Transcripts For FBC Markets Now 20130802 : vimarsana.com

FBC Markets Now August 2, 2013

Mcdowell joins us on this hour of markets now. Dagen a quick news alert for you, Whitey Bulger will not be testifying in his own trial. I read by the same, incredible story, incredible trials, but he will not be testifying. Connell a lot more to talk about on jobs. Dagen 152,000 jobs added in july, 22,000 jobs short of expectations. The Unemployment Rate fell. Nicole petallides on the floor of the New York Stock Exchange with disappointment. Nicole you got these job numbers in, it was a disappointment. We are seeing the Market Selling off. This idea weaker jobs means good news, the fed will keep their bond buying in placee ultimately look, it is the weekend, were getting out, the market at record highs this weekend, the Dow Jones Industrials down 61 points. In addition to the job numbers, fewer people are bothering to look for jobs because they are so frustrated and fed up. Some names lagging including chevron, coke cola and more. Connell the head of finance group at black rock. Good to see you. Everything else i hear is mediocre, what do you think of this report in terms of what it means for your world . Speak a look at jobs data, the collection of jobs data you see, the market is getting better, the economy is trying to heal. The economy is slow. Dagen highyield did seem to hold up better than other higheryielding category. The highyield market is less sensitive to the Interest Rate move. They do well when the economy is improving. We like highyield market. Dagen i do have a question about that because it has been so narrow for highyield overinvestment rate corporate debt, does no that mean that wot be the case Going Forward as Interest Rates continue to rise you wont get that spread compression, and upside return in highyield in normally would have got in different times in the past . Certainly have in 2009, 2010. The spread was not tight, the yield was at an alltime low. We continue to see some spread compression in the highyield market continues to do well. Connell they were not really taking off. Any more dynamic kind of shifting events that you see in general that could changeoutlooe really moving or now we are worried about this . It seems like we are steady for whatever reason for a while. It is about sustainability. In the last five years we have been worried about bigger to the downside. A lot of Balance Sheets are improving. Government is starting to improve. Connell some people come in here, there is a big on the way. You dont see anything terrible on the horizon, it will continue to be . You have to l biggest is thes policy, volatility around, events around in the short term there may be more going through a fed transition or a debate in congress, those are things that can cause volatility. The economy overall is improving, which means there is less risk. You are seeing more stable 2 growth. Dagen what about the fixed income funds, have you seen them . It has kind of been a shock for many investors for shortterm losses on article he treasury funds. When you look at fixed income as a whole, had to fix it down to what kind of fixed income you are. One that we have been talking about and continuing to see it in the bank loan product. Those are not really focused on the duration sensitivity of Interest Rates. We do see the yield curve continuing, but the economy is improving. Connell good to see you. Dagen a number of parttime workers hitting a record 28. 2 million in july, so president obamas Health Care Law part of the blame . Lets bring in a senior economic writer at the wall street journal. Good to see you. Step back and look at this overall jobs picture, it is not great that it is not horrible. There is a big scandal in baseball right now with steroids. We are not growing the way we should be. I have been wrong on this, we are seeing some healthy growth right now. This is very discouraging. Dagen steroids is more stimulus, that is something during the speeches. I am not much more Government Spending. One of the things interesting in this report is the last couple of years Government Employment has been down. For the first time no negative in Government Employment. This is all just a week private sector hiring and i do think there is a link to the obamacare law, but i think it is just employers are so uncertain about anywhere the economy is headed and what is the next shoe to drop in washington, d. C. Dagen do you think that will last until the next president ial election . What businesses will start to catch onto is washington is kind of benign, not a lot is getting done. He has not been able to have the onslaught of policies as he had with obamacare, the stimulus bill, cash for clunkers, so still remain optimistic about the second half of this year Government Spending is falling and i think that is a good thing for the economy, not a bad thing. You look at these numbers, and you really hit it on the nose. When you have employers hiring but half of the jobs created over the last few months have been into industries bid those are not high paying jobs. Dagen i got in trouble for talking about people who were taking money and living off of the government. Because i made some comment over the weekend on cavuto is hurt someones selfworth and i still stand by you are not supporting yourself, to ultimately damage someones selfworth, but do you worry about people who have been completely and permanently removed from the labor force because of the rise and greater availability of food stamps in this country. I dont think theres any question about it the big expansion of food stamps, Unemployment Insurance and disability, which has had a huge increase, those programs have reduced peoples selfworth. What people want to do is get up in the morning, have a job and do something productive. But if youre out of the workforce for one year, two years, three years, youre losing your job skills, your employability and Holding People out of the workforce through unemployment is a big negative for the economy and one reason we have seen record low label participation dash labor force per dissipation rate back to where it was in the early 1970s after big gains in the 1980s in the reagan and clinton years. Dagen i am not saying people dont want to work, but i worry people will never reenter the workforce, that is all. We had a president who thinks these are stimulus programs. He thinks they stimulate the economy when they do just the opposite, they contracted. Dagen thank you. Next month we promise we will get better numbers. Dagen thank you, steve. Connell another big story today involving dell. Reaching an agreement with michael dell over his proposed buyout to take the Company Private. Dagen that is where we find in round rock, texas, adam shapiro. Adam you talk about millionaire moguls and billionaire bullies at the end of the day it is about the shareholders who are going to have to decide if a deal at 13. 75 per share with dividend at 0. 13 and a guarantee of an 0. 08 dividend in the Third Quarter is sweet enough to pass this deal. The new date of record will be in august and then of course confuse me, september 10 and we will have a special meeting for the vote on all of this september 12. Joining me is one of the shareholders who doesnt think this is such a great deal. You have 7075 shares, youre looking to take 160,000 hit if it is approved. Obviously it is a bad deal for you, why will you try to get people to say no to this . It is not a good deal for me or other shareholders. I think michael dell is trying to steal the stock away from them and we wont have any say in it. Adam strong words when you say still the stock. It is not worth even 14 per share, what do you say to them . Others have said it is worth 22, 23. It depends who you talk to. He has filed litigation to keep the board of directors and the committee from doing that. I am with carl icahn, i believe he can turn it around. I am with him. Adam im going to wrap up real quick, what is a message to shareholders across the United States if dell closes . To me, they have two up the ante, little bit of dividends, that will not cut it with me. Adam thank you very much. We will be here all day talking to shareholders. Back to you. Connell interesting to hear from people like that. Small shareholders. Burnt out on battery life . Google claiming they have the answer for you. We will talk about it and if it will be a new answer coming up. Dagen and you can customize it. Kids sanity. Sacrificing privacy to live with their parents. And it is all about the money. Connell isnt it always . And arod. Tearing up the minor leagues. The battle is actually in the dugout. Not the front office, talking about players versus players. Players who can get rich on all of this coming up. A quarter million tweeters musicare tweeting. Eamed. And 900 Million Dollars are changing hands online. Thats why the internet needs a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This. Is going to be big. Its time to build a better enterprise. Together. Dagen breaking news, a Worldwide Travel alert issued by the state department for the month of august, it says u. S. Citizens face the potential for terror attacks particularly in the middle east and north africa. Saying these information exists that al qaeda and affiliated organizations continue to plan terror attacks both in the region and beyond. Connell a number from an unspecified threat. Linkedin continues to be a winner. Membership up 37 in the second quarter. How is it doing, nicole . Nicole a number that has wowed wall street, take a look at what the stock is doing today hitting new highs. Revenue jumped 59 , robust membership growth and highly popular mobile apps and the website as well up in the. 5 right now. That is great news. Take a look at Time Warner Cable, under some pressure couple of stories circulating. Down 2. 3 . The two stories we are watching very closely in conjunction with time warner. There is a deadline for today, cbs stations will go dark in the major cities coupled with a possible merger with charter, a rivalry to time warner. The stock is to the downside. Connell things, nicole. Dagen time to make money with Charles Payne. Connell we love when you talk about 3d printing. Charles it is interesting because your last two stories are why i like this. Talking about dell, linkedin. I still have subscribers in it, the strategist. It is a volatile stock and the stock on the cusp of a major breakout. With manufacturing, they are on the cusp of it. They had news ups putting in 3d printers, but the big news is on the industrial side. Ultimately 150 stock. The caveat here is it is extraordinarily volatile. Anybody willing to deal with that kind of volatility will be richly rewarded. Connell appreciated. Dagen connell mentioned it a short while ago, the first handheld that motorola has come out with since it was bought a google and made in the usa. Connell you can talk to it. More twentysomethings living with mom and dad, moving back in after college. All kidding aside, this is a big money story and we have a debate in terms of the reason for this trend coming up. But first, a look at currencies around the world. 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And you never need referrals. So dont wait. With all the good years ahead, look for the experience and commitment to go the distance with you. Call n to request your free decision guide. This easytounderstand guide will answer some of your questions, and help you find the aarp Medicare Supplement plan thats right for you. 23 minutts past the hour, this is your fox news minute. U. S. Citizens are warned about the continued potential for terrorist attacks. Particularly for the middle east and north africa and basin information suggesting al qaeda is planning attacks in the region and beyond. Learners will continue through august 31. This comes as u. S. Announced it will temporarily shut down several countries on sunday including those in egypt, iraq and afghanistan. State department citing terror related concerns in the closings are out of an abundance of caution. President obamas plan september summit with Weidner Putin is now in doubt after russia granted a oneyear asylum for Edward Snowden. The white house says president has not made a final decision whether or not to cancel the trip. Those are your headlines. Connell thanks. Talking about this for the next couple of minutes we mentioned earlier, all day battery life, and it listens to your voice. You dont even have to touch the phone. Available august, early september. You get the google motorola combination. The question is companies coming out with cool phones all the time, even library sometimes. Wilwhat anybody by this one . Dagen i say yes. You can customize it. It does not sound like that much. With this phone there is heavy customization. At one point he might even be able to get a backing with wood on it. I think there is an audience out there, people like the android operating system. Connell fo will this set the te for another company to copy sort of what they are doing . Dagen possibly. The reason they can do it, the reason google can do this is because they are assembling in the United States. That is a reason to buy it. Turning a controversy into profit. The Rolling Stones magazine cover generate enough outrage that retailers refused to sell the issue in their stores. People still snapped it up. Sales doubled from the average issue sales for the last year. According to the magazine information network. Figures were based on pointofsale data for more than 1400 retailers from july 19 through the 29th. Does that really surprise you . Connell not at all. He put the guy on the cover, he will start controversy. Dagen and yesterday said people within Rolling Stones were shocked on the outrage over it, but you knew exactly what you are doing and got the exact same result he wanted. People were talking about it and people wound up buying it. Did you read the article . Connell i did not. Dagen it was well reported that a little too sensitive to one of two people who allegedly killed people and blew up bombs at the boston marathon. A little too touchyfeely. Connell emptynesters becoming a rare bird. More and more twentysomethings are staying home. The numbers out on this. We will talk about the trend as we continue coming up here in just a moment. Dagen the drug war in baseball is a money were starting between the players. Connell will get into that. Connell it should be good. We look at the suspensions today or maybe monday. We will be right back on markets now. Clients are always learning more to make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to impre my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty for brokerage and investment companies. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to are . A data plan. At t mobile share for business. One bucket ofata for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borw your bt this weekend . No. [ male announc ] share more. Save more. At t mobile share for business. Connel

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