Transcripts For FBC Countdown To The Closing Bell With Liz C

FBC Countdown To The Closing Bell With Liz Claman February 1, 2018

One of the americans waking up this morning to a bump in your paycheck . Tax cuts hitting the bank account as three more Corporate Giants join the ranks of companies sharing tax cuts with employees. And tminus three days before kickoff of the king of all football games. Super bowl lii, defending champs new England Patriots taking on the philadelphia eagles. By the way, if youre watching the big game sunday. The company that says heck, why not win a pile of cash in the process . Win view chairman and former tivo ceo tom rogers how your ability to predict football and fan behavior during a game can bring you as much as 25,000 and make you richer monday morning. Plus a preview what analysts are calling the super bowl of tech earnings and charlie says twitter is surging today. He knows why, were less than an hour to the closing bell. Lets start the countdown. For breaking news for those of you waiting for one of the biggest unicorn ipos in recent history. Hold your horses. Airbnb Just Announced no initial Public Offering this year. Not going to happen in 2018. This just hitting the wires right now. It may perhaps have to do with the in fact chief Financial Officer is stepping down later this month. This is an unexpected move that resulted in the homesharing company saying ipo wont happen until 2019 at the earliest. So airbnb is this classic unicorn, in fact bill gates told us its the one he thinks is the most disruptive of all, valued at 31 billion. Yields on the ten year, lets get to that. From the news that we just brought you moving to treasuries which are what are moving the greater market. Inching higher. Topping 2. 76 today, and now at 2. 77 , we are near a fouryear high. This is a trend that has affected the markets all week long. Weve seen a spike in yields and led to the drop in stocks over the past four days as investors are concerned about rising inflation and in turn higher Interest Rates. Right now a mixed picture for the markets. The dow is up 54. It had been up 157 but down 134. All in a single session here. Were looking at the s p. Better by three points. Nasdaq right now down 1 1 2 points. Dupont and, of course, dow joining together, now it will tear asunder. It will split into the three companies, the company cites cost savings as the reason behind the move. Dow du pont lower by 2 . Ebay, how sharper than a serpents tooth it is to have a thankless parent. Ebay used to be the parent of paypal, now it says not interested in you anymore. Its turning back on former child, dropping paypal as its main payment processor. Paypal handled the duties for the ecommerce site under a deal signed when the Company Split in 2015, stocks moving in opposite direction on the news. This is a big hit to paypal. Down 6. 63 , ebay moving higher 14 . Theyre turning to a dutch finta Company Called ad yen. Yes, that was king lehr, how sharper than a serpents tooth to a thankless child. Speech to annual lawmakers at annual retreat was just in the last hour, not so much. President trump blasting democrats for refusing to work with republicans saying that the left would rather see america fail than thrive. Fox business adam shapiro in white sulfur springs, West Virginia. Speech was in sharp contrast with state of the union where he said lets all Work Together. Reporter well, he did talk about working together. Hes also more jovial in the speech. Hes among friends, these are republicans gathered here and talked about the accomplishments of the Trump Administration as well as the Republican Congress passing tax reform. Putting 2,000 on average back into the pockets of hardworking men and women nationwide. He talked about the accomplishments and talked about the agenda going forward. And all know that some of the hurtles are reaching consensus with democrats and republicans on Immigration Reform and finding the money to fund infrastructure, which the president promised would be part of his position these four years. Heres what the president said to his fellow republicans about reaching compromise with the other side of the aisle. Were going to have to compromise unless we elect more republicans, in which case, we can have it just the way everybody in this room wants it. We have to be willing to give a little in order for our country to gain a whole lot. Reporter but liz, i can tell you right now we have learned already, youll see compromise next week, we expect a vote on continuing resolution to fund the government through march 22nd there. Seems to be consensus here its going to happen and the democrats will not shut down the government again. Mitch mcconnell actually joked about it, kentuckyism, he said something ill butcher here but something about a Lesson Learned from a mule kicked second time hardly happened. Something like that. It was from kentucky, im in West Virginia now. Promises plus, sounds like something you fill the gas tank up. The president talked about promises plus, heres what we said. Now we fulfilled far more promises than we promised. [laughter] theyre having a hard time with that. [laughter] we have seriously fulfilled promises i called it promises plus. [ laughter ] reporter liz, a couple things were hearing on the ground. Its important. We heard from kevin mccarthy, do not expect entitlement reform this year, that was a discussion with reporters, not on cameras. As we talk about promises plus with the president on from frashgs nobody has the idea how to pay for infrastructure. The 200 million to seed one trillion to 1. 5 trillion over the years in Infrastructure Spending. Value capture financing, the republicans are open, the republicans, representative schuster, the chairman of the Transportation Infrastructure Committee says republicans are open to possibly a new tax on individual property owners, Value Capture financing. Talk about the world being upside down. Republicans open to a new tax. Liz boo thats when you anticipate anybody living or having businesses near new infrastructure will have better property values, and therefore those owners have to pay the government a little bit of a tax . Reporter thats exactly the concept behind Value Capture financing. In the case of new york city, the subway construction, values fell before the subway opened. Will the government reimburse people if values fall . Liz yes they like the idea of raising revenue out of your pockets. Liz they all do. I dont care what side of the aisle you are on. Thank you very much. This just happened a second ago. We keep referring to the spike in tenyear yield as a reason were looking at a tentative market. We have the dow up 42 and the s p up 2. I saw the 10year going higher than 2. 77 a minute ago. Now 2. 78 as we speak in the final hour. You need to be right here until the end of the closing day. But we are experiencing investors who also have this, they are smelling a whiff of bubble trouble, former fed chair Alan Greenspan warned of a bubble in stocks yesterday while bond king bill gross says there is a bubble coming in the bond market and other analysts are saying there are whole Different Reasons for bubbles. Were hitting a bubble trifecta and where should you be invested to avoid being splattered by popping bubbles. To the floor show, phil flynn, give us where you see the biggest bubble in the market right now . You know, its not in oil. People are saying oil, its got to be oil. But actually i think its in the same stocks. They led the market up. They are way ahead of the marketplace, and if anything is going to hop, theyre going to pop. Bad news out of facebook, bad news out of some of the other stocks in the fang right now, and earnings are going to be key right now. I think if anything pops it is fangs, facebook, apple, and apple has the federal investigation on trying to slow down the old iphones, and i think theres trouble ahead for the fang. Liz elliot warren, and where do you see a bubble . Well, liz, you know me. I disagree with that first speaker. Liz i do. You and i will be getting crushed this year because weve been short crude this entire time. Crude is not a stock, okay . Not simple, but there is math behind crude that does not happen with stocks. Theres xamount of oil around, xamount of demand for it. Right now, there is tons of oil around and were at record production, i just dont see, what does he think crude is going to spike to 100 bucks . I think the bubble is in crude. I think crude. Goldman sachs came out and say 80 in six months, i agree with them. You got to remember why . Global inventories have fallen by the biggest amount in history. Weve fallen over 130 Million Barrels of crude in the u. S. 10 Million Barrels per day. All right, teddy goldman said crude would never go below 100 and never go above 40. Goldman saying its 80 is theyre just catching up to me. I think they got it right. Liz i love getting two oil guys together to battle it out. Teddy, break it up, what where do you see the bubble . I see most of the bubbles in the bathtub, liz. [ laughter ] i cant unsee that, teddy. I think this talk about bubbles is valid. Market internals are deteriorating. You are absolutely on the money about Interest Rates going higher. And at the end of the day, its going to be Interest Rates, but unfortunately, they dont ring a bell, and we can all wring our hands and worry about are stocks overpriced . You bet theyre overpriced. Just like they were underpriced in 08 and 09. In 1991, those guys arent young enough. In 1991, Goldman Sachs basically said oil was on its way to zero. So you know what . All these predictions all make sense at any given point in time, but the lines to least resistance as far as im concerned are up for the market. Irrespective of any bubbles. Liz teddy forgot he told my producers that he said bitcoin is a bubble . Well, yeah, bitcoin is a bubble. Only voice of reason, liz. [ laughter ] well, its not funny if you are invested in bitcoin. It has fallen below i believe, yes, 9,000. So its at 8,601. Oh, the times were enjoyable a couple of weeks ago when it was 19,000. Teddy, phil, elliot. You can battle it out over the phone after this. Phil, ill give you elliots number. Please do speaking of bubbles how many people, phil included have warned that highflying tech is approaching bubble territory . Closing bell in 47 minutes. Facebook getting numerous likes from investors and hitting another lifetime high. Bubble or not, its done incredibly well, but first the stock took a beating in the afterhours market after the social network admitted that the amount of time users were spending on the site dropped by a pretty massive 50 . No doubt a frightening headline. But Mark Zuckerberg was able to soothe the market nerves by promising a highquality user experience. Didnt hurt his case another. Facebook is currently trading, do we have it . Up 3. 6 . Facebook in the Rearview Mirror as far as earnings are concerned as wall street gears up for a aaa of tech earnings. Not talking about aaa as in cars, talking apple, amazon, alphabet, all coming out after the bell. Our allstar tech panel standing by, but if you had to buy one of the three names, which would it be . Which should it be . Were coming back. Dow is up 42. This is frank. Sup this is franks favorite record. This is franks dog. And this is franks record shop. Frank knowns northern soul, but how to set up a limited liability company. Whats that mean . Not so much. So he turned to his friends at legalzoom. Yup they hooked me up. We helped with his llc, contracts, and some other stuff thats part of running a business. So frank can focus on the beat. You hear that . This is franks record shop. And this is where life meets legal. daniel jacob for every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts to about 10 pounds of Carbon Dioxide every week. malo hutson growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. Then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. Who knew asphalt could help save the environment . Liz nasdaq down 4 points, s p slightly higher. Put on battle gear, after the bell, we have apple, amazon and alphabet report results. Some of it hits the tape, thats important, but the post earnings Conference Calls that come about an hour later that can totally change the perception of the reported numbers. Apple ceo tim cook, his Conference Call is going to be very, very important. What will he say about those iphone x Production Cut rumors that have been taking a bite out of shares . The stock actually hit an alltime high on january 18 but down 6. 5 since then. So lets bring in the predictors, fox business exclusive benchmark investments managing partner kevin kelly and russell holly. Senior editor of is it imore . Its imore. Liz great to have you, welcome to the show, both of you. First, give me a sense where you see apple coming in. They are expected to have pretty good numbers . Yes, expected to have pretty good numbers. The main focus is china. We hope to see sales going up 11. 6 in this quarter on chinese sales so they dont slip down to the number five hand set maker, thats where tim cook said he needs the next leg of growth to come for the company. Were going to see the greatest disposable income in the world happen in china, more people in the middle class by 2020 than we have citizens here. Thats why the ix Production Cuts, were hoping consumers in china are buying more iphone 8s or xs. Liz rumored Production Cuts, right . Its important to keep in mind with the iphone x that kind of stumbled at launch getting the phone out to people. It took a while. Preorders were much larger, delays were huge with the phone. A lot of the early buyer market that they saw there was the big delay and moved on. Reporter but we got a sense yesterday when broadcom and qualcomm, they didnt even hint, they said that a very Large Customer was paring component orders from those two companies. Kevin, do we assume its apple . You have to assume its apple, theytor of the market and higher margin product. You have to think about they are never trying to compromise on the margin, they would rather cut production and not price. Thats an important thing to know. Liz and russell, the forced obsolescence, this is infuriating people, including my 16yearold daughter who is perfectly happy, better be, with her iphone 6. But suddenly miraculously starts to slow down and have you senator john thune asking for apples answer to this. You have the sec, the department of justice, french regulators, hes going to have to talk about that. Absolutely. And so this is a communication failure on apples part. This is kind of a weird psychological thing, you feel your phone is getting slower, then when the news story hit, everyone feels justified in that weird concern that was happening before. But the goal of this technological push that apple made was to make phones last longer by making sure that the battery didnt fail at certain points when it was particularly cold or Something Like that. This was a major Communications Failure on apples part and something theyre going to have to work hard to move past. Liz do you think people were just, kevin, not thrilled with the added features of the iphone x like the animojis, where you have the talking panda bear and the unicorn and the pile of pooh, which my son seems to feel is very important to add to every text he sends. Liz certainly disappointed, i havent gotten one of those animated emojis, yet all my friends have iphone xs, i dont what happened theyre doing with their free time. Theyre being productive. This is a commoditized business, the form factors and everything, they are behind the 8 ball when it comes to these things. Before we get on which stock of the three we need to buy. Russell, i ask you about amazon, were not ignoring them. They are a behemoth, expecting 20 increase in earnings and 30 increase in revenue. Pretty amazing here. Alexa is the key word, isnt it . Alexa is a huge part of amazons growth and all comes down to how easy it is to get amazon echo in the home. Dot being extremely inexpensive and available everywhere. And something that is just a force to be reckoned with. There is nothing else that competing with it on the same level. Liz stock is down 2 on the session. Kevin, between alphabet, google, amazon and apple. Which stock, if you could only buy one for the portfolio should be the one . Not even close, its amazon, no better tech titan that knows what you like in your body or on the body. Ramping up advertising efforts. They passed snapchat as the number four player, now just shortly behind verizon, so well see them catch up and take market share away from facebook. Liz kevin, russell, all the numbers coming out after the bell. David and melissa will have complete coverage of all the names and numbers on fox business. 37 minutes before the closing bell rings. Dow now up just 14 points. Always a risk to change iconic logo but mcdonalds taste testing the idea. Fast food giant announcing plans to trade in golden arches in one store in chicago this spring. It will be a futuristic new restaurant with floating garden. Tech kiosks and table service, fancy pants. Shares of mcdonalds up half a percent. Super bowl qbs brady and foles wind up and stop the tape think can you guess exactly how far either of these passes will

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