Transcripts For FBC Markets Now 20130130 : vimarsana.com

FBC Markets Now January 30, 2013

Streamers down. Surprise contraction in gdp. The economy shrinking for the first time in three and a half years. Lori also, betting big on library. Research in motion changing its name and unveiling the highly anticipated blackberry 10 device. Coming up in minutes. The ceo Thorsten Heins. Melissa and it turns out japans two Largest Airlines have had problems with the dreamliner battery long before the issue. Time for stocks as we do every 15 minutes, lets head to the floor of the New York Stock Exchange. Nicole petallides. Those gdp numbers keeping the dow away from 14,000. Nicole they certainly did throughout the morning. It brings concern when there is no good gdp numbers. There has been less on defense and concerns, lets take a look now, much like we have seen recently where the dow goes over that one change line over and over again. Today seems to be no different as we are back in positive territory. We havent taken out our highs we saw yesterday, five year highs for the s p 500, dow jones the thrills, russell 2000. We have had a lot of names and a lot of these indexes hitting these highs we have not seen since 2007. That being said, still concerned about the economy and jobs. The market has been running up, lots of traders say it is time to take a little bit of a breather, or we overbought at these levels . Plenty of people i know that has taken money off the table the last couple of days. Heres a look at the dow right now up 7 . The banking index, looking pretty good. Back to you. Melissa nicole, thank you so much. Lori investors pausing, likely taken aback by the week o weaken expected numbers by gdp. A deep decline in defense spending led to the first contraction in four years. The senior equity strategist from wells fargo advisors. Great to see you back here. If the market had been ignoring the numbers, is this a wakeup call . The expectations were the consensus was 12, Something Like that. A weaker than expected, but we expectations to begin with. Really the market is looking at things like Consumer Spending which is good in that report, looking at Capital Spending which is good, wages were okay. The market is looking at the Silver Lining but clearly we are in a very slow growth economy that will not change anytime soon. Fortunately valuations are not stretched, they are not shaped but theyre somewhat in the gray zone. Those things are all helping the market. The Federal Reserve will tell us we have to keep pumping money in this afternoon when they announce. Lori which will continue the wealth effect. On the economy and gdp report, it was driven largely by a decline in Government Spending and defense spending. Before the fiscal cliff deal came into effect, and not before sequestration could also happen, deeper defense cutting. If that lack of Government Spending which has been supporting Economic Growth up until the Fourth Quarter, two consecutive quarters of negative gdp growth means recession. So what is the likelihood that whatever you think of Government Spending the lack of it could mean an actual recession. If you look at the former law, Government Spending contributes to growth. We have to wean ourselves, the economy has become addicted to Government Spending. Technically you are right, two quarters of negative gdp, minus 0. 1 isnt the end of the world, but technically that would be a recession. I dont think we will see a recession, we will see modest growth in the first, 20. 5 growth in 2013. That is lower than what we expected in 2012, but action that we 2. 2, so it was a little bit better than we expected in 2012 but i dont think we are headed toward a recession. Lori so lets talk about the advice youre getting your clients right now. You expect the dow to retrace alltime highs anytime soon, are you all in, are you long equities, what advice are you giving to your investors . We are all in. Looking for pullbacks, got a couple of good ones. We would love to see a pullback in 2013 because there is still a lot of Retail Investors with plenty of cash on the sidelines. Youre starting to see little bit of chasing, but just a little bit would love to see washington controversy on these spending cuts to kick in. What we want our investors, we want them invested in substantive economically sensitive sectors like consumer discretionary, we want them in technology, those type of things. We dont want them to be defensive. Lori i am running short on time, sorry, scott. Youre always a great sport, see you soon. Thanks a lot. Lori we want to remind you guys to keep it here for the fed decision at two i 15 eastern. Melissa shares of blackberry, no longer research in motion, trading right now down about 0. 82 theyre on the day as they unveiled two versions of the new blackberry 10 device. Shibani joshi had a chance to speak with blackberry new ceo Thorsten Heins on the changes. Dont call it research in motion anymore. The Company Turning over a new leaf today unveiling its new blackberry 10 operative system and two brandnew phones. Compare it to my old blackberry in a second, but the company stripping the inside and changing the name plates on the outside called blackberry making a lot of sense since Everybody Knows the bread and butter product is the blackberry. Just inside this event were about 1000 people attended. They had a chance to talk to Thorsten Heins and asked in a couple of things. What about the rumors of strategic partnerships, a buyo buyout, asking about the stock prices today. Any disappointment and any issues with delivery dates in march. Take a listen to what he had to say. They announce they will strongly support blackberry 10. If you look at the numbers, they started launching in two weeks. The difference really is the Testing Process. A very intense Testing Process and we want to respect the testing of our carriers. That is why it is behind the other regions. We are working with the carriers to speed it up but that is the best we can say at the moment. Any risk of march not been the target date in the u. S. . No, absolutely not. There was talk about a possible buyout with lenovo. The company focusing on delivering blackberry 10. Are you continuing with your Strategic Review . What do you say to those talks rumors that came out this weeks . I will not speculate on any rumors. If we would announce something, we have to do in public since it is a publicly traded company. With the improved position of rim we are looking at what can we do, what products should we be doing in order to be a leader in mobile computing. When a knowledge of other segments as well to drive those segments so we are continuing to do our homework and we will let you know the moment we have something. Last question. Your target audience, is it existing blackberry customer or trying to claw back some market share, who do you go after first . Absolutely i want to claw back market share. A whole new user experience. We love our base, that is why we brought the variety, but we want to grow and we want to win back the hearts and the minds. Oneyear, five years . If you look at the cycles of companies that have reentered, it is about one year, one and a half year cycle. So he is after the market share. There is no chance there will be any delays in getting a product to the market in march. He says they are open to Strategic Reviews, he did not shut that down. This is a hail mary pass that kicked off today in downtown manhattan. Compare it to my old blackberry, i think i itll be a nice upgrae for all. Melissa cannot wait to see that in person. We look at the analyst take on blackberry 10s launch with analysts david ernest coming up. Lori it is round three from facebooks quarterly earnings. What you should be watching for for the social media giant reporting after the bell today. Melissa and bearish weekly supply data. We are heading to the cme to find out why. And take a look at metals as well as we had out to break. A good day for commodities. Look at silver of 3 . We shoul will be right back. [ woman ] if you have the audacity to believe your Financial Advisor should focus on your longterm goals, not their shortterm agenda. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. Executor of efficiency. You can spot an amateur from a mile away. While going shoeless and metalfree in seconds. And you. Rent from national. Because only national lets you choo any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. Now this. Will work. [ ale announcer ] just like you, business pro. Just like you. Go naonal. Go like a pro. Lori favorite segment, one of them at least good time to make money with perlstein. This hour he has a followup with a Silver Lining. Charles i kind of like silver down here. It has made a nice move. A couple of ways to play it. Silver went up 1, it would go up 2. You can see the performance is volatile. This is more of a trading vehicle, like you for somebody who wants silver. If you look longerterm you want to go with the etf route. That is a less riskier play. People should also consider claims as well. Lori how do you get them . Charles they would schedule january 23 they were going to open it up to the public but a whole lot of silver deals you can buy them through now. A big box, canadians with the polar bear on the back and the reason i have got them. If anybody gets 48 on the report card, they get a claim. I ran out of claims last year. They love it, they put it away, they save it. It is great for everybody. Lori what they have to do to get a gold coin . Charles they have to graduate college. Melissa you always knew when you look at the gold and silver the move in silver is always so much bigger on a percentage based. It is so much more volatile. If you amp that up even higher, it is really getting a lot of beta. If you wanted to jump in now, that is where you will get the most. Charles Economic Data looks really sloppy. Silver made a breakout. Your point if it does that is a gigantic payouts. Lori do you look at that strategy at all . Charles it is contradictory. It is obvious at least it is not something you cant argue there is no value. Some argue what does gold do . Lori pretty flashy jewelry. Charles so there you have it. Lori thank you. Melissa lets check the market, Nicole Petallides on the floor of the New York Stock Exchange. Watching refiners. Nicole taking a look at a couple of key names. Most of these names came out with their quarterly reports and names. A look at that one hitting 52week highs, both of these after the earning releases. All of the imports, the gulf coast refineries in favor of u. S. Production. The chief executive officers will be looking at california, for example. Marathon petroleum the same thing focusing on domestic crude. You can get both of these stocks. I was taking a look at the 52week highs on both of these. That is a one week chart. Up about 92 over the last 52 weeks. Quite a run up. Winners in these two energy names and domestic crude. Back to you. Melissa later on, fox business exclusive, it is a parody showing hospital workers literally blocking the door to a hospital to prevent patients from going into reason, money that doctors are trying to recruit their colleagues to join the organization. A group that pays doctors based on how much or how little they see patients under obamacare. The fewer patients they see, the more money they make. Elizabeth macdonald with a fox business exclusive ahead. Lori i think we made better quality movies in college. That was pretty cheesy. Also, it has been three weeks since the first dreamliner incident came to light. But japan two Biggest Airlines have had troubles long before that. The latest details ahead. Melissa look at how the dollar is faring. The dow right now up one point. We will be right back. All stations come over to mission a for a final go. This is for real this time. Step seven point two one two. Rify and lock. Command is locked. Five seconds. Three, two, one. 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In most states, a legal plan attorney is available with every personalized document to answer any questions. Get started at legalzoom. Com today. And now youre protected. [ dog barks ] [ male announcer ] something powerful is coming. See it on february 3rd. Lori boeing topping estimates despite dropping 30 from a year ago. His arrest came as Boeings Dreamliner planes are grounded as we have reported. Forecasting no Significant Impact for 2013 because of the grounding. We will have to see about that, but for now that is what they are saying. We can Work National trust Patient Safety board has asked boeing fretful operating history of the batteries in question. For the latest on this ntsb request, lets go to dan springer. Have they np no, they havent. They have done the first level of investigation havent been able to pinpoint the exact problems so going to a deeper level. As mentioned is not hurting the bottom line yet. Just mentioned the company took in 81. 7 billion in revenue, that is a record last year. It is not hurting the bottom line yet. The battery issues with the 787 did not sneak up on boeing but more details. Replacing 10 of the lithiumion batteries since may. Half of them were due to low voltage. It is much higher as reported by source. Reporting 100 batteries had to be replaced but not all of them suffered a failure. Melissa not confirm the number for me, but downplayed the whole issue saying batteries are replaceable unit on airplanes in the replace five or six per day. The Company Issued a statement saying we have not seen 787 battery replacements occurring as a result of a safety concern. The batteries are being returned because of our robust protection scheme shows no battery deeply discharged or improperly disconnected can be used. Thea normal. The National Transportation safety board says the whole battery history is now part of its investigation of the 787. The fleet of 50 grounded two weeks ago after two lithiumion batteries overheated. The ntsb is taking a lot deeper with the help of the military, by the way. Political parts are being tested, Naval Surface lab in maryland. The dreamliner nightmare has not hurt boeings bottom line yet. Fourthquarter earnings close to a billion dollars and as you mentioned beating estimates and they have 13 billion on hand to weather the storm for the time being. They have not been able to deliver 787 while the grounding has taken effect. Theyre sitting around waiting for the grounding to be lifted before they can deliver them to new customers. Lori many thanks. Melissa for more on what all this means for boeing in 2013, lets bring in mail from morningstar. You heard the record revenues, 13 billion in cash on hand. The ceo says debt cancellations and steve earles remain below the historical average. Theyre keeping production going. Does it make you feel better about their ability to weather the storm or the same, what is your reaction . Speak i think it would make me feel better, overall commentary in the space of the 2012 year was really good. They had record deliveries. The last time they had more than 600 with 1999. They had 1 1200 orders. I think they have many years of potential visibility in going forward. I would say the 787 is a problem, for sure, but i dont think it is something melissa what would have to happen to change your opinion on that . The number of cancellations . What would give you pause related to this crisis . Is a timing delay. If we get to the production rate currently embedded in 787 has to change over the nearterm, and that leads to the inability to bring down the cost for manufacturing to bring down operating in the long run. Those are sort of the things to think about with the 787. Melissa this made it seem like maybe they knew there was a problem and didnt do something about it. That report saying they replaced 10 batteries, five of them showed a similar problem, that is the sentiment happened to the batteries that overheated. How damning is it for them if they knew there was a problem and they did not act quickly enough . It is difficult to accuse someone of knowing and not fixing it. I dont think boeing wins by having the problem out there. It doesnt make a lot of sense from the credibility perspective but i think a lot of issues have been, normally considered normal, but i dont know that im in a position because somebody came out with more replacements. Melissa i am not sure if you are accusing, but how theyre handling this situation. Theyre making Good Progress in the electrical problems, a

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