Transcripts For FBC Markets Now 20131217 : vimarsana.com

FBC Markets Now December 17, 2013

Stocks, a great way to get some return on their money. Boeing approving a Share Buyback repurchase program showing confidence in the Company Coupled with a dividend raise of nearly 50 , so that is a big deal as well. They really are indeed bucking the trend area did back to you. Lori check the calendar. One week left until christmas. Turning to their smart phones. Discount luxury retailer is taking the world by storm with mobile with mmre than 40 of its revenue generated solely by mobile sales. Joining us, michelle, good to see you again. Congratulations i really strong holiday so far. Thanksgiving sales driving revenue more than last year. Black friday up 60 in revenue over last year. The big trend you are seeing is mobile. A lot of steps pointed to profitability hopefully very soon. We have crossed the threshold and are Profitable Company. We make sure we find something exciting and fresh for you every single day, we bring tremendous value so you look more generous than you actually are because youre getting such a great deal. Lori i signed up. The flash sales site is a phenomenon. Really tapped in on shopping by not only putting out what is on sale now, highly discounted products, but also with your idea to tease what is coming up tomorrow, how has it caught on . One of the things is remembering shopping should be about a few things. It should be about generation. You want to buy exciting things. It should be about value, it should be about excitement, showing what is coming up tomorrow. It also should be about personalization. Weve made sure the sales would put in front of you are relevant for you. Lori youre looking at a profitable year. Your revenue 2012 calendar year came in at 550 million. So things are looking very well, will you hit the billion dollars this mark this year . Robust growth has been encouraging. Lori can you give me a little bit more details on a guilt ipo . We are not in a rush. The nice thing is we dont need to go public, so we will do it when the time is right. Lori very successful ipo, they raised 253 million, debuted 22 per share. Today the stock is up a percent. Third with 40. That has to make you very optimistic. Very great competitor, for sure. Part of it is about the performance, which has been excellent, and part of it is how is the market trending. Lori basically saying you guys did so well during the downturn because you are a discounter, selling luxury goods at deep discounts. Now that things are turning up, and the idea is wearing thin. It is a higher growth rate and have seen. I do think theres a little bit of separation from the top. The competitors are doing very well. Halted. Lori the economy is improving but still a lot of people without jobs and a lot of people still struggling s to you are seeing a tremendous growth. Can you put your finger on what is going on in the Bigger Picture . Consumer confidence a big part of the picture. Is a huge part about how much they will spend today. One of the things that works well is people do want the value price point. They still want the aspirational, exciting, energizing at a great price. Lori it shows people are ordering stuff while theyre waiting in line. That is the nice thing, we can cover your husband, your childs gift, a Gift Certificate for a massage if you are lastminute shopper. Lori thank you so much. Those gifts need a way to get there. Ups on a way to send out 29 million packages around the world. Adam shapiro joins us live in the heart of ups operation in louisville, kentucky. Hi, adam. Adam you mentioned the 29 million packages that will be delivered today. They shipped 34 million yesterday. I want to introduce you to one of the people who are instrumental among the thousands. 400,000 worldwide. To make sure your christmas package gets what needs to be on time. Operations manager. How do you coordinate all of that . It boils down to the men and women sorting and loading right here, doesnt it . We are the link between the customer and resellers. Adam when we talk about 29 million packages today, the packages being delivered set World Records, youre the Largest Shipping Company out there. What do you attribute that to . I think that plays a part in it. We are expecting to do 2 million packages, it is important. Adam about the 23rd . That would be 7. 7 million packages within this facility. 400,000 packages this facility can process in one hour, correct . Thank you very much, and happy holiday to you. Im going to go back to you, but 29 million packages, 65,000 additional employees the Holiday Shopping season, you can understand why the company last year generated 54 billion in revenue. Back to you. Lori thanks, adam. You do have this breaking news, here the board is saying they expect an appointment in the early part of 2014. That is a delay as many folks expect an announcement from microsoft before this years end. Shares down 0. 19. Ford ceo and microsoft enterprise head are two of the names to replace steve ballmer. President Obama Meeting with the biggest tech execs covering everything from the troubled Health Care Website to the latest spying revelations. Peter barnes in washington with the latest on this meeting. Peter the meeting includes executive from microsoft. The meeting was still ongoing, this meeting started 10 45 eastern. Going on for two hours or more according to White House Press secretary jay carney during his Daily Briefing right now. As you said on the agenda nsa surveillance programs, the request by the tech ceos, the president bringing them in to continue to work on the website as well as other Technology Issues and government tech procurement. Here are the ceos in this meeting including tim cook of apple, twitter, netflix, president and ceo of yahoo, zynga, continuing on, facebook, eric schmidt of google, brad smith, randall stephenson, and also want to let you know on microsoft white house announcing a former microsoft executive will be coming in to take over the operations of healthcare. Gov and the federal exchanges replacing a president ial advisor who went in to try to help fix all of this working there for a couple of months. He will be coming back in january to take over as head of the economic council. Back to you. Lori thank you so much. Wwere also waiting on ben bernanke ahead of the statement 1 billion worth of advice held by chief Investment Officer scott black. He is next with me on why you should err on the side of caution with your investments right now. 11 million tickets sold per hour. Americans try their luck in the Mega Millions jackpot topping 600 million. The rock n roll hall of fame announcer 2014 inductees, and hall of Fame Foundation ceo on the iconic artist who made the cut this year. [ male announcer ] what if a Small Company became big business overnight . Li, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. 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 wafull. Youd be crazy not to. Is tt nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] if we could see energy. What would we see . The billions of gallons of fuel that get us to work. Wed see all the electricity flowing through the devices that connect usnd teach us. Wed see thatlmost 100 that of medical plasticsus. Are de from oil and natural gas. Anan industry that supports almost 10 million americanobs. Life takes energy. And no one applies more technology to produce erican energy and refine it more efficiently than exxonmobil. Because using energy responsibly has never been more important. Energy lives here. Try align. Its the number one ge recommended probiotic that helps maintai digestive balance. Stay in the groove with align. Lori we are following the latest develo enrollment on capitol hill. Clearly a key hurdle in the senate offense and a a final vote. Final passage could come later today, even tomorrow. If this legislation is not passed, traces the threat of another government shutdown. Lets check the markets, nicole is covering it all from the floor of the New York Stock Exchange. Investors, are they on edge of the announcement . Nicole without it out. Everybody continues to focus on what will the fed do. It has provided so much stimulus, printing of money but the Dow Jones Industrials down 16 points with a loss of onetenth of 1 . I know we focused on some dividend paying stocks like 3m and boeing. Nasdaq lower, s p down by five points at 17. 81. We have seen it, it is to the upside at 16. 17. It shows going into tomorrow people just want to know what is it, that is what wall street is about, they dont like wildcards or uncertainty, they want to know what the facts are. Lori my next guest happens to be quite certain the fed wont begin to pay back the bond buying until next year. Managing 1 billion in investments, president and chief financial officer. Always great to see you. Thank you for inviting me. Lori happy holidays get you say the fomc will wait until next year. Why . I of you strip out the inventory gains, it is up 1. 9. Inflation below 1. 5. If you look at the true unemployment, still over 13 . It is a fractional recovery at best. I dont think they want to upset the economy in the short term, so the fact is getting a plymoutimplement down to 6. 5 ae economy really growing two and half to 3 on its own, dont they get a hose the fed to taper yet. Lori would you agree the economy data is moving in the right direction. It is a big problem, but overall things seem to be getting better. We also have a budget deal in washington avoiding another government shutdown, so does not state a stronger case for taper, do you think . I think so, but it will come in the First Quarter of next year. That has to be revisited, republicans asking something quid pro quo with the discipline to raise the debt ceiling so we have not passed that mark at all yet. Lori lets talk about the market. The s p 500, the index in and of itself is fairly valued but the smaller indexes are overvalued right now, so give me a little insight these days. We tried to buy higher return on equitys companies that generate cash at low multiples. Companies have sustainable earnings, so we are agnostic whether it is large cap or small cap. Your point is valid. If youre looking at the homogeneous classes, 2122 times next years expected earnings, so they are pretty expensive. And the s p based on 116 earnings next year is about 15. 5 p ebased drug standards is fairly valued the does not mean a run in individual stocks. I was in Silicon Valley last week and a comp Love Companies that make our terrific franchises, the first is sandisk, the largest producer of flash memory. Solidstate drives, embedded software, et cetera. If you backed up the cash roughly 15 per share and strip out the 0. 44 the way we do it, it is 9. 5 multiple. The earnings will still grow at a doubledigit next year, and another company were the earnings are starting to turn, the point of inflection is the leader in metrology, youre going to see a quarter the time of 80 against 63, something in that ballpark. This is the first inflection point. You backed that out, there is no stockbased jump in earnings. Still 11 p e. The s p is 15 times, these are very good franchises, huge discounts multiple lies in the market. Adam if you like those tech names, what do you think of names like twitter, facebook, netflix which seemed to be moving against the broader trend lately. Theyre being characterized as darlings, not profitable but still really in favor these days. This is the greater investing. When you are paying infinite multiples of 50, 60 multiples for the thrill of momentum, it is great. Good cocktail chatter but that is not wise investment. Lori always great to see you, thank you for your time. Thank you. Lori facebook has a new plan to grab your attention. A stake in the tv ad market. At home for the holidays . A2 of the Worlds Largest edible adobe. You have to stick around for this. [ male announcer ] how can power consumption in cna, impact wool exports from new zealand, teile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complexglobal economy. Its jusone reason over 70 of our mutual funds bebeat their0year lipper average t. Rowe price. Invest with confidence. With investment information, risks, fees and expenses to read and consider carefully before investing. 24 minutes past the hour, i am lauren green with your fox news minute. Helicopter crash claim 116 u. S. Troops. Those troops part of the security force. Nato says a crash is under investigation but indicates there was no enemy activity at the time. Things are heating up in eastern europe, new reports suggesting russias developing missiles, deploying missiles with strong area bordering poland and lithuania. This is tensions rise between the rest and russia over troubles in ukraine. Ukraines president forging closer ties to europe instead aligning itself with russia. Megamillions fever is in full swing. Folks rushing to buy lottery tickets ahead of the drawing. Jackpot soaring again today this time to a near record 636 million. If someone does not hit it big tonight, it is very possible the price could jump to 1 billion. Those are your headlines, now back to lori. Lori i am not to work next week because of christmas. Fake you won the lottery. Lori are you ready to see video ads on your facebook feed . They are coming very soon. Jo ing kent here with the story. Video ads will play automatically starting thursday, the sound will be off and the ad facebook announced were testing last night will appear on both the web and on smart phones in the app according to the wall street journal. Facebook to that indicate a limit although the journal reported fiscal plans offer about 152nd clips. One of the first ads will be for divergence. No word on which companies will be posting anytime soon. On pricing facebook said in a statement we dont disclose pricing. The goal is to be a premium advertising format on facebook intended to reach a large audience at specific times. But we know it looks to be about 2 million per day tt reach the full adult audience cringe what facebook executives told the wall street journal. Take a look at Facebook Stock right now up about 1. 8 right now hitting a new high. Raising the price target from 68 to 52. With an outperform rating. This comes a few months after Facebook Instagram began running ads as well. Facebook ceo says that has been fruitful so far. Lori health pick this time. The source for hypochondria. Charles it feels like more and more and poor people are becoming hypochondriac. It could be a person, just a person for attention. Webmd, have an interesting situation because youve got a company with extraordinary potential, but management that keeps messing it up. That is why i kind of like the stock, it is cheaper than it should be. In the last four quarters they have missed the street three times. A series of higher lows, turning positive above the 50 day, 200 day moving average. I love that, a beautiful, beautiful chart. Still, wall street is looking 0. 64. Three months ago looking 0. 44. Just a phenomenal company. Give you an example, unique users. Theyre finding different ways to make money, but there is a portion of the street negative. Lori we just heard the story about facebook, you just said webmd looking at ways to make money. Is this in the cards for them . Are they sting up with the social media darlings . Charles they had a decade ago that is when it was going to change the world, now sort of has less of the Facebook Twitter type excitement, but one of these companies has stayed the course, doing very well, that is the kind of growth we have been looking for and it will be able to follow. Lori i know you can get other aggregates. Charles we had a guy on who had something, none of the prescription stuff but on the insurance side. I am not sure. You always give me homework assignments. Lori that is why it is so fun. Rock n roll hall of fame 2014 inductees. Bringing something for everyone. Peter gabriels in her eye. All of that coming up, and this is taking on americas largest oil and gas pipeline company, Charlie Gasparino with the 26yearold analyst who could have saved you a boatload of cash. On his call. Lori lets get you updated on the markets. Lets head back to the floor of the New York Stock Exchange with that to check in with Nicole Petallides. Nicole, some tech names getting a boost today. Right. When i talk to some of the traders theyre loving tech. Theyre talking a lot of firms picking tech for next year. Weve seen tech running up. Look at hewlettpackard today, right . Look what is going on here. It is up 2. 4 . Today it was upgraded to overweight from neutral at jpmorgan and they upped the price target to 35 p from 30. Dont forget hewlettpackard is one of the best performers in the Dow Jones Industrials. It is interesting were talking about the fact that these Technology Names are doing really well. Take a look also at seagate and hewlettpackard, two names on the name to the upside. Jpmorgan adding them to the focus list and putting an overweight on Western Digital and basically they had been cautious on these names, the hard disk drives but they have already run up and theyre liking them now. So theyre doing a little bit of chasing. But the fact is they like them going forward, going into 2014. Back to you. Lori sounds good. Thanks, nicole. If you saw Charlie Gasparinos interview with 26yearold kevin kaiser last january you would have made money on his call. There are still questions how credible the young analyst can really be. Charlie is sitt

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