Transcripts For FBC Countdown To The Closing Bell 20130730 :

FBC Countdown To The Closing Bell July 30, 2013

Charges swirl. Countdown to the closing bell starts right now. Liz good afternoon, everybody. Im liz clamman. The heat is turned up on sac capital, and just a few hours ago, yet another arrest in the investigation into Insider Trading at the fund run ceo steve cohen. A former analyst in the cross hairs now charged today with, yes, Insider Trading, like the rest of him. Who is he . Aggarwal is a guy who worked in an unidentified firm, passing information about a strategic deal between microsoft and yahoo. He was acuesed of passing that to sac capital and one other unnamed hedge fund. The heat is also on a unit of Jpmorgan Chase today. It would fine 410 million for allegeddedly manipulating markets related to california and mid western electric markets. The jpmorgan Ventures Energy corporation did not admit or deny any of the market violations. Flipping over to the stock, jpmorgan moves lawyer by a percent of 55 cents. The stories about all kinds of issues and crime and punishment and waiting to hear, not ignore a good oh man for the strength of the recovery, jumping 12. 2 in may compared to a y the biggest yearly increase since march of 2006. Now, Consumer Confidence, that also came out. Its slipping slightly in july to 80. 3 from a reading of 82. 1 in june. Well dig deeper into the numbers. Its still close to a fiveyear high, the second best number in five years. Now, consumers, little less upbeat when you pull apart the Consumer Confidence issues. Less upbeat about the job market short term, but more positive about the job market further out. Okay. You saw the top of the show, the exGoldman Sachs trader, the fabulous fab spoke to liz as he showed up in court this morning, well, the attorneys are presenting the closing arts in the securities fraud trial against the trader right now, and they are apparently focused on the word circumstantial, and liz, you chased him outside the courthouse in downtown manhattan, right there getting superb details on the case. What do you see now . Whats the latest . Whats the latest is coffey, the attorney, is wrapping up their side of the case. They are drilling the fccs witnesses in this case. They are going after lauren, liz, and saying lorn is not a credible witness at aca, helping to put the deal together. They are saying she actually knew about johns role in picking the assets for the deal that he then shorted. They are going after her, also going after Goldman Sachs executive, waivers back and forth on the knowledge of johns role in the deal. We did speak to a top attorney for tourre telling fox business when we asked, why did the fcc call parts of the evidence, quote, circumstantial . Because it is. Theres emails stitched together that the fcc is ramping up misunderstandings and emails and accuracies, and infercheses from emails into a federal case that no one in court, no investor in court, stood up and pointed their finger saying, you misled me by not disclosing the name to us, and thats why we invested. Theres more information coming out. The jury, liz, can rule or decide, rather that tourre is guilty of lesser charges of negligence and wrecklessness. They did not focus on the strongest part of the case, and that is the actual deal documents that went out to investors that did not disclose John Paulsons name nor his role in cherry picking assets. Remember, Goldman Sachs paid, at the time, a record fine of 550 million, neither admitting or denying guilt in the role in the case, and so the fcc may have whiffed on that one that they didnt focus on deals and documents. This is about the preponderance of evidence. The jury could rule, essentially, that tourre was negligent and wreckless, but there may be a lesser fine and not banned for life. If they are drilling hard against the fccs witnesses, well hear them come back after that and answer to coffey and the attorneys, and the attorneys, more breaking news to get the case tomorrow is what we are hearing. Well be on top of the breaking news and developments here bringing them to you, liz, as they come. Liz, i have every bit of faith youre the one right there, right there getting it. Thank you very much. You know liz go ahead. I forget to say we talked to him inside the courthouse, hes on camera, of course; saying he feels good, feels confident, and i asked what he thought of the fccs case, and he said, well see about that. Thats what he had to say. Back to you. Liz okay. Its that kind of color that matters to us, and youre getting it. Thanks, liz, thanks very much. Sure. Liz right outside the courthouse. Even though the fate is to be determined, and we want to stress that, wed look at the now notorious traders who gotten caught or charged behaving badly. You may remember some of these. The london wale. We also have, that was over at jpmorgan, ubss 2011 rogue trader scandal. They all have names; right . Generale, the guy sitting in the back room in france, and he lost more than 7 billion. He was making all kinds of trades and said, wait a minute, its not working out, and he couldnt unwind the trades appropriately. There are traders here and there doing the wrong thing, but theres so many good traders, we want to stress that on wall street, and certainly, here the best in the business, we have them right here. The cme group. Derek, the markets right now look to be waiting. Waiting for, as we say, the fed because theres a fed meeting thats the outcome, who knows [snoring] liz i know, i know, it gets exciting though as everybody waiting for a dangling participle that relates to what people think are a tapering announcement. We start off tomorrow morning with the gdp, and, of course, at one oclock central, two oclock eastern, we hear what the feds planning on doing. Im not participating much from that at all. I dont think theres any definition as far as time or the amount that they are going to slow down with. We got thursdays jobless claims and fridays employment numbers. The rest of the week, everybodys in waiting game. It remine me of a preseason football game. Look at the sidelines, all the players are standing there, waiting to get into this, but theres no game going on yet. They are waiting and waiting and waiting, and, boy, it is testing at times. The volume levels, again, i hate to bring it up, but theres no volume trading now. We are waiting for tomorrow, two oclock eastern, that should bring definition, hopefully. Liz okay. I know its as exciting as a browns preseason game. I can make fun of myself, yes, but beneath me, what do we have . Green on the screen. Pointing that out, and major indexes turning positive. I want to get to luke and look at the energy complex, most lower, but spinning it forward, we no longer have the nation gripped in a heat wave. What drives x middle eastern headlines in this market either higher or lower . Well, i think as the earlier guest said, its about gdp tomorrow. Expectations are not good. Thats why oil is moving down a little bit. The dollars also moving up, giving it little bit f a floor, but its about gdp tomorrow. Its going to be about what the fed says. Remember, we had a good run, wti, unledded gasoline, they had a really good run in the last two or three weeks. This ought to move down. I think people are setting up to see what happens this week, and volumes have been low. Its not a real concerted move down. They are just waiting to see whats going to happen. Liz i get it. Thats what people are doing again. Theres gary, awake for the moment. Gary, guess what . Im going to give you rivetting news. Forget Fertilizer Companies moving lower right now. They are. Nicole is watching that. Hi, nicole. Rivetting news here, yes. Coming off the lows of the day, but look whats going on here. The Fertilizer Company hitting 52week lows, and this is as one pulls out in the cartel, basically, a consortium of the Fertilizer Companies, not only pulling out of the Russian Company, but also saying that Going Forward predicting that prices would drop 25 , you know what happens . When you look at potash and mosaic, names with down arrows, about 15 billion lost in fair market values so the speculation now, and this is similar to opec; right . They look forward and engage where the prices may be. Now with this pullback that you are seeing, there is anticipation that the prices will be lower, there will be demand because the prices will be lower, but competition will be fierce so watch these names. They have come up off the lows in some cases, but still big moves. Ipi, for example, down almost 30 . Liz exactly. I didnt mean to make a joke out of it, but who knew. Everybody talks about an oil cartel, there is a pot jsh ash cartel, the main ingredients for the Fertilizer Companies, and, in essence, if a Russian Consortium leads, perhaps the cartel ends. Thank you very much, nicole. Closing bell ringing in 50 minutes. Were going to take you inside a place we talked about so much and figured, well, nobody else has, why dont we go there . Sac capital. We went there today to take a look at whats going on by the companys headquarters. Are people showing up to work . They keep tells us everything is business as usual. What kind of cars are in the parking lot . Theres an exclusive look only seen here at fox business, and perhaps that tells us a little bit about the psychology going on at the company, and from jewelry to prosthetics to spaceships . Is there anything a 3d prints cannot make . Coming up, we have, in a fox business exclusive, the ceo and president of the 3d printing giant, 3d systems, an exclusive, just speaking here, just came out with earnings yesterday. The 3d printing revolution, is this a fad or a future . Avi has the thoughts on it, running the company for more than ten years. Here what he has to say, and wait until you hear what they are doing with metal powder. Metal powder. Any last requests mr. Baldwin . Do you mind grabbing my phone and opening the capital one purchase eraser . I need to redeem some venture miles before my demise. Okay. Its easy to erase any recent travel expense i want. Just pick that flight right there. Mmm hmmm. Give it a few taps, and. Its taken care of. This is pretty easy, and i see it works on hotels too. You bet. Now if you like that, press the red button on top. How did he not see that coming . Whats in your wallet . How did he not see that coming . Thats a good thing, but it doesnt cover everything. 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And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. Call today. Remember, Medicare Supplement insurance helps cover some of what medicare doesnt pay expenses th could really add up. These kinds of plans could save you up to thousands in outofpocket costs. Youll be able choose any doctor who accepts medicare patients. And you never need referrals. So dont wait. With all the good years ahead, look for the eerience and commitment to go the distance with you. Call now to request your free decision guide. This easytounderstand guide will answer some of your questions, and help you find the aarp Medicare Supplement plan thats right for you. Liz rolling the dice with the power mover of the hour, boyd gaming. Shares of the casino and resorts company, up 18 , a great day for them. The Company Reported results in line with analysts expectations, be u what caught the attention is net income for the quarter surged on better margin at core operations in las vegas. Gaming seeing bumps there, more and more people at least going back to game gambling. Look at this. Toys. Prosthetic body parts. Thats not a prosthetic body part, although i wouldnt mind having that in my brain, and then metal machinery and all kinds of models and sculptures. That metal machinery was made from metal powder. Going no to a Company Owned by 3d systems because theres printers that do all kind of things, and earnings were both expectations, and that sent the stock falling 150 initially, but as of this moment, the stock, looking now, Ticker Symbol ddd, clawed back six of the 10 lost earlier. Avi, the 3d systems ceo, joining me now in a fox business exclusive. Avi, welcome. I usually dont care about the Current Quarter and what happened. I do care about the Current Quarter, but less interested in the numbers that were just reported, but i do want to talk about this one this time because you missed on the etf. You need to get it out of the way that what happened here and what will change in the Current Quarter . Sure, liz, good to be with you, and what happened is management decided to make the stop in research and development and marketing expenditures for the end quarter looking at substantial increase demand, and we determine that were hitting another inflection point, demand for the products and services is at the all time high, and we not only increase revenue for the quarter by 45 , but our baaklog went up sequentially 6 , and when we look at the advance manufacturing and consumer initiatives in the near term and midterms, we determined that now is the time to step up investment to take full advantage of the opportunity. Its discretionary. Its intentional, and the timing for us is the right timing to do it. Liz makes sense to me. Heres why. Youre a growth company, obviously. You take money you make and reinvest it, doubling research and development spending. Okay, they punished intel, why not you too . The stock that fell, its trimmed back the losses. We point that out. I want to get back to what you are doing. You made the acquisition,fection, phinex. It doesnt seem like a lot, but i expect it will do a lot for the bottom line . Its a direct 3d metal printing company. Talk about the metal powder, how it works because its fascinating, but why do i need it . Were looking at products right now, obviously, i assume, Auto Industry companies, aerospace, ect. No, thats exactly right, liz. Its a company that developed proprietary direct method processes that can take very fine particle powders at the six to nine microns and field them together into chemically pure, fully dense mid parts with extreme accuracies that rival anything that you can get out of traditional investment castings. That is particularly interesting to aerospice companies as they look to make more fuel efficient parts, and devices like hip and knee replacement, and interesting for restore ration with a variety of other aerospace and defense applications, and they have proprietary technology thats faster, more capable, and more accurate than anything out there so its a crown jewel. Liz you made a lot of other acquisitions, geomagic, coweb, and then rptg. Avi, let me just say that for viewers who dont know, youre in personal, professional, and production printer. You have enterprise and regular folks who want to buy these things. Sch area shows the most promise . Some analysts are concerned you go more with the software or the individual sales, and that, of course, has lower margins, thinner margins. Liz, we look at this as a platform play and equal systems play taking it all the way from design to manufacturing for professional companies and from creativity to actuul making for the hobbies, the consumer, the educator, and kids. We see two big opportunities in front of us. The first one is in eventacturig this technology into real factors, be it in early space, defense, automotive, seeing it going to completely reshape patients specific medical device, and its a big consumer opportunity. This morning, we announced stappers will have will in a few hundred stores next month, and expect additional retailers to take our Consumer Product which start at 1300 dollars today and extend them. We also believe that at the end of the day, we have the opportunity here to do what ethel did for music by way of creating the itunes and app store and the platforms we can do that for creating and making, and completely unleash creativity for kids and adults while at the same time, we can be an engine behind the relocallization of manufacturing here in the United States and in other major markets. Liz avi, let me know when you can print a real diamond, and ill be happy. Youre doing all kinds of things from medical, prosthetics, aerospace productses, and its a fascinating, on the edge of development business. Avi, 3d systems ceo and president , please, come back again. Thank you. Thank you, liz. Any time. The stock up 90 year over year. Breaking news now. A story that captivated the entire nation, not just the legions of penn state fans, but the child sex abuse charges against the former penn state assistant coach tried and convicted of 45 child sex abuse charges, a judge has just ruled that there is enough evidence to try three former penn state officials for coverup in the sex scandal. Three former penn state officials. This is not over for penn state. They no longer are at the university, but they apparently can be tried according to the judge right now. Well watch any details on this as it becomes available. We have about 38 minutes before the closing bell rings. Samsung, which has been doing so

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