Transcripts For FBC FOX Business After The Bell 20121025 : v

FBC FOX Business After The Bell October 25, 2012

Because they are the big losers. On row nation seeing the biggest decline since january. It reported a 15 rise in earnings, missed and with expectations but they beat a lot of records. Crewon automotive moving in reverse despite record profits. Record profits moving down because they failed to meet expectations. The analysts got a little bullish. Both are showing doubledigit gains. Stock look good. Dave would you buy the debt on the stock . They are buying on the dip. Gold testing its 1,700 low. As soon as it hit the 1701, i think it was 1701 it took off again. It is not a tremendously but significantly off. A lot of people were looking at 1700 as the base. When you go below that it would drop further. If it bounced off of that it would go up. Some people say up to 1,800. Liz another big name is amazon. We are keeping a close eye on amazons Revenue Growth and profit margin especially when selling its kindle tablets, just about a cost though the kindle has been on fire. Let me check as we look at these numbers. Stock is moving lower. The last rate 222. Right now the bid is 212. Dave a lot of these products being sold. They have to spend to grow. They have been doing this for quite a while. When you spend to grow obviously sometimes you take a hit and it appears they have taken that it today. It is trading midway in between that average. Was as low as 166 conlan as high as 264 and is trading in the 260 range. Consul Energy Forecaster kevin demand and focusing on one developing country to drive its business. The ceo will be telling us what that country is straight ahead. Connell the maker of those colorful resin clogs, some of the new law amend some of you hate them. A lot have them. They have a plan to boost demand. John joining us in a fox business exclusive straight ahead. No where else but fox. Connell we will tell you what drove the markets with the data download. Stocks holding on to modest gains in the last hour of trading. The s ps worth 5 day stretch since may. All the major indices closing the day in the green. Health care and energy were the top performers. Telecom and materials laggards. Manufacturers orders for longlasting durable goods posted the largest gain in 21 2 years jumping 9. 9 . Last months rebound from augusts was led by rising demand for aircraft and defense products. Take those out of the picture and it didnt look so hot. U. S. Weekly jobless claims fell more than expected dropping to 369,000. The prior weeks figure was revised higher by 4,000 to nine 2000 to match this years highs touched in april and june. All of that focus on what happened in california. Those extraordinary numbers that appeared too good to be true were too good to be true and they had to change as a result of that. Shares trading down after hours. Earnings per share loss of 0. 23. The street was expecting a loss of 0. 08. Revenue at 13. 8 billion. The street was expecting 13. 9 billion. One thing, the approach is to work hard and charge less and sell devices near breakeven and you can pack a lot of sophisticated hardware into a low price point but the question is how well is the device trumping this market. It would seem right now they are missing as far as what wall street expected. Dave this is close to a 10 loss. We have Mark Sebastian in the pits of the cme. Big loss for amazon. Is that loss going to hold that afterhours trading loss, it is down to 206. Will that hold tomorrow morning . I think so. We are waiting on apple. That could be a game change. I was watching amazon closely because it is a Big International sales company. Walmart is ten times the sale but amazon has customers all over the worlds. I was watching the revenue number closely and the fact that they missed the revenue number really bothers me. It shows real weakness in the international economy. That doesnt bode well. That was what was holding off the s p all day. We have sold off four points afterhours. I think if we didnt have avalanche amazon out after the bell you would have seen a real rally in yes indeed that these major earnings announcements keep missing. We are not going to rally until we are through this earnings season. This earnings season has been abysmal so far. We are only of 4 . Liz this is brilliantly run but the price to earnings ratio is 99. The trail is 275. It is a very expensive stock. People have waited for this to happen. They knew there were going to be problems. The kindle fire, 199 kindle fire is the bestselling product worldwide for amazon. They created hardware, theyre doing great, but not selling enough with enough of a profit margin. I think the things that are worrisome our sales growth is slowing, outgrowth on site is slowing. Amazon is getting more competition from flash sale, ebay, you name it. Right now they are the internet version of walmart. Everyone is gunning for them. They need to stay on top of their game. Longterm plan, you cant win the war if youre going to lose these battles and that is happening now. Connell lets bring in our panel. Stifle nicholas managing director, and the chairman and chief investment officer. Chris, is it possible, you see the possibility of a 20 to 30 present pullback in the market overall. That is kind of hurricane sandy, perfect storm developing if that happens including going off of the fiscal cliff but could this be the beginning of it . For example, apple disappoints the way amazon just has could that be the beginning of a real big pullout of 20 . We have started a correction because earnings are disappointing. It does take a perfect storm for us to go down 20 to 30 but the reality is we have to have Revenue Growth in this country and to sustain Profit Growth. We are not going to get that. Companies are showing they are vulnerable to the slowdown in Revenue Growth and that will eventually make it very difficult to grow their earnings. That will cause stocks to pull back. Liz lets see if theres revenue and Profit Growth that expedia. Wall street should like this. Earnings per share, 1. 32. They were expecting a one dollar and 0. 26. Revenue came at 1. 19 billion. The street was expecting a one . 7 billion and even with top simes we have seen revenue continue to go up. It was up 14 in the Second Quarter to 1 . 4 billion and now 1. 9 billion. Liz in an area where there is discretionary spending, there is a bead on the bottom line. I think as bad as Mark Sebastian said they were . There is a big wall of worry concerning a lot of things and everyone has no Revenue Growth was slowing down. 27 of u. S. Companies are exposed to the european slowdown and they are going through some tough times but that being said names like amazon, the stock is off 25 from its recent highs the few months ago. This name is attractive at these levels because we look at the big multi conglomerate like fedex fedex is saying they think all they see and will be strong. We can see 13 year over year growth in consumer spending. They will be spending names like amazon and overstock. It is an interesting difference between fedex and amazon. Amazon has come down quite a bit. With todays full back quite a bit where fedex has remained healthy. Would that force you to focus on amazon and buy it cheap . I would be focusing on amazon as we go into the Holiday Season and a smart time to pick up is going to be right past the election. One thing way and on the market, investors are buying a lot of protection against the market going into the election. We are sitting here looking at outstanding contracts tied to the vix region alltime highs. We are watching the vix of 20 and the value of outstanding outputs, 70 billion all tied to the election. As soon as the market gets over this wall of worry we will see a lot more confidence coming back into equities and that will benefit names like amazon and fedex. Theyre doing well because the dollar is rallying and cost of fuel coming off. Dave appreciate it. Thanks for rolling with the punches. Liz apple has critical product but the stock has been pulling off. Can earnings live up to expectations . We will have the numbers as soon as they are released. Plus analysts tells us why he is concerned about the competition. Liz dave microsoft unveiling windows 8 today. Can windows be cool again . It seems like ancient history. Find out what ceo steve palmer says about his latest prize and a consumers move from pcs to mobile devices. If they dont succeed is it the end . Liz how cool are your feet . For a while croc was super hot but falling demand, is it just a seasonal thing for a shoe that is always known as the floating summer shoe . Later this hour you might be surprised to hear from ceo john mc, about how the new line of. Is doing. He joins us on fox business. [ male announcer ] this is steve. He loves risk. But whetr hes climbineverest, scuba diving the Great Barrier reef with arks, or jumping into the marke he goes with people he trusts, which is why he trades with a company 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 happens, which isnt rocket science. Its just common sense, from td ameritrade. Which isnt rocket science. One is for a clean, wedomestic energy futu that puts us in control. Our abundant natural gasis, producing cleaneectricity, putting us to work here in america and supporting wind and solar. Though all Energy Development comes with some risk, were commted to safely and supand responsiblyd solar. Producing natural gas. Its not a dream. Americas natural gas. Putting us in control of our energy future, now. Liz s p futures are closing. Lets go to Mark Sebastian for a look at housing. We had a big push down on amazon earnings. Everything we lost, we are a little higher than the 3 00 close. It looks like sentiment is a little higher on apple earnings. Sentiment is so bad on apple, if they meet or beat expectations look for apple to skyrocket. If famous look for them to test the 200 day right around 585. Liz dave you got to see what is going to happen. Will come at around 4 30. They are not always exactly when they say they will come out so you have to stay with us. We have the analysts who know this stuff and analysts talk of the stock, the analyst who is very conservative about the way he looks at apple. He will give us a fair analysis once we get that. Lets go to Nicole Petallides on a floor of the Stock Exchange with another look at pandora. This is where the action was. We had the stock halted for volatility. Lets look at where pandora closed at 8. 20, a loss of 12 . A huge crowd here as they started to get headlines that apple was looking further and having Internet Radio service and pandora actually came out with a statement saying we dont comment on rumored competitive news. That is what we are hearing from pandora but we saw stocks hitting a new low in the 7 range. Lets look at amazon. Com. They miss the top one and the bottom one and their numbers for earnings per share coming in at a loss of 20 which was more than the 0. 08 loss and revenue for the Third Quarter, thirteen . 81 billion and that was weaker than expected. 13. 2 billion is what we were hoping for. Another reason amazon did not meet numbers was they have invested in the daily deal Company Living social and charges related to that was one of the reasons amazon saw the weakness and forecast this week as well so watch for that. Liz microsofts latest version of its operating system, windows, everyone waiting for this. Today is the day and the surface tablet made by microsoft hit store shelves. Microsoft ceo steve palmer told fox business he sees the Software Giant trumping apple and google in sales of devices bigger than 5 inches this quarter. Dave Steve Ballmer said the company is facing other head winds. May be surprised about his biggest concern. Robert gray spoke to him earlier and joins us now with the details. What is his number one concern right now . Robert i asked him about a global tech slowdown. We have seen it in a lot of earnings reports. You would be surprised to know that it is not the global recession we are seeing. Instead the number one concern was where a lot of people are looking for profits and that is china. The big addition is china which has been growing for most folks but the intensity of Software Piracy in that market will do less revenue in china and we will in the netherlands which is crazy when you say that but that piracy in china has cost billions of dollars of revenue and thousands of jobs in the United States and we are working hard with the Chinese Government and the u. S. Government to improve the situation. Robert they are looking for windows 8 to jumpstart the moribund pc market. Theyre predicting pc sales will drop this year for the first time in more than a decade and theyre making their first foray to their own computing hardware. This is the surface tablet that its for shelves tomorrow and they are real imagining the windows experience, more of a touch screen on a tablet or pc and a lot of investors im talking to say Steve Ballmer may be held to the fire if this isnt the seminal moment in my chris of history he proposes that it is. Liz they are all waiting on it. They have a bunch of product and you can sell what they bought already and of great you automatically. It could inspire buying other companies too. Absolutely right. Analyst rob interleaf thinks the surface is a potential i had killer and hitting apple where they are weakest with the software and also the clout and the designer around it where he contends apple does the opposite starting with a sleek unit and putting engineering in side. Dont have to wait long to hit store shelves. Dave if the non geek can adjust to this change, even some peaks are saying it is tough to get in and out of the there when so we will see what happens. Consul losing 11 million in the Third Quarter but coal and natural gas producer was hit hard by some shutdowns. That is in the past. Find out why the ceo of this coal and Natural Gas Company sees better times ahead and what he thinks about some fro coal comments made by rigged mitt romney during the debate. He joins us exclusively coming. We are waiting on apple earnings. They are imminent. Expectations too high this time around. Stock has shown weakness. We look at what to expect from that ipad mini Going Forward. Dave coal and natural gas giant Consul Energy missing the top and bottom lines in earnings but despite a drop in demand Companies Investing in new production. Brett harvey is chairman and ceo of Consul Energy who joins us in a fox business exclusive. Great to see you again. Thanks for coming in. We just heard Steve Ballmer tell us one of his biggest concerns is china and the slowdown of china and that lack of demand is bothering microsoft. Is it also weighing on the demand for coal and other energy . Their economy is slowing down. The demand for energy. Keep in mind their industrial revolution. Worldwide there is 1. 5 billion people moving into the middle class that just need electricity for the first time. Colas a good market Going Forward. Dave you missed expectations. Is china one of the reasons why . China has slowed down. That is part of it. Worldwide things have slowed down. The u. S. Decided we are not going to use growth of coal as part of the economy Going Forward at least in the short term. It has slowed down but it will speed back up like all economies do. Dave lets look at the bright side. If you could push back the director of the three month chart of consol energy. You see a little bounce about two thirds of the way in and maybe it is just coincidence but it corresponds to something mitt romney said in the first debate. Lets play the quick and get you to respond. I will make sure we can get to burn clean coal. Dave he has been doing a little better in the polls recently. Are his remarks one of the reasons cold turned around a month ago . I think that is one of the reasons and people are speculating that the economy is going to rebound and that is directly related to energy and coal is the base of energy but he understands coal and understands america has 30 of the worlds coal. To move if forward is good red white and blue jobs. Dave what do you feel when you heard him specifically pull out the representation of what he wanted to grow in this country . I felt like he understood the base economy as related to low cost energy and coal is our case in the hole. He understands it. He has a good energy plan that coal is a big part of. Plants go under the last four or five years. Is this going to change that and does it change your plans . Coal plants are important. We burn a billion tons of coal year in the United States. There are less plants than there were before and president obama said he didnt want any more bills. If we have a change in presidency we will keep our lowcost Energy Moving forward and use of american coal which is red, white and blue. Dave natural gas, a lot of Company Switching to natural gas, elector companies. There are new epa ruling about getting naturalgas. How is that affecting your business . It titans the market. Prices rise as you restrict license to operate. The more burden you put on any product the more it costs the consumer is. The epas reaction to that will lag a little bit, but it is a game change that we are finding all this natural gas and is good for america as well. Dave great to see you. Thank you for coming in. Liz the big question is is apple going to do it again . Under promise and over the liver, hit it out of the park with help from the i phone 5. We expect earnings any moment from apple. We will bring those numbers as soon as they are released. Look at the ipad mini and whether it will be as big a hit as its of

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