Transcripts For FBC Countdown To The Closing Bell 20130312 :

Transcripts For FBC Countdown To The Closing Bell 20130312

Liz countdown to the countdown. The dow touches another record high earlier today, and the s p remains near alltime highs, where can you still safely get greedy . One of wall streets heavy hitters Morgan Stanleys smith barney david darst first on fox business with his favorite pick. Its got to happen eventually. Ben bernanke and company end qe but then what . The ceo of fifth street finance shows you where to put money now for when it happens. And the famed Cleveland Clinic coming to a town near you . First on fox business, Cleveland Clinic ceo on how the platinum standard in healthcare is teaming up with hospital Chain Community health systems. Countdown to the closing bell starts right now. Liz good afternoon everybody. Im liz claman. It is the last hour of trading. And you know what . We are seeing something we havent seen on the screen in more than a week. A lot of red. Not deep, deep red, but defin e definitely red. Earlier this morning up 31 points, best levels of the session, the dow started to pull back and you can see the s p has followed down a third of a percent. Alltime high level were looking at is 1565, 15 points away from that right now. The nasdaq is lower by 16 points or half percent. Tech stocks are really among the days worst performers. They are led by apple, jeffries cutting its price target on apple to 420 a share from 500, a little late on that. 500 was in the Rearview Mirror a while back. That stock is down 8. Delays with the iphone 5s in productions is the problem there, at least the concern. Then we have google, down a percent. Look at red hat, though, rht, down nearly 5 . Citigroup downgrading the Software Maker from a buy to a neutral, so red hat down by 2. 57. Lets flip it over. We have money flowing into some of the consumer names. Had you listened to our bull bear debate on jc penney yesterday, you might have been ready for this. Jcp is moving higher by 5 . Why . Theres been some speculation we talked about this yesterday that ceo ron johnson is leaving. Barely been there a year. The retailer says it is not true. But there you are. Its up 75 cents. Anybody who has owned this stock for a while waiting for it to turn is a little happier today. We have costco, moving up a percentage point. The big box retailer Second Quarter earnings beating street estimates by a mile. And yum brands, the operator of kfc and taco bell, broke after the bell yesterday, china sales, they werent great, but they were not as bad as they had been and had been expected. Coming back a little bit on the samestore sales in china in particular. Lets look at gold. The precious metal rising near a twoweek high. Analysts say the gains are due to some short covering. And black smoke came from the chimney of the 15 chapel, a sign that no, the cardinals have not made the decision yet. You can barely see it. We saw it better earlier with tracy and ashley. Very dramatic. No new pope selected. Another chance tomorrow. They will vote tomorrow morning. In the rain, as you see the crowds there. Fox business is there. We will bring you it the minute it happens. Heres the data i want to throw to our traders, according to to a report, hedge funds have taken equity exposure up to the highest level in eight months. Lets bring them in on the floor show. Traders at the new york stock exchange, cme group and the nymex. Wow teddy, is so called smart money a little late here . I dont know, a lot of people are trying to talk the market down, liz. You know, we have talked about nothing more bearish than a sold out bull, but, you know, you know, i mean, this is just a blip. I think the momentum is still on the upside. I cant tell you why they are going up, but they look to me like they are going to go higher. I think those folks should have probably put money to work, here, though, it seems a little scary, i think they might be on the right side of the equation. Liz i bet they are relieved to hear that one. Phil, at the cme, teddy is right. There have been a parade of people trying to talk this market down. Yesterday we had a technician on, and he said 10 correction coming. Wait till you hear what david darst has to say. Hes coming up in a few seconds. But what do you see here with the trades you see flowing through the cme . Well, today was really a small reallocation. We had Goldman Sachs come out and they revised their commodity outlook higher. Thats why you are seeing gold prices start to surge. You are also seeing oil despite the fundamentals which are quite bearish, also rebounding as well. A little shift, a little profit taking on the equities. A little reallocation back into some of those long commodities. Liz elliot, im looking at crude oil, while it did get a lot closer, that brought the price down just a bit at least when it comes to oil. Is there nothing more than a stronger or weaker dollar at play here because we do have some pretty i would say fundamentals that make it look bearish to have this price go higher meaning a lot of inventory with oil . Agreed. Its like teddy always says, the market is the only truth. Crude dont be fooled by seeing the wti, up 40 or 50 cents here today. If you look, the products are all lower. Unleaded gasoline, rbob Contract Heating Oil lower and brent contract is also lower. The wti contract here in new york is up 50 cents against its own products but thats really the spread between ti and brent coming in a little bit today which is good for everybody, i think. But again, overall brent crude is actually down. More red for you today, liz. Liz 73 cents lower is with brent. Elliot, is that the rain . Is that why your hair looks so slicked back . Yeah, yeah, sorry yes, i hate it. Liz we do adore you, right, teddy . Elliot warren quoted teddy. I dont want to hear any hair stuff. I dont want to hear anything about hair. [laughter] liz gentlemen, thank you very much. We really appreciate it. The dow jones industrials, while down 15 points did hit another record high earlier today. Now you saw this yesterday, a lot of attention, the famed Warton School of finance professor said yesterday here on fox business that the market would continue its winning ways specifically with the s p 500 hitting its alltime highs, this week, he predicts. Listen. Let me get you to the s p 500 then. When do we hit 1565 . Were only 10 points away. Is that a sure thing . Yeah, that could come any day. I mean, if i were to put money on it this week, it will happen. Liz this week, it will happen. We have got 2 1 2 days left, not even. Lets bring in a market player who manages money. Okay, we got the professors opinion here. But now we have got somebody who manages nearly 2 trillion dollars. Lets get his view. David darst, Morgan Stanley smith barney chief investment strategist in a first on fox business interview. What do you think about dr. Siegels projection . Liz, hes terrific. I have known him for a long time. He does very very solid sound work. Theres a bear market checklist that we keep right now. Is the fed tightening . No. Are investors is there investor euphoria present . No. It is a little frothy but not a bubble. Are valuations stretched . No. Is there a recession looming . No. Are the transportation, bank, and small cap stocks taking bullets . No. And are bond yield spreads widening . No, they are narrowing. All six of those, youve got six nos. So professor siegel is correct, the market can definitely run higher here especially since its basically had this good momentum starting up this year, up 9. 1 . Liz the one thing you want to do, dont forget your viewers need to know this party is a little bit late in the tooth. Its been going for four years. So dont think you are entering this party at 5 00 or 6 00 in the afternoon and it is going to midnight. You are entering it at 10 00. Do it hollywood style. Do it beverly style and have a cocktail and be ready to leave. Liz you have to leave the party first a little early. Coming in late. Liz in new york city they would say oh im triple booked. I have to go. General mills by the way is raising its dividend right now. What is that . 15 Dividend Increase for a lot of you who own General Mills thats certainly bullish. Lets throw up the chart while were continuing to talk to you. You like not necessarily that one but some other consumer names. Here it is jumping to near highs of the session. In fact, im looking and im pretty sure it will eventually hit best levels of the day. Right now up just about 1 1 4 for General Mills on that breaking news. Okay, so lets get to the correction territory. Are we headed for one and by how much . Well, youve got this very low volatility. You pointed out repeatedly on the show, you are down below 12 right now. It is not excessively bullish that would indicate to us. I think it is going to be driven by profits. Youre going to in two three weeks you will have First Quarter numbers with the early ones reporting in april. Liz one bad sort of important name, does that drive us down . The consensus is for profits to only be up 1 year over year, liz. Now, the Fourth Quarter, you know the consensus was for 3 and it came up 7 . So it beat this low bar. You want to see how the corporate ceos in the Fourth Quarter earnings season, 70 out of 100 of the largest 100 guided analyst estimates lower. So you want to watch this First Quarter. It is going to be very important. Liz okay. I want to get to apple because it is were going to tease you all with one of his many picks here and hes coming back in the second half hour to talk about other names. But apple, have you been adding as it comes down, youusaw the jeffries downgrade, do you agree . Our analyst has a 630 price target. The stock is about 425, 430, something in that range. The stock sells for 9. 7 times earnings. It sells liz cheap. It has a 2 1 2 dividend yield and sells for three times its cash. If they get this china mobile contract which tim cook went over there to try to get, it is not in the bag yet, theres 600, 700 million subscribers to china mobile that dont have apple. And in china, apple is the same as louis vuitton. Yes, they can get these other, but its got a certain cache to it. They all want the apple. Thats why they even do a lot of knockoffs over there. Second thing in addition to china could be a low priced iphone or ipad and thirdly, liz, they are supposedly working on a Smart Television or else some sort of dick tracy iphone watch. Were watching for that liz were watching for that. We think the stock could easily go to 630. Our analyst has been very good on it on the way up and she said back you have and let it ease off. It is in the low 400s. Thats when you can start to accumulate. Liz we will be back with david darst. Coming up he has more names. The closing bell ringing in 48 minutes. When you think of a franchise, right . You immediately think maybe mcdonalds, subway, dunkin donuts, well the world renowned Cleveland Clinic Just Announced a sort of healthcare version of a Franchise Agreement with a publicly traded Hospital Company called Community Health systems. Thats hitting 52 week highs. The Cleveland Clinics platinum reputation putting a real shine on that company, as it hits some very significant moves here. Is it a prescription for success for Community Health . Up next, first on fox business, the man behind the deal, Cleveland Clinics ceo and president. Its a fox business exclusive. And Len Tannenbaum also coming up. All stations come over to mission a for a final go. 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Look at shares, jumping 6 1 2 after a huge drop in the middle of february, late february, so whats happening here . Investors are applauding a major change in verifones executive suite. The ceo who has been around there for 12 years, was dismissed effective today. Chairman Richard Magin is replacing in an interim basis until a permanent successor is found. Heres the company in the past three years. It started to head back down after having a pretty decent 2012. He had been ceo since 01. So he had both lows and highs to be fair. Susquehanna international responded to the news by upgrading the stock to positive from neutral. Ve lets show you the dow jones industrials. We do have more red on the screen than we usually would compared to the last few days. Lets get to healthcare stocks. They are getting a clean bill of health. Ten stocks hitting record highs. Lets head over to Nicole Petallides on the floor of the new york stock exchange. Nicole it is interesting to watch this group do so well on a day where we obviously see a market going back and forth, concerns not seeing the risky plays that are popular today, the bank stocks and the like, but healthcare at record highs. Take a look at some of these names here, biogen idec which is up 1 . Mckesson im looking at gilead, mckesson makes me a little bit nervous actually. But take a look at some of the other ones. When you look at this group, you have to think of them as a defensive play. We are seeing the defensive plays. A safe haven of gold. Healthcare is obviously we talked about the ten members moving here to record highs. Three were biotechs. Three are Healthcare Providers and services. Mckesson would be in that group. And the biotechs i think of celgene for example. So you are seeing this group doing incredibly well. They are defensive plays obviously. And now people are playing a little more caution here. Back to you. Liz okay, nicole, see you in a minute. Speaking of healthcare, when it comes to prestigious medical centers, the Cleveland Clinic right there on the coast of lake erie is tops, and it is forging an alliance with big for profit hospital operator Community Health systems, so now the Cleveland Clinic doctor is in, and its stellar reputation, level of care is exploding all over the map. Cleveland clinics ceo and president joining me now in a fox business exclusive from cleveland to talk about this partnership with cyh which by the way up 43 so that stock today is also hitting a new high. So its done very well. But now it has the glow of you, toby and the Cleveland Clinic. Well, were very excited about this, liz. We think this is a great opportunity. As you know, everyone is trying to produce better value for your healthcare dollar, and we have two very different organizations coming together here. Cleveland clinic well known for its high quality and Community Health systems well known for its efficient management of hospitals. And we think the two of them bring more value to our ability to drive value for your healthcare dollar, and we see great synergy between these two organizations and were very enthusiastic about this opportunity. Liz okay, lets talk about this, because if im a patient, and i have a choice of either flying all the way to cleveland to go to the Cleveland Clinic, if there were no flights, i would go there, maybe versus not to say anything negative about local hospitals, but now these local hospitals, with cyh are really an opportunity i guess because its success by association, not guilt by association, what will i now get at that hospital that has the partnership with you guys that feels more like the Cleveland Clinic . Well, we want to start out with small things and begin to build on those. Our expertise in heart and vascular is well known, and so were going to start out there and try to look at ways that we can enhance the already good quality, the Community Health system, cardiac programs, and then we will look at other programs as we go forward. We think theres more and more synergies and the more we talk, the more opportunities we see between the two organizations. Liz okay. Whats new and different in the patient world, specifically you said cardiac and health . But how about doctors . Are you going to be at least maybe having visiting doctors . Now im making up ideas here, but you tell me what it is going to be like. Well, what we think is that as we begin to measure quality and begin to look at it in a specific way, we can raise the level of quality of the performance all the way across the board. As you know, liz, quality is really measured in three ways it is the clinical performance. It is also the physical and the emotional aspect of it. We have talked about all of these things, about how we could begin to share our learnings over the last several years with organizations across the United States, and we have found a partner thats interested in doing this. Liz will you be watching their outcomes to see if they become more successful when it comes to patients and of course you dont want readmissions within 30 days due to complications, how are you

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