Transcripts For FBC Markets Now 20121206 : vimarsana.com

FBC Markets Now December 6, 2012

Nicole this is one of those markets with a lot of anticipation. Every focuses on the fiscal cliff. Tomorrow is the allimportant jobs report for a lot of folks have been hearing more Economic News which has been more dismal lately. Talk about more layoffs they have seen in november. Right now the market is not too far off the unchanged line. The acidity holding 1400. The tech of the nasdaq still below 3000. Today apple is now moving into the green and that is one of the reasons why it is holding on to a quarter percent gain. Apple 700, 705 in september traded as low as 518 today. Certainly has been under significant pressure, however people use that as a buying opportunity which is evidenced in the twoday chart. With the fiscal cliff fast approaching, naturally its about time lawmakers took a long recess. Theyre gone today, but will be back tuesday. It meets with Small Businesses in their district, they will highlight what they say i see ae Small Business tax hike president obama is pushing. The president is skipping town also for a quick stop in Northern Virginia. There he will meet with a middleclass family to press congress to protect those making less than 250,000 per year for a tax increase by raising rates on those earning more. The white house demanding a tax rate increase. Republicans will agree to increase taxes through eliminating deductions. Even if they figure out taxes, democrats and republicans still have to resolve significant differences on entitlements. Take a listen. It is not even the right thing to do first and foremost. Visit the trophy that republicans want . Is that what they want to do what is right to raise the rates . Speak of the American People want us to fight to cut spending. It is a fight we are happy to have. A house aide said president obama and House Speaker john boehner spoke on3 the phone yesterday afternoon, their first conversation a week and since republicans offered 800 billion in new tax revenue and more than a trillion dollars in spending cuts, republicans say theyre still waiting on a counter offer from the white house. Lori i wonder if theyre talking football. It got messy. Melissa the house may be sending the members home t for e president seems to think if they got down to business, it is an easy fix. Melissa we can probably solve this in about a week. Melissa piece of cake. He thinks it is too late to get anything done before the end of the year as both sides are too far apart on key issues. Joining us now, financial economist at jefferies. We think it is too late, were going over the cliff. How come . Not enough time to address all the issues that need to be addressed. Especially they will talk o on a phone only once per week. It has been some progress on the tax cut side in terms of tax reform that could raise a type of revenue that we are going to need, but as far as i can see, there has been no meaningful discussion at all on the spending side and as Many Americans have to balance the wrong budget knows, if you have a deficit that means you have to bring in more rate comment and spend less. Melissa all were ever talking about is raising taxes and nobody is talking about what we need to cut. The first thing you would do is stop spending. Lets tighten our belts. Regardless though you really think it is too late . I think they can come up with some solution that is held together with chicken wire and bubblegum and scotch tape and this little crummy thing that will keep us from going over the cliff pushing the whole problem off into the future. Speak i think you have to treat two separate issues separately. One is avoiding the cliff, and i think the way to do that is to reach a shortterm agreement on tax cut extensions. Relatively optimistic they can get a longterm budget agreement done next year, but dont think they can do it in two weeks which is what the president thinks its going to happen. If they separate the two issues and reach an agreement, that will onny be temporary. It is not like theyre signing away their future in blood and worry about longterm tax agreement or general budget agreement in 2013. I think they can get it done. Melissa if they come up with this shortterm plan that raises taxes on part of the population, leave som some for the rest ands we will deal with the rest down the road, that is a really crummy solution and how the market i and the economy reactso that . I agree with you, and only be a shortterm solution before going off the cliff. Melissa does not achieve anything real. Except avoiding going off the cliff. I made it clear that was the sole purpose of it, say okay, show us what youre really going to do. Again, have attacked both sides of the budget. Right now they are not even have having meaningful discussions on that. Im suffering from fiscal cliff fatigue i think it will get worse because the end of the year is approaching. Melissa thank you for coming on. Lori way to bring it home. Spending cuts, looking at even more spending or the possibility of that. Housing secretary donovan branding how he hopes to avoid a government bailout for the fha. It seems like more dollar signs out there to me, peter. That is right. The housing secretary cannot rule it out. Washington is certainly closer to one after the latest audit of the fha fund has a capital reserve shortfall of 16. 3 billion. The Administration Says it is too soon to say whether the fha will need treasury funding. Can you assure us and the American People today as the secretary of hud and fha will not do that, or you dont know yet . Senator, i wish i had a crystal ball and i could tell you we wont at the end of the year given the reports. Obviously i am highly concerned about that possibility. To avoid a Bailout Agency is increasing fees and making other reforms. The Administration Says it will signal its intentions on the treasury bailout when it releases the 2014 budget in february and will actually decide to pull the trigger or not next september. Lori okay, peter, thank you. All of this heated discussion debate dying down by then. Melissa think your kid has what it takes to be the next oracle of omaha . Lori and he still go green and make a lot of paper . Next. Want to try to crack it . Yeah, thats t way to do it now we need a little bit more. [ male announcer ] at humana, we understand the value of quality time and personal attention. Which is why we are proud to partner with Health Care Professionals who understand the difference that quality time wih our members can make. Thats a very nice cake ohh [ giggles ] [ male announcer ] humana thanks the physicians, nurse hospitals, pharmacists and other Health Professionals who helped us achieve the highestverage star rating among National Medicare companies. And become the first and only National Medicare advantage mpany to achieve a 5star rating r a medicare plan. Your efforts result in the quality of care and service were able to provide. Which means Better Health outcomes. And more quality time to share with the ones who matter most. I love you, grandma [ male aouncer ] humana. Melissa says the color of money is a new favorite for 2013 and we have Charles Payne to help you make some. Were looking at a Retail Investment with a rather green history. Charles the color of the year is emerald, a shade of green. Were going to talk about jcpennejcpenny and their green y and journey. November 2011, and he is the one. It is worth a billion dollars, everybody is jealous of the guy. February 2012, nauseating. The stock exploded to the upside. Investors missed it. This documenthe stock then begio freefall of a series of bad news in science perhaps the tragedy is not working. Melissa it is like a palm. Charles september 2012, deficient in knowledge, the stock rebounds. This is ron johnson, the guy who invented the genius bar. November 2012, this guy gives a sort of talks to the industry, everybody says i have a strategy, know what works, the stock tumbles, craters to 16 per share. Bringing us to today. It is not confirmed, but maybe ron johnson is leaving the company. Think about that for a moment of the stock is up on strong volume. Just imaaine that. For the craziest reason of all going back a few years ago. Melissa what was the nauseous . Missing the rally. Lori what is a good color tomorrow . Sandracharles what was the colf the year this year . Melissa tangerine . Charles of course. Melissa i am lucky. Lori ive never even heard that be described as a color. Charles tangerine. All right. Lori lets check the market with nicole watching wall street. Nicole watching green. Looking at mens warehouse. A completely different picture. You see a down arrow decisively for mens warehouse. They came up with a number, but they have t had to cut their fur profit outlook. So with that we see the stock at a lower guidance, down 2. 5 . Earnings rose 22 in the fiscal Third Quarter but as i noted the outlook is not a good one. They have seen sales worse for the month of november in u. S. And canada. That is not good news for the retailer down 0. 79. Back to you. Lori nicole, always a pleasure could thank you. Melissa what is the hottest stock on wall street . Could it be an analyst which mark on the firm of buying for bank analyst dick bove. Lori the dollar strengthening against the euro. Predicting an even weaker euro zone. We are back after this. [ male announcer ] this is amy. Amy likes to invest in the market. She also likes to ride her bike. She knows the potential for making or losing money can pop up anytime. Thats why she trades with the leader in mobile trading. Sshes always ready to take action, no matter how wily. Or weird. Or wonderfully the markets behaving. Which isnt rocket science. Its just common sense. From td ameritrade. 20 minutes past the hour, this is your fox new fox news b. Defense secretary is saying u. S. Intelligence services have very serious concerns about the routine use of chemical weapons in syria has the u. S. Much official tells fox the syrian president is prepping a deadly nerve agent loading it into bombs for deployment. Experts say it is 500 times more toxic than cyanide. The pentagon plan to prepare publications in africa are extremist in al qaeda. Manage National Core are prepping to launch offensive in northern mali. Providing training and equipment and transportation, separation set to begin early next year. Over in each of the president ial palace looking like an armed camp is at this time. Egyptian military installing barbed wire barricades and stationing tanks after another night of deadly protest. The worst round of violence in two weeks. Clashes between rival to mr. This killed the seven last night. Those are your headlines, back to lori and melissa. Lori time to get a deal to avoid the fiscal cliff. Senate majority leader harry reid just took the floor. He tried to get a vote on the fiscal cliff deal at 1 30, but Minority Leader Mitch Mcconnell, republican objected to that proposal saying i matter of such importance, 60 vote threshold, majority was born to do. Now it will not happen, no vote today on the debt ceiling, fiscal cliff proposal to basically the breaking news is were back where we started. Melissa what is the hottest stock on wall street these days. Trading under. The bidding war for my Favorite Bank analyst. I love dick bove. Speaker he is in purgatory. A billion dollars unauthorized trade was described as a rogue trader. Presumption of innocence, he was arrested earlier in the week. Take the firm, the firm has been closed down since then. Dick bove has been in purgatory. Sources are telling us bove reseed essentially 17 offers to join him, he is now down to five, he has contracted form in five firms. He believes hell be making the decision on which of these five firms he will go to in the coming days. He says he is close to a deal to revitalize the firm, said he would stay with rockdale. If i tell you this. Said he is t has to make up itsd soon, did not say which way he was going. My gut talking to people what he is probably going to leave. Who are they . These are midsize firms who basically know he is a wellknown analyst. He opened stores. Jamie dimon, he gets on tv. Melissa a lot of what he does is counterintuitive, he is not afraid to go out and get the pack. He turns it the common thinkingn its head. I dont think much of citigroup, although when you listen to him, he makes sense why he thinks banking is making a comeback in citigroup is positioned very well. I remember early on during the financial crisis, i dont think theres a reporter that covered it closer than me. Dick bove was a good source. Early on the Bear Stearns Hedge Fund imploded first, that touched off everything because when they imploded we have values with mortgagebacked securities. At least that is what some of the analysts thought. Dick bove was one of the few people who called it. That isnt it two Different Things here . The Balance Sheet is not affected. Said no, youre wrong. Bear stearns is holding this. He was very early on that i have to give him kudos for that. Five offers, he has to make a decision coming down the next day, in days. He is friends with him. There is some loyalty. Melissa it shows how exemplary it is. He is a brand. Melissa he has a big book coming out. He is a brand. In tough times you want a brand. You go with the brand. Melissa charlie gasparino, thank you so much, good stuff. Lori and now gangnam style. Alan simpson briiging fiscal cliff talks to a whole new level. Neil cavuto is up next with his trademark move. You know how painful heartburn can be. For fast, long lasting relief, use doctor recommended gaviscon®. Only gaviscon® forms a protective barrier that helps block stomach acid from splashing up relieving the pain quickly. Try fast, long lasting gaviscon®. Relieving the pain quickly. I have obligations. Cute tobligations, but obligatio. Ing. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishas core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for tir 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. Melissa it is time for stocks now as we do every 15 minutes. Lets head to the floor of the New York Stock Exchange. Our own Nicole Petallides standing by. Watching a whole lot of companies up on earnings today. A lot of news going on here on wall street. Lets look at hot movers, starting off with h r block. That is one we continue to focus on. It hit a 52week high. The look at the stock. Earnings are coming out. One thing they did well was a lot of costcutting. They noted a strong tax season in australia which helped boost revenues believe it or not. There is h r block up over 4 . We talked about them rushing that dividend. You can see that is a winner. Lululemon known for their yoga and athletic wear up 4 and Smithfield Foods up one quarter of 1 . Plenty of green on the screen, ladies. Back to you. Melissa nicole, thank you so much. Lori former senator alan simpson trying to shake things up. Check this out. Stop instagramming your breakfast and tweeting your first world perhaps and getting on youtube so you can see gangnam style. [laughter] lori former senator simpson had us talking but, is it enough to get washington moving . Joining us neil cavuto. Melissa moving. You have the dance, right . I was. Lori breaking news. No, they cant. The reality theyre just not moving the ball and its ridiculous but theyre not i will say this. I know i stand apart a lot from our media colleagues, a bad deal isnt better than no deal. If a deal so skewed heavily on tax hikes, very little on spending cuts you will have more damage than you really want. You probably get the Credit Ratings agencies downgrading u. S. Debt anyway. Melissa right. What have you solved there . In the rush to get a deal, ever gotten a mortgage, first time, go, go, now, now. Got to do it now, now. I go back to the lot the same car will be there. Another mortgage opportunity will present itself. We have to be very careful about the deadline notwithstanding that, it doesnt mean a deadline for doing something dumb. Lori i wonder if were missing the forest for the trees or congress in particular . Im concerned about the overall economy. I dont think it matters to your point what happens with the fiscal cliff. The economy is at stalemate. Unemployment, we look at jobs report tomorrow, is dismal. Were liking inflationary environment down the road. This is bad news. You could could make the argument invite blowing past short term helpful, long term payne full. Melissa spending cuts, tax hikes are very dramatic going over the cliff. When you look at numbers, still is like five to one raising taxes to cutting spending. Thats right. Melissa no one is really talking about cutting spending. Isnt that the first thing you would do . If your fiscal house was in such disarray, household at home, first thing you do is stop spending. No one is doing that. What scares me, is that point. Whether you agree or disagree hiking taxes i am not a fan of it but i think it will come. We can get past this. Charlie gasparino and i have argued this. One of the consequences of the election the president will probably get his way raising most rates. Melissa right. Im not saying im a fan. Lets get past that, lets make it happen. Republicans realize you lost election you didnt suddenly lose your backbone. This should be precursor getting serious tax reform and spending cuts, cuts as you point out melissa is the wrong term. Theyre talking about slowing the growth of spending. That is very big difference. Melissa right. I think the fact we see a deal largely absent any of that spending stuff, the other day i had the chairman of the Congressional Black Caucus on. Neil, we have to leave social securitt alone, medicare alone, medicaid alone. Then what . So i think we have to get back to the then what st

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