Transcripts For FBC FOX Business After The Bell 20130131 : v

FBC FOX Business After The Bell January 31, 2013

David gold coming up, but do they have any confidence in gold . Going up 20, down 20 and stays at 1600. Nicole i noticed it had been lower. Yesterday we saw it jump in. It remained a very volatile. David the bells are ringing on wall street, trying to figure out what is happening with this market. It is basically a flat market, but the nasdaq just barely in the red at one point in the green commen comet may settle ue green. Down pretty solid. The nasdaq sort of flirting with the flatline. The russell 2000 doing quite well. The strongest indication of a move we have in this market up more than half a percentage point. Liz speaking of doing strongly. What a month it has been. On track to close up more than 5 . The move could be good news for the rest of the year according to the january barometer which stays as january goes, so goes the year. Indicator has been wrong with just seven times since 1950. More than 88 ratings. David we talked about gold, gold falling with profits setting in after two straight games. Gold fell almost 20 settling at this market, 1662. About where it tends to settle when it has beefed up and down movements over the past several months. And in the mud floor, the fourth consecutive month of losses. We saw analyst cut in price targets and ratings on facebook. The stock saw a drop initially but came back. We will have an analyst who raised his price target following the earnings report. Find out why, and what it is now. Liz Cyber Attacks making front page news again. Attacking the New York Times. Some 45 times in secret before they figure it out. We are speaking exclusively with the man on the board of a company that detected the attack. Also the ceo of a Cyber Security company, one Forbes Company calls the hottest Enterprise Security startup and they could be going public soon. Find out how the company and meet the ceo on fox business. David first we will tell you what drove the market today with todays data download. A sea of green on wall street with all major indices ending january up more than 4 . The biggest winner, the small and midsize caps represented by that climbing more than 6 while the dow posted the largest january gain in history. The s p and nasdaq each closing higher for the third month in a row. The euro gaining for a sixth straight month against the u. S. Dollar. Longest winning streak in nearly a decade. Hitting the highest level against the greenback in 15 months, but rich edson, go ahead, we have breaking news. Rich the senate has voted to raise the debt ceiling through may 18. This also has a provision that says in the senate doesnt pass a budget, the senators dont get paid, house lawmakers dont get paid after april 15. They dont get paid until the end of congress and are made whole at the end of the congress in 2014. The bill goes to the president s desk raising the debt ceiling so treasury can extend that sometime to july or august. David a quick question in terms of defense, we will be talking about how defense cutbacks are hurting individual jobs in individual sectors and does this affect defense spending directly . This moves the debt ceiling fight the back. Now march 1, automatic spending cuts and defense and other programs begin to hit and Government Spending on march 27. Next up, defense spending will be a topic of conversation in d. C. And congress. David rich edson, thank you from d. C. Liz the chief strategist in the pits of the cme. Right now i would love to sit here and talk about the trading action for today. The last day of january, it all ooks very nice. It looks pretty good for january. Here comes the january jobs report, is that what people are looking at . Absolutely. The whole week has been pointed for tomorrow. Lots of consumer confidence, lousy gdp, lots of bad numbers. Everybody is pointing for this number tomorrow. If it doesnt beat significantly, think were in for a little bit of solid pressure. Looking for 195, expecting 215. If we are not north of 215, the market might rally a little bit and then sell off. Now priced for perfection. David what kind of selloff are people expecting . A minor 5 selloff for something bigger than that . I think it is minor. We could use some sort of selling pressure. Just to create some volatility and trade. Nothing happened all day long. Liz im always interested in picking who is buying what, youre moving them through, what caught your eye . I liked what was going on with facebook tonight. I thought that was interesting after earnings. Liz it had a huge reversal. I think that is a very delicious pattern, i think it is going the way of link in. I think the market has been extremely quiet waiting to see what will happen tomorrow, but facebook was really interesting. Take a look at amazon. Might be selling off pretty good right now. David we will see todd in a couple of minutes. Good to see you. Liz and the futures will close in 15 minutes past the hour. David facebook analyst hit the one friend button on the stock cutting ratings. Liz the stock dropped at the open and moved all the way back up to above the flatline. We have somebody who went against the grain, raised his price target and reiterated his buy rating. What did he see the numbers that others didnt . Managing director and global head of the internet and media group. Lets get right to it, what did you see that didnt spook you like the others were . First of all we thought the quarter was really, really good. It is very easy to forget this is a multibillion dollars company and yet growing at 40 , 60 margins. We dont have too Many Companies of that elk. And you look at the metrics, they beat on every single metric. If you want to be a bear. Compared with numbers that frankly were more by side related then sell side. They were exaggerated. David what about operating expenses . Why didnt that bother you . It didnt bother me because this is a sevenyearold company. You want them to spend, you want them to be aggressive, you want them to take risk. This is an Internet Company competing with google, linked in, amazon. Frankly we think so far the return on Investment Capital has been very high. It will continue to invest. Liz what gets you slightly concerned about this company . Is there any facebook fatigue where the user numbers go down for the month . That is something we have really monitored very much last night. Engagement appears to be very solid with 60 of the monthly users coming back to the site every single day, that hasnt really changed. Going forward, if we notice the usage or the younger crowd starting to invite less, that would be a worry, but we havent seen that yet. I was just going to say the other potential risk is the privacy issue. We saw what happens to the user base when they decided to change their privacy settings. Something like this could impact facebook but we havent seen anything to that effect just yet. David what about mobile ad sales . Everybody is concerned whether they have had some sort of a feeling. Are you concerned, or do you see there is no ceiling, the sky is the limit . By our math theyre generating 0. 50 per member per month on mobile. I think we can do better than that. Certainly the business they were even in about nine months ago. Generating over 300 million in frankly that number was slightly ahead of where we were. There were some hoping for 352400. That was more Wishful Thinking anything else. Liz what impresses you most about this album a . They started up a business in what appeared to be the blink of an eye. You can just press on something i quickly ordered them a small bouquet of flowers. That turned into a 200 plus Million Dollars market within a couple of months. What impresses you . That is exactly it. There are so many factors of growth this company embarks on. Some we have identified. Social search is the other. A number of others theyre going to use that money david was talking about before, that investment to uncover some of these other opportunities. Search is something that could turn out to be multibillion dollars opportunity for facebook over the long run. David weve got to go, but is there anything zuckerberg is thinking about now . He is one of the few cents steve jobs passed away, one of the few really big outofthebox thinkers. Hard to figure that out at this point, but i would say really is is more of a mobile company than anybody realizes in five years from now it is going to be a play on two things. Mobile advertising general and ecommerce. I would not be surprised if half the business over the next five to 10 years out of this company is ecommerce which generated less than 5 million. David thank you so much. Appreciate it. Liz as Cyber Attacks continue to hit countries, individuals and businesses, maybe even yours . The New York Times got hit badly. The business of defending against them grows. What are you doing it right . Exclusive ceo of the Cyber Company that Business Insider calls the next hot enterprise startups to watch. They were brought in to catch the bad guys. David defense cuts a striking a blow to gdp last quarter. This quarter could be even more painful. The effects on the economy itself. Find out why in which companies will be feeling it the most. Liz and one money manager who is bearish, one who is bullish. They will duke it out after the break and tell you where theyre putting their money right now. Stay tuned. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. From td ameritrade. All stations come over to mithis is for real this time. Step seven point two one two. Rify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. David the s p futures are closed right now. The pits of the cme, what does it look like for tomorrow . Tomorrow it will be based on a number, bu but outlook for 150 on the upside. But below 1590. I think the go a lot lower. Liz we will take that, why not. Shares of conoco falling more than 5 . Lets go back to nicole. People love this stock because it had a great dividend, but what happened here . Nicole was down 5 on the day for Conoco Phillips under some pressure. A couple of things happening. Yesterday we got their numbers they should Production Forecast well below wall street expectations. At the same time there has been a lot of activists trying to split up the company separating the assets from international assets. The ceo said the company has no plans to do so. So the two pieces of news coupled together made for some weight on the stock today. Selling off. Back to you. David it is time for a street fight. Thank you so much for joining. We here for a lot of investors, just hurt my fellow at the cme saying we are ready for some sort of a pullback, a little top heavy right now but you say no way, we can continue to forge ahead and reach new highs despite the new gdp figures, why are you so bullish . Contrary to what you see on the gdp, the underlining fundamentals and opponents remain positive. Private demand, consumer spending, private Residential Housing construction are all positive and although we may get a pullback we have had a great year and first month of 2013. It comes from higher levels. Liz you are bearish for the next 12 months, was behind that perspective . Especially since we have got a terrific january. Anybody who owns stock stocks good about owning stock. That being said that might be ahead of itself. We look at the s p 500, earning 105 this year. We put 14 and a half multiple on it, 1500, and were pretty much already there. That is what makes us nervous. David i was interested to see you are interested in real estate. Real estate is one thing that is positive we can put our money safely in at this point, but you say beware, right . Beware. Theres a lot of shadow inventory out there. There are still Something Like 27 of people who have a mortgage are either close to zero equity or are underwater. That is going to limit people being able to move, people being able to sell, and certainly people being able to refinance, so it is not as rosy as we would like it, but it is certainly better than it has been the last couple of years. Liz if you were to ask them to believe things are looking pretty good. 80 equities, 20 other. Talk about the sectors you really feel confident about going into the next couple of months. In this environment with improving Balance Sheet Consumer Discretionary spending around improvement in housing, health care after being absent the last couple of years is certainly improving. Valuations continued to be attractive and those sectors that are dependent upon the economy. Industrials and materials look attractive. David even though you are a little bearish, you have some pics. Two of them have been beaten down. Boeing with issues of defense spending and intel of course. Why do you like these two stocks . If we tell you to look at stocks today, we are planning on you at least keeping those in our portfolio for three to five years all things being equal. Boeing, that is a great play on the emerging market. That has been in the area ordering a lot of own planes. We like that. In the developed world they are very fuel efficient and that is a very big seller. There are fundamentals we think should propel boeing in the future. Intel, they have not been present in the mobile device category, and we think in the next three to five years they have a compelling story and we think they will be both in the smart phones and tablets and the next mobile device somebody comes up with. Liz close to a dozen new smart phones are shipping. I guess the question is do you fear it on the bubble bursting . So many people got so scared they missed the rally that happened through the past year, theyre still parked on the sidelines with money under the proverbial treasuries. What would a bond bubble bursting look like . Theres no doubt, question is did worst or did we let the air out slowly . What has gone into fixed income versus equities, we have all seen the numbers dramatic inflow intin the fixed income particuly around treasuries. I think we let the air out of that slowly, and you will start to see and the fed is continuing to set that up in their monetary combination and move into risk assets. It is sort of artificial, the treasuries which maintain that and they will for a while, but that will slowly leak out after. David that is the slow leak from the bond market. Good stuff, guys. Liz great to see you. Jobs or lack thereof still a problem and another 368,000 people filed for Unemployment Benefits. Firsttime Unemployment Benefits so why is the president s job council shutting down . We will have the very latest. David the gdp was hit hard by cuts and defense spending, but the Current Quarter could actually be worse. Find out which companies specifically are ready to weather the storm in which others could tumble. Suddenly, she does something unexpected and you see the woman you fell in love with. Shes everything to you. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. 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For possible suspension and air big issues. The recall affects 2013 chevy and malibu sedans and 2012 buick, chevy camaro, sherri cruz and other vehicles. The average 30year fixed Mortgage Rate posted the largest weekly increase, folks coming 10 months according to bank rate. Rising 11 basis points, 3. 77 . U. S. Department of justice filed a lawsuit to block anheuserbusch. Arguing the deal would lead to price increases. David i need a beer. In the midst of a lousy stock market, president obama has shut down the white house jobs council. Liz it was created in 2011, met four times, how does the white house intent on tackling the unemployment and job creation issue . Here now with more is rich edson. Rich no expand outreach to other executives, academics and labor leaders. The president is allowing his jobs council to expire after two years, for president ial meetings in several recommendations. One Council Member says the group is a disappointment. I think the people that were on it could have done a more realistic job. Good job council it didnt embrace the president s jobs program is one you have to say what are they up to . Rich a spokesperson says to

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