Transcripts For FBC Countdown To The Closing Bell 20140122

Laying off 470 people from its Corporate Headquarters in minneapolis, this is to according to a report of the dow jones. These positions at target will not be fillld. The retailer said is that target is coming out of a dismal Holiday Shopping season. So lets take a look at this stock right now. Big blue on ibm. A lackluster earnings report. A big day on the board. 5. 5 largely due to a decline. And its hardware business and the stocks are the biggest drag on the dow jones today. They lost almost one and 7. 181. 74. Thats about 3. 5 of a loss on the big blue. We will check this stock through the close. And we are watching apple for you. The Company Facing new pressure. Now, carl ichan announcing that he bought another 500 million worth of apple to bring the total to more than 3 billion worth. It is doing shareholders a great disservice and is in effect actually higher right now. And so theres a little bit of the gain. A lot of controversy way carl ichan and apple. And some Big Name Companies reporting earnings after the bell. Including netflix and ebay. And netflix again, the performance on this is just astonishing. It really is. And they are the number one performer in the s p 500. This has really surpassed any estimate that anyone had. The stock is up 4. Of 33277. International expansion as they have been ramping up in canada and the uk and latin america and the like. And also as we are waiting on the outlook and the gardens guidance as well. A number one performer over the last 52 weeks. Up to 236 . Then we will keep an eye on ebay. So now we know that they have numbers that have been growing. It we will keep an eye on the same store sales. That will be key. In this stock is up aboutt1. 5 . And paypal revenue will be up 21 yearoveryear. The last few months have been a little bit better for ebay. Cheryl both of those numbers are going to be in. That is here in new york. I think that confidence in the recovery is better. So if you think about a year ago or two years ago in the United States, the economy felt ike it was moving and growing. But we really didnt have much confidence in that. I think as we sit here today we feel more confident. Cheryl liz claman also checked in with another big ceo who is fresh off his companys ipo. Speaking with chris. Liz i interviewed to have a privately held company who absolutely im i am sure that you have been in contact with if you travel at all. Just about six weeks ago he launched a successful ipo and today he joins us once again with a new Ticker Symbol and a new mission. He is the ceo. Its great to be here. Youre not too jetlagged . Ive been doing a few different things. Just arrived for what i think will be a great day. He took the Company Public about six weeks ago. Congratulations. The analyst initiated a bunch of coverage mostly overweight. But you know fostered is all about what have you done for us lately. Is the pressure really on and how do you sustain the goodwill and the energy. It was great reception and markets were very happy with the results. I dont think its any different. How is your life going to be different is what they ask. It is a very simple philosophy. If you have a great strategy and execute it well, shortterm takes care of itself. So quarter to quarter you deliver and in our case serve your customers well and you run a business with a lot of discipline. So its business as usual. Weve been super busy and engaged and focused on the growth and executing in terms of what is going on and we are going to keep doing that. We are going to deliver a we have been able to deliver privately. Liz youve been very gutsy as a Business Leader and involved in davos. But what you get out of it is one of the Biggest Hotel companies in the world . I think its the convergence of a few things. A lot of the ceos are some of the Biggest Companies are here you and the representatives have lots of governments around the world that are growing our business and answering questions with new markets. And in the Ngo Community wasilla society is here. A lot of issues that are very important. And thats on my mind where you have the right crosssection of people in the right intersection of a societal issue that is also really important to the success of our business longterm. Liz we will be speaking with cocacola about youth unemployment tomorrow. Its in the best that business interests because then they can pay for your hotel rooms make them pay for cocacola and everything ostrich spirit thats exactly right. He estimates for travel and tourism is that we will add 75 million new jobs in the next 10 years. Thats a lot of people. It is most definitely the best majority of young people in the cold hard truth is that they are not prepared for work. They are not prepared in the sense of having basic life skills, let alone vocational skills or any are any kind of professional training. So we are very focused. We have talked about these issues at great length. But they are doing a lot of great work today. We are making a pledge to impact the million youth in the next five years. And that is by connecting youth into the opportunities and preparing them for the future both with our work with those and others. And ultimately employing large numbers of them to be able to satisfy our growth needs and serve the customers. And so the only way we do that is having great team members know how to deliver that service liz youre one of the few American Hotels that have opened here. This is all they let me have. [laughter] i love it, its very functional. And the rate is very high. And its great to be here. Thank you for having me. Liz it is good to see you. Chris, hilton worldwide. Back to you in new york. Cheryl that was great. Allall right, the closing bell l ring. We have 51 minutes ago. Like a spurned lover, carl ichan comes back for more after a public fight with apple. He professes his love by buying more stock. We will take a look at what against apple investors. And in just a moment which business and World Leaders arrived in this mans jet in which one he hopes will be leaving in him. We will have that next. I ys say be thman with the plan but with less ergy, moodiness, i had to do something. I s mdoctor. A blood test showed it was low testosterone, not age. We talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especlly those who are or who may bome pregnant, and children should avoidt where axons applied as unexpected signs of pubty in children or changes in body hair or incased acne in women may occur. Report these symptoms to your door. Tell your doctorbout all medical conditions and medications. Serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. Cheryl the Major Industries have been fluctuating. The dow jones is slumping for a second day in a row. A Short Covering and especially based on that bad employment number. We have some people talking about this. And we have talked about how the fed will probably taper this month in spite of that. Without a little bit of a sellout. But i basically agree with how the safe haven demand is not really there right now and we have probably seen the other cheryl mark, speaking of this again, when you look at what is happening within the broader economy. Coach had a horrible number. But that retail sector, we are still looking for a lot of these earning reports to come out. And it looks that its going to be a pretty negative reporting season. And that coincides with where we are in the economy. So what are your expectations . You expect to see underperformance. It starts until the middle part of january and it has happened over the last two years. If have you looked technically at the retail index we have broken this down which means that retailing has been extremely weak and that is obviously a lot of these retailers will come in much worse than expected. Going back to your note on energy cold and snow has driven up the natural gas. And as you can see these stocks have really had a big move today. After four or five months of underperformance it is refreshing for people to see stocks try to move higher. That could be a better risk reward than the industrials leonardi had a huge move. Cheryl gentlemen, i thank you so much for coming on the show. Countdown to the closing bell and the closing bell is getting ready to ring. Dozens of billionaires have an economic reform as well as 200 ceos. Liz claman is going to take us behind the scenes. Plus great interviews for us coming up next. Liz it is not easy getting to this tiny village of davos, switzerland. Many hire private jets. But the closest airport is in zurich. We ask the ceo all about a coming up next if youve got copd like me. Hey breathings hard. Know the feeling . Copd includes emphysema and chronic bronchitis. Ithat helps open my obstructed coairways for a full 24 hours. Spiriva helps me breathe easier. Spiriva handiher tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. Discuss all medicines you take, these meven eye drops. Spiriva. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to asyour door about spiriva. [ male announcer ] wt kind of energy is so abundant, it can help provide the power for all th natural gas. More than ever before, americas electricity is generated by it. Exnmobil uses advced visualization and Drilling Technologies to produce natural gas. Powering our lives. While reducing emissions by up to 60 . Energy lives here energy lives here sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach global m markets and drive forward with broader possibilities. Cme group how the world advances. [do more than ever before wit allnew intuitit. Ickbooks. Make any place your place of business with it. Get paid fter with it. Run payroll with it. Sync this stuff with that stuff with it. Make more time for what you lov. Turn on only what you need wh it. Sample froour smorgasbord of ps wh it. Take in the big picture with it. See your finances in a whole n way with it. This is your business on the allnew quickbooks. Run with it. Cheryl lets go back to liz claman. Sitting down with another leader in davos. If you have ever flown any one of the major airlines, i guarantee you that you have been on a lombardi a jet. If you have ever ridden on the Rapid Transit in san francisco, you have been on one of their trains. This man is the ceo of bombard ea. You have to tell us whether 1700 layoffs set a negative tone for the coming months what positive stories you really have to tell. Its an adjustment, really. Since 2000 and we have added and right now we felt that it was time to make an adjustment so its not a big layoff, of course. But it is a major issue, of course. Liz some of it is due to delays and we should just explain to people about this. Things are going well. We are ardea 198. Compared to any other play programs and development, we are doing us a little bit faster. Liz people are looking at the headlines and saying what is wrong with bombardier . The stock has had a tough three months. what is the message that you want to tell them . When we invest in them there are longterm adjustments. And there will be some setback. We had to announce a delay in the first half of 2015. So it makes the market a little bit nervous. But what i would ask to say is that our products are longterm. Its when you invest in bombardier it is an investment. Liz why the delay . Is a complex product. We will be delivering this after we start manufacturing. To doing things right so we have a great entry into service, its very important. Cheryl who are you selling these to . Error lines everywhere in the world. Swissair and part of the group was our first customer. And we have airlines from everywhere. And its really a global product liz who are the most ambitious buyers right now . Who is expanding most . If i look at this investing infrastructure because its going rapidly and we have been manufacturing this to connect big cities together and that is a growth segment. And i have done well because Global Companies are expanding. Liz when you arrive here, do you check out who flew in private . And what you see . I look at our market share. We see if we are doing well and who is in town. I wouldnt know most of the airplanes. And its a great thing with a lot of large corporations who happen to own our airplanes, individuals, country leaders. Its good not only for the Plane Business but also for the train business. Liz we are asking a lot of ceos and its kind of interesting. People say that i cant wait to sit in on the panel about africa or how to solve this problem of how to make your business smarter. You dont even go to the panel, do you . Its very hard for me to get to. Liz is it worth this trip up the mountain here . Yes, absolutely. Government and cities in a lot of the World Leaders are here. A lot of the airlines are here. And of course corporate airplanes. This is a lot of owners as well. Liz its interesting because everyone is squished in their hotel rooms. Theres always that talk about that. There is a new hotel and so they are Getting Better and better. Liz what is your main focus here the next couple of days . I feel it gives a great sense of a comeback in the u. S. And the economy is picking up again. That is important and i want to get a good feeling is the year that we see growth again. Liz we will be watching bombardier thank you so much. We will send it back to you in new york. Cheryl thank you. The closing bell rings and 31 minutes. Thirtyone minutes ago. I love you, but i dont. I love you, but i want more in return. That sums it up for hi all archon and his relationship with apple. We will find out what he will do if he doesnt get his way. And liz claman is going to take us on a tour and introduce you to the fox Business Team bringing us the World Economic forum. And how shes helping children around the world. Stay with us. [ male announcer ] this is the story of the little room over the pizza place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had thpower to do more. Dell is honored to be part of some of the worlds greattories. That began much the same way ours did in a little dorm room 2713. This magic moment cheryl we have big stock moves to tell you about. Including one luxury retailer. Lets get to Nicole Petallides with some of the days big winners and losers. Reporter lets start off with a big winner, gap. Of 6. 6 . And you may have remembered this one from tyco international. They came out with the numbers, on the rise by about 27 . They boosted their view and that is great news. And then taking a look also at coach. Down 6. 3 . 4923. Coaches under pressure. North american sales, we talked about slower traffic overall and the intense competition from specific companies. So those are some of these things that they have to tackle. And the one good thing is that they do have a new creative director and new products coming down the pipeline. Cheryl a waitandsee story on that. Carl ichan is added at it again, using twitter as a megaphone to announces latest investment groups. What exactly did he say on the social media site today . Today he called apple a nobrainer stock and he has increased his position by a half billion dollars. Turning up the pressure again. He said having purchased 500 million more apple shares in last two weeks, the investment has gone across the 3 billion mark yesterday. He said that they feel that they are doing a great disservice by not having increased the buyback. And the company has about 150 billion in cash on its sheet right now. And he called originally for 150,000 on august 13 and he has reiterated it with ceo tim cook in september. And then in december he filed a shareholder document of buyback. And so take a look at the shares right now. They rose about 1 and right now of about half a percent. Over it is overall up between august 13 and the reason that it probably isnt listening right now, carl ichan is not among the top 10 shareholders. We can expect to see that letter that he mentioned in the next day or two. Cheryl he certainly gets a lot of attention. Thank you so much. Davos, switzerland, is a beautiful place. But living accommodations can be a little tight on the local population grows by 25 . 3000 people arising from the World Economic forum. Liz claman has a special look at how the fox Business Team is coping. Liz they think it is a stunning backdrop behind me and its always tough and so we wanted to give you a secret window into the fox business launching headquarters. So come on in. Liz this is our Production Assistant working hard. We will be meeting with World Leaders over the next few days. A technical production manager right here with his ski gloves on. We have been shooting a lot of davos street scenes. And lets get to the food. Our european fridge is not quite big enough. So we are improvising. And what would we do without our trusty audio god . And no trip would be complete without this favorite. You have to try it when you come here. Cheryl bring it back to me on the plane. All right, and we want to show you this stock right now, its moving substantially. The Greenlight Capital for David Einhorn and he suggesting that Companies Legal troubles wont be as costly as some fear. In addition to this, the greenlight disclosing a mediumsize bp. Taking a look at that right now, it will look even longer than the stock is performing very well. In the closing bell is going to ring in about 90 minutes. Goldie hahn is a familiar face in the red carpet. But what is she doing with a very different crowd . We found out. And you want to know how to beat the market . You definitely want to Pay Attention to our next guests. He is going to give us a playbook for this year. A big return. We will have that next [ female announcer ] who are we . We are thinkers. The job jugglers. The up allnhts. And the ones who tn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can si did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. I cheryl she is someone you might we are talking about actress goldie hawn. She is founder of the Goldie Hawn Foundation. Its a Public Foundation that teaches children the social and emotional skills to lead happy lives. So lets return to her. Liz you never know who you might run into here. Here is goldie hawn. She is here because she has the Goldie Hawn Foundation and you actually belong here. Because this form is about fixing things. Yes, it is. Trying to figure out a logical way of fixing things. Liz lets talk about this is a systemic problems. Im talking about areas of miscommunication and ways of problem solving, getting along, aggression, polarization. And i would say for all of us. I work with children and children are not taught to behave well. The world itself because of the internet and because of the media and what is happening with news and people are doing and our children have no role models anymore. So in terms of the way that we get along, that is such a great value as to how we run the worlds. Liz it does come down to money in certain regards. Health care costs and all kinds of issues. This is probably one of the greatest killers that we have. Do you have the tools to do so. And this actually has tremendous effect. Stress on the brain creates stress on the body. So diabetes, you name it, we can help eradicate it. Liz you are one heck of a businesswoman. Yes, i come from it naturally. It is what we did. So i know how to count. Liz what is it like for you with the lodging and the food . Its pretty good. They know how to work it. Cheryl there you go. We will have more from her collaboration partner on the next hour of fox business. Mark is going to be on after the bell as well. And you may have not heard of it, but one small mutual funds store. 79 last year beating the s p 500 by a huge margin. In our next guest says that american capitalism is in much better shape than other. I have Thomas Abbott here with me. We are delighted for clients. Her clients. They do so much for having us on. Cheryl i have to ask you about this year. We had biotech and solar energy and Cloud Computing stocks and many of them are no longer in the portfolio. And we are very optimistic with the strategy. So what did you make for those moves mainemac. In the second half of the year. In the lot in the Fourth Quarter as well. And many of these have gone up many multiples and heard the computer and the internet revolution. And so Biotech Companies are able to go to the source of the that information and target therapeutics and gilead is one of those names, bristolmyers, they are the others that we own. Cheryl thats very interesting. I am very bullish on this. The american producers lower the cost of producing a lot of electricity from 7 to 1 dollar over the last seven years. And it is approaching the grid parity and therefore the demand potential is limitless. Cheryl of all the financials, Charles Schwab is your pick. Goldman sachs and we own ameritrade but Charles Schwab is a company, a great way to play what i see is the great rotation out of fixed income, which is very risky, in my view, into equities which are in the midst of a new secular bull market. I want to jump back to lifelock. This world that we are living in has become much more dangerous in an era of mobile phones and youtube and you can lose a lot more money on the internet of the Financial Assets now than you can if someone breaks into your house. And that is why we like lifelock. We think it is the first of this type of company and has a great future. Cheryl congratulations on the performance. The closing bell, we have six minutes ago and we have much more to go from liz claman and her adventures in davos. Was caught up with another who is famous in her own right. We will have that next. [ male announcer ] a car that is able to see, to calculate, to think and can respond to what it encounters. Even if that means completely stopping itself. Its the stuff of science fiction. Minus the fiction. The 2014 eclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Where does the United States get most of its energy . Is it africa . The middle east . Canada . Or the u. S. . The answer is. The u. S. Most of Americas Energy comes from right here at he. Take the energy quiz. Energy lives here. Open to innovation. Open to ambition. Open to ldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Whoound a magic seashell. It told him what was happening on the tradg floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Cheryl the dow down 27. We have netflix coming out. We have ebay after the bell. Lets bring in david asman for another hour of fox business. David good to see you, cheryl. Lets go to Nicole Petallides at the new york stock exchange. Get to stock talk. The dow is down again. You heard it here first. We saw this coming with the earnings report. We didnt know it would end up down 3 though. It was a tough day for ibm. They came out with numbers that missed. Trying to get rid of that server business. Down 3 and weighed 40 negative dow points throughout the day. David netflix and. Bay, there has to be a new classification for netflix. What it has done in 2013, what it possibly could do this year. Netflix and ebay both set to announce. How is the action in those stocks . Both of those are higher. Netflix is up 1 1 2 . It is up 200 in the last fifth weeks. It was number one performer in the s p. Ebay, a good day. Up almost half a . For ebay will be samestore sales. For netflix you want to see subscriber growth. David for blackberry i had to blink twice to make sure i was looking at the right stock. The news is they are selling real estate. That may not be good auger for the company. Are they mike greating away from canada . This comes after the pentagon using blackberry for department of defense. That shows a security aspect for blackberry. Up 17 between the two stories together. David cheryl switched to samsung if any indication. [closing bell ringing] amd down 10 . Amd a big loser, and coach came under pressure, dave. David another mixed day as we listen to bells ringing on wall street. We have to get used to this where we see downward movement on the dow. The other indices are on the up swing. Even s p was up a tick. It was up compared to 38point loss on the dow. Ibm really dragging down the whole index. Ibm had a lot to do why you see red on the dow jones. S p is up. Nasdaq is up more significantly. Almost up a half a percentage and russell 2000 small and midsized caps there we have a busy hour with earnings. Netflix is coming. Liz claman from davos. After the bell starts right now