Transcripts For FBC Markets Now 20131204 : vimarsana.com

Helped the group overall. It was the biggest jump we had seen increase in over 33 years, however you are seeing pulling back. Kb homes within a barrel. People buy between now and spring because that is the hot season. Adam Nicole Petallides, thank you very much. Wall streets fear gauge is still gaining ground. In the pits of the cme. A whole lot to talk about. On track trifold largest streakf gains since last year. Phil you consider a market that had no fear. Stocks are going up, the vexed at a low level. All changing, up almost 18 in those last six days and i can see why. The party in the stock market has been going on for quite some time. We had to face important job numbers this weekend as well as a strong possibility the fed is going to lay the groundwork for tapering before ben bernanke leaves office. Might as well give ben bernanke all the heat so janet yellen doesnt have to take it. They have a right to fear. It impacted precious metals. Iif you are not afraid of anything, buy stocks, why buy precious metals. Notice or deceit if youre in its go up, money was back for the first time in about four days. Gold up 26, a big move up on silver up 0. 72. 5, and that kind of Double Bottom for gold and silver, they bounced. The one market everybody is afraid to his the gas pump and the price of oil. A spectacular move today. It is a market pushing toward 90 per barrel a few days ago, now pushing back toward idx dollars per barrel. The big reason is demand in inventories. A big draw down of over 5. 58 Million Barrels, almost 2 Million Barrels more than i thought they were going to get. If you step back and look at it, the main reason as refiners are coming back online, that means more product for the other reason is down in the gulf coast. Last week the houston shipping channel, they cannot see where they are going, the biggest petrochemical area in the country moving the ships. It got shut down. A lot of times they will say forget about it, it will go away but it is shut down again today. Adam thank you very much. Lori investors concerned about fed tapering, treasury yields on the rise. The yield on the 10year bond edging up, and it is really touching the highest levels since september earlier in the session. Just shy of 4 , strategist looking ahead to friday monthly job report saint is a key factor for the upcoming fed meeting. Lot of alice are saying benchmark 33 market perhaps by the end of the year. Adam some of the Worlds Largest banks got hit with fines from european regular readers. Institutions paying more than 2 billion in fines for rigging key benchmark rates including leiber. Shares of those banks are mixed on a big findings and all that news. Lori jcpenney slumping down 3 announcing samestore sales jumped 10 from a year ago. Sounds good on the surface but last years sales were so bad that analysts thought the jump would be even bigger. So despite todays slide, jcpenney shares up more than 21 in the past month. Credit agencies watching a bill the governor of illinois could sign today overhauling the Public Employee Pension System. Jeff flock with the latest. Jeff it could improve the rating. Theres a caveat on that. Just like michigan which has a constitutional provision which says you cant diminish pensions, we talk about that yesterday with the court in bankruptcy overruled that. In illinois who dont have bankruptcy and still constitutional provision. This is the illinois constitution, article 13 section five, and it says membership in any pension or retirement system of the state as well as governments should be an enforceable contractual relationship the benefits of which should not be diminished or impaired. Some would argue in fact this deal impairs or diminishes pension. That is something lawyers can make a whole lot of mind to figure out down the road. In terms of Credit Ratings, illinois has the worst Credit Rating in the nation trumping california. Take a look at the big losers on that one. Based on an a with negative outlook. California is an a with a negative outlook. New jersey and michigan doublea minus but positive. That is where they all stand right now. The folks at moodys as well as standard enforcing positive development. Take a look at a quote from an analyst at moodys saying our Immediate Reaction is it appears the state has done something pretty significant on pension reform. Pretty significant, but will the court uphold it . I have cut back the cost of living adjustments, tried to cap the high dollar pensions. A good attack at reform, will the court uphold that . Others hope maybe so. Adam you have to do your homework if you are a muni investor. Adam detroit one step closer to going through bankruptcy. Are there lessons to be learned from other cities that face a similar fate . It has been a year since rhode island emerged from bankruptcy. The state allowed bondholders to be elevated to a privileged status over pensioners. Our next guest at the bargaining table. Lead counsel for the Central Falls, rhode island receiver. The bottom line is what happened in Central Falls is it is a different deal that would happen with michigan. At the end of the day the pensioners in Central Falls took a 55 cut. Did they negotiate that, or was that more because they wouldnt negotiate this is what the receiver decided was going to happen . It was not a 55 cut for all committed up to 55 . Adam it was those youngest sitting the cut. Unlike in detroit where there was a court ruling on whether or not retiree pensions could be cut, ours was done through negotiation. Early in the case when the case was filed we immediately went into negotiations with the retirees. The retirees had very good counsel understood the court would rule as the Detroit Court ruled here. And as a result we negotiated an agreement under which they took cuts up to 55 accept what we did in rhode island was we went to the state and got an appropriation so that the first five years a transition of no cut greater than 25 . Adam the word reprehensible has been thrown about. To ask pensioners a patent with system with promises made to them take a cut when bondholders did not take a cut. There was legislature that made that decision. Why did they structur structuray processing island in such a way that the pensioners got less of a status than the lenders . The concern here was rhode island had several municipalities that are distressed. The concern was if the bonds were not paid in full, the bond ratings would drop and it would become extremely difficult for the other cities in rhode island to access the capital market. That could lead to the failures of not just Central Falls, but was made that we needed to fix the problem in rhode island. To prevent contagion. Adam let me ask you Going Forward for this appellate is watching, you always come back to Central Falls because that was such a dramatic outcome. What is the lesson, some may say warning for municipal governments and communities that are facing may be distressed or are in distress. Deal with the problem now, fix the problem, dont kick the can down the road. The more you kick the can down the road, the worse the cuts will be. I want to make clear in rhode island without making these cuts was awful. We understood how painful this is going to be for the retirees, but we needed to fix the problem and it was the only way we could do so. Adam has it been challenged in court, we have to go back on this . No challenges to it. In fact everything was done consensually. Almost a unanimous vote in favor of the plan and no legal challenge to the lien statute which elevated the bondholders. Adam any thought to what happened to detroit . I dont know enough about detroit to make those comparisons, but it appears here that detroit is trying to fix the problem. It is a painful process. It is awful and unfair to the retirees, but these problems have to be fixed and it looks like that is what kevin or is attempting to do. Lori it is so great to hear the stories. In the meantime, you know his name, duncan nader hour. He has exclusive scoop on the nyse ceo big board size payout. Adam and vizcaino fires regulators demanding new information from the automaker. Lori were back on the floor with stocks. [ male announcer ] heres a question for you. If every u. S. Home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes . 1 million . 2 million . 3 million . The answer is. 3 million homes. By 2030, investments in energefficiency could help americans save 300 billion each year. Take the energy quiz. Energy lis here. Adam backs the floor of the New York Stock Exchange and Nicole Petallides. Look at one company which is expanding its Buyback Program. Nicole looking at deere. Stay with a group of traders when quickly the news crossed 10 24 a. M. This is a nice today chart, you can see this morning where you get the big pop. Its been a Buyback Program by 8 billion on talks of the program to have underway as well as announcing a courtly dividend. Is your stock reacted right now of 2. 8 , 85034 deere and company. Lori sticking with market major averages struggle to stay positive. Our next guest says dont get fancy with your investment choices. Boring as Stable Companies are the way to go. Jason, thank you so much for hustling to get here today for us, great to have you. First your take on this little downturn we are experiencing here, healthy consolidation or real inflection . If you think you know what is going on, we have an up 30 year to date. They were rightfully allocated thinking lets take a little bit of profits off the table because if you have 6040 portfolio, perhaps youre playing back a little bit. On the flipside a lot of investors short of that mark and valuations 17 times normalized earnings, cheaper than that oversees are not particularly egregious. When you compare it to turn to is a fixed income, equities are still a place to be broadly for your portfolio but perhaps he can be a little bit more intelligent about their investments and from that perspective we think the appropriate approach is to stay with consistent growers, reasonable valuation paying healthy but not overly large dividend. Adam you sent along some stock picks if it into our criteria . Each of these has the general characteristics. Profit margins in the 10 to 20 sort of ballpark. Return equities that are large enough they can turn around and take all the cash flow from the business and put that back in the number of Different Things either dividend payouts, two to 3 dividend growing over time. Stock buyback reinvesting to drive longterm growth. Each of them can do this consistently, applying the process over time, growing the base out on earnings, growing toward higher valuations without having to stretch on the side or payout astronomical dividend yield that isnt supported by the fundamentals. Lori are they benefiting some of the housing data are trending down, five consecutive month downtrend, does that help a company like home depot and lowes in this market . Each of them have a number of tailwind behind them. As to all companies have a tailwind of employment still being relatively loose, driving the margins a little bit higher than general. Home depot in particular from a rebound in housing, a focus on Home Improvement by homeowners and the general economic environment that is positive and not negative. One that people are taking direct earnings and filing it back into their homes. Lori again, already. Hard to take a breath from the last one. This is the biggest risk in the new year . For the next year we see the Federal Reserve action be important, but the bigger risk that were worried about the most got the base Case Scenario as far as concerned or what we think will happen but definitely a risk that his outfits upcoming debate. Feels like round five or six of the same thing coming around again. Whatever the politicians put in place an artificial deadline like this, yet again you have the risk of making an artificial mistake. Because of the way the politics work is always a risk of that occurring. Lori thank you, serbia to adam the government Digging Deeper into the model s tesla fires. They are asking tesla for its record of consumer complaints, Property Damage claims and other details as part of its investigation into two separate fires since october. Regulators have requested information on design modifications to those cars along with the engineers drawings. Tesla has until january 14 to comply. Shares down more than 4 today. Lori more like a economist, less like time. More on the revival of newsweek as it returns to print. Adam uprising in ukraine. The financial situation as russian banks are left exposed. Havent we seen this before . The protest in key have and what they are fighting for next. Every day were working to be an Even Better Company and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. announcer at scottrade, our cexactly how they want. T with scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottradeproud to be ranked because i dont trade like everybody. I trade like me. Best overall client experience. Yep. Got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. So i kn untilt was full. Youd be crazy not to. Is tt nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. And this park is the inside of your body. See the ecial psylliumiber in metamucil actually gels to trap some carb to help maintain healthy blood sugar levels. Metucil. 3 amazing benefits in 1 super fiber. [ male announcer ] they are a glowing example of what it means to the best. And at this special time of year, they shine even brighter. Come to thnter event and get the mercesbenz youve always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho [ male announcer ] lease e 2014 e350 for 579 a month at your local mercedesbenz dealer. At 24 minutes past the hour, this is your fox news minute. The head of the federal Railroad Administration blasting Metronorth Railroad following sundays derailment that killed four people and injured more than 60 others. Joseph this is a administration and u. S. Constitution department havhas serious concerns about te accident in new york and three others that occurred in new york and connecticut earlier this year. Says immediate corrective action is imperative. Vice President Joe Biden says the u. S. Is deeply concerned about a dispute between china and japan over chain of uninhabited islands in the east china sea. The Vice President commenting at the meeting with chinese leaders in beijing. Accusing the u. S. Of taking japans side in the matter. And he may become a world series champion as a member of the red sox. Jacoby elsbury will be patrolling the also in pinstripes. He has reached a sevenyear contract worth 153 million to play for the yankees. Those are your News Headlines on the Fox Business Network. Get you back now to lori and adam. Lori chump change. Always a pleasure to see you. News alert for you and a story we are following this week, protesters continue to rally ukraine taking the streets over the president s refusal just days at the canadian government turned down the eu offer in favor of closer ties with russia. Russian banks right about the economic stability of the country. Russian banks hold 12 or 28 billion in premium debt making the largest investor as the central bank is low on reserves and urging citizens not to pull their money. Having to stop a run on the banks. Adam we have been in the business of making money. Talking mutual funds. Talking but the lazy mans way. Charles im not a mutual funds fan, but we have had rotation out of bonds into stocks. People are coming back, a lot of people do it still through mutual funds. I was doing some portfolio reviews for some new subscribers and i have an authentic portfolio review i did for a client, and out of the 50 stocks, he had 27 stocks. In other words look at this fund right here. While it is supposed to mimic the s p 500, evident fund, and value fund, a large cap fund. All five of them had microsoft, johnson johnson, four of them had wells fargo and pfizer. The point is, this person is thinking he is diversified. This happens so much. They have these big valley famif mutual funds and all these different names and new america fund and Mount Everest fund. They all have the same stocks. Lori seriously, the stock market is on a tear. So how does that the question to ask this climate where investors are managers charging higher fees. Charles i would rather know how well a fund is diversified, how well the manager has done. Paying low fees and a mediocre fund gives the mediocre returns. While the fees are important, unless it is a hedge fund. There are so many out there. Hedge funds charging 2 to manage it, 20 of profits. Underperforming the market huge, big time this year like 5 million miles for people who have given money to hedge funds have gotten a raw end of the deal. Make sure you really differs a five. Adam dont miss liz clamans interview with david novak. Ceo and chairman on countdown to the closing bell. Taking place today on the Nicole Petallides<\/a>, thank you very much. Wall streets fear gauge is still gaining ground. In the pits of the cme. A whole lot to talk about. On track trifold largest streakf gains since last year. Phil you consider a market that had no fear. Stocks are going up, the vexed at a low level. All changing, up almost 18 in those last six days and i can see why. The party in the stock market has been going on for quite some time. We had to face important job numbers this weekend as well as a strong possibility the fed is going to lay the groundwork for tapering before ben bernanke leaves office. Might as well give ben bernanke all the heat so janet yellen doesnt have to take it. They have a right to fear. It impacted precious metals. Iif you are not afraid of anything, buy stocks, why buy precious metals. Notice or deceit if youre in its go up, money was back for the first time in about four days. Gold up 26, a big move up on silver up 0. 72. 5, and that kind of Double Bottom<\/a> for gold and silver, they bounced. The one market everybody is afraid to his the gas pump and the price of oil. A spectacular move today. It is a market pushing toward 90 per barrel a few days ago, now pushing back toward idx dollars per barrel. The big reason is demand in inventories. A big draw down of over 5. 58 Million Barrels<\/a>, almost 2 Million Barrels<\/a> more than i thought they were going to get. If you step back and look at it, the main reason as refiners are coming back online, that means more product for the other reason is down in the gulf coast. Last week the houston shipping channel, they cannot see where they are going, the biggest petrochemical area in the country moving the ships. It got shut down. A lot of times they will say forget about it, it will go away but it is shut down again today. Adam thank you very much. Lori investors concerned about fed tapering, treasury yields on the rise. The yield on the 10year bond edging up, and it is really touching the highest levels since september earlier in the session. Just shy of 4 , strategist looking ahead to friday monthly job report saint is a key factor for the upcoming fed meeting. Lot of alice are saying benchmark 33 market perhaps by the end of the year. Adam some of the Worlds Largest<\/a> banks got hit with fines from european regular readers. Institutions paying more than 2 billion in fines for rigging key benchmark rates including leiber. Shares of those banks are mixed on a big findings and all that news. Lori jcpenney slumping down 3 announcing samestore sales jumped 10 from a year ago. Sounds good on the surface but last years sales were so bad that analysts thought the jump would be even bigger. So despite todays slide, jcpenney shares up more than 21 in the past month. Credit agencies watching a bill the governor of illinois could sign today overhauling the Public Employee<\/a> Pension System<\/a>. Jeff flock with the latest. Jeff it could improve the rating. Theres a caveat on that. Just like michigan which has a constitutional provision which says you cant diminish pensions, we talk about that yesterday with the court in bankruptcy overruled that. In illinois who dont have bankruptcy and still constitutional provision. This is the illinois constitution, article 13 section five, and it says membership in any pension or retirement system of the state as well as governments should be an enforceable contractual relationship the benefits of which should not be diminished or impaired. Some would argue in fact this deal impairs or diminishes pension. That is something lawyers can make a whole lot of mind to figure out down the road. In terms of Credit Rating<\/a>s, illinois has the worst Credit Rating<\/a> in the nation trumping california. Take a look at the big losers on that one. Based on an a with negative outlook. California is an a with a negative outlook. New jersey and michigan doublea minus but positive. That is where they all stand right now. The folks at moodys as well as standard enforcing positive development. Take a look at a quote from an analyst at moodys saying our Immediate Reaction<\/a> is it appears the state has done something pretty significant on pension reform. Pretty significant, but will the court uphold it . I have cut back the cost of living adjustments, tried to cap the high dollar pensions. A good attack at reform, will the court uphold that . Others hope maybe so. Adam you have to do your homework if you are a muni investor. Adam detroit one step closer to going through bankruptcy. Are there lessons to be learned from other cities that face a similar fate . It has been a year since rhode island emerged from bankruptcy. The state allowed bondholders to be elevated to a privileged status over pensioners. Our next guest at the bargaining table. Lead counsel for the Central Falls<\/a>, rhode island receiver. The bottom line is what happened in Central Falls<\/a> is it is a different deal that would happen with michigan. At the end of the day the pensioners in Central Falls<\/a> took a 55 cut. Did they negotiate that, or was that more because they wouldnt negotiate this is what the receiver decided was going to happen . It was not a 55 cut for all committed up to 55 . Adam it was those youngest sitting the cut. Unlike in detroit where there was a court ruling on whether or not retiree pensions could be cut, ours was done through negotiation. Early in the case when the case was filed we immediately went into negotiations with the retirees. The retirees had very good counsel understood the court would rule as the Detroit Court<\/a> ruled here. And as a result we negotiated an agreement under which they took cuts up to 55 accept what we did in rhode island was we went to the state and got an appropriation so that the first five years a transition of no cut greater than 25 . Adam the word reprehensible has been thrown about. To ask pensioners a patent with system with promises made to them take a cut when bondholders did not take a cut. There was legislature that made that decision. Why did they structur structuray processing island in such a way that the pensioners got less of a status than the lenders . The concern here was rhode island had several municipalities that are distressed. The concern was if the bonds were not paid in full, the bond ratings would drop and it would become extremely difficult for the other cities in rhode island to access the capital market. That could lead to the failures of not just Central Falls<\/a>, but was made that we needed to fix the problem in rhode island. To prevent contagion. Adam let me ask you Going Forward<\/a> for this appellate is watching, you always come back to Central Falls<\/a> because that was such a dramatic outcome. What is the lesson, some may say warning for municipal governments and communities that are facing may be distressed or are in distress. Deal with the problem now, fix the problem, dont kick the can down the road. The more you kick the can down the road, the worse the cuts will be. I want to make clear in rhode island without making these cuts was awful. We understood how painful this is going to be for the retirees, but we needed to fix the problem and it was the only way we could do so. Adam has it been challenged in court, we have to go back on this . No challenges to it. In fact everything was done consensually. Almost a unanimous vote in favor of the plan and no legal challenge to the lien statute which elevated the bondholders. Adam any thought to what happened to detroit . I dont know enough about detroit to make those comparisons, but it appears here that detroit is trying to fix the problem. It is a painful process. It is awful and unfair to the retirees, but these problems have to be fixed and it looks like that is what kevin or is attempting to do. Lori it is so great to hear the stories. In the meantime, you know his name, duncan nader hour. He has exclusive scoop on the nyse ceo big board size payout. Adam and vizcaino fires regulators demanding new information from the automaker. Lori were back on the floor with stocks. [ male announcer ] heres a question for you. If every u. S. Home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes . 1 million . 2 million . 3 million . The answer is. 3 million homes. By 2030, investments in energefficiency could help americans save 300 billion each year. Take the energy quiz. Energy lis here. Adam backs the floor of the New York Stock Exchange<\/a> and Nicole Petallides<\/a>. Look at one company which is expanding its Buyback Program<\/a>. Nicole looking at deere. Stay with a group of traders when quickly the news crossed 10 24 a. M. This is a nice today chart, you can see this morning where you get the big pop. Its been a Buyback Program<\/a> by 8 billion on talks of the program to have underway as well as announcing a courtly dividend. Is your stock reacted right now of 2. 8 , 85034 deere and company. Lori sticking with market major averages struggle to stay positive. Our next guest says dont get fancy with your investment choices. Boring as Stable Companies<\/a> are the way to go. Jason, thank you so much for hustling to get here today for us, great to have you. First your take on this little downturn we are experiencing here, healthy consolidation or real inflection . If you think you know what is going on, we have an up 30 year to date. They were rightfully allocated thinking lets take a little bit of profits off the table because if you have 6040 portfolio, perhaps youre playing back a little bit. On the flipside a lot of investors short of that mark and valuations 17 times normalized earnings, cheaper than that oversees are not particularly egregious. When you compare it to turn to is a fixed income, equities are still a place to be broadly for your portfolio but perhaps he can be a little bit more intelligent about their investments and from that perspective we think the appropriate approach is to stay with consistent growers, reasonable valuation paying healthy but not overly large dividend. Adam you sent along some stock picks if it into our criteria . Each of these has the general characteristics. Profit margins in the 10 to 20 sort of ballpark. Return equities that are large enough they can turn around and take all the cash flow from the business and put that back in the number of Different Things<\/a> either dividend payouts, two to 3 dividend growing over time. Stock buyback reinvesting to drive longterm growth. Each of them can do this consistently, applying the process over time, growing the base out on earnings, growing toward higher valuations without having to stretch on the side or payout astronomical dividend yield that isnt supported by the fundamentals. Lori are they benefiting some of the housing data are trending down, five consecutive month downtrend, does that help a company like home depot and lowes in this market . Each of them have a number of tailwind behind them. As to all companies have a tailwind of employment still being relatively loose, driving the margins a little bit higher than general. Home depot in particular from a rebound in housing, a focus on Home Improvement<\/a> by homeowners and the general economic environment that is positive and not negative. One that people are taking direct earnings and filing it back into their homes. Lori again, already. Hard to take a breath from the last one. This is the biggest risk in the new year . For the next year we see the Federal Reserve<\/a> action be important, but the bigger risk that were worried about the most got the base Case Scenario<\/a> as far as concerned or what we think will happen but definitely a risk that his outfits upcoming debate. Feels like round five or six of the same thing coming around again. Whatever the politicians put in place an artificial deadline like this, yet again you have the risk of making an artificial mistake. Because of the way the politics work is always a risk of that occurring. Lori thank you, serbia to adam the government Digging Deeper<\/a> into the model s tesla fires. They are asking tesla for its record of consumer complaints, Property Damage<\/a> claims and other details as part of its investigation into two separate fires since october. Regulators have requested information on design modifications to those cars along with the engineers drawings. Tesla has until january 14 to comply. Shares down more than 4 today. Lori more like a economist, less like time. More on the revival of newsweek as it returns to print. Adam uprising in ukraine. The financial situation as russian banks are left exposed. Havent we seen this before . The protest in key have and what they are fighting for next. Every day were working to be an Even Better Company<\/a> and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy<\/a> investor. Our commitment has never been stronger. announcer at scottrade, our cexactly how they want. T with scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottradeproud to be ranked because i dont trade like everybody. I trade like me. Best overall client experience. Yep. Got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. So i kn untilt was full. Youd be crazy not to. Is tt nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. And this park is the inside of your body. See the ecial psylliumiber in metamucil actually gels to trap some carb to help maintain healthy blood sugar levels. Metucil. 3 amazing benefits in 1 super fiber. [ male announcer ] they are a glowing example of what it means to the best. And at this special time of year, they shine even brighter. Come to thnter event and get the mercesbenz youve always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho [ male announcer ] lease e 2014 e350 for 579 a month at your local mercedesbenz dealer. At 24 minutes past the hour, this is your fox news minute. The head of the federal Railroad Administration<\/a> blasting Metronorth Railroad<\/a> following sundays derailment that killed four people and injured more than 60 others. Joseph this is a administration and u. S. Constitution department havhas serious concerns about te accident in new york and three others that occurred in new york and connecticut earlier this year. Says immediate corrective action is imperative. Vice President Joe Biden<\/a> says the u. S. Is deeply concerned about a dispute between china and japan over chain of uninhabited islands in the east china sea. The Vice President<\/a> commenting at the meeting with chinese leaders in beijing. Accusing the u. S. Of taking japans side in the matter. And he may become a world series champion as a member of the red sox. Jacoby elsbury will be patrolling the also in pinstripes. He has reached a sevenyear contract worth 153 million to play for the yankees. Those are your News Headlines<\/a> on the Fox Business Network<\/a>. Get you back now to lori and adam. Lori chump change. Always a pleasure to see you. News alert for you and a story we are following this week, protesters continue to rally ukraine taking the streets over the president s refusal just days at the canadian government turned down the eu offer in favor of closer ties with russia. Russian banks right about the economic stability of the country. Russian banks hold 12 or 28 billion in premium debt making the largest investor as the central bank is low on reserves and urging citizens not to pull their money. Having to stop a run on the banks. Adam we have been in the business of making money. Talking mutual funds. Talking but the lazy mans way. Charles im not a mutual funds fan, but we have had rotation out of bonds into stocks. People are coming back, a lot of people do it still through mutual funds. I was doing some portfolio reviews for some new subscribers and i have an authentic portfolio review i did for a client, and out of the 50 stocks, he had 27 stocks. In other words look at this fund right here. While it is supposed to mimic the s p 500, evident fund, and value fund, a large cap fund. All five of them had microsoft, johnson johnson, four of them had wells fargo and pfizer. The point is, this person is thinking he is diversified. This happens so much. They have these big valley famif mutual funds and all these different names and new america fund and Mount Everest<\/a> fund. They all have the same stocks. Lori seriously, the stock market is on a tear. So how does that the question to ask this climate where investors are managers charging higher fees. Charles i would rather know how well a fund is diversified, how well the manager has done. Paying low fees and a mediocre fund gives the mediocre returns. While the fees are important, unless it is a hedge fund. There are so many out there. Hedge funds charging 2 to manage it, 20 of profits. Underperforming the market huge, big time this year like 5 million miles for people who have given money to hedge funds have gotten a raw end of the deal. Make sure you really differs a five. Adam dont miss liz clamans interview with david novak. Ceo and chairman on countdown to the closing bell. Taking place today on the Fox Business Network<\/a>. Lori not sure about this, but flavored alcohol. You know that bottle. We have seen that on every restaurant table all over the place. Alcoholics, perhaps . Adam torn between making the cuts flooding the global market. In the nl. [ male announcer ] how do you get your bounce . Well, did you know that just one sheet of bounce outdoor fresh gives you more freshness than two sheets of the lding National Store<\/a> brand . Who knew . 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If you have any sudden decrease or loss in hearing or vision, or iyou have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathingor s, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. So i deserve a Small Business<\/a> credit card with amazing rewards. With the spark cascard from capital one, i get 2 cash back on ery purchase, every day. I break my back around here. Finally soones recognizing me with unlimited rewards meetings start at 11, cindy. [ male announcer get the spark Business Card<\/a> from capital one. Choose 2 cash back or double miles on every purchase, every d. Whats in your wallet . I need your timesheets, larry lori breaking news. Direct your attention to the big board where the dow is down enexcess of 100 points t was down 120. We got a better than expected adp jobs report. That is private sector payrolls. That has raised the fed taper talk to earlier than expects to december, if not earlier next year. Earlier than some economist the are forecasting for next year. We want to go back to Nicole Petallides<\/a> for more color from the New York Stock Exchange<\/a>. Hi, nicole. Thats right, lori. Everybody is talking about fed taper talk and when will that actually occur. Meantime weve been watching bond yields sneaking higher. Right now the 10year bond is 2. 83 , right . As it gets closer to that 2. 85 mark, traders watch that very carefully. Meantime the stock Market Equities<\/a> are selling off. Right now the Dow Jones Industrials<\/a> are down 102 points, triple digits. Not too far off session lows. Only 30 names three names with up arrows. We may see the forth losing streak since september 20 fifth for the dow and s p. Thank you for that. Adam opec is standing pat. The oil cartel produces 40 of the worlds crude oil, choosing to keep production levels at 30 Million Barrels<\/a> per day, a level that has remain unchanged for two years but todays vote at its meeting in vienna conceals deep divisions over opecs future challenges according to our next guest. Matt smith is the author of daily distillation. Kudos, to you, matt, you were on the program a few months ago. You said we have seen the oil reach its highs for the year. I think 107. It pulled back, trading around 97, 98 right now, 97. 33. But this business with opec, weve had them producing this amount of oil for several months now with no change. Will they, they cheat. Will we see more oil coming on to the Market Driving<\/a> oil prices down or will they get their act together and actually crimp supply . . 3 well, it is really going to depend, to be honest. Were hearing so many different mixed messages from them. Weve seen a lot of supply come offline from libya recently. That looks set to stay offline despite what their oil minister is saying this week. Then at the same time with iran, with the sanctions nonoilrelated being lifted recently, you hear them getting a little bit feisty saying they could bring more oil on market. They could produce up to 4 Million Barrels<\/a> next year which is frankly rather ridiculous to be honest, adam. I think what well see is status quo happening in opec where you really have this case of whacamole. One country producing more oil. One country going down but the reality is they will kick around this sort of 30 million barreladay level. Adam but the Country Holding<\/a> the cards here, isnt it saudi arabia . At the end of the day with iran perhaps coming back into opec, there is a jostling for control. It is either going to be iranians, saudis i know there is iraqi. What do you think, will it be the saudi . They are the largest producer. Exactly. You have opec who is balancing item in the Global Oil Market<\/a> and saudi arabia who is the balances item of opec but reality is the naimi, the Saudi Oil Minister<\/a> said this week which is great i thought. Forget about iran. They are not the real issue here. It is really iraq because iraqs production could really ramp up. Next year theyre looking to hit 4 Million Barrels<\/a>. In 2018 they will lower the output target to nine Million Barrels<\/a>. By that time they will bring so much more supply to the market. It is really still yet, saudi is the lynchpin but also biggest concern is iraq, not iran. Adam could we see iraq and government there in attempt to generate cash because it needs cash so badly pump tons more oil that would exceed demand from china, asia, rest of the world and see the price actually go lower . Saudi it is like 100 a barrel but somewhere around 90 a barrel . Well you have this responsibility within these nations to keep their quotas in check. Just because they need the oil price elevated to meet their revenues in their budgets. You have venezuelas and irans saying, yeah, lets produce as much as possible to get their revenues in, i think as iraq production comes more online and as their responsibility within the cartel and within the oil market globally grows, they will realize that responsibility to keep that in check. Adam all right. Matt smith, thank you very much for joining us. Good to see you. Hope to have you back. Good deal. Lori a golden parachute the size of the big board . Charlie gasparino is here with the exclusive detail on nyse ceo Duncan Neiderauer<\/a>s pay package. Adam kicking through the glass sealing with fourinch heels. Latest title role for modern familys Sophia Vergara<\/a> as she rakes in endorsement deals. 31 million reasons to say yes. Five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Im Cheryl Casone<\/a> with your fox business brief. Microsoft has won european approval for its proposed acquisition of nokias mobile phone business the Software Giant<\/a> announced the 7. 2 billion deal for nokia in september that includes right to the finnish companys patents as well as smartphone products. Microsoft expects the deal to close in the First Quarter<\/a> of 2014. Sales of newlyconstructed homes jumped more than 25 in october from september. The Commerce Department<\/a> report that is the highest level in four months with doubledigit gains in all four regions across the country but Mortgage Applications<\/a> slipped for the fifth straight week. Mortgage Bankers Association<\/a> index found that applications for both new mortgages and refinancing telephone by 12. 8 next week. The index is at its lowest level since early october. Dow is down 97 points of the that sat latest from fox business, giving you the power to prosper. Adam you think the golden parachute for nyse ceo, larry leibowitz, comedian jon stewarts big brother is big at 17 million bucks wait until you hear what company ceo Duncan Neiderauer<\/a> will get if leaves. Charlie gasparino here with the exclusive details. We should point it he is going to leave next year. He can collect this money, here is a tweak in this contract, he can collect this money anytime now because there is change in control. It is in his collect it. It is pretty lucrative we understand. We talked to people close at the exchange. We looked at some of the documents to figure this out. He gets close to 30 million. What we dont know if he will take it now or take it next year but the money that is, thats a allotted to him as of now lori take one lump sum. Can take it right now. Can take it right now. We should point out 13. 6 million in cash. Twice the cash size that larry got. Larry leibowitz, number two, coo. 15. 2 million in stock. Critics of my reporting would say im lumping the stock in with the cash which is the actual gollen parachute. I dont know where the stock begins and ends. He accumulated stock over time. The stock went up, basically, based on the merger or purchase by intercontinental exchange. He was given stock awards earlier this year. If that is part of the golden parachute or not i dont know where it ends or begins. I will lay out the facts. We should point out again he was expected to leave last year. This is twice as much as what larry is getting. Interesting we get the stories all the time. Is it a bad thing if jon stewart was doing a story about his brother and his brothers work, he and matt taibbi and guys look how the greedy fat cats getting. They created value. The stock is down today but the stock went up with the merger. They created value. People create value deserve to cash out at the end. I think that is what theyre doing. It is a pretty rich pay package. Adam you know the players involved in all this. Why doesnt he fulfill, stay throughout next year . Why not leave now . I mean i dont know. There was lots of speculation he would leave earlier. He is denied it, denied it, denied it, denied it. Adam that is whole new change of culture coming in. Theyre cutting employees. They havent began that yet. We dont know how deep it would be. Adam you were saying 30 when you broke the story. Jeff sprecher, ceo for New York Stock Exchange<\/a>, taking over duncan who will be president until leaves, talking to analysts they will make deep cuts, something in that realm which would a lot of body was go as well. Adam yes. Duncan wants to see some smooth transition. He just doesnt want to hand the guy it and just let it go. He has some tread tested vested interest in the place. Duncan neiderauer i have known for a long time. He is a competent, decent guy. Lori talk about neared hauers, saw it overfinancial crisis . Yes he did. Former goldman guy. Former goldman markets guy. Came in when john thain took over after sort of ouster of dick grasso following his pay package, thain came in. It was essentially duncan and thain and i guess a few other people, amy butte, used to be the cfo, a lot of people, brought the stocks exchanges public, changed it from a club to what it is now which is a public company. Through the transition thain left to be head of Merrill Lynch<\/a> for very short time. Took job in november of 2007 after stan oneal, that was beginning of financial crisis or when it was starting to impact. Lori decorated his office. Adam bingo. That was the story i broke. And he, obviously thain didnt last at merrill. He was, essentially forced to sell to bank of america. And during through the financial crisis in 2008 and duncan was running the show at that point of the threw all that the duncan had a key decision to make. Do we remain independent . This is the New York Stock Exchange<\/a>. It is one of the greatest brand of all time. Dick grasso helped build that brand. Or, based on sort of market factors out there, including the sort of, the equity business where they make their money, doesnt pay that much money anymore. Lori that is thought, icon of american capitalism right there. By the way if you go inside look at shots, there is not lot of there. Adam trading is really taking place more reporters than there are, its a big studio right now. Lori right. That decline in the business of equities trading, the money that is being made there, essentially duncan came to the conclusion, i guess earlier in the year that because of that we have to sell and they tried to do a deal with deutch bores. Didnt work out because of regulators and sold to the ice. That is his legacy. I think its a good legacy. Adam managed to do in office that wasnt redecorated for 1. 3 million. Ive been to his office. Its a very nice office but i dont think anywhere near the way John Thain Adam<\/a> charlie gasparino. Thank you. Lori not even a decorator but cleaning service. By the way i do not have a 1400dollar parchment paper wastebasket. Adam could use a wastebasket for piles of paper in your office. Lori you need a dumpster. Or, or, or a 35,000dollar commode. Adam thanks very much, charlie gasparino. Lori we have to sigh what is going on with the markets. Although we turned lower, safely lower. Mark newton from the New York Stock Exchange<\/a>. Adp report was good especially before Government Data<\/a> on the end of the week. Are we selling on taper may happen sooner than later . What is your take, mark . Interest rates have begun to spike violently higher last couple days. Lori thats what we said. 30year is pressing near 4 . Look at two and 10 spread that has broken out to new highs. Some of that is fed related. I would mention yellen in her testimony and speech back on march the 4th not to put too much emphasis on adp revisions. They send to be exaggerated, susceptible to big swings. That is not as important but that obviously heightens expectations for fridays nonfarm payrolls that that could come in higher that would be obviously a bullish economic point to lead people think we could taper. For now, equities are down four out of last five days, began late in november on the 29th. The selling isnt necessarily new today. Were starting to see acceleration in the last couple hours. Lori late in the fourth quarter, with a fantastic, phenomenal year for the equities market. Im sure that is playing in. Mark newton, thanks. Thanks. Adam forbes released a list of high post paid tv stars. Second year in a road Sofia Vergara<\/a> of modern family fame tops the list. Makes 175,000 per episode. Ly lucrative endorsements for pepsi and cover girl, earned 36 million last year. That is head of Ashton Kutcher<\/a> who was second earning 24. Rounding out the top five best paid tv stars behind vergara and kutcher, john crier, mark harmon. Ray romano. Lori talk about adding value. Would love to see where the salaries come from. Back from the dead, newsweek revving up the Printing Presses<\/a> even as another magazine staple falls by the wayside. Adam adding a spicy twist to your adult beverages. Why one popular condement is jumping to the liquor aisle. Every day were working to be an Even Better Company<\/a> and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Tha any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americaslargest. Our commitment has never been stronger. [ male announcer ] how could a luminous protein in jellyfish, impact life expectancyy in the u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutuafunds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Adam yes, another icon of magazines has gotten back just as vennable name you thought had died is mounting a comeback in print. Like horse buggies. Horse whips. Dennis kneale with all the news fit to print. Dennis . Newsweek back from the dead. Venerable newsweek went out of print late last year. Clinging to the online existence in the belly of the daily beast. The beast is knew a small buyer. Newsweek says run the presses it will be a print version next year, a shadow of a it former self, 64 pages. Gets more money from subscribers than advertisers. With startling circulation of only 100,000. That is basically a small local newspaper for once venerated National Magazine<\/a> that peeked at 3 in. 3 million subs in 1991. 3. 3 million subs. Iconic new york magazine, invented new journalism in the 1970s, spawned superstar writers as tom wolff. Cutting back from weekly to biweekly next march despite winning magazine of the year from Magazine Publishers<\/a> association. Which got to make you wonder then about another classy revered magazine, new yorker. Incredible amount of content every single week. I love the magazine. Never finish it. How long can it keep coming out every week . You have to wonder, adam. Adam as long as they have money to keep publishing. Cutting back does save but sad, sad stained to an ink stained wretch. Lori as you are. As i am indeed. Adam thank you, wretch. Lori mr. Wretch i think he prefers. Anyway good news for bloody mary fans. Phillips distilling company craft ad vodka. This new vodka is made with blend of chili peppers, garlic and vegetables. Are we in a cooking channel. Adam no this is a bloody mary. Lori after a california judge halted plant produces the hot sauce. Because it is causing a smell local residents near the plant have complained about. Making hot sauce. How long, only now a judge intervenes. Bunch after whippers, neighbors. Adam free pub list ity. Dont like. It the vodka producer said the product is great in bloody maries and light beer and the town is more than happy to have them. Adam you were saying your daughter puts it on everything. Not the vodka, not old enough to drink it. Exactly, dennis. Thank you. Are you worried about your Retirement Funds<\/a> in the wake of illinois cutting state pensions. Your tweets and an expert guest coming right up as tracy byrnes and Ashley Webster<\/a> take you through the next hour on fox business. Hi honey, did you get e toaster cozy . Yep. Got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. So i kn untilt was full. Youd be crazy not to. Is tt nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Try align. Its the number one ge recommended probiotic that helps maintain digestive balance. Stay in the groove with align. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Id like that. Ally bank. Your money needs an ally. Tracy good afternoon, im tracy byrnes. Well pensions in peril. Illinois about to cut state pensions. Does that make you worry about your own Retirement Funds<\/a> . Your tweets and our expert guests are coming right up. Tracy home sales through the roof . Purchases of new homes in october soaring by the most in 30 years but we have an analyst that warns you should not be fooled by that. Ashley commuting get as little more taxing. The amount of workers can put transit costs cut in half by congress. At least those with the train. That is outrage. Tracy because they have drive evers . In tech minute well review lgs curved glass phone which is about to hit the store shelves. Ashley the dow has been down over 100 points for a long time but as you can see, desperately trying to make a comeback, down 99 points or there abouts. The market has been under a little bit of selling pressure these last several days. Get breaking news on the fed beige book. Peter barons with the details. Peteer . Hey, ashley and tracy, the beige book for november says the economy continued to expand ad a modest to moderate pace from midoctober through mid insofar as november and the report does not appear to tee up tapering of bond purchases cuttings back on quantitative easing in next two weeks when the report will be used by policymakers. This reports e has the same language on the economy and job creation as the last meetings on beige book in october when the fed also did not taper as you recall. The report says hiring showed a quote, modest increase or was unchanged in early october to midnovember with philadelphia, richmond, st. Louis, minneapolis, and dallas, those districts showing increases on the other seven fed districts largely unchanged in job creation, but, contacts in many districts say, told fed officials that they were concerned about future Cost Increases<\/a> attributable to the Affordable Care<\/a> act, obamacare and other types of federal regulations. And on Consumer Spending<\/a> which the fed is always watching as well, the report says it increased in almost all districts at a modest to moderate pace. To ashley around tracy. Ashley peter, look, the president also speaking about an hour ago. He is going in front of the camera a lot these days. Talking about the economy. What is his read on things . Well he didnt give us any kind of economic report card. This was a speech largely on economic inequality. It was about economic mobility. The ability of people to move up in income classes with better jobs and better training, et cetera. And it was, mainly to support the president s agenda items, including obamacare but also his education initiatives and other measures. Back to you. Ashley peter barnes, thank you so much. You bet. Tracy lets get a Quick Reaction<\/a> on these markets after that news peter just brought us. Nicole petallides on floor of the New York Stock Exchange<\/a>. Little bit of movement. Yeah a little bit of movement up off the lows. Keeping close eye on 10year bond. 2. 84 on the 10year and that is very key. All to the downside coming off the lows of the day. Tracy and ashley, lowest point on the dow was 15,791. Were now 15,825. You have seen some improvement. That being said the financials were trying to give it a go. The financials have been extremely weak lately these last few days. We saw them in the green earlier today. However were watching them go back and forth. Moment ago banking index is lower. Now it is higher. That is something, you see us come off the lows after the beige book report. There is look at financials, jpmorgan, bank of america, Goldman Sachs<\/a> are squeezing into the green. They have moves of. 1 of 1 . Morgan stanley and wells fargo are not participated that being said, the vix, fear index looking like it has an up arrow once again. It pulled back a little bit. But now looks like it will in fact be seven days in a row of up arrows. We havent seen that since april of 2012. Which means were going to see volatility or likely to see volatility particularly on friday for the jobs report. Back to you. Ashley that is exactly nicole, thank you so much. Well be back to you in about 15 minutes. Illinois governor pat quinn declaring, we have won as the state Legislature Passes<\/a> an overhaul of the Pension System<\/a> but his critics call it a small bandage on an open wound. More importantly does it make you worried about your Retirement Funds<\/a> . You can tweet us and your answers will be on the bottom of the screen. For his take, bring in brian battle, Performance Trust<\/a> capital partners. Brian, thanks for joining us. Is this a slippery slope or illinois just that bad with its finances . Well, lets be careful. Whole muni market is, 3. 74 trillion in size and there are 60,000 different issuers across the united states. So youre right, ashley, illinois is particularly bad with all the actors in the muni market. We did pass a pension plan yesterday. The short answer is, it is better than nothing since what weve done since 2010 when the state started to get downgraded. Political action, that is what we got downgraded for, political inaction. Weve done something, will stop the bleeding but not a full solution. Tracy lets talk about the fact it is not a full solution because you even mentioned the fact that four owe one confidents might not be the answer here. Were 401 k s might not be the answer. No bill, no plans, no votes, no basic law change to your point. Right. Tracy so now what . Tracy, thats great. What is going to happen, there are two stories, there is a political story and economic story. In illinois, the legislature, General Assembly<\/a> of senate and governor are all democrats thise republican votes because republicans had to vote for it because they didnt want to obstruct pension reform. Good news something is better than nothing. Now the politically, were in a stalemate. Everyone will declare victory you heard the governor say it. Well move on into the next political season. Economically its a little bit of a different answer. Stopped thing killing us the most. Illinois gave 3 automatic increase to all its retirees, automatic. Not a cost of living increase. Wasnt indexed. 3 automatic. That was been dim min ished, postponed and eliminated for a little while. Makes a difference in acutarial assumptions when you dont have 3 compounding to infinity. We changed some of the retirement age there. Is political challenge. Public sector unions in illinois challenged it because they say their pensions can not be impaired or diminished under state constitution which is a good legal challenge. I dont think there is anything that will happen on the ground until we get through that challenge in the court system here in the state of illinois. Ashley basically brian what happens here, retirees and im thinking detroit. They do absolutely nothing wrong but their city is completely mismanaged. They end up being ones who have to pay for it all. So that is the moral of this story. It is morally repugnant that you can drive a bus for the city of detroit for 25 years, do exactly what youre spoused to do. Because city hall goofed off, your pension will get a haircut. Here in illinois, what we have to do weve got to change the Pension System<\/a> to save it. Were not where detroit is. Chicago isnt where detroit is but weve got to make the changes to make sure there is something left so we dont turn out about detroit. The story should be what about political management . Taxpayers should pay attention. Pension has a short fall, lets tax more. If youre retiree. If the pension plan has a short fall, you have to say i dont want a haircut. Both sides have to come together. Not union versus Public Sector<\/a> or im sorry, not unions versus private sector. Hey, you guys are in chargings are you addressing problem and what changes are you making to make sure it is sustainable over the long term because defined benefit plans might not be sustainable. Tracy why not actually . We do that here, right . Everyones relying on their 401 k at the indof the day. If the government cant manage my money which we see it can not, why not let people take at least this part of the equation into their own hands . Right. So the problem, so the Public Sector<\/a> is about 80 defined benefit where you get a pension. Tracy right. Private sector is almost opposite. Tracy right. Doesnt work for two reasons. One there is always reflex not to fund it. Illinois has a long history of making pension holidays. If the budget doesnt balance we dont make a payment to the pension plan. Part of illinoiss problem were not funding. Not just Public Employee<\/a>s are too greedy. The state didnt do its fair share. But the other answer is, acutarial. You cant work for 20 years and retire for 40 and get paid for that. In the old days he retired 62. Sat on the couch and died when you were 68. Those days are gone. Everyone is living until 80 or 90. Acutarial assumptions of defined benefit plan dont hold up if you retired longer than you worked. Ashley sobering thoughts there. Brian, thanks so much for joining us. We appreciate it. Youre welcome. Ashley once again, keep it right here on the 2 00 p. M. Hour of fox business. Tomorrow well go one on one will know state treasurer dan rutherford. That should be very interesting indeed. Tracy he is right though. So many levels of mismanagement. Ashley oh gosh, yes. Tracy city, you name it, everyone screwed up. Ashley yep. Tracy your dow is climbing back a little bit. Only down 77 points right now. New home sales showed the biggest monthly increase in more than three decades. We have a guest who says, hold on. He has some warnings about that. Ashley dont get too excited. Meantime got to have it. Toys based on the angry bird videogames, hot for christmas. We get to play with the toys. That is always fun and talk with a woman who took a gamble on them coming up. Commuter outrage. Why is Congress Cutting<\/a> tax breaks for bus and rail riders while allowing bigger breaks for drivers heading to work . I dont know because they have drivers. Ashley come on so much for green policy. Plus as we do at this time every day lets take a look how oil is trading. Up again, today, over a percent. Crudes fourday run is the longest string of gains by the way since midauguut, up to 97. 20 a barrel. Well be right back. [ male announcer ] heres a queson for you. If every u. S. Home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes . 1 million . 2 million . 3 million . The answer is. 3 million homes. By 2030, investments in energefficiency could help americans save 300 billion each year. Take the energy quiz. Energy lis here. And this park is the inside of your body. See the special psyllium fiber in metamucil actually gels. And that gelling helps to lower some cholesterol. Metamucil. 3 amazing benefits in 1 super fiber. Tracy sales of new homes surged by 25 in october. That was the biggest monthly increase in more than three decades. Our next guest says the headlines are a little misleading. Joining us, john burns of john burns relate estate consulting. John, im glad youre here. A lot of people doing the happy dance with when he got the october number. I know. It was simultaneous release where they showed really low numbers, back to normal in october. Hey, looks like a huge increase in october. That is not what happened. 144 new home sales is little more than half after normal market. The market is not recovering. Tracy so what happened . Was this like a little reaction to the dip in Interest Rates<\/a> because they did go up during the summer right . Then they dipped in the beginning of the fall. Right. Tracy so was that what this was . Well it was a combination of things. Thats part of it. We saw sales slow in july and august and really fall off a lot in september. I think the september falloff was a hangover from rising Mortgage Rates<\/a> but also due to the fiscal cliff discussion that is made everybody extremely nervous. And then the other part of this equation nobodys talking about is, the big homebuilders starting discounting about 10 of their communities in october, to start driving some sales because sales slowed. Sales are up a little bit. Now were dropping in price to drive it. Tracy theyre actually was a Homebuilder Survey<\/a> that came out that said sentiment was not all that great among the homebuilders. No. Tracy so that all comes together to your point that, it aint so rosy. What is the outlook then for 2014 . The analogy is, well, were going to wait and see. People are nervous. The, their nervousness is around another fiscal cliff debate in february which is right at the beginning of the spring selling season if Congress Kills<\/a> confidence ight at beginning of spring selling season, we might have a lousy next year. So people, one of my clients put on a hiring freeze. Another is talking about laying people off. Its not pretty. Tracy we also know that Mortgage Applications<\/a> and refinancings are down as well. So there seems to be a lull. Isnt this though somewhat typical for the winter . Everyone is kind of focusing on the holidays. Right. Always november around december youre kind of wondering what is going to happen next spring. I would say art pa of this is a normal novemberdecember turn around but headline was like, oh, my god, the Housing Market<\/a> is roaring again. That is not what is going on. Tracy a lot of people are not talking about the impact of the new mortgage rules and how they will affect. You want to talk about those a little bit . Yeah. Entry level buyer has not been part of this recovery and new mortgage rules are really going to hold back homeownership. I dont think people really understand that. The 43 debttoincome cap that theyre, you can get around a little bit with some fannie and freddie and fha programs youre not longer going to be able to put around. Banks said because of putback risk i will not use fha aggressive programs i used to be allowed to use. If the loan goes bad you will sue me im not going to do it. You will see entry level buyer have a tougher time qualifying. We have really good anecdotal information. The entry level buyer is really struggling and affluent buyer is doing well and recovery is driften bit affluent. Not Median Income<\/a> household. Tracy there are, i feel like there is lot more homes for sale these days. Are they just on the higher end then . Well, theres more homes for sale than there was before Mortgage Rates<\/a> ran up. So thats part of it. But there is only five months of supply on the market and historical average for new homes is six and existing homes is seven. Yeah. Not an oversupply problem. Tracy i guess i have seen a lot more supply lately. Right. Tracy john burns, john burns real estate consulting. Here is fact on john burns. Avid baseball fan and been to home game of everyone of 31 major league teams. I travel a lot. Tracy bucket list things for baseball lover. Ashley true fan, as they say. Quarter past the hour, Nicole Petallides<\/a> down on New York Stock Exchange<\/a> floor. Stocks still lower, but you know what . Could be whole lot theyre bouncing back after the beige book. Maybe that is it, nicole. After the beige book, what a difference. Look how were coming up off the earlier lows of the day. We had been down triple digits. What is interesting the vix is still higher. There are still jitters hear ahead of jobs report on friday. Continuing to watch the 10year bond because thats what traders are doing, all right . Look at apparel retailer express. Express came out with a tough forecast. Theyre basically saying, there are tough times that lie ahead for this holiday season. This stock is down 22. 5 . I wonder if they wish they hadnt said anything at all . Meantime what they are saying this was expected to be a promotional season. It is going to be even more of a preemotional season than they even thought. Despite the fact that this particular story yearoveryear, thanksgiving shopping season did better, we saw the National Retail<\/a> federation say sales were down 3 overall for all the retailers that is actually better than the prior year however they see a lot of promotions. You know what happens. When you have a lot of promotions youre not getting margins. Money is not coming in as well. Back to you. Tracy thats for sure. Thanks, nicole, see you in a bit. What is going on with apple . What are they up to . The company is on a big buying spree to pick up everything from 3d technology and. Lizzie mack will have the story. Ashley the train engineer says he was zoned out before the fatal suburban train crash in in new york. Well have the latest update in your fox news minute. At 21 minutes past the hour im Arthel Neville<\/a> with your fox news minute. The head of the federal Railroad Administration<\/a> says officials have serious concerns about Metronorth Railroad<\/a> following sundays deadly derailment and three other recent accidents in new york and connecticut. The engineer told investigators, he quote, zoned out shortly before the crash which killed four people and injured more than 60 others. Recordings of 911 calls made from last years newtown, Connecticut School<\/a> shooting, show town dispatchers calmly responding to a janitor, teacher and others. The operators urged people inside Sandy Hook Elementary School<\/a> to seek cover as they seek help from town officials and state police. 20 children and six educators died in the mass shooting. We switch to a lighter note. How about a president ial touch for your Christmas Tree<\/a> this year . George w. Bush president ial center is selling an ornament features a painting of a cardinal by the former president. It goes towards the center and charities it supports. Those are the headlines on the Fox Business Network<\/a>. Get you back to ashley and tracy. Ashley we were talking about Christmas Tree<\/a>s. Tracy very cool. Ashley thank you very much. Youre welcome. Ashley tech buying over a dozen Tech Companies<\/a> this year so what is up with apple . What does it do for their stock . Liz macdonald has been all over the story. 15 acquisition this is so interesting. Will apple see 700 a share as Morgan Stanley<\/a> was talking about . Stock was up around those levels last year . That is the deal. Will apple get its device, ipads and iphones ramped up by the act with sir, meaning more people buy and the stock is up . That seems to be a name of the game. When you see what apple is acquiring, would you, take a look. Mapping companies that track your location anywhere. Mass transit, global mass transit device systems. Tech companies that make chips that basically compress data. Software companies that compress data. 3d sensors for, companies that make 3d sensors for ipads and iphones. Companies that boost up the devices to make them more like a personal assistance. Really interesting. Apple is pointing the way. Ashley might as well, looking at greece for crying out loud. Thats true. It will, the key is, for investors, were looking at 564 for apple. Will we see the 700 levels again . Ill tell you something, what tim cook is doing is really interesting. Not just buying topsy, tracking twitter feed and twitter conversations to analyze that. He is also focusing sharply on siri, on ipad, iphones and making those devices better and more userfriendly. Tracy does he get validation for saying hey, i will not start giving cash back to shareholders . Yes. Tracy there was push for special dividend. From carl icahn. Tracy does he seem a little vindicated . He might. In defense, as these acquisition play out, looks like small bore acquisition but real live sharply focused and integrated. When you look at 30,000foot broodsome perspective on acquisitions would you you can see what he is thinking when he knit it all together who he is targeting and what company he is buying. Ashley do we get new products down road . Everyone gets excited about that. This is interesting, siri app or a device that hooks to your car dashboard, still waiting on that. The device hooks to the dashboard tells you about restaurants from your dashboard and places to go, better Mapping Systems<\/a> for your dashboard in your car. Were hearing that. Not sure if that will pan out. Tracking this developing story. Ashley fascinating. Emac, thank you very much. Appreciate night sure. Tracy were talking about commuting getting more taxing. Come on, now. The amount workers can stash away for pretax, transit costs cut in half by congress. We have outrage on that coming up. Ashley for train and bus riders but maybe not for motorists. It is an outrage. Lg flexing its muscle and screen on its latest phone. A sneakpeek ahead in tech minute. Tracy gotta have it. Hit tv shows and videogames, executive Vice President<\/a> of commonwealth toy and novelty is here. So cool. The dow is down 72 points. 70 points i should say. It is climbing back. Well be right back. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Every day were working to and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy<\/a> investor. Our commitment has never been stronger. Look at your dow 30, a lot more red and green but look at microsoft, up top, 252 week high after the European Union<\/a> antitrust regulators approved 7. 3 billion acquisition of nokias mobile device business without condition and. Having a good day on that news. Nicole petallides on the floor of the Stock Exchange<\/a> watching seers. Nicole some redeeming their holdings to a certain extent. Look at shares and i will tell you what is going on with a company, stock is down 8 , this is a winner this year over 20 and you have billionaire eddie lamberts hedge fund distributing seven million shares of the u. S. Retailer in the fund. Now its affiliates had to stake a 48 as of dec. Second. That is down from 55 so you do see that they did say the fund started when i told you which is limited partners elected to redeem their interest in 2013. We will see what happens from here on out but the stock is reacting negaaivey. Ashley taking Public Transportation<\/a> to work is about to get more taxing. Right now train and bus riders and motorists can get 245 a month in tax breaks but come january Public Transit<\/a> riders will see that number cut in half, drivers will get a bigger tax break. Dan smith, tax advocate for Public Interest<\/a> Research Group<\/a> joins us with his beach. Joining along with my be. Lets get this straight. Commuters lose substantial slice of their tax break but motorists are regarded or wont be getting even more. Exactly right. Come january 1st if congress doesnt act, three Million People<\/a> who take Public Transit<\/a> to work every day suddenly will see the cost of their trip become more expensive and this doesnt make any sense. It is unfair for people that take Public Transit<\/a> to work and it also distorts Consumer Choices<\/a> in the worst way possible by using tax code to buy incentive for driving and that means more oil consumption, more people sitting in traffic and more air pollution. Ashley this administration is supposed to be green friendly, if you like, should be friends of the environment, this doesnt make sense to me. Doesnt at all. Last thing we should be doing with our tax code is penalizing people who are taking Public Transit<\/a> that provides a cleaner form of transportation and providing an incentive for more people to drive to work and there is a solution in congress, there is the bipartisan piece of legislation that will solve this problem. It doesnt have a lot of opposition, wouldnt add a dime to the deficit and congress should waste no time in enacting get. Ashley the problem is congress is embroiled in these budget battles that get pushed back two or three month. Could this get lost in the shuffle as they deal with a bigger budget . We are hopeful that because this has such strong public support it has bipartisan support which is increasingly rare these days. We are hopeful that congress will take it up but it could get lost in the shuffle. Ashley this is a huge hit economy, any numbers over the last year 700,000 yorkers saved 330 million for this benefit. If they lose, that is money taken out of peoples pockets and that has to hurt the economy. Exactly right. This benefit is also good for businesses. People take transit to work save their employers through this tax benefit 300 million in 2010 alone. And letting just the transit portion of this benefit be cut in half, creates an unlevel playing field. If you are a business where a large number of your employees takes Public Transit<\/a> to work you are at a disadvantage. Ashley january 1st attack greg go the way. Will believe they will get to it. Thanks for joining us. Cheryl oil closing higher for the fourth day. 97. 20 a barrel, that is up 1. 16 and this is after crude supplies declined for the first time in eleven weeks. And members of opec trying to Keep Oil Prices<\/a> steady and high. They agreed to keep their current Production Target<\/a> at thirty Million Barrels<\/a> a day even as libya, iran and iraq planned to increase exports in coming months. Time for your tech minute. You think it is fancy . Two cited phone, 600 device on one side and a black and white e. Reeder on the other. The two cited phone allows you to use data in real time without having to wake of their phones and drain the battery. The phone will be available immediately in russia, germany, france, austria and spain. In the middle east and in the u. K. Get it on their hands now. From two cited funds to curve phones, smart phone will be available for pre order in korea. Five days later the phone goes on sale in hong kong and europe will be the next to get the phone after that, sometime next year. A six in smart phone can bend with or without a case on the device. The phone was tested and could stand 88 pounds of pressure, defeated 100 times without deforming. Could you do that every day in the course of normal business . The web, driving cars, now got to do this, in the last six months google has acquired seven Tech Companies<\/a> in an effort to create a new generation of robots. Companies have been focused on a humanoid robots, robotics are at the heart of googles longterm big deal moonshot program, figures on the amount of Capital Investment<\/a> in the robot project, it is likely not for consumers but rather for manufacturing. Shares of google up 50 in the last year. Look at that. Well over a thousand dollars a share, craziness. Ashley a share in the stock of christmas would not be so bad. Tool is based on the angry bird video games are hot for christmas. We get to play with the toys and talk to the women behind them coming next. Tracy more stores in new york city. It is a great question, we have the answer coming up. Ashley listen to the ten year treasury, talking about it earlier a six basis points at 2. 8 . We will be right back by the same amount. Its what you love about her. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you beeady anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms obph, like needing to go frequently or urgently. Tell your doctor about all your medic conditions and medications, and ask your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood essure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset omach, delayed backache or muscle ache. To avoid longterm injury, seek immediate medical help for an erection lasting more than 4 hours. If you have any sudden decrease or loss in hearing or vision, or iyou have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet ee trial. Lori i am lori rothman. Some say you cant go through the city without running into stocks. More likely to find duncan donuts. The Largest National<\/a> chain, walgreens, drugstore, 283 new york city locations. Bolognese any shares down 4 . The troubled retailer closed up 4 after announcing a 10 increase in november samestore sales but analysts thought the sales jump would be bigger. All the ad times at the superbowl sold lot already, a 4 million for a 30 seconds spot. That is up 5 from last year. Fox began broadcasting the game for the Fox Business Network<\/a>. That is the latest from the Fox Business Network<\/a> creating the power to prosper. Ashley parent rested a half holiday gift, many realize theres no must have pulled. To go meal and a world of video games and phone apps, how did traditional toymakers, the executive director or executive Vice President<\/a> of commonwealth cool and novelty joins us now for her got to have its seas. We were talking with her in the greenroom before. Lots of interesting aspects to how your company manage to finally get to this point. And angry birds was a role of the dice. You with the first to think we could get the licensing rights, this is created. We started with angry birds, seven million downloads and three years later two billion downloads, all world lybrand ended is unusual to have something that appeals to children of all ages with you and 2, 20, 18, 40, in the uso of overseas. Ashley you said we would like to make toys based on your game and they said great. We will design that. Was an amazing relationship van, a phenomenal relationship now. The greatest partner one could ask for. Tracy you like Licensing Agreements<\/a> with whatever the new hot, krugerrand is. You started with a plush toy company. Yes but as a lot of people know basic questions all a lot of Different Things<\/a>. Care bears, so many great ashley can address to ted, sitting over there he is whispering. Same thing you cant listen to on tv. Even our cleanest version, you probably push him in a lot of trouble but he is a hot seller. Yearandahalf after this movie broke, we still truly can and making the product in the marketplace. Ashley you are trying to anticipate, it takes 29 months to get a product to the market so you have to anticipate what is hot because what hot is now on wont behalf in nine months. The is the difficulty we face. We focus on a hot toy for christmas. It is part. I am holding on to duck a dynasty. There are no rules. You in new it was still going to be a round, and this the brand itself is incredibly hot. The show has broken everything. Making a lot of credit products. Arabesques in the line which we produce and we are not producing any more is at walmart now, 24. 99 product, great item for christmas. Said picking grit and music, and we go in and out, we only make walmart is finished. Despite the electronics and fancy gadgets, kids still again adults still like plush toys. They really do. It is amazing, people like to have it on their bed, in their bed. You can stop touching. You, red and holding it. But not all youre angry birds, not everything works. Not everything translates into a plush toy. Might not translate so well. You can make a toll and we go to the next week, a little bit like this that you are beautiful. What do you say . I am a jersey girl too. Duck dynasty, go get it in walmart. This is in walmart. That is fantastic. Think you for joining us. You need more got to have it items, and we have a great week, keep it here on fox business. We will talk to john barber, leapfrog ceo. We have everything from kids to adults. Tracy more toys. It is quarter till, time for stocks. We are down to the floor of the Stock Exchange<\/a>. Mark, markets can back after we got news from pc but is that the big movement . What is moving the market . You see weakness across the board and a lot of sectors industrial and energy, telecom, financials have not turned down today. Indices will be down the last five days, firsttime since september. We have not seen a lot of weakness in general but it is back on the front burner after adp revisions of his scooped and generally it has gotten they have blown up since the beginning of december, less extreme than in europe which is over 3. 5 costanza you cant blame the selling today so it has been ongoing over the last week. Tracy lot of that, a lot of you guys are closing the bookshelf, taking money and running. A lot of people are elected to do much before year end and it will be a bullish time so people are shocked to see a downdraft here but volume is very light, we havent violated key levels of things we will have a big selloff. Interesting to note that the stocks hitting new 52 week lows expanded to the highest level since august, a warning sign and a big support over 20 last seven trading sessions. There are signs of implied volatility creeping up here as a result of this decline but it is more frustration and it is not much selling whatsoever, more a drying up or buying. A son of what could happen months from now. That is something. Thanks for all that. Ashley you and not going to let it go. Tracy before we go to break. Tracy we may have 99 problems, we are going to tell you what the holiday collection is a big success and not because of him. Ashley look at winners and losers on the nasdaq as we go to break. Have a look as we a and alpha and repair. Ashley that is so ya know, witnew fedex one rate tracy i love that. I didnt know the coal thing was real. Its very real. David rivera. Rivera, david. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Who found a magic seashell. It told himhat was happening on the tradg floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there their Trading Platform<\/a>. [ indistinct talking continues ] [ male announcer ] so the magic shell went back toeing a. Shell. Get live squawks right in your Trading Platform<\/a> with think or swim from td ameritrade. Tracy Martin Bashir<\/a> of msn b. C. Resigned, and Dennis Kneale<\/a> is here with this story. Dennis there was a big outcry when he said ugly things about sarah palin, people were saying what is going to happen . Ms nbc find alec baldwin when needed an antigay epithets, paula dean, we destroyed her career for using the n word 25 years ago basalt verbally, conservative politician who ran for Vice President<\/a> if you get away with it and bashir had apologized and he went on vacation but then he comes out just with this statement, after asking for permission to take additional time out around thanksgiving, upon further reflection after meeting with the president of ennis nbc contended maris resignation it is nice sincere hope that all of my colleagues at a special network will be allowed to focus on issues that matter without the distraction, will judge comments. Praising the audience. Understand after the alec baldwin flopped basis than him for only two weeks never mind the we destroyed other people for other words and they canceled its shell after a month on the because it wasnt doing well and alec baldwin was the scene. Ashley the nature of what he said. He was a respected journalist, a very highbrow show in the u. K. And, with nightline. I found it surprising what he said. He couldnt get out of it with an apology and this was on the books. The surprise was it took this long for everything to unfold because the reaction on the paula dean case that she used the n word 25 years ago the reaction was instant and annapolis avalanche but bashir around, apologize reluctantly ended his nbc didnt do anything to suspend him the way it had done with alec baldwin. Tracy you have to question what was management thinking letting it go this long. What was he thinking . He invoked imagery from the novel that led to the movie 12 years as a slave, discussing stuffy said but he has fallen on his dont soared. Ashley the ever get a response from senator and the sarah palin . Apologize and i forgive him but she referred to this idea of differing standards on the word game. Tracy no one knows better than people on tv that you cant take your words back. Neil the state of mind, jaseys holiday collection is selling fast, the first time to fly out shelves, 200,250 jacket, 1,600 backpack. Every kid needs one of those and a ski mask that costs just 695. J. D. Insists he will make no money from the collaboration with 100 of the proceeds going to his john carter foundation. This after tremendous pressure for him to back out of the collaboration following racial profiling allegations against them. These are not cheap items. His wife was modeling some of them which is why they are selling. Ashley coming up and countdown to the closing bell, of citigroups most influential minds, brought his Board Members<\/a> on strategy and ahead against risk, he will be here in moments answering questions on everything from the greatest risks in 2014 to the volcker rule, fox business exclusive. Dont go away. Liz i am liz claman, is the last dollar of trading. And the sounds boring and Market Reaction<\/a> usually is but the fed beige book is bright and the colors of the market. Actually helping to turn in a sector closer to green. This is the better reserve snapshot of Business Conditions<\/a> and the report indicate the and the economy and manufacturing continued to expand at a, quote, modest to moderate pace. The most upbeat news, manufacturers whose managers say she expanding and russian positive about the nearterm future helps stem earlier losses in the market which ironically also cash in after good news from a private employment report, the Automatic Data Processing<\/a> report in. This is what it showed on your screen. Private sector hiring in november, and and 215,000 jobs versus the expected 178,000 green, costing investors to fear the events of the feds keeper coming sooner rather than later. You can see this picture, for direction the Dow Jones Industrials<\/a> have crossed the unchanged level 34 times. 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