Go . Tribune will split its Newspaper Division including the l. A. Times and chicago tribune. Broadcasting will remain with other assets in the company. Liz apple may have colluded with five u. S. Publishers to drive up the price of e books months ahead of the move into the digital book market. Apple denies any wrongdoing. Ashley chinas key export sector shrank 3. 4 last month. Yearoveryear that compares with 1 growth in may. That was the first contraction in a chinese nonholiday month since 2009. After the bell starts right now. Ashley lets get to todays big moves. Yudee chang, ace investment strategist chief tradewer two ways for you to play the market and stay ahead of all this volatility. We have also todd horowitz, he is in the pits of the cme. Todd, let me go to you first. Todd, what an interesting day it has been. How would you summarize it . Hi ashley, hi, liz. I think today was a big thud. When it all came down to it all the expectation what the fed might do. Came up with announcement and we sold off a little bit. The whole scuttlebutt from may 22nd to today from when we collapsed it has all been on the same news. Yesterdays news became good news. The bulls are a little bit tireder. I think we take a rest at 1550, 1560 in the s p. Liz it was a couple points up, couple points down, very narrow range, correct . Yes. It was a market, that really didnt have. If you look at it today, was probably one of our tightest ranges of the week. So when you go back weve had a number of tripledigit days in a row where were flying up and down. So today was really pretty basic and pretty quiet because the news came out t was just, exactly what everybody expected. A little bit of a burst, a little bit of a selloff and closing right around the flat line. Ashley i dont know, todd, i saw the selloff in the dollar which was having. I felt there was no clear timetable that was perhaps expected. The timing remains open and dollar went down and gold saw a nice spike. Gold was due for a little bit of a bounce. You had the situation where gold is getting pummeled almost every single day. It is due a bounce. I wouldnt expect it to go past 1275. The dollar had a tremendous rally here, the euro being under tremendous pressure that takes care of that. The rest of the market, were showing that were going to be okay and the biggest thing that were missing here is the Interest Rate market. Although the fed says theyre holding to taper, Interest Rates are going higher and right now the markets have control and bond futures are going Lower Driving rates higher. Not necessarily a horrifying nightmare if they do go slightly higher. No. Liz can i bring yudee into this . The markets are not, we got insight what the fed is talking about from those minutes from the june 18th, 19th meetingsome members say we have to end this or at least our tapering by the end. Year. Yeah. Dont forget the market already reacted to it back in may, right . Were prepared already. If you look in history, liz the initial part of Interest Rate rise in history has proven to be good for the stock market because that is when the economy starts to heat up, start to recover. Only at the latter stage of the Interest Rate rise that really hurts the market. For the timebeing the market is moving up. Okay well taper down a little bit. Right now it is back to the economics and back on to earnings. Ashley yudee the last time you were on the show back in may you called for a correction of this market between 5 and 8 . Weve seen a 5 dip. Is that it . What do you expect the markets to go from here . Believe it or not i believe Going Forward, at least pretty much until the end of october i expect what todd was saying for today. Nothing basically, a little back and fill is what i mean. We had a target coming into this year of about 18 rise in the market. S p is up about 16. I think maybe there is two more percent go, couple percent up, couple percent down, basically going nowhere. Liz such a cliche to say. People particularly missed out on this rally because therm terrified, and they didnt remember the old adage wall street climbs a wall of worry. Thats a great point a lot of people did miss it. One of the other problems the rally is driven by the cheap money situation and unfortunately average traders dont have the same benefit to get that cheap money to get involved in it. The average joe hasnt been able to participate, borrowing money to invest it in the market and increase this has been an eventdriven market but it has been driven bit upper 1 of the class and by the very well think. The average joe really has not participated. Partly because of a wall of worry. Partly because they dont have same advantage of funds they can get to by everybody else. Ashley yudee, the average joe comes to. Where do they put their money. You call me average joe . Okay. Basically on a overall basis i dont expect much. Sector basis if you pick the right sectors i think you still see a lot of return. Homebuilders no doubt is a sector i still like. Weve only seen the beginning after multiyear rise. 2012 the homebuilders went up a lot. 13, this year, basically theyre consolidated at lower end of their range. Homebuilders such as to brothers, maybe even Toll Brothers or entire index. Financials i like, as Interest Rates start to go higher these Financial Companies will get better margins, thus higher stock prices. Homebuilders and financials. Liz were showing these amorphous etfs. What are the names you like . I think on the financials i like goldman. That is the Gold Standard of financials. I like goldman a lot. If you look at it, their earnings growth, even their valuations is only about 11 pe. I like capital one. Theyre growing. Theyre sending vikings out to take over the credit card world. Their profit margin has been up as well. I think as far as home build remembers concerned, i like mostly all of them but if you want me to pick one or two, Toll Brothers. I think theyre on the higher end of it. I think toll is at the pretty much lower end of this range, 30 to 38. I think there is a lot more to go, Toll Brothers. Ashley yudee, are you concerned the regulations piled on to the banks now, that that will eat away at the Profit Margins you were talking about and offset the benefit of rising Interest Rates . Yeah i think that is a little bit of a concern there but dont forget those concerns have been there for a while. I think again most of these financial stocks have discounted those concerns already. I so i think Going Forward unless they come out with more stringent or more rules we dont know of yet, that basically is the old news. I think the new news Going Forward that these Financial Companies are getting much more healthier and their book is much more solid f they raise their Profit Margins on higher Interest Rate and they can make more money and bring up stock prices. Yudee chang, todd horowitz, well check back in with you in a few minutes to see how the s p future closed. It was a close one, wasnt isnt. It was. Liz thanks, guys. Very much. The man with crystal ball. Earnings season has started but surprises are sure to be on the way. This is an analyst. His record is unbelievable, ashley. He comes on and says which stocks are going to beat and which will meet. Meet and defeat as were calling it. You want to listen up. Last quarter he had an 80 success rate on his predictions. Ashley pretty darn good. Lets go to vegas with him. The man that moves markets, Federal Reserve chairman ben bernanke. There is an empty table. He is set to speak in a few minutes. Investors looking for anymore hints when the fed may begin to taper its bond buying program. Were live right there. Is that him on the right. Cambridge, massachusetts. He is poised to take the stand. Were watching it. Well be right back. [ indistinct shouting ] [ indistinct shouting ] [ male annouer ] 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. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network fr you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink®our link to whats next. Liz you know what they say of talking statues, right . Ashley yes. Liz so weird. Not weird, shares of caesars entertainment. They are on a role today. Lets head back to Nicole Petallides on the floor of the new york stock exchange. Nic . Caesars i love it. Caesars entertainment. Lets look at the stock. It soared 13 on some really big news. The fact that they are filing for an s1. They have a new investment vehicle. Theyre basically distributing shares. With shares they will make money. They will have a new entity set up to provide capital for caesars to Fund New Growth opportunity in more flexible way. Theyre putting out shares, getting okay for that and moving forward with further investments. That kind of sure to see the shares a big boost today. One other thing worth noting not only is it a big winner today with a move of 13 , but this year, in 2013, shares are up 130 . Back to you. Liz thank you very much, nicole. Everybody can see ben bernanke is in the lower part of your screen. His speech is about 100 years of the fed. Well not put you through that. Q a well definitely take live because ashley oh. We want to hear that. Liz you guys in the s p futures pit will watch that, todd as well but how do the s p futures look tomorrow . A little bit of strength on the close. Tomorrow, you want to watch a big 30year bond auction. Jobless claims on and cpi on friday. 1650 is a resistant level. The market is poised for profittaking. Weve had a nice rally last seven or eight days. Look for profittaking. 1660 as the upper limit to see selling pressure. I dont think it will be heavy. A quiet summer ending week. Ashley todd horowitz, thanks for joining juice you remember imagine the speech . In the 7s, nixon got rid of the Gold Standard. And in the 90s ashley that is great stuff. Liz earnings season just kicked off. What is ahead for investors . That is a very broad question but we thought we would bring in a guy who believes and he has been so right. Three names that Beat Estimates and three three that could miss the mark. His analyst predictions were 80 correct over the last quarter. Sri rahman, is research analyst. You have the brain for it, it is fascinating. Macro picture first for earnings season . Sure. First of all, hopefully this is slightly more useful for viewers than bernankes 100 year speech. Liz it will be i think. We see the s p 500 growth rate for this quarter at 2. 6 . Thats not great but it has come down tremendously in the last quarter so that is not a high bar for companies to beat. They have been brought down so much the expectations of some companies were actually out of that expectation. Liz is it fair to ask whether there is a sector that might outperform or is that just too broad . No. It looks like financial are in good shape. Expected growth is 11 . Mortgage boom is of course helpful. Ine investment banks are doing great. Liz by the way, with the overhang of constant regulation. We dont cry for these guys. They are doing extraordinarily well. We cheer them on. We love freemarket capitalism. 11 over last year. Not even weak comparisons. Theyre actually doing fantastic. Liz very well. What about the laggard sector . The laggard remains materials. Commodity prices have gone done so much. All of these companies, vesting in Mining Operations two or three years ago, those mines are coming online. Supply is increasing. Supplies are low. Not a good situation for those companies. Liz now we get to the sri, critical ball, the beats and defeats. Give us three names you think will Beat Estimates. We begin with auto giants. Ford motor. Some might have heard of that company . Liz oh, yeah. They did fantastic with numbers last month in june and ford was one of the bestselling cars in the United States in terms of growth with cars selling more than 50,000 cars. So theyre very well poised in north america. Liz what do you think they will do here . I actually think that theyre going to do well. Analysts. There is one bold estimate for the company. What is a bold estimate you might ask . Fivestar analyst. This analyst has been very accurate in the past. He has an estimate 10 cents above the consensus. Liz wow . You might want to listen to him more. He might have something most people may not have. Expect ford to Beat Estimates. This is not even a whisper numb before. It is out there. Youre a believer obviously . We definitely are. Based on this predicted surprise of almost 5 we think ford will be. Liz your Second Company you believe will Beat Estimates. By the way you cant predict if they do beat what the stock will do in the wake of it. Sometimes people sell on the news obviously but it is pilgrims pride. Pilgrims pride den benefited from falling Commodity Prices grain prices were high. Chicken prices werent that high. This company wasnt in great shape. Now chicken prices continue to rise because the supply continues to come down. But grain prices have can come down so their margin section expanding. I cant tell you about the quality. Chicken because im a vegetarian. Liz likes it even though he is a vegetarian. Your analysis is also showing that allamerican pipeline is a company is you believe will also beat. Yes. Heres the reason for it. In north America Production increased by 50 in the last five years. So imports have gone down. Domestic production has gone up. All that oil has to go somewhere. All american pipelines is actually going to distribute that oil to wherever it needs to get to. So they charge a premium for logistics service. In fact they made 3. 57 per barrel that they transported just last quarter that is a nice healthy profit margin for them. Liz what gives you a sense that a company is going to Beat Estimates . This is simply aggregating what other analysts are saying . This is not just aggregating. We do something far better than that the consensus a what all analysts are saying. We put best weight on the best analysts. Research has shown the good analysts tend to remain good Going Forward. So that is something we use to our advantage to actually predict this we had good success rate so far. Liz from the beats to defeats. Here are three names thaw believe, i will give them all right now, three names you actually believe will miss their estimates. And that is royal caribbean, forest labs and carboceramics. Royal caribbean, give me a line on this one. You remember the concordia crash . Liz no, i forgot it t was horrible. , horrible. It was everywhere. The spillover affected royal caribbean. Liz concordia was carnival. There was a spillover effect from it. Last three months we had a fire on one their ships. Fire spread on one their ships. In twitter around social media, that news spreads so quickly that is affecting royal caribbean. We have a negative predicting surprise. Best analysts are below consensus. Liz one sentence, i need a line on forest labs because some people said some of the pharmas have done pretty well. They have but forest labs lost one of their big patents last year lexipro. Liz that will do it. They have two new products in. They are released in 2012. They have to spend a large amount of money. They are expected to spend 1. 75 billion this year to promote these products with sg a that will hit earnings in near term. Forest expect that to be soft pause of that. Liz sri rahman, of thomson reuters, 80 success rate. Well put all his picks and defeats on our foxbusiness. Com facebook. Com afterthebell page. Good to see you. Thank you. Liz we have yum earnings. Ashley we do. Go straight to joe lien kent, on yum brands. Kfc, pizza hut, taco bell. What do they say . Beating expectations of 54 cents a share. Revenue came in at 2. 9 billion. A very slight miss on 2. 93 billion we were expecting. What is interesting here, china sales were down an estimated 10 in june. Now that might sound bad but it is actually better than the 20 decrease we saw in the First Quarter. Also yum brands is saying their China Division samestore sales are expected to continue to recover. They say by the Fourth Quarter they want to see positive numbers there again. Also quarterly samestore sales here in the u. S. Grew by 1 . Liz we have the stock moving higher on that news, not by a gigantic jump here. But again they are saying that things are improving. The worry about the extensive media surrounding the asian flu crisis is starting to die down a little bit. Ashley china is so important to yum. Over 50 of its annnal revenue comes from china. Things improve there, obviously things improve for the company. So when he speaks, of course the world listens. Federal reserve chairman ben bernanke getting set to take questions at the national wuorio of Economic Research conference in cambridge, massachusetts. There is a live picture of mr. Ben talking minutes from now. Well bring it live to you when he takes those questions. Liz how tough will the questions be . Were going to hear. Oil soaring, this is a 14month high. Just over one week it jumped pretty exponentially. Who will benefit from rising prices . Might it be you if you own