Transcripts For FBC Countdown To The Closing Bell 20121119 :

Apple also now putting the correction territory in its rearview mirror. Plus the Company Announced it has approved its 1 millionth iphone app today since the phones 08 launch. 1 million apps. S p pretty stunning, big jump here, erased all of last weeks losses, lifting back up to 200 day moving average. Bullish investors are looking for it to close above that level today, if it does so, we will see what happens tomorrow, but certainly would be a good sign for the bulls. And so beyond optimism about a budget deal, what else was out there . The market got a push from a pair of housing numbers, to its highest level in more g than six years. You can see confidence in some of the homebuilder stocks here. Housing names rallying on the news. Plus existing home sales beat estimates. Weve got crude oil rallying but not on good news. Look at todays sharp jump. Its a manifestation of tension between israel and hamas and the rocket battles over the gaza strip intensifies. The uncertainty no doubt stirring supply concerns. We do have oil moving precipitously higher. As important as it is, the oil story takes a backseat with what were seeing with the rally in equities. Lets take it to the floor show, traders at the New York Stock Exchange cme group and the nymex. Ben willis, i like this rally because it is a little bit more broad than what we have seen in the past plus a significant number here of 173 points by the way the high of the session up 187. Is this real . Does this have legs for tomorrow . I think it is real. and for those viewers who are watching us on friday, when i was chatting with Nicole Petallides, i said the time to buy is when a market is being corrected, and if you have to take a look back sat a chart going back over back at a chart going back over a month, you saw this market in a pullback phase. I think that was somewhat of a capitulation to the down side using the election as an excuse, if you will. But the market i believe was set to form a good bottom here and i believe has the ability to rally into the end of the year. There was some negative news early on or could have been taken as negative. The market refused to look at it that way. Some of the stories out of greece, its all being spun in a positive manner. The housing numbers were not great, but liz weve got the one month you just mentioned with the markets. You see that drop after election has now turned into a pretty significant jump. So you were spot on. We have tried to explain to people that you want to do what the smart money is doing, not what is slower money is doing. Thats more of the less experienced retail investor. Thats jump in when theres fear. People tried to be traders. You need to investors. Traders buy protection on either side of the volatility. They will make money when it goes up and down. Thats not an easy thing to do. Investors should be buying when everybody else wants to get out. Over at the nasdaq, a company got a buy from major Brokerage Firm even though they lowered its price target. You also have stories with selling more product in china. As you led into the segment, because of the impact on apple and nasdaq, it has its own weighting, and thats why it moved. Liz oil a huge story, pretty significant jump of more than 2 in the aftermarket. What are you hearing about the tensions . Neither israel nor the gaza strip is any major producer in oil of any form, but any tension forces countries to take sides. Thats the whole thing. Anyone who trades oil is looking at that. If you look at the options today, the volatility really didnt move out, it actually came in on this move. Now normally, 2, 2 1 2, 3 dollar move to the upside, there would be frantic to buy some calls out here. There really wasnt any panic out here as far as where im standing. It might be a little bit short lived. Everybody is going to keep their eye on it. If things escalate and get out of hand, i dont know about supply disruption but the thought of it could send prices up over 90 a barrel here. Were risking knocking on that door. In the options arena, i didnt see any big flight to try to buy some calls to the upside here. Liz thats significant, okay. Take a look at that. I like the 85 handle last week. I was looking at that as a base. Liz what are you looking at now because were already 89 . Im still long. It is a good thing for me for the fireworks and going off and what have you, but i wouldnt be in a rush to get in right here. You are just buying on news. Buy the rumors, sell the fact, type of thing i think here. I dont think were going to unless you get any type of supply disruption which i dont think is going to come out of that conflict, and i think they will deescalate the thing over the weekend. Hopefully it calms down a little bit and you will see us come back off. 85, work that off as your base. If we get above 92 1 2, it is a whole different story. Liz i want to get to dan because with all of the i guess you could say drama and little bit of excitement with the rally, still have volatility down about 6 . So what do you see . Again were going into the thanksgiving day shortened week of trade here. We ask people, what happens, do you buy here . Im not going to buy here. It is very important to remember the fiscal cliff issue isnt settled. Its parked right now because there have been some good news. You get one or two bad statements out of anybody out there, and this is going to unwind. Overall, on the economy, im positive. And i want to stay long what i have, but i wont add to a position until i see washington come to a concrete step towards agreement. Liz okay. Gentlemen, we do have some breaking news that you may find interesting because i know a lot of you floor traders like twinkies. Robert gray has some news. Robert getting ready for your thanksgiving meals here, a u. S. Bankruptcy judge that the parties have agreed to mediation here, were talking about of course hostess and the unions. Theyve agreed to a mediation tomorrow in the hostess case. Remember, hostess had filed to liquidate basically, the bankruptcy judge says hes concerned about job losses, looking at about 18 1 2 thousand job losses after 33 plants that have been shut down by hostess, they make the twinkies. Bankruptcy judge says the case is adjourned until 11 00 a. M. Wednesday to make room for the mediation tomorrow. He had ordered the two sides to go back and talk. We will see if they can come up with anything before. Remember keep in mind the bakers union unable to come to agreement with concessions with management there at hostess. We will continue to follow this very closely. Back to you, liz. Liz diners all around the nation were having to change and black out certain parts of their menu, frozen and the right. Robert the deepfried liz cant do that. It just scares me. Thank you very much. With the s p erasing its losses from last week, is this a time where you say now everything is fine, or do you show some caution . Floor traders, they are finding the best investments for their big clients. Meridian Equity Partners is one of those guys. He made the trip from New York Stock Exchange up to fox business on our set with an exclusive. We are so thrilled to have you in the studio. Thank you for having me. Liz you have Goldman Sachs coming out with a report saying another 8 will be chopped off the s p before the year end. Yet you have a day like today. It is surprising to see the way the market reacts today. That just shows us how fragile our markets are. Headlines can really dictate our market. We are seeing the swings. Whether its headlines coming out of europe, washington or Economic Data earnings season our market is waiting for information because everyone has been waiting. We have been talking about waiting. We have been waiting for the european crisis, the election, outcome of that, fiscal cliff, all this waiting has pushed investors away. When we see major headlines that we think can move money back in, investors are getting in. What happens is its a shortterm basis. Thats why we have been seeing a lot of one way markets, up 1 , down 1 . As ben said before people need to stop being traders and invest. Liz i couldnt agree with you more. Theres always going to be some fear, some negative story on the horizon, in the meantime wall worry. Do you see a meaningful santa claus rally at all . I do. Historically over time you do see the santa claus rally. I think it is starting to be priced into our markets. Short week this week. Not a full month in december. At this point i do think we will see the market trend to move higher because the negative headlines that had been out there have really only stuttered our markets. Liz you get orders in from clients who have been in the business a long time, made a lot of money, i call these the side window trades, the less obvious ones. You have an interesting side window trade you are talking about and that is all of things facebook . It is not a hiding type in the weeds type of trade, but if you look at facebook, i think people have forgotten a few things about it. One is that everybody was focusing on the fiasco of the ipo pricing and what happened afterwards. The stock went straight down. It launched in may, at 38 bucks. All the way down to what the low was around 19. And then i think people got a little scared of the lockup. And when the insiders had the ability to sell, i think investors waited too long to get into this. So the stock got below 20. It was a teenager for a while. If you look on the chart there, it sat there. It found a nice little base for a short period of time. Were starting to see that stock bounce now. I think its got a couple extra Percentage Points in it running towards the end of the year. Liz you feel maybe some of the montization of the mobile positivity might help this company. John is coming back with some of his favorite sector plays, and again, his clients, the big money, faster money guys and what they are doing with their money right now. Closing bell ringing in 50 minutes. Right now, what a time to be a gamer. Brand new versions of hot games to play on the highlyanticipated nintendo wiiu which is sold out. 300 product, it just flew off the shelves by the hundreds of thousands. Same with call of duty, black ops 2, released last week. How much is gamestop profiting . Gamestop the one retailer thats able to sell this stuff in big force. I will ask the man in charge in a fox business exclusive. Hes only talking to fox business. Hes the ceo. He will join me live. Can i help you . I heard you guys can ship ground for less than the ups ste. Thats right. Ive learned the only way to get a holiday deal is to camp out. You know weve been open all night. Is this a trick to get my spot . [ male announcer break from the holiday stress. Save on ground shipping at fedex office. Liz so im just looking at all to have the charts here and theres one movement, it is up. Were following all of it in the markets with Nicole Petallides on the floor of the New York Stock Exchange, sandra smith at the cme in chicago. Nicole, investors were taking a bite out of apple. Today they are now really biting and chewing it and swallowing it this time. Nicole in a good way; right . Today they are loving apple. It was a darling on wall street. It went from 500 to 600 to 700 and above that 700 mark but over the last three months though it really has sold off about 18 , but today a different story. Positive analyst comments helping not only apple but some of their supplier and other companies that are directly related to apple. Lets take a look at the whole bunch here. Apple is up 6 1 2 at 562. 10. As you look at some other names such as cirrus logic, omni vision tech and skyworks solutions, they are directly correlated to apples success and the positive comments. We have seen these names selling off along with apple but positive comments as i noted does help these groups. Great day here. Back to you. Liz okay, thank you very much. Sandra smith, lets get over to you. What are you seeing . Sandra to your point, most things are up today, but there are some things that were following. Weve found one for you, natural gas prices, your biggest loser as far as commodities are concerned on a day where commodities were soaring across the board. If you take a look at natural gas prices, the reason they are getting such a boost, liz, is because of all the warm weather out there. Youre looking at warm weather across the on the east coast, the midwest, and thats lessening demand for natural gas, but again, the big gainers today, if you take a look in the energy market, it was crude oil, rbob gasoline, also Heating Oil Prices skyrocketing today, if you look at crude oil prices, an intraday chart will show you sitting near their highs of the session as they closed at a oneweek high. This would make a Third Straight week of gains if we were to close higher again this week. Lots of bullish momentum behind that market. It is the middle east, avoidance of falling off the fiscal cliff. Traders we talked to today and said thats pouring into the bullish sentiment in that market. Gold prices also moving today, a big winner, thats part of the fiscal cliff, concerns in the middle east play, across the board, as the president says hes confident that were going to avoid falling off the fiscal cliff. The buyers fled into this market, it was off to the races. Liz you know sandra were playing nintendo land over here so we really sandra so sorry to interrupt. [laughter] liz all right. Lets take it here. Talk about a waiting list. Try being the 500,000th person in line for the new hot item. Thats how many gamers wanted the brand new nintendo wiiu which ben my floor director cant let go of this thing, not even doing his job. It hits store shelveses yesterday. Gamestop is already reporting record preorder in sales and shelves. Are they empty . Did they sell out . We bring in paul raines. I will get right to it, paul. Did you sell out . Hi, liz, it is great to be with you. Thanks for having us today. No, were still selling. Our customers can still come in and pick up their reserve. We have a very large wait list as well. We are working closely with our good friends at anyone ten i do nintendo around the world to bring in more product. We still have some. Customers are coming into gamestops to pick their reservations. Liz i know because of technology you guys have the ability to know how many youve sold. How many have you sold, paul . Liz, you know, i have to let my good friends in nintendo make those announcements before we can make them. You know the same thing happens with black ops 2 and halo. Were very happy with the launch. Never in history have we launched a console with the kind of market share we have and the power of rewards community of 21 million customers. So were really excited about this console and this technology all the way through the rest of the holiday. Liz lets talk about it because the wiiu is the first new sort of hardware console in about six years as i understand it. The xbox has been hugely, hugely powerful, but here comes the wiiu. Then youve got the ds3 which is also nintendo. The question becomes, a 300 product is not cheap obviously. What is it about this particular hardware paul that has captured peoples attention and forced money out of their wallets . You know, liz, our customers are looking for innovation. One of the things about the console Gaming Business is that it does go in cycles. We have been at the end of a console cycle. Thats put pressure on us and many other people in the category. Weve had to create some new businesses at the end of this cycle, but now that were emerging into the next console, our customers, our Community Tells us they are hungry for innovation. I think, you know, the wiiu is so innovative. It has a tablet game pad controller that allows you to play on your screen or on your tablet. You can have people playing different parts of the game. Thats pretty exciting. The great part of gamestop is we offer you a trade credit so you can bring us in your old smart phone, your old wii or your old tablet that will help you pay for that new console this holiday. Liz im glad you brought up the preowned sales. Thats been a really good narrative for you, especially with the games themselves. That leads to the question, so many of these games are Going Digital and online and that kind of eliminates your cartridge business, does it not . What are you going to do to fill that void . You know, its been an interesting case, weve been as you know because you know us well we have been in a transformation here for the last three years. We have created the ability to sell Digital Content in our stores. In fact, were probably the largest player in retail on selling Digital Content for consoles in our stores and on our websites and platforms. The first thing we have done is we sell Digital Content in our stores. We recently launched the activisions call of duty black ops 2 [inaudible] and we sold thousands of them. As far as the preowned games, it is amazing, preowned games actually drive sales of Digital Content, because video games are such large files, they really arent that popular for full game down loads. What is popular is addon Digital Content which we have been able to sell in our stores and attach it to our preowned games fairly well. That plus the fact that were in the preowned Electronics Business today has really given us a nice growth path for the future. Liz nonetheless were seeing at least according to [inaudible]. What do i see . I use my son who is 8 years old as one of the sort of retail experts for me, and hes loving things like mine craft. When you look at the list of some of the bestselling games, is the onus on the actual game makers to keep this going, or is the onus on the hardware guys . I tell you, liz, thats a great question, and theres no question that the end of the console cycle as it is in any Technology Cycle in any business, the end of the console cycle has been challenging, that npd data that you referenced, that is new software and hardware sales in the United States. It doesnt measure our preowned business, our international business, or our electronics and digital businesses. But it is true, that content does drive value and excitement in this category. So i think that the games are so remarkable, the game play is so fresh and exciting, you know, to have a video game play out in the middle of the revolutionary war in the Company Announced<\/a> it has approved its 1 millionth iphone app today since the phones 08 launch. 1 million apps. S p pretty stunning, big jump here, erased all of last weeks losses, lifting back up to 200 day moving average. Bullish investors are looking for it to close above that level today, if it does so, we will see what happens tomorrow, but certainly would be a good sign for the bulls. And so beyond optimism about a budget deal, what else was out there . The market got a push from a pair of housing numbers, to its highest level in more g than six years. You can see confidence in some of the homebuilder stocks here. Housing names rallying on the news. Plus existing home sales beat estimates. Weve got crude oil rallying but not on good news. Look at todays sharp jump. Its a manifestation of tension between israel and hamas and the rocket battles over the gaza strip intensifies. The uncertainty no doubt stirring supply concerns. We do have oil moving precipitously higher. As important as it is, the oil story takes a backseat with what were seeing with the rally in equities. Lets take it to the floor show, traders at the New York Stock Exchange<\/a> cme group and the nymex. Ben willis, i like this rally because it is a little bit more broad than what we have seen in the past plus a significant number here of 173 points by the way the high of the session up 187. Is this real . Does this have legs for tomorrow . I think it is real. and for those viewers who are watching us on friday, when i was chatting with Nicole Petallides<\/a>, i said the time to buy is when a market is being corrected, and if you have to take a look back sat a chart going back over back at a chart going back over a month, you saw this market in a pullback phase. I think that was somewhat of a capitulation to the down side using the election as an excuse, if you will. But the market i believe was set to form a good bottom here and i believe has the ability to rally into the end of the year. There was some negative news early on or could have been taken as negative. The market refused to look at it that way. Some of the stories out of greece, its all being spun in a positive manner. The housing numbers were not great, but liz weve got the one month you just mentioned with the markets. You see that drop after election has now turned into a pretty significant jump. So you were spot on. We have tried to explain to people that you want to do what the smart money is doing, not what is slower money is doing. Thats more of the less experienced retail investor. Thats jump in when theres fear. People tried to be traders. You need to investors. Traders buy protection on either side of the volatility. They will make money when it goes up and down. Thats not an easy thing to do. Investors should be buying when everybody else wants to get out. Over at the nasdaq, a company got a buy from major Brokerage Firm<\/a> even though they lowered its price target. You also have stories with selling more product in china. As you led into the segment, because of the impact on apple and nasdaq, it has its own weighting, and thats why it moved. Liz oil a huge story, pretty significant jump of more than 2 in the aftermarket. What are you hearing about the tensions . Neither israel nor the gaza strip is any major producer in oil of any form, but any tension forces countries to take sides. Thats the whole thing. Anyone who trades oil is looking at that. If you look at the options today, the volatility really didnt move out, it actually came in on this move. Now normally, 2, 2 1 2, 3 dollar move to the upside, there would be frantic to buy some calls out here. There really wasnt any panic out here as far as where im standing. It might be a little bit short lived. Everybody is going to keep their eye on it. If things escalate and get out of hand, i dont know about supply disruption but the thought of it could send prices up over 90 a barrel here. Were risking knocking on that door. In the options arena, i didnt see any big flight to try to buy some calls to the upside here. Liz thats significant, okay. Take a look at that. I like the 85 handle last week. I was looking at that as a base. Liz what are you looking at now because were already 89 . Im still long. It is a good thing for me for the fireworks and going off and what have you, but i wouldnt be in a rush to get in right here. You are just buying on news. Buy the rumors, sell the fact, type of thing i think here. I dont think were going to unless you get any type of supply disruption which i dont think is going to come out of that conflict, and i think they will deescalate the thing over the weekend. Hopefully it calms down a little bit and you will see us come back off. 85, work that off as your base. If we get above 92 1 2, it is a whole different story. Liz i want to get to dan because with all of the i guess you could say drama and little bit of excitement with the rally, still have volatility down about 6 . So what do you see . Again were going into the thanksgiving day shortened week of trade here. We ask people, what happens, do you buy here . Im not going to buy here. It is very important to remember the fiscal cliff issue isnt settled. Its parked right now because there have been some good news. You get one or two bad statements out of anybody out there, and this is going to unwind. Overall, on the economy, im positive. And i want to stay long what i have, but i wont add to a position until i see washington come to a concrete step towards agreement. Liz okay. Gentlemen, we do have some breaking news that you may find interesting because i know a lot of you floor traders like twinkies. Robert gray has some news. Robert getting ready for your thanksgiving meals here, a u. S. Bankruptcy judge that the parties have agreed to mediation here, were talking about of course hostess and the unions. Theyve agreed to a mediation tomorrow in the hostess case. Remember, hostess had filed to liquidate basically, the bankruptcy judge says hes concerned about job losses, looking at about 18 1 2 thousand job losses after 33 plants that have been shut down by hostess, they make the twinkies. Bankruptcy judge says the case is adjourned until 11 00 a. M. Wednesday to make room for the mediation tomorrow. He had ordered the two sides to go back and talk. We will see if they can come up with anything before. Remember keep in mind the bakers union unable to come to agreement with concessions with management there at hostess. We will continue to follow this very closely. Back to you, liz. Liz diners all around the nation were having to change and black out certain parts of their menu, frozen and the right. Robert the deepfried liz cant do that. It just scares me. Thank you very much. With the s p erasing its losses from last week, is this a time where you say now everything is fine, or do you show some caution . Floor traders, they are finding the best investments for their big clients. Meridian Equity Partners<\/a> is one of those guys. He made the trip from New York Stock Exchange<\/a> up to fox business on our set with an exclusive. We are so thrilled to have you in the studio. Thank you for having me. Liz you have Goldman Sachs<\/a> coming out with a report saying another 8 will be chopped off the s p before the year end. Yet you have a day like today. It is surprising to see the way the market reacts today. That just shows us how fragile our markets are. Headlines can really dictate our market. We are seeing the swings. Whether its headlines coming out of europe, washington or Economic Data<\/a> earnings season our market is waiting for information because everyone has been waiting. We have been talking about waiting. We have been waiting for the european crisis, the election, outcome of that, fiscal cliff, all this waiting has pushed investors away. When we see major headlines that we think can move money back in, investors are getting in. What happens is its a shortterm basis. Thats why we have been seeing a lot of one way markets, up 1 , down 1 . As ben said before people need to stop being traders and invest. Liz i couldnt agree with you more. Theres always going to be some fear, some negative story on the horizon, in the meantime wall worry. Do you see a meaningful santa claus rally at all . I do. Historically over time you do see the santa claus rally. I think it is starting to be priced into our markets. Short week this week. Not a full month in december. At this point i do think we will see the market trend to move higher because the negative headlines that had been out there have really only stuttered our markets. Liz you get orders in from clients who have been in the business a long time, made a lot of money, i call these the side window trades, the less obvious ones. You have an interesting side window trade you are talking about and that is all of things facebook . It is not a hiding type in the weeds type of trade, but if you look at facebook, i think people have forgotten a few things about it. One is that everybody was focusing on the fiasco of the ipo pricing and what happened afterwards. The stock went straight down. It launched in may, at 38 bucks. All the way down to what the low was around 19. And then i think people got a little scared of the lockup. And when the insiders had the ability to sell, i think investors waited too long to get into this. So the stock got below 20. It was a teenager for a while. If you look on the chart there, it sat there. It found a nice little base for a short period of time. Were starting to see that stock bounce now. I think its got a couple extra Percentage Points<\/a> in it running towards the end of the year. Liz you feel maybe some of the montization of the mobile positivity might help this company. John is coming back with some of his favorite sector plays, and again, his clients, the big money, faster money guys and what they are doing with their money right now. Closing bell ringing in 50 minutes. Right now, what a time to be a gamer. Brand new versions of hot games to play on the highlyanticipated nintendo wiiu which is sold out. 300 product, it just flew off the shelves by the hundreds of thousands. Same with call of duty, black ops 2, released last week. How much is gamestop profiting . Gamestop the one retailer thats able to sell this stuff in big force. I will ask the man in charge in a fox business exclusive. Hes only talking to fox business. Hes the ceo. He will join me live. Can i help you . I heard you guys can ship ground for less than the ups ste. Thats right. Ive learned the only way to get a holiday deal is to camp out. You know weve been open all night. Is this a trick to get my spot . [ male announcer break from the holiday stress. Save on ground shipping at fedex office. Liz so im just looking at all to have the charts here and theres one movement, it is up. Were following all of it in the markets with Nicole Petallides<\/a> on the floor of the New York Stock Exchange<\/a>, sandra smith at the cme in chicago. Nicole, investors were taking a bite out of apple. Today they are now really biting and chewing it and swallowing it this time. Nicole in a good way; right . Today they are loving apple. It was a darling on wall street. It went from 500 to 600 to 700 and above that 700 mark but over the last three months though it really has sold off about 18 , but today a different story. Positive analyst comments helping not only apple but some of their supplier and other companies that are directly related to apple. Lets take a look at the whole bunch here. Apple is up 6 1 2 at 562. 10. As you look at some other names such as cirrus logic, omni vision tech and skyworks solutions, they are directly correlated to apples success and the positive comments. We have seen these names selling off along with apple but positive comments as i noted does help these groups. Great day here. Back to you. Liz okay, thank you very much. Sandra smith, lets get over to you. What are you seeing . Sandra to your point, most things are up today, but there are some things that were following. Weve found one for you, natural gas prices, your biggest loser as far as commodities are concerned on a day where commodities were soaring across the board. If you take a look at natural gas prices, the reason they are getting such a boost, liz, is because of all the warm weather out there. Youre looking at warm weather across the on the east coast, the midwest, and thats lessening demand for natural gas, but again, the big gainers today, if you take a look in the energy market, it was crude oil, rbob gasoline, also Heating Oil Prices<\/a> skyrocketing today, if you look at crude oil prices, an intraday chart will show you sitting near their highs of the session as they closed at a oneweek high. This would make a Third Straight<\/a> week of gains if we were to close higher again this week. Lots of bullish momentum behind that market. It is the middle east, avoidance of falling off the fiscal cliff. Traders we talked to today and said thats pouring into the bullish sentiment in that market. Gold prices also moving today, a big winner, thats part of the fiscal cliff, concerns in the middle east play, across the board, as the president says hes confident that were going to avoid falling off the fiscal cliff. The buyers fled into this market, it was off to the races. Liz you know sandra were playing nintendo land over here so we really sandra so sorry to interrupt. [laughter] liz all right. Lets take it here. Talk about a waiting list. Try being the 500,000th person in line for the new hot item. Thats how many gamers wanted the brand new nintendo wiiu which ben my floor director cant let go of this thing, not even doing his job. It hits store shelveses yesterday. Gamestop is already reporting record preorder in sales and shelves. Are they empty . Did they sell out . We bring in paul raines. I will get right to it, paul. Did you sell out . Hi, liz, it is great to be with you. Thanks for having us today. No, were still selling. Our customers can still come in and pick up their reserve. We have a very large wait list as well. We are working closely with our good friends at anyone ten i do nintendo around the world to bring in more product. We still have some. Customers are coming into gamestops to pick their reservations. Liz i know because of technology you guys have the ability to know how many youve sold. How many have you sold, paul . Liz, you know, i have to let my good friends in nintendo make those announcements before we can make them. You know the same thing happens with black ops 2 and halo. Were very happy with the launch. Never in history have we launched a console with the kind of market share we have and the power of rewards community of 21 million customers. So were really excited about this console and this technology all the way through the rest of the holiday. Liz lets talk about it because the wiiu is the first new sort of hardware console in about six years as i understand it. The xbox has been hugely, hugely powerful, but here comes the wiiu. Then youve got the ds3 which is also nintendo. The question becomes, a 300 product is not cheap obviously. What is it about this particular hardware paul that has captured peoples attention and forced money out of their wallets . You know, liz, our customers are looking for innovation. One of the things about the console Gaming Business<\/a> is that it does go in cycles. We have been at the end of a console cycle. Thats put pressure on us and many other people in the category. Weve had to create some new businesses at the end of this cycle, but now that were emerging into the next console, our customers, our Community Tells<\/a> us they are hungry for innovation. I think, you know, the wiiu is so innovative. It has a tablet game pad controller that allows you to play on your screen or on your tablet. You can have people playing different parts of the game. Thats pretty exciting. The great part of gamestop is we offer you a trade credit so you can bring us in your old smart phone, your old wii or your old tablet that will help you pay for that new console this holiday. Liz im glad you brought up the preowned sales. Thats been a really good narrative for you, especially with the games themselves. That leads to the question, so many of these games are Going Digital<\/a> and online and that kind of eliminates your cartridge business, does it not . What are you going to do to fill that void . You know, its been an interesting case, weve been as you know because you know us well we have been in a transformation here for the last three years. We have created the ability to sell Digital Content<\/a> in our stores. In fact, were probably the largest player in retail on selling Digital Content<\/a> for consoles in our stores and on our websites and platforms. The first thing we have done is we sell Digital Content<\/a> in our stores. We recently launched the activisions call of duty black ops 2 [inaudible] and we sold thousands of them. As far as the preowned games, it is amazing, preowned games actually drive sales of Digital Content<\/a>, because video games are such large files, they really arent that popular for full game down loads. What is popular is addon Digital Content<\/a> which we have been able to sell in our stores and attach it to our preowned games fairly well. That plus the fact that were in the preowned Electronics Business<\/a> today has really given us a nice growth path for the future. Liz nonetheless were seeing at least according to [inaudible]. What do i see . I use my son who is 8 years old as one of the sort of retail experts for me, and hes loving things like mine craft. When you look at the list of some of the bestselling games, is the onus on the actual game makers to keep this going, or is the onus on the hardware guys . I tell you, liz, thats a great question, and theres no question that the end of the console cycle as it is in any Technology Cycle<\/a> in any business, the end of the console cycle has been challenging, that npd data that you referenced, that is new software and hardware sales in the United States<\/a>. It doesnt measure our preowned business, our international business, or our electronics and digital businesses. But it is true, that content does drive value and excitement in this category. So i think that the games are so remarkable, the game play is so fresh and exciting, you know, to have a video game play out in the middle of the revolutionary war in the United States<\/a> in George Washingtons<\/a> army, i mean this is exciting stuff. We do believe the hardware cycle though will be a very large driver and always has been historically of top line and consumer demand. So were excited about that. Liz well, the stock is too. It is hitting 52 week high today. Paul Raines Gamestop<\/a> ceo in a fox business exclusive. When we get the numbers, we will put them on. Thank you very much. Congratulations. Great talking to you, liz. Take care. Liz 8 minutes before the closing bell rings. Republicans moving closer to saying yes to a tax hike. Charlie gasparino has the latest as we move closer to the end of the year and the so called fiscal cliff. Liz with massive budget cuts and pretty staggering tax hikes with the fiscal cliff looming are republicans getting ready to throw in the towel and raise tax rates on the wealthy even if that means Small Businesses<\/a> get hit as well . Charlie gasparino has the latest chatter from washington on the all important budget negotiations. Charlie . Listen, this is my adjust my tie a bit here. Liz you just ruined it. Thank you. Liz you are welcome. You know you owe me. You know, this is my unofficial survey of washington, republican staffers and what they tell me is this, that yes, the republicans are essentially ready to throw in the towel on this thing. Liz some people look at it as throwing in the towel, others look at it as compromise. Maybe, but they know that the polls are against them. Now the question is, what is the compromise . What exactly is throwing in the towel . What were hearing is increasingly is Something Like<\/a> a millionaires tax on the upper not hitting it at 250, combined income of 250, but doing it at a combined income of a million. Save a lot more Small Businesses<\/a>. Listen, somebody, a family of four that makes 250,000 that lives in long island is not warren buffett. They are not millionaires and billionaires. Liz of course not no. Warren buffett would say they are not warren buffett. Then he should have came out and said im not in favor of taxing them. On fox business he said he didnt think that 250 level was the appropriate level, but go on. He still supported the president who goes out there every day and pro motes that 250 level is a millionaire and billionaire. It looks like republicans based on the polling are going to throw in the towel on this, and it is going to be Something Like<\/a> a millionaires tax. Can i guarantee this . No. We should point out that the negotiations are being very closely held. I mean this is boehner, paul ryan, cantor and pelosi, reid, key members there, this is like two groups, they are not briefing their conferences much. They are not going out there and telling people what they are doing. These are private negotiations. From what i understand, they are pretty active private negotiations. This is where we are right now. Again, we should point out based on everything i know, no deal until after thanksgiving. And by the way, then it becomes key. This is really interesting. If you dont have a deal after thanksgiving, think about what m cos next think about what comes next, you have Christmas Holiday<\/a> shopping, thats a huge time for retailers, if people think they are going to get taxed, a fiscal cliff scenario where all the tax rates go up, every single bracket goes up, right, are people going to spend money . Thats a real question. Liz we have a guest coming up to talk exactly about that. We will ask him that question. Yeah, and i think this clock really starts ticking after this week because thats when people start thinking how much money its already ticking. Listen people are blowing out of dividend stocks. Lets just say president obama got everything he wanted, we avoided the fiscal cliff, he got his big tax increases, this economy still faces tremendous head winds because he wants to raise taxes to pay for on dividends, he wants to raise Capital Gains<\/a> taxes to pay for obama care. Theres a lot of stuff thats coming down thats hitting this country in the next year. I will tell you, if i were the average guy out there, i would watch fox business every day to make sure they kept uptodate on this, because its going to hit the pocketbook of everybody in a major way unless of course, you know, youre just collecting stamps from the government. If you are not, if you are in the private sector, this is a huge thing for you. How are you invest toments going to get how are your investments going to get hit . How is your pocketbook going to get hit . I think there will be a fiscal cliff compromise. Were talk action tremendous head winds for an economy thats only growing 2 . Liz people will start behaving differently. They will revert to what they did back during the beginning of the financial crisis. You dont want that. Liz no. This is the absurdity of raising taxes. I dont care what the president got a mandate of 50, 51 percent, he thinks hes got he can do whatever he wants, and maybe he can, hes got the media behind him. You raise taxes in this environment, this is not a growing environment, youre asking for trouble. Youre rolling the dice, and im telling you, dividend taxes, you know, this is like insane. In any event, it is what it is. We have got to report. You got to do what you got to do. Liz president clinton did it in boom times no, he didnt. President clip Clinton Clinton<\/a> did it in 93. We did not have a surplus until we had the internet bubble in 1996. That is the bottom line. I dont care what anybody says. Liz i missed that surplus, i dont care what anybody says. Look at the gdp growth after he raised taxes. Look at our economy right after it did not do very well. Liz charlie gasparino, thank you. Your tie now is appropriate now that the segment is over. Okay. Liz closing bell ringing in 27 minutes. Confidence among you the u. S. Consumer hitting a five year high this month but with the fiscal cliff looming and employment on the rocks, which retailers will come out on top this holiday season, and should you be buying their stocks . Joe feldman tells the Advisory Group<\/a> managing director and Senior Analyst<\/a> breaks down his retail winners and losers. Thats next. Telsey Advisory Group<\/a> managing director. Thats next. Robert im robert gray with your fox business brief. It continues to be a strong day for stocks with investors optimistic over the fiscal cliff negotiations. Solid housing reports also pushing equities higher. The dow is up almost 1 1 2 . Solid gains across the board. Well, the twinkie may live on after all. The u. S. Bankruptcy court judge says hostess and its unions have agreed to mediation in efforts to reach a deal over his concerns about job losses. The judge says the case is adjourned until 11 00 a. M. Eastern on wednesday to make room for tomorrows mediation. As you can see, shares of snack food rival are giving back much of earlier gains following the latest news on hostess. Now, there had been speculation that flower was planning on scooping up some of the hostess assets. And drivers are getting some relief at the pumps, just in time for their thanksgiving Holiday Travel<\/a> plans. Triple as Daily Fuel Gauge<\/a> says the National Average<\/a> for a gallon of regular gasoline has dropped by more than a quarter in just a month. Now 3. 41. Triple a estimates that nearly 40 Million People<\/a> plan to travel by car this thanksgiving. Now, we continue our countdown to the closing bell with liz claman. Liz and i have an odd license plate, i was sitting there all weekend not realizing the odd even thing is done in new jersey. As the market continues to rally, lets go to Nicole Petallides<\/a> on the floor of the New York Stock Exchange<\/a> to see whats moving. Nicole . Nicole all i can say is so much green on the screen as these guys are getting ready for market on close orders. They are discussing just the fact we have seen so much buying. The last few minutes of trading are so key to see whether or not we hold the gains we have sustained here today. The Dow Jones Industrials<\/a> up 177 points. Take a look at some most actively traded stocks here, bank of america, pfizer, nokia, those are some of your best performers today. They are certainly the most heavily traded names here on wall street. Apple which is up over 30 bucks. Lowes talked about samestore sales once again and they beat the street and raised their forecast, right . And we got in some good housing numbers, all of this put together, dont forget we sold off 7 of the last 9 trading weeks, so everybody talks about oversold market, 90 down day, opportunities for buying, the bounceback. Well, heres the bounceback for you, folks. Right now you can see we have all green all day long. Were up 175 points. Thats a pretty nice day here on wall street. Liz claman, you have to love it if you are a bull out there. Back to you. Liz im glad you put in that because we do have friends who are shorts or shorting this market, but lets talk about what might really be a bullish move for your portfolio on black friday. The biggest shopping day of the year or actually night at this point. I mean so many of them will be opening at 12 01 a. M. , you know, listen, some are opening a lot earlier than that. Nearly 150 million shoppers are expected to hit the stores this weekend. But where will they spend big and once the hot stores are pinpointed, should you spend on their stock . Lets break down the Holiday Retail<\/a> winners and losers with joe feldman, telsey advising Group Managing<\/a> director and Senior Research<\/a> analyst. A fox business exclusive. Okay, the National Retail<\/a> federation says holiday sales will be up about 4. 1 year over year and that online sales will be up more than 12 year over year. Are your numbers like that . Do they square with those . Yes, were looking for 3 1 2 to 4 1 2 percent increase in toe al and low to mid teens on in total and low to mid teens on the online spending. Liz who will do well, pull our money out of our wallets . I think we will see the big box discounters do well, walmart, target. I think those guys are going to do very very well this season. They are starting to open early. Walmart is open at 8 00. Target is open at 9 00. It is a share game for them. They are going to go after share when nobody else is open. They are going to go after that. Liz we are talking about thanksgiving day, 8 00 p. M. , 9 00 p. M. Yes. Then they will be open all night and through the night until the next morning. They will have timed release of different sales. It will be a big event, but if they can drive in that traffic in the stores with that deep value discounted merchandise that they have, its going to be a big win for these guys for the holidays. Liz so youre expecting the door buster itself might be 8 00 p. M. On thanksgiving day. Absolutely. Liz once people get in, they will be hooked in and wait for timed sales. So every couple of hours and now we have a flat screen tv thats 30 off. Thats right. So for example, walmart is actually putting their electronics on sale at 10 00 p. M. Even though the door buster electronics at 10 00 p. M. Even though the stores are going to open at 8 00 p. M. So you will have some nice timed release sales there. If you are in line from 10 00 to 11 00, you are guaranteed go get a few hot door buster items. Liz you will have time to kill and spend on other things. How do you conduct your research joe . We will be in the stores. Telsey Advisory Group<\/a> will have its whole team out there at 8 00 p. M. On thursday evening and then the next morning. Liz im not going to ask exact locations. You never telegraph that you are going places. But will you be in other stores than other say the big box retailers . Absolutely. We will be across all of retail whether its from best buy to gap to limited to home depot. Liz taking notes and walking through and looking at what people are putting in their bags . We do. Use handheld devices, take a lot of notes. We put out a big report on the following monday talking all about it. Liz looking at names like costco, do you like those names . We have been studying how the grocery effect has really pulled people in. Walmart too. Is that going to push them into the winner category and the margins as well, does that make them a good stock play . Yeah, we like costco a lot actually. I think their consistency has been terrific. They have had 4 traffic gains all year. And we dont see that stopping. You know, they have offered great value. They cater to more affluent consumer. That more affluent consumer like everybody else wants to save money so they are into costco. Liz now we go to the ones that will not benefit as well. Yes. Liz what do you think . Well, you know, the Office Supply<\/a> guys, for example. Theres not a lot of interest, you know, generated around black friday. Their big season is back to school, back to business which happens in january. Were not looking for a ton out of those guys. Even the Home Improvement<\/a> retailers, if you really think about it, the spring is their christmas. So theres not a huge drive to go liz lowes hitting a big high today and weve seen home depot hitting numerous highs. From stock perspective, home depot and lowes two of our favorites. We think they will keep winning. Housing market is getting a little bit better. Today existing home sales were better. Pay big dividends, buy back a lot of stock. A lot of good reasons to own home depot and lowes. Liz telsey Advisory Group<\/a> and managing director of Senior Analyst<\/a> research, thank you very much. Thanks for having me. Liz appreciate it. Closing bell ringing in 15 minutes. Yes, we are holding on to gains, about 168 points. Still lots of green on the screen with s p 500 up 23 points. Find out what the floor traders know, the inside scoop from john corpina. Thats next. Liz financials are up 19 since the start of the year. Which part might you want to commit some investment money too though . John corpina meridian Equity Partner<\/a> senior managing partner, hes giving a traders perspective on whats moving the markets. If you look at the dow 30, bank of america is right up there in the top five, as well as jpmorgan chase. These guys are looking pretty darn good at the moment. What is it about the financials do you think that your clients right now are saying buy . You know, i think this is on is a more longer term perspective thats there. If you go back to 08, 09, this sector has been beaten down tremendously. At some point you will start to see significant rallies coming back from it. How is that and when is that going to happen . What i think is going to happen is we will continue to see consolidation in the smaller regional banks. From the bigger banks i think we will start seeing them strip apart some of their Nonprofit Centers<\/a> that arent up to what they need to be, see expenses come down across the board. You look on this board here, the jpmorgan chases i think has been has shown over time that it has been resilient in this sector, compared to some of the others. Obviously jamie dimon, household name there, people have invested a lot into this. Liz from june you see a pretty decent move here. Then you see a pretty good spike in september. More action and then the pullback after the election. But then this little part right here is starting to look pretty decent; right . Right. And then you consider what happened at the election. I think many sectors out there had that sell off by the election time not really knowing what the outcome was going to be like. Coming into this election it was neckandneck coming up to election day. I think investors took a pullback at this point. Liz when the clients pick up the phone and call you on the trading floor, jpmorgan, what other names . Names . We have multistrategy clients, we have clients that specifically look on certain sectors that are here. You look at charles schwab, that is a household name. I think you get different types of investors that like to look into this, because it falls into different categories. The retail name, the advertising thats out there. Liz the exact same chart almost, you see the drop and then a nice move, down after the election and then this little pop back up. You are saying this part continues . We will see this continue into the end of the year. Next year regulation will change the way some of the banks do business, and you are going to see how thats going to affect some indices that are there. Liz lets talk about healthcare, because Everybody Knows<\/a> now that with president obama as president the healthcare law stands at the moment. Do you like any regions there . I like the insurers, more shortterm basis. Heading into the election, they had some profits on the table, might want to get into some trades that are out there that they normally wouldnt. If you look at the sector here, same kind of effect you saw on financials. Got to the election, we had a sell off right before it and now this is starting to back bounce you look at aetna and united healthcare, these types of stocks are clearly benefitting from the Election Results<\/a> we have seen here. Liz lets do a one month so we can get a better sense of really the move right here. Again similar to what you would see with the banks coming back up once again. So now would have been the moment to buy, but is this a decent moment still too . I think were still going to see this as positive effect towards the end of the year. It is really next year, the whole fiscal cliff concept, it all gets bundled into one. How does that play moving forward . I think on this one it is more of a shortterm basis. Liz lets talk about what you dont like. Airlines. I have had a lovehate relationship with the Airline Sector<\/a> there. You look at airlines. You have seen massive consolidation in the Airline Sector<\/a>. Youre trying to see youre seeing some of the load numbers are down, capacities are down. The stock prices have been in a fall, and theyve stayed in a very a tight range down at the bottom. Liz look pretty darn good. We talk about whats happening in the middle east and talking with oil clearly has an effect on this sector here. Yes, these airlines are sophisticated enough where they strategized and hedged out their oil positions for their airplanes and for their fleets, but clearly the whole correlation between whats happening in the middle east, whats happening in europe, weather patterns here has an effect on this market here. I dont see that were going to have a positive effect in the longterm basis. You do get some positive blips during the holiday season. Liz look at the last six months for southwest, very choppy and in a range. Absolutely. Liz great to have you. Always a pleasure. Liz we love having you in the studio and seeing you in the floor. John corpina, meridian Equity Partners<\/a>, the senior managing partner. When we come back, watching the markets up 192 for the Dow Jones Industrials<\/a>. Got to be close of the highs of the session, if not. 194. Before copd. I took my son fishing every year. We had a great spot, not easy to find, but worth it. But with copd making it hard to breathe, i thought those days might be over. So my doctor prescribed symbicort. It helps significantly improve my lungunction starting within five minutes. Symbicort doesnt replace a escue inhaler for sudden symptoms. With symbicort, today im breathing better. And that means. Fish on symbicort is for copd including chronic bnchitis and emphysema. It should not be taken more than twice a day. Symbirt may increase your risk of ng infections, osteoporosis, d some eye problems. Tell your doctor if you have a heart condition or high Blood Pressure<\/a> before taking it. With copd, i thought id miss our family tradition. Now symbicort significantly improves my lung function, starting within 5 minutes. And that makes a difference in my breathing. Today, were ready for whatever swims our way. Ask your doctor about symbicort. I got my first prescription free. Or click to learn more. [ male announcer ] if you cant afford your medication, astrazeneca may be able to help. He loves risk. But whether hes cmbing everest, this is a test. That doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happs, which isnt rocket science. Its just common sense, from td ameritrade. On the other hand, this is the day a lot of people will wait when apple pops to the upside. Liz that is right, we saw apple jumping. We have watched apple so closely. It was down to nearly 500 making a little bit of a comeback here. Liz you talk about the big retailers. Home depot was stealing the limelight. Now it is lowes home goods. Absolutely. Lowes home goods really blew out the numbers. When you see what is happening with sales, that is great news. David although, we will get into that a little bit later. Just about all of the financials came up kaman although it started with one upgrade. That upgrade was for banc of america. Bank of america doing extremely well. Bank of america will the shell. That was a real winner today. 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