Transcripts For FBC Markets Now 20130304 : vimarsana.com

FBC Markets Now March 4, 2013

Melissa happy monday to you. I am melissa francis. Lori i am lori rothman. China concerned. Katie stock and two windows on why is looking for a pullback before the s p. Melissa we are heading live to the trading pits of the cme. Lori the government failing to strike a deal to avoid sequestration. What they be able to come to a budget agreement before arch 27 . Melissa what is the fair share when it comes to taxes . Lori time for an update on the stock market. Global concerns weighing on the market today. Sandra that is right. There is a lot of concern about growth in china. The dow is down about 38 points. The nasdaq down about nine. The s p 500 down about three. China is the Largest Consumer of oil in the world. That is weighing on commodity prices, as well as the dow. United technology is also down a couple percent. Definitely the fact that the Service Sector in china grew at a very slow rate, that is what has these markets down today. Back to you. Melissa oil prices dropping. Phil flynn is at the price futures group. Concerned about china. Sandra was just talking about that. There is significant headwind when it comes to china. Lets talk about the calendar. This is shoulder season. Prices usually start to come back down. U. S. Demand is very weak. The man is at a 11 year low. From a technical view, there is no dow that the concerns about china are starting to have a big play here today. One of the markets that is going on today is natural gas. Getting a nice little boost. It could be because of the new energy secretary. A pro natural gas export guide. That is. Therefore natural gas. The best news is gasoline prices. Look at the rbob futures. Right now, they continue to be down. They are down right now about another four cents right now. This is incredible. We have come down almost 0. 27 in the last two weeks. That is good for you. Maybe another nickel here by the end of the week. We broke that streak going up. Back to you, melissa and lori. Melissa like you were saying, consumers can really use it at the pump. We have been absolutely hammered i think that our rbob could fall another dime. Crude oil actually has more support here. We may find a little support. In the short term, especially with the april contract, we could see more downside pressure. We could get two 295 even. We could break three dollars on the wholesale price. Melissa phil flynn, thank you so much. Lori new names to the Obama Administration today. Working on spending levels for the rest of the year. Peter barnes is at the white house with more. Peter the president filling three key positions. Lets start off with Sylvia Matthews as the new head of omb. She is currently the head of the walmart foundation. She worked for the Clinton Administration under jack lew. She is being nominated to take over for omb. The second is the new and energy secretary. Finally, gina mccarthy, who is currently the head of the epas air office has been appointed to take over as the permanent head of the epa. She has been working a lot on Greenhouse Gas issues, tailpipes and power plants. These three will be caring the water for the president on key issues like the budget battle, Greenhouse Gases, clean energy, as well as, energy independence. Lori we were also hearing about some conflicting reports on the impact of the sequester. Peter this is on possible airport delays. The department of homeland security, Janet Napolitano, saying that there were lines at several major airports over the weekend because of the sequester. We have been looking into this today and what we have managed to find is we have not heard about any longer lines at tsa checkpoint at security checkpoints, but customs and Bureau Production says it has experienced delays at ports of entry. Lori we will see what happens from here. Peter barnes, thanks. Melissa washington deadlocked on whether or not to raise taxes. Brad blakeman is Georgetown University professor. He is joining us now. It was surprising to see it quantified this way. You see that the top 20 are paying their highest rates as a percentage since 1979. What is the impact of that . Why should we care . The top earners are the ones that keep our economy moving. It is mainstream. When the top 20 are paying the highest rate since 1979, the 1 are paying 37 . The next 20 are payingesse the top 20 paying 71. 8 of all federal taxes, when people hear that, they say they should pay it because they are the ones that have the money. No, we should be broadening our base. Melissa people would say they do not they are the ones living close to the poverty lines. How do you respond to that . Taxes for the middleclass and those in higher brackets should be paying their fair share, the same as the most wealthy are. The key to the economic recovery is getting more people to pay in. We rely on this to create jobs. Melissa how do you grow the whole pie at this point . We believe in the velocity of money theory. When you and i change money, that is what creates prosperity and jobs. Melissa they would say that they are creating the demand where there is not any. There is no difference between them spending that money and me spending that money. Is there a different . Absolutely there is a difference. We do not have a problem of revenue. We have a problem of spending. The fact that we can produce a budget, which is required by law. The sequestration and continuing resolutions are all selfinflicted wounds. Melissa can you imagine a Major Corporation in america that did not have a Financial Plan . It is amazing. All those shareholders would go away. Thank you for coming on. We appreciate it. Lori this is your still. Melissa whether or not the wealthiest should pay even more taxes. Lori it is a great conversation. I was not expecting that. It is good to be google. Shares of the tech giant searching for higher ground. Melissa states raffling with big decisions. Lori let take a look at metals. No real reaction. Virtually unchanged. Back after this. Friday night, buddy. You are gonna need a wingman. And my cash back keeps the party going. But my Airline Miles take it worldwide. [ male announcer ] it shouldnt be this hard. With creditcards. Com, its easy to search hundreds of cards and apply online. Creditcards. Com. Lori quarter after. It is time for another edition of market now. Sandra smith on the floor of the New York Stock Exchange. Sandra still not enough to put the nasdaq into positive territory. These two tech names shining today. Yahoo and google. Yahoo hitting 52 week highs on a decent upgrade from barclays. Not only did they upgrade the shares, but they also raised the price target. Another three and a half game from where it is. A lot of investors excited about that. Then, of course, you have google shares. Google hitting an alltime high. It keeps on going. 812 a share today. There are price targets that are now 1000 for google. Melissa wow. Lori 813 a share. For one share of google. That will set you back. Thank you, sandy. Melissa it is time to make money with charles payne. Charles we had a lot of fun with it. January 15 and 28. It was part anecdotal, part valuation. Here is a crazy thing. After the bell, their numbers were terrible. The stock is up and i am going through the numbers. I am looking what the company had to say. The guidance was terrible. I am telling people take profits the high is 79, 80. There is obviously room to the upside. I have to be honest with you why would anybody be forcing this short squeeze right now. They are looking at a loss of nine cents. Just a few days ago they had a gain of nine cents. Before the earnings of 3. 71. A lot of times, this doc tells you something that you dont know. 18 in two or three weeks, i kind of feel like i am lucky to have it. I felt a little lucky. I had all my best clients in it. Still, i am not sure why [talking over each other] charles a pretty good game over a short period of time. Lori what you think of google . Would you buy there . Charles i, personally, would not. There is a lesson there for people, if you give management a shot and let these Companies Work out, google had its issues where not too long ago people had written off google. Now, apple is breaking off and google is taking off. Tim cook, i have to be quite frank with you. He has left wall street flat. He has some work to do. Melissa charles payne, thanks so much. Lori both sides of the aisle are ready to act. The money behind the deal. Melissa it is good to be them. We will tell you who is in and who is out on the forbes billionaire list. Did you make it . Lori i would be happy to be last on that list. The answer is no. [ male announcer ] this is karen and jeremiah. They dont know it yet, but theyre gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, theyll find some retirement people who are paid on salary not commission. Theyll get straightforward guidance and be able to focus on other things, like each other, which isnt rocket science. Its just common sense. From td ameritrade. At 22 minutes past the hour, i am lauren green with gearbox news minute. Vatican around the globe are meettng. Four then 140 cardinals are in rome. 103 of those cardinals are electors. In mississippi baby born with hiv appears to have been cured thanks to stronger than usual treatment for newborns. The baby shows no signs of infection. This could lead to big changes in pediatric aids treatment. Queen elizabeth was smiling as she left the hospital. She was released earlier today. The last time she was in the hospital was 2003. All engagements have been canceled for the week. Those are your headlines. Now that two melissa and lori. Lori lauren green, and he thinks. The government failing to strike a deal to avoid sequestration. Will congress be able to come to an agreement before march 27 . Joining the now is brian gardner. Welcome. House republicans, as you know, expected to release a bill. I think coming out of the fiscal cliff debacle, i think both sides wanted to avoid that this time around. Lori what would that look like if you believe that . Republicans and the sequestration negotiation, in other words, the democrats scare tactics were effect if. I do not think they have been that effective. I disagree with the premise that republicans have lost a lot here. I think they are starting to see some signs that the administration is willing to agree to a cr for the rest of the year. That is why i am optimistic that we are heading towards a deal in the next couple of weeks. There will be no revenue increases outside some kind of user fee that i do not anticipate is a big deal. In terms of closing loopholes, raising rates, that will not be part of the cr. I do not think anybody really wants that fight right now. People continue to cost her over it, but it will not get in the way. Lori we have had a couple days to digest sequestration. Some conflicting reports so far of these cuts. What do you make of it . Will it really be less noticeable, lets terrible then we are hoping . No. I do not think armageddon is on its way. I think the federal government whose budget is 3. 6 trillion, 44 billion less spending through the rest of the year is not going to make a significant change. You will hear isolated stories of problems in a particular program it is such a small slice of the overall federal budget. There is no way it has a meaningful impact on the economy through the rest of the year. Lori brian, the Financial Markets have shrugged them off. Do you think that will change at some point be back investors are dismissing washington. They will Pay Attention to micro issues. I do not see them really starting to worry about washington again. That is great for the markets. Melissa forbes has released its annual list of the world top billionaires. Coming in second was bill gates. Due to the list is fashion cofounder. He left over the likes of Frances Bernard and warren buffet to come number three. Even as buffett added 9. 5 billion. Wow. Lori those are some hefty sums there. Lori it is interesting that the women on the list are both in the fashion industry. How do you feel about not making the list . Melissa i am devastated. Lori something to work towards next year. Why this may be just the beginning. The s p 500 is doomed for a pullback. Melissa take a look at who is off into is down right now. We will be right back. Meet bill and melissa. Like many, they built their financial house on stocks, bonds, and insurance. And then saw it blow away with the first winds of economic change. When mary lost her husband, she invested in real estate. But when the housing bubble burst. So did her financial future. Robert and rachel discovered the security, safety, and stability of american bullion, the name you can trust for 401 k unlike other gold companies,rs. American bullion handles all the paperwork for you, hasslefree and 100 taxfree. Call 1800goldira now and speak with one of our gold experts to see how simple working with amerin bullion can be. When you do, youll receive the gold guide and the book the next wave free. Discover how gold can help protect your finances and your future. American bullion. Piece of gold, peace of mind. Call 1800goldira now. Melissa all right. Time for stocks now as we do every 15 minutes. Lets head to the floor of the New York Stock Exchange. Sandra smith is standing by. The dow is pulling away from its alltime high, huh, sandra . One stock is moving significantly to the upside, flying higher is delta shares. Take a look at this, guys, up about 6 . It is leading other airlines higher. If you move to the left here you have united, us airways, southwest but the big news on delta hitting a 52week high it expects its first First Quarter profit in over a decade, you guys. Big news coming from delta this morning. That is moving shares higher. The unit revenue, the amount it takes in per passenger per flown miles, they expect to be up 4 1 2, 5 1 2 . Some big news out of delta. Were looking at Broader Market. The Dow Jones Industrial average is down 16 points but this isnt a huge loss. Were looking at 14,073 for the dow. Keep in mind the alltime high, were still not far from there, that it is 14,164. Not many traders down here think well hit it today but it is still in play. Melissa sandra, thank you very much. Thank you. Lori as you saw from sandras report stocks are trying to reach alltime high for a week but if you look at charts my next guest says well see a pullback before the s p 500 hits a new record. We have katie stockton. Hi. Lori you sent us this chart. It is the s p 500 over the last year. The blue line is 200 day moving average. It only dipped below the level twice you say the index is losing momentum over the last month, correct. Thats right. Were stalled in here based on the s p 500 as we stalled weve seen a pickup in volatility. That pickup in volatility is more characteristic of correction phases. Weve already seen corrections globally. If you look at european benchmarks, asian benchmark, they have alled pulled back fairly significantly and we have not yet. I see the loss of momentum an issue in the weeks ahead looking for a correction to refresh the longer term uptrend. Lori when you say refresh the longer term uptrend, do you mean you see enough momentum behind last years performance in the broad market average to shoot it well above that alltime high marker . I do. I do expect to breakout to a alltime high by the s p 500 after a correction phase. Often these corrections help refresh buying interest in the market. Positive longterm momentum still benefits the uptrend. I dont expect that to change during a correction but whats happened weve become a bit overextended or overbought people like to call it and i will get more aggressive on the buyside with my recommendations when we see more oversold conditions become more widespread. 4 of the s p 500 is oversold based on one of my measures and we tend to sea that measure peak around 30 . That could happen in a matter of three to for weeks or some it typically does. Thats what im expecting this time around. Lori all of that said, lets put back our initial chart, if you will the 200day moving average of the s p for the last year. Because youre talking about this correction youre anticipating yet were still comfortably above that 200 day moving average, just, i mean not just in the last month but reilly in the last two or three months, right . Does that give you more confidence in the Overall Health of the s p, katie . Certainly in the long term uptrend. Moving averages are lagging by nature but the 200day tends to give you a good indication of the slope of the long term. That is what it is doing on the chart. Sometimes it acts as support as it did last november of course. This time i think the 200day move move will not be tested. It is around 1412 i believe as of today. I dont think well see a correction that dramatic in nature. Im looking for a correction into the 1425 to 1465 range. Lets call that three to 6 below current levels. Lori okay. I know technicals are your expertise. All these numbers and milestones, support levels, resistance levels but can you tell me any of the fundamentals the real risks to the market . What are you looking at outside of these actual charts . Is it europe . Is it china . Is it the u. S. Fiscal mess . What sort of things are you taking into consideration . Well there is always something, right . For me i do just look at charts and china is an issue. So weve seen a gap down in the chinese benchmark today and that i take issue with because it does suggest there is worse to come from the emerging markets like china. The loss of momentum has been fairly significant there and theres of course reasons for that. So with support levels below current levels i still think there is Downside Risk and i would be hedge understood that. Selectivelily adding short exposure as well. Lori appreciate your advice. Katie stockton. Melissa so more bad news for greece. Russell investments has reclassified the debtridden country from developed to an emerging market. Greece has failed one or both of russells economic and Operational Risk assessments each year since 12 ven. The fund manager which designated a greece a developed nation in 2001 says, since the country began revealing

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