Transcripts For FBC Markets Now 20140131 : vimarsana.com

FBC Markets Now January 31, 2014

Dagen i went over to the fox sports studio because hannity was broadcasting. It was really cool. Don i saw it on tv. Dagen our usual attitude. There was a lot of adult men wearing jerseys. Connell nothing we can do at this point. Just angry about the stock market being down and all of that. Dagen the fourth triple digit loss in seven sessions. Nicole petallides has more. Nicole 1. 1 . The s p 500 down. 8 . The tech heavy nasdaq down three quarters of 1 . Clearly, 2014 has been a tough go at it. The worst month since may of 2012. The worst january performance since 2008. It just shows you, big picture, that we have had a tough beginning. A few names on the dow squeezing out a few names. Chevron, for example, at new lows. It is worth 28 negative dow points. We also had mastercard. That was a mess. Not a dow component, though. Connell thank you. Dagen the major market gauges expected to end their first january that is negative sense 2010. Is this just a sign that the world is bubbled up because of all the Central Bank Stimulus and we cannot get along without it . I think the market is transitioning. We have to get out of it. We need the stimulus is to go away. This adjustment is not a shock. I think the market is looking for an excuse. When it is finished connell what we are seeing now, i hate the phrase regular people, but people are saying, hold on a second is this run just about over. What oddssdo you have . Very shortterm odds of high and longterm odds of low. Consumer confidence came in again today. The earnings so far, half of the companies of the s p have reported. Seventy have the expectations. Now the winners and losers will be separated. U. S. Companies are really positioned to be the winners and 2014. Dagen money in a selloff gets destroyed. It disappears. It is not a dollar for. Those investors, a lot of the big institutions, they will see the value decrease. The people that walk in these losses, that is something you do not want to do when you have these really hard selloff. Connell that is a perspective i think we have always had. When something bad happens, we think back. If you reacted to the crisis in those periods, you really did not make out in the next 24 months. Dagen at the ones who got burned in the internet bubble bursting back in 2000. Then they got burned again in 2008. It seems like this vicious cycle. One of the reasons they get burned is the assumptions of stocks were incorrect. Twelve15 a year no matter what. That is not the case. The Asset Allocation models are maybe a little incorrect. Much more beta then they understood. Dagen people get angry. They think that they will get the shortterm high return. Existing markets, sure, they belong in your portfolio. Also, there is a transition going on. Connell put your bet on the broncos. Thank you, kevin. Dagen thank you, kevin. Ever have one of those days where you feel like a Million Dollars . How about a billion dollars . Mark zuckerberg had a big day. A great run for a single day. His net worth is about 30 billion. The richest 29yearold in history. Even adjusting for inflation. Connell good for him. Countdown to the big game. A chance for us to talk about the super bowl a little bit. Dagen the two nfl teams are not the only ones competing. Two major social media sites will be battling it out. Dennis kneale has the details. Dennis nevermind the super bowl. Lets talk about the hash tag bowl. Twitter versus facebook. Facebook has to play catchup to twitter. They will feed them trending items and suggested hash tags. The dream here is this fantastic tweet that oreo put out last year moments after the blackout. Power out caught no problem. You can still dont in the dark. Apparently, the chances of going viral, twice as high. The hard thing for both of these guys is getting sponsors to pay. The sponsors can do a fine job free of charge. The typical 32nd commercial will cost four 4. 5 million. Fox will take it close to 300. Connell that is kind of interesting. What reagan is tweeting during the game, i may read. I do not care about the ads. Dagen i care more about twitter during award shows where you mock what is going on. The game is more serious. Dennis the super bowl is ambush marketing on cbs. Urging people to make sure that they tune into the commercials on fox. Connell please treat them to me. That was a good report. Dagen i will not put my hands on them. To the money viewers and fans. Purchasing giant tvs to endless wings and Copious Amounts of beer. Connell Lauren Simonetti is standing by. She wanted to get there early. Hey, lauren. I am more than 48 hours early. Everybody wants to know how cold it is outside. It is only 34 degrees out here in east rutherford. That is bikini weather compared to the weather we have had. A lot of people are saying we do not want to go to a coldweather super bowl. We dont want to spend all that much money to be freezing. The two teams are from the west coast. They have to, really far to get here. Orbit says we should see 20 more seahawk fans. That is because the super seahas have only been in the super bowl one time. There are so any restrictions about what you can and cannot do. It is things like these as a get closer to the big day that are keeping a lot of people away. Prices were through the roof. Hotels now around the stadium, according to orbit, about 180 a night. Down more than 50 in the last week. This could be the cheapest super bowl since back in 2002. The cheapest price now going for 1250. It is things like this. One in a quarter billion chicken wings. 7. 7 milllon new tvs. Connell i do not like dagen i am not actually hoping that the broncos lose, i just think that the seahawks can beat them. Usually i vote for someone to lose. I want peyton to play well. It will be a good game. Connell thank you, lauren. You look great out there. Dagen i know people do not want to pay up to spend a fairly cold sunday in jersey. Connell you could have waited until last minute and got a good deal. Lets get back to the markets. They do not look as bad as they did a few moments ago. Nicole will have the latest from the new york Stock Exchange. Dagen amazon. It has almost no money flowing into the bottom line. The company may raise the cost of prime, that shipping service. Connell more people in this country are living paycheck to paycheck. We will talk about the implications of that coming up on markets now. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really kes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Connell that is not that that did down a lot more than that when we came on the air. We made a little shift in our votes. We are just markets now. Walmart lowering that outlook not good. Nicole lets take a look at the retailer. It has turned into the green since we began talking. Walmart did a lot of heavy discounting during the holidays. They had some franchise issues over in india. They are, obviously, a global story. Even right here at home, a fans club. Wall street took it. Actually, pushing it back into the green. Over 52 weeks. Not a stellar performer. The Holiday Season was tricky for a lot of these retailers. Back to you. Dagen at the price of amazon prime. Seventynine dollars a year. It could be heading north for the First Time Since its launch nine years ago. You also get that awesome streaming video service. You can stream it right over your tv. The price could jump as much as 50 . A 20, up to 40 increase per year. Shares of amazon, you can see what they are doing today after the company missed on revenue. That outlook was lousy as well. Connell different day, different technology. The latest gdp numbers show that our economy is growing the fastest it has in years. 44 living with less than 6000 in savings for a family of four. It is not just the lower classes that are struggling. One quarter of the middle class are also in the class of liquid asset poor. Dagen more and more americans turning their backs on budweiser. Dogfish is one of the biggest craft breweries. Down in the beautiful state of delaware. We have the founder right here in the studio coming up. Am i allowed to drink it while on air . What . Okay. Lets roll. Connell the steps Successful Companies can take to reinvent their business. Successful companies, not those that are struggling. Dagen look at what the euro is doing today. 23 minutes past the hour. Police in ukraine opening an investigation into the kidnapping of a political activist who claims he was held captive for more than a week and tortured. He was just found yesterday. The man says the kidnapper beat him and drilled nails into his hands among other terrific acts. Peace talks in geneva today. This after eight consecutive days of intense negotiations. Both sides have agreed to meet again. People have been killed in syria during the talks along. Defense secretary chuck hagel announcing that mike rogers will replace outgoing keith alexander. In this position, he will also serve as head command. Connell thank you. Time to make some money with our friend charles payne. This is communication equipment maker. Dagen i know how to communicate, even nonverbally. I can use hand gestures. Connell mark your calendars. Janet yellen on the hill. Dagen do not mock the first lady to run our central bank. Charles when it comes to honor opportunities, that is my gig. I have been talking about these old names that survive. We always talk about the internet bubble. It was amazing. It was huge. It crashed and then flatlined. Let me tell you the last four quarters. Three quarters ago they came in line. Two quarters ago they beat by 80 . Optical security, huge. The business group. The margins expanded. All of the businesses are doing very well right now. A stock that has a tremendous amount. Connell even recently, how recently, you talked about it. Charles i know we have talked about it within the last 30 days, for sure. And area that i like. It is starting to come back really nicely. Dagen even if you said it wrong, i am not going to correct you. Connell a lot of people have been picking the seahawks on our show this hour. Charles lukens. Will continue. I am picking the seahawks. Dagen i have a football question. Which piece of movement has been inconsistent this year . Connell they are the best two teams. Charles seattles gone in with a little bit of a dry spell. They have to travel more. Connell if you watch fox one [laughter] dagen it is the big game. We can talk about some football. Connell they call this guy the company whisperer. Bringing executives the tools they need to stay on top. Dagen if you are watching football this weekend, you have to be drinking some beer. How craft beer, how he is growing the business. What you should be drinking, sunday. Connell here are some winners on the s p 500. [ male announcer ] e new new york is open. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates moreobs, and ows more businesses. Were open to it. Start a taxfree business at starpny. Com. Dagen energy. One of the worst performing sectors of the day. Nicole chevron is really weighing on this group overall. Lets take a look at some Energy Shares that we followed so closely. Bp down half a percent. Chevron down 3 . Lets break down what we have seen with chevron. Hitting new lows today. Global production numbers are to the downside. The refining margin that they normally gather our to the downside. You come out and you see that their numbers are dropping. By the way, shaving off more than 20 native dow points. Back to you. Connell a company that is a huge success. It makes you look like you made it to the top. Staying there is another challenge. They call him the company whisperer, apparently. He was on with us before. Here is what he had to say. The organizations that i work with have enough humility to know they dont know what they do not know. They have those blind spots. Connell recognizing warning signs within your organization. Leadership and growth expert and chief executive. It is good to have you back. First of all, thank you. Second of all, youthat we cut ht day. We were having a good discussion. It is something different. This idea of knowing what you dont know, that must be difficult for some executives when they come to you. Absolutely. I share with leaders, after helping build a company to 1 billion coaching leaders, what i found is there is usuall3 three critical truths. One of them is nothing kills faster than success. The other one is it is a fact, the road to heaven does go through hell. It is worth it. The third one, and this is the one that seems to resonate mostly with leaders, we feel a sense of isolation. We feel like we have to build on earlier success. We end up making 12 critical mistakes. Connell what is next . What do you do next . Will you expand the cell . They come to you and they want to get better. What i am curious about, what is the key to doing that . You are predicting what comes next. Is it data and being able to analyze it, is it gut feeling . What is the key . Connell, that is a great question. A little bit of all of the above. There have been thousands of companies all around. We can exploit the patterns of what the most successful people have done in the past. Success does leave foot prints and so does failure. The things that signal success are Early Warning signs of train wreck that is on the horizon. Connell what is an example of that . They beat their projections for the quarter. They break out the bubbly and they have the celebration only to wake up with a hangover and realize they made a rookie error. They have no way to predict the revenue or attach the marketing dollars and understand how that is driving revenue. I have seen that cost people their jobs and in some cases their careers. They just could not see around the corners. Connell a good lesson on not being complacent. Thanks for coming on again. Good to see you. Thanks a lot. Connell, think you. Dagen the rising stars, maybe what you should be drinking on sunday. Craft beer. See thing you have advice on everything this morning. Jeff flock has a story coming up. Dagen it was looking like a really ugly selloff. Again, the losses cut in in half, almost. Take a look at treasuries. 2. 66. Who called for a rally in treasuries . Chris loaded on this program. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. I am lori rothman with your fox business brief. Consumer sentiment flipped this month. Down from the december number. Thomson reuters index found that consumers are more concerned about lead job growth and upcoming economic conditions. Consumer spending increased in december for the second straight month. It doubled forecasts. Yahoo email users are the latest victim of a Cyber Security breach. They are not providing details of how many accounts may have been compromised. More than 270 million yahoo accounts worldwide. That is the latest from the Fox Business Network. Giving you the power to prosper. [ female announcer ] who are we . We are thinkers. The job jugglers. The up allnhts. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can s, did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped srt over 1 million businesses, turning dreamers into business owners. And were here to help start yours. How much money do you think youll need when you retire . Then we gave each person a ribbon to show how many years that amount might last. I was trying to, like, pull it a little further. [ woman ] got me to 70 years old. Im going have to rethink this thing. Its hard to imagin how much well need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. Connell we said that we would talk about craft beer. Drinking the budweisers and peers of that ilk, i guess. Dagen craft production is up since 2006. Thanks in part to our next guest, dogfish head during founder. I was going to butcher it. It is good to see you. How is business going just for you . We have been really fortunate. Now we are the largest Craft Brewery in the atlantic. Double digit growth in the last 15 years. Our story is not consistent with many craft brewers that are really enjoying growth right now as the recognition comes to the independent small breweries in the towns across america. Connell it is a trend. Why is it happening . It could have happened at any point in historyy more and more drinking it instead of the old budweiser. People are treating themselves with more flavor in their life. I think it is about flavor, diversity and the opportunity to keep the money in your community. Support the local little guy in no where the money is going is creating jobs and Family Businesses right where you live. Dagen talk about how difficult it is. 28 states. We are in a fortunate position where we have national recognition. 1. 2 commercial breweries are opening up in america right now. They certainly do an awesome job at protecting and dominating distributions. The small distributions have to go through to get to retail. Dagen how do you get these, how do you get distribution . Hopefully those states allow the littlest guys to sell directly to the shops until they get big enough to matter. The other thing is the bigger distributors. Now more than ever they are interested in having conversations with the little guy. Connell doesnt that make it more attractive . They want to buy someone like you, for example. We have zero interest. I hope our Company Stays family forever. You are very right. They are coming out with peers that look like they are made by smaller independent brewers. Connell why do have zero interest . What is your reason for that . I would say the biggest reason is i have never had a job other than running dogfish since i was 24. Dagen you are pretty laid back. I am sitting over here like flavor wise, what are you working on . We do a

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