. What not to do in terms of driving in new york city, delivery truck backed into a 300,000 ferrari. Right here in new york. It was earlier in the way, crushed the hood of the car. Onlookers said he didnt see anything when he put the truck in reverse. The driver of the ferrari was in the car at the time. Nobody injured. Worst part about the whole thing, he was a page driver. How about that . You are sitting in the ferrari and here comes the truck right into your 300,000 car. That would make you happy. Dagen i would have gotten out of the car and got up to the truck and pulled the man out of the truck and beaten him unconscious with my shoe. That is pretty much what i would have done. Not even 40 oston red sox championship and already had vegas, who will win the next world series . Connell that is so dumb. Janet yellens confirmation hearing scheduled for this month. We are going to talk to one of the big names in economics. The name used, all the time. Dagen how the Federal Reserve decides Interest Rate policy. Connell coming up on markets now. [ male announcer ] need help keeping your digestive balance in sync . Try align. Its the number one ge recommended probiotic that helps maintain digestive balance. Stay in the groove with align. See who does good work and compare costs. It doesnt usually work that way with alth care. But with unitedhealthcare, i get information on quality rated doctors, Treatment Options and estimates for how much ill pay. That helps me, and my guys, make better decisions. I dont like guesses with my business, and definitely not with our health. Innovations that work for you. Thats health in numbers. Unitedhealthcare. Lori i am lori rothman with your fox business brief. U. S. Manufacturing expanded at the fastest pace in two1 2 years. Factory activity rose 56. 4 in october up from 56. 2 in september, the sixth consecutive monthly gain for the index. Smaller rival officemax unanimous approval from the federal trade commission. This ended a 7 month investigation into the 1. 2 million merger and chrysler sales rose 11 last month from a year ago falling short of estimates which ranged from 19 to 14 . Chrysler sold 140,000 the month, october missed estimates. It was better than septembers 1 gain. That is the latest from the Fox Business Network giving you the power to prosper. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Connell it is really windy, it has been all day. I figured you were not looking away from me but 60 mile an hour gusts in some places in the northeast are expected at some point today. Dagen this is the temperature in manhattan, forecast to be in the 70s and the marathon this weekend. Meteorologist maria molina in a fox business Weather Center with a lot more. Good to see you. We are tracking a storm system that yesterday produced all kinds of Severe Weather across texas and the midwest in the form of damaging winds, tornadoes reported and also extreme flooding, locally more than eight inches of rain across sections of eastern texas including cities like tyler, parts of austin and taxes, talking about locally tweeting as of 14. Incredible stuff yesterday with the storm system. Today the storm is on the move and impacting parts of the northeast with areas of light rain from the northeast down into the southeast so we expect showers and storms as far south as the florida panhandle, george and the carolinas and some of these areas could pick up heavy rain, more than an inch or two in some spots but the big story is the wind with the storm system. Wind gusts in excess of 60 miles an hour possible, a number of advisor reason affect and also several warnings so interior sections of the northeast looking at the risk of gusts of 60 miles an hour where warnings are in place but advisorys including new york city looking at wind gusts of 40 miles an hour possible and they have been producing possibilities at the airport, reporting delays on average of 1 hour, to international in our delays so again if youre heading into the airport in the northeast temperatureswise we are cooling down so well aboveaverage right now, 70s in new york city, a philadelphia and d. C. Tomorrow and 60s and sunday, for the new York City Marathon oil in the 40s and cooler in lend in the 30s across parts of upstate new york. Connell appreciate that. This story is a little silly, the red sox 48 hours and the world series and the odds are out whos going to win next year in major league baseball. For 2014 the mets are 21. They are actually 751. They guest doesnt expect the red sox to recede. The dodgers are the favored aone odds with the dodgers, tigers 91. The red sox and cardinals are in the world series and the Washington Nationals who everybody likes this year it didnt work out, 101. Dagen janet yellen could be the focus of lawmakers on capitol hill as the president s nominee for the Federal Reserve chair. We will talk to stanford Professor John taylor, the man you need to hear about coming up. Connell interesting what he hears about in the confirmation hearing or whatever. But first look at more stocks on markets now. The winners at the nasdaq. [ male announcer ] once, there was a man who found a magic seashell. It told him what was happening on the tradg floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Connell we are into november, the month we will find out whether congress lines of on janet yellen to be the next Federal Reserve chairman. John taylor is here to talk about all of this, mentioned many times over the years as possible of the Federal Reserve, professor at stanford, a senior fellow at the Hoover Institution and author of the taylor ruled in Monetary Policy and joins us now. Is at an okay introduction . We get everything out there okay . Thanks for having me on. I appreciate it. Connell the taylor rule is a famous concept in Monetary Policy. How is it being followed these days . What do you make of what is happening at the Federal Reserve before we talk to janet yellen . I am curious about your thoughts on her but what is happening now . The biggest difference is things like the team there rule would not be calling for massive quantitative easing. It would be much less than that and that is the big disagreement and a dispute within and outside the fed. Connell Interest Rates might be where we are, it would not be pumping all this money, into maybe somewhat higher. One of the other things with the money market, with the rate essentially at zero doesnt function very well so these other things about the operations of the Financial Markets with heavy intervention by the fed, it would be better and this is consistent with some kind of rule that you have the markets back, functioning on their round, years since the crisis, they can function without the intervention. Connell with that said, janet yellen is expected by many people to continue to provide this, quote, help or continue the path of quantitative easing continuing to keep Interest Rates as low as they are. What are your thoughts of janet yellen as the next fed chair . First thing you said is probably right given that she has been secondincommand of the San Francisco fed so very much part of a policy and hasnt disagreed and on the other hand janet yellen is one of the people who said she explicitly would like to get back to the policies that worked well in the past, more predictable policies i have spoken in favor of. She explicitly says it is not time yet but that gives the opening and the intent to try to become more predictable in the future so that is promising. We will have to see and there is the record of what happened in the last few years. Connell what is the risk going in of if something is going to go wrong economically and the Federal Reserve takes the blame what is the biggest risk at this point as janet yellen comes in . Monetary policy has always in recent years been creating a two cited risk. One is the risk they wont be able to undo this, and wind fast enough and you see hands of that recently with the difficulty of unwinding. The other risk is on the downside that these policies are counterproductive, distorting markets, worrying people about the sun winding. We had the Downside Risk and the economy hasnt responded to the fed. Growth is much lower than the fed forecasts so to me that is the risk but ultimately there is an inflation risk too. As much. It is there. With the economy weak you dont see that usual pressure on prices. Hopefully the economy will not be so weak for so long and you have the potential for higher inflation. You never know where it comes or Central Banks on guard but let me emphasize the two cited risks so far has been to the downside of more concern. Connell 0 terrific cant have your thoughts on things and janet yellen coming as next chairman, thank you very much for joining us. Smart guy. Cheryl supersmart. Connell just like you. Dagen are you being a jerk . Connell i dont know. Dagen Connell Mcshane tweeted my week was just made, and tell the audience why. Connell he called you megan on the air and violent than to keep doing it. People call me colin all the time, drives me nuts. Dagen got your name correct. I have known him longer. At the weekend. Good twitter profit margin ahead of next weeks idea how the social media giant is making money in the next hour of markets now. Connell Morgan Stanley predicting a massive one shortage. We will be talking about this, food and wine magazine, somebody coming to tell them how to separate fact from fiction. Keep it here. [ male announcer ] it is more than just a new car. More than a new interior lighting system. It is more than a hot stone massage. And more than your favorite scent infused into the cabin. It is a completely new era of innovation. And the highest expression of mercedesbenz. Introducing the 2014 sclass. The best or nothing. Introducing the 2014 sclass. Help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer Energy Company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. So i can reach ally bank 24 7, but there ar24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. How many people in general from enroll in a plan in this website. They do not have reliable data on enrollment which is why they havent given it the day. Connell we do have some numbers and they are pretty shocking. Diane Dennis Kneale with tracy byrnes to take you through the next hour of markets now. The number is 6. Only six persons out of millions who tried were able to enroll on healthcare. Gov. According to house gop members, more surprising details coming up and members of the fed speaking out today about the health of the u. S. Economy and we have a guest who says Bond Buying Program at the fed could help the markets. That will backfire. A big report out of Morgan Stanley with dire warnings of a washing shortage. Oh no food and wine magazine says it is not true. All this and more in the next hour of markets now. No wonder government officials said they didnt know. And to successfully sign of with that deadline. That Critical Mass in obamacare. Cheese in the county words can we come of with, vaulting is disaster. Dennis and withhold the information. And top of the our stocks every 15 minutes Nicole Petallides on the floor of the Stock Exchange and stocks are looking kind of tepid. Nicole we have seen backandforth action but we have moved into negative territory. The dollar is flash 15,547. The nasdaq going back 1 and the s p 5001753. The russell 2,000 represents a small cat, which is not a great run and a tweet week stretch but the longest in ten years so the small caps have been running hot. It is down over 1. 5 so keep an eye, and we have great performance for stocks. And stocks to the upside, when we talk to that, equities is the way to invest. Not getting returns on bonds and the like. We continue to see right now that we have had some winning weeks. Slightly higher. Dennis thanks a lot. Cheryl all right. Trying to get a pulse on the state of our economy with fed officials speaking for the First Time Since wednesdays fomc meeting, manufacturing and of the data being released. Peter barnes is live in washington d. C. Following all. Reporter lets stay on that theme. Government shut down, what government shut down . As you know, back on wednesday the fed decided to keep quantitative easing going at full blast to keep buying 85 billion per month in bonds, to help keep downward pressure on Interest Rates. No discussion of tapering in that policy statement. In fact, last month the government shut down and continuing fiscal battles have the fed saying that it wants to keep looking at the data to see if any of this has an impact on the economy, hertz the economy. Before it makes any decision about capering. One of our fed speakers today is president of the settlers for reserve repeated those optics in his speech today but added, the fed also wants reassurance that any progress made in labor markets will stick, will stick. The fiscal battles are expected to weaken growth in the current Fourth Quarter. That could keep suv going at the fed next meeting here in december, coming up in december. Just ahead of the next round of budget and debt ceiling talks that will start in the new year. Given the slowdown in Fourth Quarter gdp and what is happening with the budget, all the uncertainty over the budget debate in january, i do not think there will be in a position to slow down quantitative easing at all in december. Reporter a new economic report suggests the shutdown did not hurt the economy much. The institute for supply management, surveys of manufacturers found factory activity was actually up slightly in october. Analysts said been forecasting a decline. Of those sales announced this morning came in very nicely in october. Doubledigit increases demanded to states have been coming down which suggests that perhaps tapering could stay on the table for the fed meeting in december. This second phase speaker we will hear from today, president of the richmond Federal Reserve bank, his remarks will be in just another hour so, an inflation hawk who has opposed qe, so look for him to endorse tapering now. Back to you. Thank you. You will see you in a bit. For more on the fed and that qe conundrum we have to bring in capital president. We listened to peter. Dennis is getting all busy and bothered over here because the numbers contradict each other. Where are we with all of this . Qe in affinity. Wall street has shifted its view considerably. To think where we were at the end of the summer everyone speculating that we would have to bring in september, not even two months later and where are we, no tapering, actually, full bond buying through 2014. That means 40 percent of the economists think we will go bond buying into 2015. Now you have to readjust your thoughts. And it additional 300 plus billion the bond buying coming of the market. Dennis the fed attempts to amend the economy is having a backfiring effect on stocks because money is leaving stocks from Pension Funds in favor of riskier assets. Receive a lot of money. Tracy has been a star for how long . Here is the next iteration. They deplore money in the stock market in ways that most resale to investors dont have access to. It these are investments that are far less transparent, far more opaque. Dennis some figures for you here. Listen to this. Instate Pension Funds 0613, and of 60 at 61 percent of their assets in stocks. 2013 there down to only 49 . The s p 500 is up 23 this year. Our Pension Funds wrong to move money out of stocks and diarist stuff but stocks are up 22 . What hedge fund is up 43 . We see alternative investors have gone from under ten, 12 to 24 , and it looks like for some of these, that is where theyre getting the best offer. Tracy to his point, everyone should probably be in equities because to your point it is qb invented the. Everyone is trying to have that plan b, and you cannot win they dont really want to tell you because i dont think that they know. The market has no ability to withstand adversity. Weak Economic Data it, weak employment disgruntled rather complex and washington. The only thing keeping this up, and doing it on their own right now, the fed. Balance sheets are getting stronger, companies are pushing up their debt maturities. So they are getting better. Tracy why isnt that keeping things up . Why is it only the fed . My hope is if the fed plays it right. A huge task, but when they pull back the idea is you get a company that has repositioned themselves as should be doing better. They cant have it both ways, but there will be a dropoff because the market is not ready to have the fed take the punch bowl away from the party, but companies should be producing better earnings. He. Tracy to your point, they are not doing anything because they dont know. To wants to invest in anything right now . You just dont know. No one wants to pull the trigger, and that is why theyre indirectly halting this economy. Dennis one problem is having too much and permission and too much data in the short term that we forget about the longer term. The International Monetary fund just came out with a startling staff from the years 20032013, the last ten years, average returns for Pension Funds, over 6 . It shows you over the long return things tend to go up. Staying the course. If you exit the market at a certain point in the crisis by your own Investment Decisions are forced out of liquid assets, if you reenter the market more recently you would have missed all of that. Longterm you have to overweigh stocks, the favors will keep going back to that, getting zero forested deploy capital in those areas. Steerers point about Pension Funds pulling back, theyre worried about what happens when the fed will taper which is why they shifted into the alternative space which dennis 23 return in stocks. Tracy and that is what, 14 months of lost gain . I would be mad. I am mad. Thank you, sir. What is our pension plan residents to make it better be all equities. Dennis News Corporation stock. At the end of what can only be described as an awful week for obamas public image, the health and Human Services secretary is going out into damage control mode with a trip to memphis. Should she be in a war room somewhere . Rich edson is in washington d. C. With the latest on that. Reporter graceland near there, maybe that is secretary Kathleen Sebelius will highlight government efforts. It has been slow going. At least that is what documents say. The notes reflect administrations meetings discussing the status of the online exchanges in the days after the october 1st launch. And lets say only six americans managed to enroll on that first day. One hundred were successful by the second and fewer than 250 by the third. The Administration Says those figures are unofficial, and the government as to calculate information from health insurers, call centers, and paper obligations. A spokesperson for health and Human Services says were focused on providing reliable and Accurate Information and did not have that at this time. Theyve always anticipated that the pace of the room it will increase drug dealer on the timeframe. The secretary says the administration will release those numbers by the end of this month. It back to you. Dennis the pace will increase from six people. Dennis abb will get to a even. Imagine that. Known for great restaurants. Now also home to a natural gas pipeline. And clearly residents are outraged. Dennis let the next dance revolution continue. Twitter said to ipo next week. Many analysts questioning the companys lack of profits. Where the money is actually coming in. Meanwhile, lets look at Energy Prices today. [ male announcer ] imagine this cute blob is metamucil. And this park is the inside of your body. See, the special psyllium fir in metamucil actuly gels to trap some carbs to help maintain healthy blood sugar levels. Metamucil. 3 amazing benefits in 1 super fiber. Metamucil. [kevin] paul and i have been [paul] well. Forever. [kevin] hes the one person who loves pizza more than i do. Aul] were obsessed. [kevin] we decided to make our obsession our livelihood. [kevin] business was really good. [kevin] then our sauce supplier told me you got to get quickbooks. [kevin]quickbooks manages money, tracks sales and expenses. [paul] we even use it to accept [paul] somebody buys a pie with a credit card, boom, all the accounts update. [paul] when we started hiring,we turned on payroll. [kevin] its like our pizza. You add the toppings you want, leave off the ones you dont. [kevin] now business is in really great shape. [announcer] start using Intuit Quickbooks forree at quickbooksdotcom. Tracy taking a look at your dow 30. Taking a look get your dow 30 right now, evenly split between the gre floor of the new york Stock Exchange and see what is going on, basically flat. Of a whopping two points. And now you are looking at u. S. Food stamp program. Reporter we will take a look at these names which are next. Walmart and family dollar. While target and kroger are pullin back. But as you know, we have had most americans on food stamps, but the benefit plan is being slashed to a certain extent coming up sen. With cuts looming, we are trying to see how that may, in turn, affect these companies. That is why were taking a look at these. It comes out of 36 per month less per families. So for a family of four there will have 36 ls to spend, which is a big deal and it adds up. I get it. Right now uc walmart up 1 4 . Tracy thanks. Dennis time to make a little scratch. Healthy gains with new address system. The last few days have been in trying to find turnaround companies, not necessarily stocks because the the 52weeked up the charts significantly, and this might be one of them. Office depot, and this may be another, but this picture system just had a pretty good report. They beat the street. So execution has been pretty accurate. Wall street is starting to take notice. The consensus is 0. 66. Kind of getting on board with this, and they have done a lot of things. Cautiously optimistic about the upcoming diet season. I guess that is what we call tracy january 1. I never thought of it that way. That is the management said, the diet season. The stock is moving, making up bake big move. They can continue to execute. Dennis what is the biggest part of their business . Memberships, a food product, whether they make their money . Theyre making it from both areas, but is now one of the stores like the dispute. It is just the you have a bunch of distributors and they pay out of pocket and cannot sell the stuff. I think the problem has been the renewals. People buy this stuff. You know, i know people. I have never tried it. Is not really taste that well. Management is trying to address that as well. Tracy hired and marie osmond. Having a conversation with. Anyway, that is a whole different story. We will tell you, no celebrities right now. I kind of like that idea. Forget the celebrity endorsers. Everyday people. Forget about the idea youre going to go from being so overweight, i like the idea of realistic way loss. I think it will be smart strategy for them. Tracy a little bit country. The wine world is all abuzz over their ridiculous dire predictions of a massive shortage. Before you run out and buy wine, thats not some sense into you and everyone else. Food and wine magazine here. Insider truth. Dennis separate fact from fiction. And a huge payday for nba star kobe bryant. Wait until you hear how much he has to pay uncle sam. Here is out of the worlds currencies are fairing against the u. S. Greenback. Capital to make it happen . Without the thinking that makes it real . Whats a vision without the expertise to execute it. And the financing toake it grow . Whatever your goal, it can change more than your business. It can change the future. Thats why, at barclays, our ambition is to always realize yours. Reporter at 22 minutes past the hour, im Arthel Neville with your fox business minute. A new book says vicepresident joe biden almost to not get a second term. The authors of a double down the game change 2012 says high rent to five highranking aides recommended replacing biden with help it to five hillary clinton. The campaign eventually decided having hillary on the ticket would not be enough of a help to the president to make the switch worthwhile. Kraft is removing artificial lines from three macaroni and cheese varieties that come in kidfriendly shapes. It is not a response to a petition on change. And he has probably heard his share of star trek jokes. Launching last week. Captain james a. Kirk, the commander of the largest destroyer and first of three new class of ships. Those are your News Headlines in the Fox Business Network. Im Arthel Neville. As did you back to dennis. Dennis thank you. It is opening day for a new pipeline. But not al west right here in new york city. And locals ill race. Tracy joins us now with more. The first new Gas Transmission pipeline to become operational in new york city in four decades. It stretches from the new jersey under the hudson river before making its way to manhattan where it makes landfall in the trendy and some would say pricey meatpacking district. Some of it comes from a controversial fracking in nearby prince of president pennsylvania. What many critics find is fear that the pipeline could contain cancer causing radon and there is sorry that a leak or other problem could result in an explosion like this one recently in san bruno, california. They killed eight people morning the same size last year in manhattan would be catastrophic. The heat and explosion would be incredibly disruptive to a neighborhood that happens to be one of the most economically and historically valuable leverage in our city. Reporter specter and Energy Company says it will save local residents about 700 million per year in utility bills. It will also replace the use of pollutionproducing heavy oil. When it comes to safety the Pipeline Company says there is no Public Health threat caused by existence. Also says the construction is state of the art. We have put in a number of safety features for this pipeline. It as thicker by then would be required under most federal guidelines. It has we have inspected every wild. Reporter the company also says the pipeline is buried deeper underground and required by law and lowers the pressure of the gas when the pipeline and his manhattan. In addition to electronic monitoring there will be daily inspections to look for anything that could damage the wine. Simply not enough. It costs 1 billion to make and theyre going to save 700 million per year in Cheaper Energy bills. Dennis this thing base were self. Theyre Keystone Oil Pipeline is still lusting bill. There is transition taking place. Chances in away from heavy heating oil. Saw the protesters we want to say this is still unacceptable. The only way to go is the wind and solar power. They think this is a bandaid at best and it is not the way to go. A big proponent of this. Dennis thank you very much. Report. Tracy just under we can tell twitter takes the street. Investors are skeptical. We will take a look at the secret revenues behind the old hash tank. Dennis hoping to catch fire with a string of new releases, what it could mean for investors next. Take a look at some of todays winners on the s p. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer Energy Company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. Once wrote something on a sheet of paper and placed it in his factory for all to see. Four simple words where the meaning has never been lost. The challenge always accepted. And the calling forever answered. Introducing the allnew 2014 sclass. Mercedesbenz. The best or nothing. Introducing the allnew 2014 sclass. So ally bank has a that wothats correct. A rate. Cause im really nervous about getting trapped. Whys that . Uh, mark . Go get help i have my reasons. Look, you dont have to feel trapped with our raise your rate cd. If our rate on this cd goes up, yours can too. Oh that sounds nice. Dont feel trapped with the ally raise your rate cd. Ally bank. Your money needs an ally. Dennis coming up, a look into the real secret of how twitter is making money at of next weeks ipo. We are running out of wind. Dire predictions of the wine shortage, but how much of it is true. A big paycheck. So is. The government is a big payday. Tracy we have to head down to the floor of the new york Stock Exchange. Nicole petallides is down there. A big debut and a big comeback to talk about right now. Reporter you are absolutely right. Fabulous. Feels like i am walking a runway. The Container Store today. A new ipo where we actually had this ceo to a taping for later in the day which you will get to see in that 3 00 p. M. Show. Up 102 at the moment. This is an 18 ipo that took off. Sixtythree stores. You talk about storage bins, shelving some containers and the like. Sixtythree stores is to give you a perspective. Walmart has about 4,000 in the u. S. I am sure it is up and growing. Down 01 . Now after bankruptcy back on the floor of the new york Stock Exchange. Reemerging. New ticker symbol. And right now 2555. That is certainly one the watch. Tracy i love the Container Store. One of the funniest moments of the day, you explaining that it is not like shipping containers that you can actually put shirts in these kinds of containers. I love it. Thanks. Dennis all eyes on november 7th among the day that the social media giant twitter is expected to roll out its ipo. Concerns over the money making abilities leaving some investors skeptical, but do not overlook the lesserknown revenue streams, dated sales. For more lets bring in network in size ceo bran neely. Thank you for being with us. Tell us about this second revenue stream is all we think about is advertising when we look at twitter. It is hugely powerful if you think of what they have been able to do. Theyre release their dated to thousands of hundreds of companies. So there is now a lawyer were lots of developers are developing on top of their affirmation and they take the best of those and form them into advertising products. A massive r d lab, granted its only 50 million in revenue today, but that powers the rest of their advertising revenue. Dennis is it good that it powers the ad revenue, or will it be a business and to itself . It must be far higher profit selling the debt that you have any way that it is said sell advertising which you have to set up and produce. Theyre getting both. The value of this information is huge. It cant predict things. It is predicting outcomes for brands, out comes for a huge companies, out comes for Financial Markets. And so the value of the data will increase exponentially over time the more and more people access it. People will be willing to pay more and more for this data because it is the first time that someone has had access to data from 230 Million People in be able to find something in close to real time. Bout twittered that allows it to do more with that data than facebook or as a gram or any of these other services . In reality the first company. They release the data into the public. 500 million post streets every single day. People have access. Companies like access in sight. Were using the information on their behalf. Theyre finding the gold from a few well in this data. Dennis it is interesting, the lack of system monitoring of this. In terms of the environment this fast data stream or facebook or users are hanging out and spinning a lot of time. It depends on what you want to do. It will activate and my tv. There will work in combination. I want to split your dollar. Dennis the privacy prudes always worried about what the services are doing with the day, never mind that we go on facebook and reveal our intermountain of innermost feelings. We still worry about privacy. They have a very strict Privacy Policy from kaywun. Take a look at twitter and they did not. This will be available to the public. Everyone will be able to see what you were talking about, and it is a communication mechanism. Sharing out with you. As always been public. The expectation of twitter as always been this will be seen by many, many people. Dennis these guys to get a billion people in a tent and the tools that marketers need to turn that into dedekind used to assess and spend on ads. The guy who was one of the first big sites. By the time carol barts showed up to be ceo they did not even have special accounting for their biggest advertisers. Is to order more advance for for their long fall off or will it fall into that same gap problem . Absolutely further along. They have created this environment, this group of companies around them where they are using this data. A great example is how this a promoted tweeted arrived . A bunch of Companies Like us said this is important and then converted that into an end product. They are advantage because they have people outside of their world doing it. They were able to figure out how to extract value from the information and then said the market is coming here is the reason i should spend more money with this platform that allows us to happen. Dennis will you buy is when it comes out . Absolutely. Dennis thank you very much for being with us. Good day. A good, short answer. Tracy he is dead. Winemakers. Why they say they are just fine despite their reports of shortages. I dont deny there. We will talk about it. Live for the cme coming up. First, take a look at the 10year treasury. [ male announcer ] once, there was a man who found a magic seashell. It told him what was happening on the tradg floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. We dont have time for stuff like laundry. Were too busy having fun. We get everything perfectly clean by tossing one of these in the wash. And thats it. I wanted to do that. Oh, come on. Eh, thats my favorite part. Really . Thats our tide. Whatsours . Really . Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Reporter im jo ling kent read your fox business brief. The 30year treasury prices fell by one point. It the highest in nearly two weeks. Ford Motor Company announcing in october u. S. Auto sales are up 14 yearoveryear. The best october Sales Performance since 2004. Ford uses sales jump 70 , and sales of the lincoln brand arab 38 yearoveryear. Chrysler says sales rose 11 from last month from a year ago. 140,000 vehicles in october. Boston Federal Reserve president is expecting local beer from his midwestern counterpart. The cardinals lost to the red sox for institute. As the latest from the Fox Business Network, giving you the power to prosper. Tracy okay. There are these dire reports of a pending shortage. The talk of the wide world. It feels like this comes out every year. Before you run out and stalked out, separating fact and fiction. A lot of doom and gloom reports. It is the end of wind. But this is a little over the top. Tracy this comes out of Morgan Stanley australia. They are making any kind of stock recommendations that all, it is one that is on the austrian Stock Exchange. A big writeoff in july to monitor and 65 million, and is ceo just left in september. You know, that is a whole other interested story. Lets go back to this notion. And i know that they point to europe, one could argue it is back in balance. That is exactly it. Subsidizing pulling out. Basically lowquality, large quantities. That is actually good because europe has been sitting on this ocean of wine for a while. You go back six of seven years. The eu paying subsidies to turn wine waste into industrial alcohol which is not a place where you want to be. Production and consumption is down and then you have the new world, one thing that is interesting about the Morgan Stanley report that leads of 2013 production which goes wildly up again. You know, the highest reduction in six years over on the world. The u. S. Is out. Chile and argentina are both up dramatically. And so it is not really looked like a big shortage to me. Tracy it makes everyone feel like they will walk into their favorite wine store this weekend. You know, all of these Warehouse Stores now. For miles. Some of the vendors that deal with this, the bulk wine prices are actually high right now. There is demand. So, you know, it sounds really exciting and kind of terrifying, we should all done in by wind, but i do not think that there is a lot of solid solidity behind it. Dennis i dont even think we can point to the weather either. Some weird vintages. That is the thing. It is a world wind. So whether in europe does not necessarily have anything to do. Tracy you can hedge your bets now. You can go as far as japan and china. And what people do is if theyre is a bad season in california they bring in one. Basically giant container ships. Tracy makes it and blended. Known for shipping their bulk wine. Yes, they are. Always some business back and forth about whether some of the bulk wine is actually label the way it is supposed to. Tracy that is a great story for another day, but tell the world there is no shortage. Still go out and buy wine, but there is no shortage. Dennis plus, time for stocks. That said to the floor of the nyse. You know, september, usually the worst month for stocks. Wickes closed up. And we close to begin. Surely we cannot close up for all of november, can we . Actually, we are entering a very good seasonal climate for stocks. The trading calendar inequities. That would be an expectation. As long as the fed is standing behind this marketplace and other asset prices as long as there is no Economic News which we dont anticipate, my expectation is that the market will continue to push higher. We will pull back here and there, but if we dont pull back i dont think there is anything to worry about and we will push higher. Dennis we will keep that in mind. Thank you very much. And it is ecru day for oil trading and its lowest level since june. That said to the trading pits of the cme. Rocking to the downside. Right now at 9512. A lot of people, the big debate, is this more because the fed is talking about tampering or more about supply . How would argue it is more about supply. One of the big stories today, light louisiana crude hit a record low. What does that mean . Let me tell you. There is not any incentive for people to import crude down in the gulf coast of higher quality. Why . The United States is producing more. It is a big sign toward Energy Independence in this country. We have a glut of crude. This can impact a lot of the producers overseas, mainly in north africa. This is a big story, another sign of how u. S. Oil production is changing everything. Great news, especially when you look at falling prices. Dennis thank you. Tracy breaking news. Live pictures right now from lax, the los angeles airport. Passengers were evacuated from terminal three around 9 00 a. M. This morning with reports of shots being fired. This has not been confirmed. We are monitoring this and will bring you the latest when we get it. Terminal three, lax, approximately 9 00 a. M. This morning shots were heard. Dennis local time, i guess. Tracy yes, thank you. Kobe bryant, speaking of l. A. Polling in some serious cash today, and so is unclear sam in what is the final year of this contract with the lakers. Kobe is set to make over 30 million. Crazy. This is all part of the contract. Being paid 24 million of that today. We have to talk about what he will pay in taxes. He will not take on nearly as much as you think. He will pay the top federal marginal rate of nearly 40 . On top of that land in california, the lakers. He has his state tax rate of over 13 because california just covers their residencies. The total tax burden, nearly 57 . Meaning he will almost 14 million of the 24 million jobless am. If he does not get out there and start barking, enough is enough. It means that we should not be upset when ceos and a lot of money because theyre paying a lot of tax to. Although i dont get upset when he earns a lot of money but we do get upset when a ceo earns the same amount. Tracy i hope he gets out there and turns the tables and says this is clintons. Dennis lets hope so. Elsewhere, catching fire at the box office and wall street. Lions gate turning into the hottest shop in hollywoodshares of the studio store. We will tell you of the Company Plans to keep this hot streak alive in my media minute. Tracy why london could soon be taking a cue from mayor bloomberg when it comes to sugary drinks. Say it isnt so. Take a look at some of the winners on the nasdaq as we head out to break. The dow is up about 25 points. Netflix is your big winner. We will be right back. , more on the incident at los angeles airport. A witness as the person opened fire after getting through security. Live pictures from the airport, passengers were evacuated around 9 00 this morning from terminal 3, reports of shots fired. Not confirmed, we are monitoring this and bring the latest. There have been multiple injuries. More details we get we will bring them to you. Dennis Spirit Airlines involved. Thank god it is friday. Media minute, lionsgate catching fire, hottest studio in florida, enders game could win the box office on november 22nd, one of the biggest films of the year, the sequel to the hundred games. Teenagers killing one another to win the contest, could break in 185 million its opening weekend. It will benefit from Jennifer Lawrence who won the oscar for best actress but can they keep stock rising . 100 this year a fivefold in five years. Ratings for the world series on Fox Broadcasting network, a healthy 17 . But for 6 game world series it was the lowest rated ever, almost fifteen million viewers, the championship game 6, nielsen says by the time of the final out in boston almost 60 of all homes tuned to the game and astounding 84 of all the tv sets that were on at that time. Auto sales rolling back in october, winners and losers, the next card. Cheryl the standout in this sector, what the numb model s might say about you and where you live. Wait until you hear about the irresistible incentive which has people of routing to move to rural kansas. Ashley and maury are next. Dont go anywhere. Connell we are in kansas. Cheryl pictures from Los Angeles International airport, passengers had been evacuated from terminal 3 after reports of shots fired. It is unconfirmed, we are monitoring the situation, terminal 3, region airlines, jetblue and many others so passengers evacuated, shots fired at the major hub out of los angeles. Lets check the markets for you. Meridian Equity Partners joining us on the Stock Exchange. We have got 25 point gain in the dow, a busy week with earnings and the fed and where do we go from here . If the week we have had you could see the way we have seen this, a lot of volatility but at the end of the day the market seems to and wants to trend higher. Earnings season started strong, getting a little bit weaker but not having a tremendous effect on the market. Next week we have a lot of Economic Data coming up, continuing earnings season out of the tech sector and at the end of the week we get the unemployment number. Considering the fact we have delayed unemployment last time this one might not be as helpful because investors are not buying into it but overall the market wants to move higher, is moving higher and we will see momentum throughout the quarter. Cheryl markets and breaking news out of los angeles, shots fired, we want to bring you back to those