Transcripts For FBC FOX Business After The Bell 20130304 : v

FBC FOX Business After The Bell March 4, 2013

Google, another member of the nasdaq hitting alltime highs. The high for4 2008. Liz the stock is up more than 51 over the past year. Not bad. Look at the dow jones industrial. 37 points for the dow, which earlier had been down 60 points. The s p 500, s p and nasdaq turned first and then the dow. We see the russell liking a bit, still up a quarter of a percent. David it didnt happen today, maybe tomorrow, despite rebounding slightly, oil falling below 90 per barrel today. This is the first time that has happened since december 26. Raking below the 200 day moving average, that is very significant. Just a touch above the 90 per barrel mark. Liz a lot of concerns out of asia, particularly china. 3. 7 today after the government further increase property tightening measures. When they see something that looks like it is overheating, they step in and clamped down on it. Liz social internet, lots of down days, not today, it is really outperformed just about everybody else. Moving to the upside by 6 on both of these stocks, positive analyst comments the acquisition helping to boost shares of zynga. Groupon continuing to gain with the firing of their ceo. Liz we all know the sick, panic feeling of losing your car keys or misplacing your classes. Now a new technology we first showed you the Consumer Electronics show in january that only helps you find lost items, it is now shipping, and a lot of stores wanted, revolutionary technology. We will fin show it to you and k to the ceo who spent his money to start the company. A different way of raising money. Liz and doubling down on casino stocks. New jersey becoming the third state to approve Online Gambling. That happened last week. Who can benefit from all of this . And the three names you should place your bets on right now. Liz first, what drove the market with the data download. Closing the trad trading day ine green. What worked well . Consumer discretionary, and as i mentioned at the end of the 3 00 p. M3 00 p. M. Eastern, util, Top Performing sector, 12 utility stocks hitting alltime highs. Euro falling to 20 half month low versus the u. S. Dollar on Political Uncertainty in italy and expectations the European Central bank has to cut Interest Rates sooner than expected. There used t is a price, 1. 296s the low. Against the greenback. And plus im falling for the fifth straight day posting the longest losing streak so far this year. David now let us talk in detail about what is moving the market. Out in chicago, our market pan panel, advises assetmanagement Senior Vice President of equity research, and Spectrum Management Group Managing partner. Lets start with you. I want to start with oil, below 90, lots of traders said this would happen, lots of naysayers. My question is what is the next step below 87. 50. I understand it is a critical point. Are we going all the way to 80 . Speaker that is what the traders are telling me. Another 10 below that major support level. What is really driving this, look at some of the fundamentals. The u. S. Is producing more gas, more oil than they ever have and the usage rate is much lower, it is down. The usage going down, this market really is a bearish trend. We dropped below the 200 day moving average, it is right in those sites. If we reach that, look for the 8 per barrel. It will be a welcome relief for most of us. Liz what do you make of the equitys turnaround today . The market was shaken by the news. The Chinese Government will clamped down on minor segments of the housing market, second homes in china. Just because they feel the Real Estate Market has gotten really hot. Look at the intrada entered a pa real turnaround around 1 00 p. M. Eastern. What does that tell you about equities . It is really unreal. You would have thought over the weekend with the sequencer that hit, you would have thought we would be down maybe 2 . It still tells you there is so much money on the sidelines quiet this marketplace, there is just nowhere to go. We said it on the fiscal cliff, around election time, almost the little boy that cried wolf. All of the problems coming with the government, and nobody believed it, everybody thinks everything is going to be fine, they are going to figure it out and equities are relatively inexpensive. With nowhere else to put any money, that is why it is floating in here. David one place it is not flowing is into apple, despite the market turnaround plunging again, when will it reach the bottom all the shoppers start to buy it up . 400 is actually kind of a magic level for two reasons. That 100 level, 400, you will see high volume, big turnaround, some of the big funds getting back in. We will hit maybe 405, that will be a level youre going to see massive volume. David we will see you in a couple of minutes, thank you very much. Liz okay, gentlemen. You both believe we are in for a shortterm correction, yet this market continues to figure out ways to get around that news, what a difference a year makes. What happens, how big of a correction are you expecting and does it shoot much higher . I want to qualify, it is a gardenvariety type. We dont think this will be more than 3 5 correction until the dow reaches 14,50 14,500 level. The market really has good momentum. Very good about navigating through a lot of the challenging Headline News over the last year and more. Some of the bad news ads and they can address the monetary environment, the earnings outlook, i think it will continue to move higher. The cash off the sidelines into equities i think is going to accelerate, especially moving into new high territory. David were talking about equities, havent talked much about gold, what happens if gold falls below 1500 level . The bottom could be 1250 1400 range. I would be very surprised to see that happen. What still is going on but dont want to lose sight of is a major Central Banks around the world are printing money and has not stopped. The supply of gold relative to the supply of money is actually going down. But for whatever reason right now the downtrend it may go quite a bit lower. Liz what do you expect the market to do . Pull out the crystal ball. Liz wouldnt be surprised to see it trade of about 1650 on the s p 500. I wouldnt be surprised to see a correction. When you look at the market 20 days into february 20, the market was amazing. 80 of the stocks and the s p 500 were above the moving average. That obviously bodes well, we believe, for the market for the rest of the year. But it indicates optimism is very, very high right now. Were likely to see a singledigit pullback should be used as an opportunity to buy in. David i want to start with discovery communications. I heard a lot of people talk about discovery, why do you think it is a pick at this point right now . The company itself has been growing very nicely here. But mostly the group looks very good, so dont like to participate in individual stock unless the sector looks very strong and we can make a strong case other media related companies are attractive, but discovery looks very good, i think it will still move higher, above average market performer the remainder of the cycle. Liz what else . Im looking at some of your other picks. You have an opportunity a company is a Good Health Care pick. Health care has done incredibly well, so if we look at the other ones you like, tell me what it is that makes you say this is a positive Silver Lining to the Affordable Health care act. Here again and others concerned about obamacare, what that might mean, but the Health Care Group generally has performed extremely well. It will continue to do very well, so wouldnt be disarmed by the worries from washington and what obamacare might mean. The fact is the number of subcategories are doing very well. It is the biotech, large pharma, companies that have a niche type plate, medical devices, all of these subcategories are very good. They have been trending toward new high territory, very consistently, well known for botox and so on. They continue to have a very good Growth Potential over the longer term. David lets continue with health care, known for a major reorganization of the management structure, some incredible drugs in the pharmacy pipeline and pays out the dividend 3. 3 right now. That is one of the main reasons we like it. Extremely well run, they made a big investment in the pharmaceutical area last several years. What we really like is how they treat their shareholders, increase in the dividend at a compound rate of 9 plus, we think that will continue going forward. Going forward. David bob and gene, thanks very much. Thank you. Liz we know the feeling. Youre heading out and the car keys are nowhere to be found. They disappeared. Youre doing this. Looking in every purse you ever used. What if you simply david, open and app and locate the keys for you . A revolutionary new product letting you just that. Using low power bluetooth technology. The ceo of sic and find is joining us live. David the cost of College Education and room and board skyrocketing, 89 in ten years, way above the inflation rate. One Company Hopes to change that offering flee Online College classes from top universities. Is this the start of an Education Revolution and how do they make money on this. Well find out, the cofounder of the company and Forbes Magazine publisher Rich Karlgaard with a special look how to make money in education. [ male announcer ] at his current pace, bob will retire when hes 153, which would be fine if bob were a vampire. But hes not. Hes an architect with two kids and a mortgage. Luckily, he found someone who gave him a fresh perspective on hisortfolio. And with some planning and effort, hopefully bob can retire at a more appropriate age. Its not rocket science. Its just common sense. From td ameritrade. When the doctor told me that i could smoke for the first week. Im like. Yeah, ok. Little did i know that one week later i wasnt smoking. [ male announcer ] along with support, chantix is proven to help people quit smoking it reduces the urge to smoke. Some people had chges in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. If you notice any of these stop taking chantix and call your doctor right away. Tell your doctor about any history of depression or other Mental Health problems, which could get worse while taking chantix. Dont take chantix if youve had a serus allergic or skin reaction to it. If you develop these stop taking chantix and see your doctor right away as some can be lifethreatening. If you have a history of heart or blood vessel problems, tell your docr if you have new or worse symptoms. Get medical help right away if you have symptoms of a heart attack. Use caution when dving or operating machinery. Common side effects include nausea, trouble sleeping and unusual dreams. It helps to have people arod you. They say, youre much bigger than this. And you are. [ male announcer ] ask your doctor if chantix is right for you. David s p futures closing right now. The scott bower in the s p. Scott, any indication what will happen tomorrow . Nobody wanted to go home very near short. Everybody was covering. The last half an hour of trading nobody wanted to have any sort of short position. The rebound today, these guys are telling me was actually pretty significant. Everything was set up for us to be down one to 2 today. This is pretty significant. David wow this market doesnt want to bedown. Scott bower, thank you very much. Appreciate it. Liz shares of boyd gaming in the green after disappointing earnings. Lets find out why. Sandra smith on the floor of the new york stock exchange. Sandra. It was hurt by a 944 million charge, keep that in mind when they reported a loss. Boyd shares were up 14 . The stock is up 11 so far this year. Its charge was related to a decision not to develop the echelon site that it has along the las vegas strip. Now, it is selling that to a malaysian Gambling Company for 350 million in cash. This really sent the a signal, liz and dave, theyre willing to clean up and strengthen their balance sheet. Investors like it. Stock went soaring. Liz take that. Thank you very much. David thanks, sandy. Homeland security secretary Janet Napolitano was out suggesting that the automatic spending cuts are are already being felt though claims about long security lines at airports were refuted by on sight personnel. Liz what is really going on . Peter barnes live at the white house with the very latest. Peter . David, liz, all this is coming as the republicans critadvertise the administration for exaggerating the impact of problems with sequestration. She said there were very long lines because of sequestration but this is before the tsa and dhs issued fur likewise. This came out today. She basically blamed it on hiring freezes. Take a listen. I want to say ohare. I want to say l. A. X. I want to say, atlanta, but i would have to check. The new york airports, got through okay but that, is going to be temporary. So, we will see these effects cascade over the next week. We have been checking. The Airline Industry trade Association Says it has, sees no unusual delays. A lots of airports, we touched base with them. They also say they have had no unusual delays. Tsa declined to comment when there are any unusual delays at its domestic check in points. But customs and border protection, which handles customs screening for Incoming International flights, did say, quote, due to sequester, cpb reduced overtime this weekend at ports of entry around the country and effects are already visible. Lanes that would have previously been open due to overtime staffing were closed causing longer wait times. Weve asked, called the department of Homeland Security to get clarification, find out if this is specifically what the secretary was referring to. David and liz. Liz okay. David peter barnes inside the beltway. Thank you, peter. You bet. Liz people, certain people waited a long time for this Online Gambling thing to become reality. David you guys have. Liz come to new jersey. It is becoming the third state to allow Online Gambling this week. Is it time to place bets on casino stocks that can benefit from it . A top analyst has three names you should play. The growing business of Online Gambling. David Higher Education at a lower cost. With the cost of college jumping 84 in ten years well talk to the cofound irof porcera. This is Online Platform offering at least for now free College Classes from top tier schools. Could this be the future of education . Want to hear about this, coming up. Im a conservative investor. But that doesnt mean i dont want to make money. I love making money. I try to be smart with my investments. I also try to keep my costs down. Whats your plan . Ishares. Low cost and tax efficient. Find out why nine out of ten large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. [. David i dont have to tell anybody with a kid in college, Higher Education is getting pricey. Cost to attend Public University is skyrocketing, jumping 84 over the past 13 years. But educational entrepreneurs sigh this crisis as an opportunity as theyre wont to do particularly through online education. With us a hands on educational entrepreneur, founder of korcer a, a an lon line educational provider. How does it work, quickly. So korcera partners with top schools, stanford, princeton, columbia, penn and many others to put courses on line free for anyone to take. If you feel like taking a class from Brown University or Johns Hopkins you can do no and it is free. You say youre backed by Kleiner Perkins but they expect to make back their capital. How do you make your money back . Were more interested in the service than making money. Were building out something called signature track where for a modest fee we verify the students certificates and students identity and issued verified certificates. If you take the class and put in resume, employers can be confident youre the one submitted the work and use that potentially to offer you a new job. David courses, it is fine to take a course at a university but probably wont get credit for a lot of course unless youre very careful, make sure it is an accredited course and the universities accept the credit. So far universities have been very reluctant to accept any credit from online universities are. Are you changing that . You know, because the classes were offering is by what 62 of the top universities around the world, many universities have already started of their own, by themselves. We had nothing to do with, to offer academic credit for our courses. In fact a month ago, also ace, the American Council for accreditation, recommended five of our courses for credit. What that means, students would be able to take some of our courses and get them transferred potentially for academic credit into a large number of universities around the world. Now just five classes but hopefully more over time will be potentially good for academic credit good towards a degree. David here you have competition coming in the picture because these colleges and universities are charging enormous sums. 60,

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