Transcripts For FBC Markets Now 20130111 : vimarsana.com

FBC Markets Now January 11, 2013

Melissa happy friday to you. I am melissa francis. Lori and i am lori rothman. We will tell you how to protect your investment. Melissa how worried is business . U. S. Chairman joins us in just a few minutes. Lori boeing 787 dream liner is safe. If boeing stock safe for your portfolio . Melissa if your new years resolution is to get in shape, this one will hurt. The gym membership, at that price, they better be working out for me. [ laughter ] all right, time for stocks now as we do every 15 minutes. Lauren a sibling that he is standing by. Stocks struggling today. Holding this titrating pattern for much of the session. The dow is up seven points. Energy is flat. Lets take a look at wells fargo. Profits hit a record high. That is good. They are not doing as many mortgages. They are the nations biggest lender. You can see it is down by one and a quarter percent. Cheryl how did last years drought play out . Jeff it was pretty wild in here today. Five of the past six years, this has been a limit move. Take a look at what it was. We had, i think, scott shall indeed, a 26point move. We had a pretty big range. Jeff this crop report is definitely a mover. Take a look at this. This is the usda world agriculture supply and demand. It is down 13 on the year. Acres harvested down slightly. The stocks way down. A lot of farmers sold in this. We are really starting to worry about the next year. We cannot have another year like this past year. Jeff we had a lot of money come into this market when that happened last year. If we get another drought, oh baby, this could be a place to make some money. Lori it makes you wonder if Mother Nature has a bet on commodities. Jeff flock. Melissa oh, my goodness. Over half of the economy will stay stable in the next couple of months. Would you describe that as optimistic that they need to be studied . I think it is a relative gain. House ceos have been operating over the last three or four years now. Melissa they think the economy will be relatively stable. That is correct. There are a lot of different of and downs within that. You have tremendous uncertainty when you look at can actually gain market share, can imagine through the global uncertainty that is there in the economy right now. Melissa they are not that optimistic. I am surprised to hear that they even think that the economy will stay stable. We sort of have one down, three to go if you look at the debt limit. The congressional budget cliff, as well. The Housing Market stabilizing and turning around. Confidence of the consumer, it is there. But you do have that uncertainty coming from Government Action or lack there of. Melissa they want to focus on creating a skilled workforce. At this point, i have sort of given up on the government. I almost feel like it is the part of parents or companies. It is clear. Ceos that we talked to, it is a combination. It has to be all considered together as they deal with that. Melissa they still feel good about the consumer . The reality is you have some indications that the Consumer Confidence has increased. There are three things on their agenda. How can i continue to grab more consumers and give them a better consumer experience. How can i be really optimistic. Third, they are very smart in terms of focusing on cost cutting right now. Melissa tell me more of what they will do in light of this. Certain businesses that had a strong growth agenda and a diverse vacation that the play the emerging markets and tailwinds behind them, they will continue to make investments. There is a little bit more reluctant. This is back to the bigger macro picture. Particularly, that was there in the last quarter of 2012. The ceos confident looking ahead. It was because of all of that uncertainty. You only got revolutionary. Melissa you get more information and in such a small period of time. Thank you. Thank you for coming on. We always love it. Lori epidemic level, that is how the cdc is describing the flu. You do not need to hear it from him. Look at your childs class. 7. 3 of death last week was caused by the flu and pneumonia. Nine out of ten regions currently have elevated flu activity ahead of the peak time which is usually late january and february. It is serious this time of year. It is no joke. Melissa guns and games are now the center of the Vice President talks in washington. Lori lets take a look at metal as we head to break. All three medals down. Stay with us. Fox business continues. [ male announcer ] how do you turn an entrepreneurs dream. Into a scooter that talks to the cloud . Or turn 30million artifacts. Into a hightech masterpiece . Whatever your business challenge, dell has the technology and services to help you solve it. For. Melissa president obama has been meeting with afghan president today at the white house. The two are scheduled to hold a News Conference soon. Richard is that the white house with the latest. The two have released a statement. Much of the meetings in washington have been about u. S. Troop levels after 2014. That is when the nato agreement ends. Items that basically still need to be ironed out. The press Conference Begins in about five minutes from now. We expect a couple of questions from both of the president. We imagine questions on the relationship between the u. S. And afghanistan. Melissa there is also big news out of the white house that is getting attention. Vice President Biden meeting with people in video games. Rich all of the white house is interested in infringing on Second Amendment rights. Some of the Entertainment Industry was here yesterday. This is all on that effort. The Vice President says he will deliver his report on tuesday about gun violence. The Vice President did say that background checks seem to be something that will be a part of this increased security. We will see what those recommendations are. Lori Vice President joe biden meeting with people in the videogame industry. Dennis kneale at eight games stop right here in manhattan. Dennis videogame stocks are down 8 to 18 since those shootings because investors are worried to blame violent video games. David axelrod tweeted within two days of the shooting saying maybe we should stop marketing murder. We talked to a videogame analyst earlier today. You do not have the same murder rate by gun that you have in the u. S. And other countries. This is a global business. They play the same games in europe and japan. They do not have the same issue. Rich Todd Mitchell going on to say that when you start to blame mobile games, it is politicians going after and easier target. Of course, the Supreme Court ruled in 2011 that video games themselves are protected by First Amendment rights. What can government really do . Government decided that comic books were causing juvenile billy quincey. They say the industry never recovered from that. They will make sure that they do not go through the same pain on videogames and violence today. Back to you. Lori such an interesting interpretation. Everyone says there really is no right answer. Melissa lets check the markets. Lauren simonetti is on the floor of the New York Stock Exchange. Sometimes bad news is good news. This is the biggest winner on the s p 500. Lets not take it out of context best buy shares are down by 55 . Today they are good. Holiday sales were flat. When analysts were expecting a decline, that becomes good news. Best buy is a winner. Back to you. Lori lauren, thank you so much. Lori market, though, you could say are hanging tough. How to protect your investments coming up. Melissa casual dining stocks on the impact of the payroll tax hike next. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. At 20 minutes past the hour, i have your fox news minute. We are expecting a press conference shortly with president obama and afghan president. Theyve met today discussing the u. S. Role in afghanistan after the war ends in 2014. The president is not expected to announce any further decision on further troop withdrawal. The blast occurred in a southwestern city. Most of the dead were Shiite Muslims killed in a billiards hall. A Suicide Attack was followed by a car bomb minutes later. Ford plans to hire 2200 salaried workers in the u. S. It marks one of the largest land increases for the country and more than a decade and will help build on the 8100 combined hourly and salary jobs that were added in the u. S. Last year. Those are your headlines. Back to melissa and lori. Lori we like to receive that good news. Thank you so much. The s p is hovering near a fiveyear high. Lets not forget the economy is not going gangbusters. Could inflation we are its ugly head . Jeff, i know that you manage money for High Net Worth clients and, i suppose, what we want to know is if you can help us become one of them . Now is a crucial time. We are about to enter mediocrity and low expectations for earnings. There is volatility. The market will have to determine the direction. There is always the possibility if you are even relatively negative on the market to find opportunity. Opportunity is available in every market. Lori the trade gap widening more than expected. Goldman sachs put out a note saying they are shaving half a percentage point off to just about 1. 3 growth. Lackluster growth. Mediocrity. Where is the bull market . There is one course theme that makes more sense than anything to me. Lori print, print, print. Yes. As an investor, invest in those prices. Lori will it hit the economy slowly or will it just shake things up . People think that inflation will involve this broadbased inflation. Inflation cannot happen during an economic slowdown. Inflation and slow growth can coexist. It will affect certain Asset Classes more than others. Lori you are recommending buying gold and precious metals. Gold has been so zeroed in on central bank that everyone is so worried china will pull back on their stimulus. I do not believe that will happen. I think gold will be one of the more Stable Assets Going Forward. Lori you really are the first person who is really zeroing in on inflation and planning for it. There are treasuries. There are levels of inflation. They have a significantly bigger spread thin t tasuries. They performed better. Lori what is the timeframe . Your timeframe has to be between three and five years. I think we will have a good move this year. Lori and real estate. Everyone is talking about this. Homebuilder stocks. I have a hard asset theme. Real estate is such a diverse sector. A lot of people think of it as a broadbased sector. The fact is, there are things like the Housing Market. I believe singlefamily homes will begin to see appreciation. Supply has been greatly reduced. Demand is still there. There will be a need for housing. There is a supply and demand function that is working well. Lori thank you so much for joining us. Great to have you back. Melissa your casual dining restaurant feeling the higher taxes. Sandra smith has the story in todays trade. Sandra it makes sense. If our taxes went up and our paychecks have strong that the possibility of us eating out less is a real possibility. We have an overweight rating on the stock. Look at this selloff. There is concern about the current quarter. This company is positioned. On a cash basis and a forward looking Earnings Base faces to exceed expectations. If there is major concern about young trans, you also see a similar stock. This is the taco bell, kfc brand. This is also over in china. Concerns about the food safety in chicken and the amount of antibiotics there. They put out a big warning. A lot of analysts have backed off of that stock. Ruby tuesday coming out as a little bit of a winner. Keep this in mind. Melissa without question. Sandra smith, thank you so much. Lori the concerns of boeings big moneymaker. The investigation up next. Melissa take a look at some of todays winners and losers. We will be right back. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you thousands a year in outofpocket costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. Lori time for stocks now as we do every 15 minutes. Lets head back to the floor of the New York Stock Exchange. Check in the today with Lauren Simonetti. How are we looking to round out the week . The week is pretty good. Were up for the week, all three major averages but today a little bit stuck. Im looking at volume. 300 million shares at the New York Stock Exchange. That is a little slow. Were also seeing ratio of down stocks to up stocks, two to one, believe it or not. You count know that by looking at those platinum members looking on the screen right now. Jcpenney a big loser today, down 5 . A big loser over the past 52 weeks, down 44 . Ubs cutting jcpenney to sell. Giving them a 13 price target. Trading 13 right now. One of the issues is cash flow. Ubs analyst says they may not have the money to continue the turnaround strategy. That is point of concern. Back to you. Lori lauren, thanks as always. Melissa dreamliner 787 is boeings newest and most technologically advanced plane but after a series of mishaps this week federal regulators launched a review to get to the bottom line. We bring in liz macdonald, emac. Boeing is telling fox business it is conducting a joint review with the faa into the design, assembly and manufacture of the boeing dreamliner 787. This airplane relies more than any other airliner on lech cam systems. It also has the lithium battery. Boeing top executives at the press conference this morning out defending the airplane. Take a listen. Since entering service we logged more than 50,000 hours of flight and safely delivered more than a million passengers to their destinations. More than 150 dreamliner flights take place every single day. Weve got also, melissa, and lori, two new incidents with 787s. Basically Nippon Airways reporting an oil leak and another incident. Boeing is saying that there have been 50 airplanes delivered. And orders for 800 more are on the way. And the faa is also saying that it does generally consider the plane to be safe. That is the reiterating also what boeing executives are saying. They want to tell the world that the plane is safe. Back to you guys. Melissa thanks so much, emac. Sure. Lori so as elizabeth just explained and updated the faa will conduct a comprehensive review of the boeing 787 dreamliner but my next guest says these issues should pass quickly and wall street may be missing a bigger story. Mike boyd, aviation consultant joins us from denver. Welcome, mike. Thank you. Good afternoon. Lori the dreamliner had years of production delays, billions in cost overruns. Do you think these issues pile onto a poor reputation or will they pass quickly . They will pass quickly. Were down to the level of reporting a oil leak . 50 airplanes in new york city had oil leaks yesterday. If a handle of lavatory breaks on a 787 it will be a story. It will pass quickly of the as boeing said it is a safe airplane. It has glitches and faa has been looking into it constantly since the plane was first designed. Lori begs the question will it disrupt orders for 787 . Boeing says next year they hope to double production from five planes to 10 a month. The trouble is, boeing doesnt get paid for these equipment deliveries until they are delivered to the airline. So theres a cash flow question. There is but keep in mind they also have 1,000737s on order as well. They have other cash flow issues here coming in the door. Lets remember too, airlines are depending upon this airplane. Here in denver united wants to fly to toke yow out of denver, nonstop. That is only plane can do it with a full load. The more the airplanes are delayed, airlines are hurt. They want to get through this still. Lori there is significant demand for boeing. You cant forget boeing surpassed airbus once again if im not mistaken as the biggest aircraft maker around the world. Right. They have other computers. Bombardier is combing out with whale new airplane.

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