Transcripts For FBC Markets Now 20140205

And nasdaq down 15 points, the sp sitting at 1752, also worth noting we were still on the 5 pullback area where we have been watching for the dow and the s p, the most recent highs, we were off 5 and 6 respectively. In the meantime what is interesting is trading, the market has turned a little bit negative. The fear index in the green at 1953. And the Third Session in a row, the key level as well and save haven of gold up 6. 5 to 2. 6 . Adam we want to turn to commodities. Will prices are wavering on the latest inventory data. Phil flynn is in the trading pits of the cme so supplies rose less than expected. Where are the bigger gains . Those numbers are skewered by the weather in the gulf of mexico. In the gulf of mexico last week we had massive fogs, storms, snow, you name it and oil tankers could not offload for. A lot of tankers are still sitting in the gulf of mexico that they think will get back in non land next week so that is tempering its somewhat. The other thing we are looking at on this market is Strong Demand for product, gasoline and distillate fields up 5 over where we were a year ago. What is surprising is you wouldnt think gasoline demand would stay strong but it is despite the bad weather. L gas, dollar range today. Big explosive move overnight, recovering like crazy. We filled the gap on last months expiration around 570, all the way down to 520, an incredible ride for naturalgas. Even more incredible than the weather we have been having. Dennis cbs will pull all Tobacco Products from store shelves. What does this mean for the future of that pharmacy . Jeff flock joins us with moreein an attempt to answer that question. Jeff deeper into the numbers on cbs and what is clear is pharmacy is a real priority for them. Look at the numbers on cbs camera can compare them to walgreens. Look at the number of stores. 7600 stores compared to 8500 for walgreens. There are 800 minute clinics that claim to be number one in the nation in prescription revenue and get 68 of that from pharmacy compared to 64 for walgreens. A lot of positive p. R. Blitz from this, everyone saying how great they are and praising the ceo. Here is what he had to say. Tobacco products have no place in a setting where health care is delivered. When we asked ourselves where we expect to be in the future as a Healthcare Company it became clear that removing Tobacco Products from our stores is the right thing to do. Jeff for comparisons sake take a look at cvs caremark stock today and compare it to one of the Tobacco Companies like the morris. Look at the one year on that. Cvs clearly outperforming the Tobacco Company up 26 , down 13 for phil morris but today on this news, both stocks i down but if you look at the intraday cvs down twice as much as phil morris so people betting on health or death, i am not sure. I report, you decide. Dennis death and taxes, the only things you are guaranteed. Thank you very much, see you later. Tracking the latest developments regarding pr, standard and poors becoming the first ratings firm to cut the islands debt rating to junk. Joining me now is s ps lead pr analyst, thank you for discussing the decision that isnt he made and i want to quote from that decision. Access to liquidity through the Government Development bank or other in means remained constrained. You could have gone further but you didnt. Part of the reason we maintain the rating at double d plus is there were efforts to curtail the deficit, has narrowed the expenditures and increase taxes that narrowed the deficit and also the government addressed the unfunded pension liabilities by actually addressing the benefit structure of professional liabilities. It is worth mentioning that we have maintained creditwatch negative rating. Dennis you brought up pension liabilities. You also said there is little margin for error over the next two years and operating deficits, lets talk about the 37 billion unfunded liability. The Employee Retirement system is only 4. 5 funded. It would seem this is a precarious situation and what you are saying to investors is the likelihood they would be repaid in full is unlikely. What percentage of the talking . 0. 80 on the dollar . What that means is no longer investmentgrade rating and we believe the rating now reflects speculative measures, the ability to factors like downward trend in the economy, additional liquidity pressures that may result in ratings potential in coming down further. Dennis watching other rating agencies, Charlie Gasparino wanted me to ask you, fox business understand this and he met with other rating agencies last week. What happened at that meeting . Are we going to see downgrades from the other agencies . Can you talk about that . I cannot say what the other agencies might or might not do. We did not meet jointly with other ratings agencies. We met with insurers and derived information from the insurers, not the ratings agencies and that drives the analysis. Dennis you didnt meet the other rating agencies. Did you meet with people from puerto rico, from the gdp and what happened at that meeting . Correct. As part of our criteria we request information from the insurer and the insurer provides information. That information we obtained through meetings with them and phone conversations. Dennis what kiid of deal was puerto rico trying to lay at your table to say dont downgrade us . Information to try to highlight efforts that this administration has made in terms of balancing the budget and trying to achieve a balanced budget that we take that information and perform independent analysis and opinion represents. At this Rating Action dennis one last question. In regards to pension liability is being challenged in court. Pr has to come up with an additional 140 million should the plan to deal with teachers retirement goes through, it seems to me when you say you have little room for error over the next two years the big mistake waiting to happen. This assumes the reform of the teachers Pension System will go through as planned, challenging the courts will be a result shortly and as you mention it will represent in the short term in the short term and additional cash infusion to the system but one that will be less than would otherwise be had the benefit not changed. That is going to be closely monitored as the commonwealth develops its fiscal 2015 budget. Dennis we appreciate you being with us. The Puerto Ricans government promises to have a balanced budget year earlier based on all of this turmoil going on. We want to shift our attention to the implications this move could have on the market and your investment. Especially retirement investments. The head of municipalbond peter hayes joins us. In december on this program you told us eventually pr will have to restructure. It seems this is the first step and any day we would get a downgrade. Am i wrong . I think you are right. They obviously, we have two more agencies and have to weigh on the rating but last summer the debt has been trading below Investment Grade reflective of the weaker credit profile. Nonetheless. Nothing fundamentally has changed. The administration which has been in place for a year has done a good job raising taxes trying to cut spending taking some other measures which the s p cited and the reason they went to should doesnt change the fundamentals. Economy is contracting, not expanding. They are overleverett, demographics are not good and we conducted to detroit for that, population is falling. About of intellectual capital of the island is leaving and that means they are taking the ability away from the commonwealth to repay the overwhere ever did that which has been so burdensome and ultimately that means they can grow their way out, they have to restructure. We think that is the game for pr. Dennis overnight because of this downgrade dont they need to come up with a billion dollars in capital and accelerated payments to current bondholders because of what s p did . Each of the downgrade comes with a penalty and a penalty triggers certain payments that have to be made to banks and other Financial Institutions and they will try to renegotiate those and you can read between the lines and restructuring type of outcome so that is the case. If there were more downgrades which we expect in the next 30 days or sooner you will seem more Cash Payments that need to be made putting further pressure on already stressed fiscal situation so is not a good situation for pr. Sometimes the best alternative is to restructure early and we think that is the case here. Dennis stuart get a second downgrade does that require what morningstar says, 70 of me any bond mutual funds in the country have a pr debt, some of them have to sell that. Isnt that the next shoe in . It probably is. The selling, that is a great question because it goes toothe question about what will the impact be in the Broader Market which is healthy. This is only a segment of the muni market but a fall of a sudden investors begin to think the rating downgrade has big implications and a lot of funds with the explosion to pr will be negatively impact and they still selling put pressure on the Broader Market. Most funds point to two things. Typically is the time of acquisition so you look at the rating when they buy it. Not necessarily forced to sell when a downgrade occurs but i would be careful about the 70 number. I have seen that number for some time but there are types of pr pre refunded bonds which are backed by u. S. Government securities. The number might be smaller but clearly there is a lot of exposure out there both in funds and investor portfolios and i think has to shake out as puerto rico plays out. Dennis not unexpected. We even saw some Puerto Ricans debt trading today at levels higher than it has been in the past because this is a sigh of relief for investors. Appreciate your being with us. You are an important voice and you help us understand it. Later in the program Charlie Gasparino is going to join us on the firms that cannot resist the returns. Who is buying puerto ricosafter the s p downgrade and wind wont charlie take my bed over dinner about the future for puerto rico . We will challenge him when he joins us later this hour but right now but come back on the dow, maybe. Stocks at session highs. Racing trip be erased losses earlier in the session. Raymond james, chief investment strategist on why we are nowhere near time to sell. Retired soccer star david beck come fly south for the winter, the latest on his plan to franchise and mls team. We will tell you where. After a strenuous workout one of the worlds best athletes reach out to quench their thirst, how about this . Water from sochi. That picture has gone viral. What was that . Swill water. The water of the hudson river. Back in a moment. [ 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 sart a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. [ male announcer ] youre watching one of the biggest Financial Services cpanies in the country at work. Hey. Thanks for coming over. Hey. [ male annouer ] how did it come to be . Yours . Ah. Not anymore. Its a very short story. Come on in. [ male announcer ] by meeting you more than halfway. Its how edward jones makesense of investing. Dennis Nicole Petallides on the floor of the stock exchange, you are looking at todays big losers. Nicole looking at our losers we have seen retailers coming under pressure from the transportation index which has been under pressure as well. Lets look also at the Dow Jones Industrials up 21 points. We have seen backandforth action throughout the day. The high, we see it moving 15,473, we are less than ten points off of the highs of the day. A big move to the upside, still down for the week down 1. 4 for the Dow Jones Industrials, down for the s p 500 down 1. 5 and still in pullback mode, 5 or more off of the highs of these indices. Not great for the bulls out there, very crucial time in the market. Dennis thank you very much. The s p 500 not below the 200 Day Moving Average, 1709. Can it hold at these levels or are we in store for future declines . For that lets turn to the Senior Investment strategist for raymond james. You are optimistic. You think the naysayers who think we will break through 1709 are wrong. I have been on stocks the dozen times in january basically saying the latter part of january and first part of february were due for some kind of pullback. The question is is it 5 or 7 or 10 to 13 of fare . A 7 pullback which is the kind of pull back you get takes you to 1719. I am of the view we are in a secular bull market that if we do pull down into the area, i am not in the naysayers crowd. The 200 Day Moving Average holds. Dennis a lot of people are very intelligent and others like to sound as if theyre very intelligent talk about the Federal Reserve and the run up in the market we enjoyed in 2013. The term you use for these people in talking about the feds keep program monetary cocaine but you disagree that the runup was specifically because of q e. Why is that . I think at the margins the injection of liquidity into the Financial System and the Banking System absolutely had something to do with the run but what people forget is in 2008 the bottom up operating s p earnings were 49. 50. This year they are estimated to be between 120 one dollars, and 122. So you have almost tripled earnings so it is not just the liquidity that has been injected. Equity markets do not care about the absolutes of good or bad. All equity markets care about are acting as Getting Better or worse . Things are Getting Better as exemplified by the increase in the earnings we have seen since 2008. Dennis private sector payrolls, adp report not as high as expected. Would do you think will happen friday . That will have an impact on the markets. It will be impact full on a shortterm trading basis but we have been adding jobs, we lost 8. 8 million jobs in the slow down, we recaptured a. 1 million of those jobs. In the next few months you will recapture the 8. 8 million figure and typically when that happens you get a pickup in Capital Expenditures so you will get an increase in capital exppnditures this year, that will lift gdp growth to 3 and i would argue 3 is pretty decent in the climate we are in. Dennis to wrap up we had different guests who set for 2014 they expect thet give or take 2 , nothing spectacular. Do you think they are misguided . Will it be better than that . I do. The Federal Reserve will expand by 12 or 13 . Theres a high correlation between the expansion and the Federal Reserve Balance Sheet as well as growth in earnings which are expected to be up 13 so it is reasonable to expect a return to the s p, total return of 10 to 13 . Dennis thank you very much. Raymond james, all the best to you. Ready or not, here come the olympics and for sochi is looking a little more like the latter. The mindboggling images of the lastminute scramble to get things ready in russia. No sleet and freezing rain from the plains to the northeast, the forecast which could draw as much as 15 inches of snow coming up next. Welcome back. How is everytng . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes 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 o rate. Simple, flat rate shipping with the reliability of fedex. I am Gregg Jarrett with your fox news minute. And bird through killing one person in china. That strain previously unknown in humans is called h10n8. Infected 300 people in that country. The United Nations Human Rights Committee strongly criticizing the vatican for adopting policies that allow priests to molest tens of thousands of children over decades. The Committee Also says the church should change its rules on abortion and teach sexual education in catholic schools. The vatican says it regrets the committee attempted to interfere with Catholic Church teaching and the exercise of religious freedom. New developments in the death of actor Philip Seymour hoffman. Police in new york arresting four suspects who may have supplied him with drugs. The oscarwinning actor was found dead over the weekend inside his manhattan apartment with a syringe still in his arm. Those are your news headllnes on the fox business network. Back adam. Adam that Winter Weather is hitting millions of people across the country. Columbia, missouri, the heart of the state facing up to 8 inches of snow. For the north in chicago, the windy city expecting 6 inches of snow. So is boston. The city getting slammed once again. In new ork we are dealing with freezing rain and it is not over yet. Meteorologist janice dean is in the weather center, we are not out of the woods. The evolution of the storm as it moved across the midwest, some oyster across the gulf of mexico now moving in towards the northeast, some really good snow totals across kansas, 15 inches. A lot of areas got a foot in parts of missouri, indiana, illinois, iowa getting 6 inches. There is the storm, that wintery mix along the coast, interior sections dealing with a snow event and we did get one to three inches on top of what we have seen and certainly close to two feet. Anything on the ground that is moisture is going to freeze tonight and it is going to remain frozen for the next couple days so your lows to new york city 17, philadelphia 22, that will make driving treacherous tomorrow morning. Keep that in mind. Along the northeast dealing with lows in a Single Digits and teams in the 20s heading into friday. We will not get above freezing. Then we watch this storm system. A couple things with this. This is the one were watching for the potential of a noreaster this weekend. The good news about this storm is it will bring muchneeded moisture to the west. Look at the moister we will see in california that is into extreme to exceptional drought. That is the good part of this but we will track this storm system as it makes its way across the east. Watching the couple models, not the blockbuster some folks were predicting earlier this week. Still need to monitor. I think we will get a snow event across the northeast but i dont think it will be the monster everyone is talking about on twitter and facebook. Adam we will keep our fingers crossed. The Winter Olympics are kicking off tomorrow as the Opening Ceremony friday, if you plan on watching the game stateside, that is the right idea. The olympics in sochi have been filled with problems. Hotels for people attending the olympics are not completely constructed. They are not only sidebyside, without a stall for privacy, they dont flush. With the paper. Use your imagination. One of the united statess most famous athletes, sean whyte, has backed out of the slope style snowboarding event stating that the event courses too dangerous after spraining his wrist during a training accident. But perhaps the most disgusting image to surface from sochi is this. It is not whiskey. It is water from a hotel room in the city. The hotel warned its guests not to let the water touched their faces. That says it all. Could be dangerous. Bigname earnings due out after the bell. We got you covered. Disney, pandora, yelp and twitter set to report and options are pricing in, what you need to know before the social media giants first Quarterly Report since going public in november. That is now. [ female announcer ] who are we . We are thinkers. The job jugglers. The up allnhts. And the ones whourn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can s, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Adam the dow is clinging to green after tripledigit losses. Nicole petallides on the floor of the New York Stock Exchange. What have you got for us. 130point swings from top to bottom. The volatility is back here on wall street. The dow is down nearly 7 for the year 2014 t has been a tough go of it so far for the major averages. Standing at the post for mgm. Las vegas sands and wynn also to the downside this is because faming revenues in macau seeing the slowest growth since october of 2012. Still making money there but the a slower pace. The analyst expects things to improve. There are no new Hotels Opening this year, no new casinos opening this year but eight new resorts over the next three years. We have something to look forward to over the next few years. Back to you. Adam Nicole Petallides, first round is on you. Thank you very much. Twitter and pandora are among the big guns reporting after the close today and investors are anticipating some major postearnings moves. Sandra smith is standing by with a preview of what we can all expect in todays trade. Sandra. Adam, i will get to the expected moves the Options Markets are pricing in. But you teased wall disney. Walt disney shares moving back near the high of the session. Earnings are after the bell. Profits are up 16 at disney. Youre seeing optimism reflected in the stock, up a third of a percent. Remember that hit movie frozen. That is expected to give the Media Division a big boost. Then twitter and yelp. I want to look at pandora shares because pandora shares moving back up their highs of the session. Analysts expect a lost improvement on pandora shares. On a yeartodate basis up 34 this year. It has been a big winner. Lets real quick get to twitter. This is the first report from twitter since the company went public in november of last year. If i put up a oneyear chart you see the company has gone up 150 since then. So these are big reports to watch, guys. If we flip through right quick, twitter, 2 cents on 217 million. If you flip that to pandora, guys, sorry for twitter, two cents, a loss of two cents on 217 million. Guys end on the last full screen real quick, get to the expected moves. Are we going to get there . Expected moves, twitter 13 . Yelp 13 . Pandora, 11 . Bottom line, adam. You better watch these reports after the we because big moves are expected in tomorrows trading session based on what is happened after the bell. Adam you know what is amazing, sandra . Pandora. I can imagine Internet Radio but pandora controls that market. They have a huge audience base. Listener base will be huge. The goal is to build the pay user listener base. The question is, can they do it . Adam sandra smith, thank you very much. Dont forget it is the little bluebirds moment to shine as investors wait into the first glimpse of twitters progress as a public company. Joining with us a preview a Senior Analyst at wedge partners. Thank you very much. A lot of people were on our broadcast during the ipo saying that this stock, people were paying too much for it. So far those analysts have been wrong. Is twitter going to prove the analysts wrong when they get earnings today . Thanks. First of all thanks for having me. This is the case of the companys first public quarter reporting and a lot has to do with expectations. Right now you dont value honestly twitter traditional way of valuing the group. Google is very mature. Facebook is somewhat more mature. With twitter, my question is laid out a longterm profit target of 35 or greater. I want to see how they get there. Theyre not getting there today. I think layout a pretty Clear Strategy today and going forward. I dont think it is excessively valued but in a near term perspective i understand why some people come away. It is just not my thought. Adam it may be fancy new technology but at end of the day it is about oldfashioned greenbacks. Twitter with the partnerships with tv networks and incredible use of people tweeting during reallife broadcast and concept of realtime marketing will they be able to show in the first report that they are monetizing that properly. I dont know if you will see in terms of deels with with super bowl and volume of tweets and so forth. It is kind of greenbacks. Like google and facebook, this is about very simple advertising and use and consumption and people looking at tweets, looking at facebook posts and advertisers targeting. That will have a lot more to do with it. Headlines important longer term but those simple clickon ads is what is really driving the company. I think i will attribute this to you, if im wrong, correct me, i think you wrote twitter has promising or more attractive revenue opportunity over the long term, than facebook. If that is what you wrote, explain that is. I thought facebook is the powerhouse. That is me on it. I will take the credit or blame to see how it turns out over time. Twitter is 10 the size of facebook in terms of revenue. When you kind of compare and contrast, trying to say winner and ones a loser, i dont look at it that way. Fast book is a social network. It is about more conversation and chatting and sharing photos. Twitter is some of that but has a Business Purpose to it. You dont have to use it in your job necessarily but going out finding information, being alerted to what is important or not. Follow and unfollow things very anonymously. I think advertisers are actually as crazy as it may sound to some because facebook is so much bigger are actually looking at twitter saying you know the consumer that is looking at a tweet and then going within say a timeline is actually more active than more than i want to target than the casual facebook user. Adam martin pyykonen, i know well be glued to our computer terminals at 4 00 p. M. Thank you for joining us because were awaiting twitter. Thank you. Adam tune in to after the bell for full coverage of a todays earnings at 4 00 p. M. List claim, david asman and Dennis Kneale explaining all the Earnings Reports. Now rolling the dice on puerto rico, back to that. Charlie gasparino talks about the tremendous buying after s ps downgrade. Bending it like beckham. He is looking to franchise his own mls team. Well tell you where next. [ tires screech ] chewleys finds self in a sticky situation toy 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. Wherever you are with the mobile trader app hi, are we still on for tomorrow . Tomorrow. Quick look at the weather. Nice day, beautiful tomorrow. Tomoow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one glon of fuel. What a day. Cant wait til tomorrow. 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 more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Im Melissa Francis with your fox business brief. The price of coffee has risen 26 in the last seven sessions. It is the largest sevenday advance in 14 years. One of the factors, the impact of brazils heat wave on coffee production. The National Football league has reached a deal with cbs to produce and televise eight thursday night games. The eight early season matchups will be simulcast on the nfl network. Tonight at 5 00 p. M. Eastern on money, more than 1,000 federal workers are suing the government over that shutdown last october. Weve got a corrections officer seeking damages from uncle sam. What would the classaction suit cost you . And is it worth it . That is the latest from the fox business, giving you the power to prosper. Adam you heard the public story on why s p downgraded puerto rico but how about what was happening behind closed doors . Charlie gasparino joins us now with the inside details on why s p went through with the downgrade and how wall street is responding. We should point out you got at some of this in your meeting with the s p analyst that actually did the downgrade earlier, i guess moments ago. Here is what i know from people that deal in the bond markets and deal with the ratings agencies. What they essentially said is this. This downgrade came after meeting puerto rico had, puerto rican finance officials had with s p and moodys last week. At that point the meeting was described as quote, unquote, from ratings standpoint was disasterous. They did not, puerto rico, whatever they told s p and moodys did not live up to what s p and moodys wanted. What did they want . Guaranties on fairly big cuts to budgets and pensions. A big dollar, billion dollars worth of bonds issued, guaranteed that. Puerto rico did not want to do that, based on all the stuff going on they would have to pay a huge coupon on the debt. I heard the coupon could be as much as 9 . Adam they have the ability to issue anywhere from 500 million to two billion. They havent done it yet. Theyre coming to market. I heard theyre not going adam not going for the full 2 billion. Not going for the full 2 billion. That is what s p and moodys would like hem to do. What is going on behind the scenes inside the ratings agencies office. They are worried clearly puerto rico will back off budget cuts. They are worried about liquidity because they dont have good access to the amount that they want. They are worried, coming from someone deals with ratings agencies, a greeklike situation. Say all the right things, cut, do this, there was a protest. Adam already having protests in puerto rico. Then you back off. Adam Court Challenges to the restructuring in puerto rico. That is what theyre worried about. Lets back up. Here is a interesting right turn from the story. As we are reporting that, you know what may be hitting the fan in puerto rico adam people are buying debt. People are buying debt. Both the cofina adam that is spanish acronym. Spanish act crow fpl and g offs which are not backed by taxes. Backed by the general obligation from the commonwealth. Yields have narrowed an prices gone up over past month fairly dramatically. Adam one this morning was trading 67 cents on the dollar. Yesterday was 68 cents. Go yields, went from nine to eight, okay . Getting 8 , that is still pretty good, still pretty high, still distressed but im telling you, share a little story with you but im outside today and my phone is ringing which is ridiculous adam traders telling you to buy those bonds. Im outside talking about this hit with another source of mine, i overheard trader say buy me cofinas and gos. Adam that is the question, why go out and do that. This is not for the faint of heart. If you buy both of those, triple taxfree. Adam money in your pocket. Reeled yield real yield a lot happen. You betting the default is not happening. You clip the very big coupons. Do you think it will happen to default . Adam just so everyone understands, the reason were paying attention to this is so many people without knowing it have Retirement Fund tied to puerto rico. Huge muni bond. Adam you and i disagree. I call a restructure a default. Technically it is not a default. But if youre taking 82 cents on the dollar when you were expecting 100, what are you going to call it . That is what is going to happen. Peter hayes was on this program saying there will be a restructure. There will be a restructuring but we dont know when. Until then youre buying trading. Distressed guys what does a Distressed Fund do . A Distressed Fund generally buys bonds of bankrupt companies, thinking if you own the junk, you have a place at the table, okay . You may not get, you get at least, what you put in. If it is 20 cents on the dollar, you might get 25 cents on the dollar, based on everything said and done, when they whack everybody up. Municipalities are a little different. If youre out there looking to gamble on this thing, if youre a municipality, sometimes they stiff bondholders as they did in detroit but you have to bet on the default. Im not sure theyre going to default. Adam restructure will have to take place this year. They run out of money june 30th. Just today you have to come up why do they have to restructure . They dont have the money to cover deficits this year. Dont have money to cover deficits this year. Who is going to buy those bonds . They are buyering them but they have to come to market. Come to market a 9 coupon heres the thing, if they do a billion or two billion, from what i understand the mull monty, the two billion, that is where 9 coupon kicks in. That is a lot of money, i will use a vulgar analogy, would you give cocaine addict cocaine to wean them off the drug . That is essentially what happens. It works. Ive not taken methadone. Adam i understand. I know people have. Methadone works. That is what this is, is methadone. Adam Charlie Gasparino, this is issue were all paying attention to and youre on top of it. Okay. Adam the dow in the green after big morning losses. We want a check on the action from Jason Weisberg from seaport securities on the floor of the New York Stock Exchange for us. Jason, we have some different opinions where were going to go. Where are we right now . Were up 18 points. Have we avert ad correction or are we in danger going to the 10 side . I think were probably still in the danger zone but, you know, i think that the danger zone is probably now a great description because i think in order to continue the sustained bull run we need some form of correction. We never really got it last year. I think were possibly in that correction mode now. I think that will bode for a really great finish toward the end of this year. I dont think we have to wait toward the end of the year to see at that upward move. I think right now when you see these selloffs, there is not egregious volume that accompanies them. It is market showing you there is lack of a bid. Not that theres, volume selling. Adam Jason Weisberg. Thank you very much for joining us from the floor of the New York Stock Exchange. News for you. David beckham is getting a warm welcome in miami. The soccer superstar revealed he is moving forward with his plans to add a Major League Soccer team to the city by the bay. No, that is San Francisco. I should know, i grew up in miami. It is a sunny place and nice place to be. Beckham retires last may but hold as 24 million option in his contract to start a soccer franchise. The mls is working with miami authorities to build a brand new stadium for the team to be funded by beckham and his partners. No date for completion of the venue or when the franchise might join the league. Thinking of snow, go to miami. Were live on the streets of chicago, not miami. Where the relentless bad weather has stockpiles of salt running dangerously low. When does your work en do it end after youve expanded your business . After your companys gone public . And the capitals been invested . Or wn your compans bought another . Is it over aft you given back . You never stop achieving. Thats why, at barclays, our ambition is to always realize yours adam another round of snow hitting cities across the country, leaving traffic delays behind it. It is not stopping mike tobin on the road in indiana braving a nasty winter storm. Where are you, mike . Were in northwest indiana, on i65 headed northbound. I should be able to show you and headed north to look at the external camera, a remnants of a big wreck, pileup of four semitractor trailers that jackknifed jackknifed in the northbound lane going fast in the slick conditions. The good news about this, there wasnt much in the way of injuries. Two people were injured. Nothing that serious. What you have is what you see here, all of this snarled traffic. Seems worst of the weather passed at least this area. The southbound lanes are pretty clear. It was been pretty slow in the northbound lanes. There is still a lot of snow on the road and the road itself is pretty slick. Not as bad as the airports. 400 Flights Canceled out of ohare and midway. That will snarl everybody else. Another complicating factor is salt. The winter has been so brutal that everybody has eaten into the stockpiles of salt, all municipalities. As we look at external camera you see one car off the road. It is difficult to get more salt now, because the mississippi in particular is frozen over and barges can not make their way up, adam. Adam mike tobin. If you get off the toll road into south bend, it is studies. Be safe. Got it. Adam if youre braving winter temperatures you may want a coat like this. The man who designed joe namaths super bowl fur coat and he will joins us to talk about a sales boom. Cvs is pulling cigarettes out of its store. Will legalized marijuana eventually replace them . Tweet us. Cheryl casone joins me for the next smokin hour of markets now. Welcome back. How is everything . Theres nothing like being your own bo and my customers are really liking your flat rate shipping. Fedex one rate. Really mas my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Manageme couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliabili of fedex. Cheryl another jamming hour of markets now. Im cheryl casone. Adam im adam shapiro. Cvs is pulling cigarettes out of its stores. Will legalized marijuana eventually replace them . Tweet us. Full coverage of the cvs story and effect on tobacco stocks and your tweets next. Cheryl where the jobs are, with private Sector Employment growth slowing in january according to adp we have a guest on the very hot Technology Jobs market. A lot of jobs there. Adam tomorrows business today. Robots replacing soldiers on the battlefield. We have two guests on ways you can make money on it. Cheryl you dont want to miss this one, seriously. The man who designed broadway joes super bowl fur which has its own twitter account now. He will be with us. He will talk about how business is booming thanks to joe. Coming up on very welldressed hour of markets now. Do we have furs ready to go . Adam i dont wear fur. Im not against it but i wouldnt look good. Cheryl busted out grandmas fur. Adam she had a sable coat. Cheryl there you go. First, top of the hour. We do this every 15 minutes. Time for stocks. Lets go to Nicole Petallides on floor of the New York Stock Exchange. Nicole, what are you watching . Were not too far off the session highs. Were moving higher. Were up 21 points, whopping points, not a big move. But the key here you do have green on the screen for the Dow Jones Industrials, okay . That would tack on to yesterdays gain. However still negative for the week because we lost 326 points on monday. That is not so easy to make up so fast. Nasdaq is down one quarter of 1 and s p virtually flat at 1754. Slightly downside of one quarter of one point. The vix, the fear index is off the earlier highs. Look at 3d systems. Had to caught their quarterly profits. Not good news. Mixed bag there. They are seeing falling consumer demand for prints but good for the printers. The stock is down 15. 5 for 3d systems. Been a great performer for last 52 weeks but down today. Adam Nicole Petallides, thank you. Cvs is pulling cigarettes out of its stores but will legalized marijuana eventually replace them . Your tweets run at bottom of the screen. We have jeff flock on the full impact on the story of cvs and impact on tobacco stocks. I will show you in a moment what the street thinks of this in if a second. What do you think the is biggest chain . What is the biggest drugstore chain in america . Is it walgreens, is it cvs, which do you think . Adam i would have said eckerds but walgreens. But, the answer is kind of depend how you count it. But first lets take a look at impact of this first of all on cvs caremark. What is the hit boeing to be from taking cigarettes off the store shelves . It is 2 billion. Take a look at it. That breaks down to 17 cents a share in terms of earnings although this year they say earnings will only be impacted by six to 9 cents a share because only obviously part of the year. They say there will be no effect on 2014 profit guidance. Announcement made by it ceo of cvs caremark. Listen to what he had to say. It is the right time and the right decision to remove cigarettes and Tobacco Products from our store shelves. Positioning us for a growing role in the Health Care Delivery system. Now the answer to your quiz in terms of cvs versus walgreens, whos bigger . If you count numbers of stores, put the numbers up there, numbers of stores it is walgreens, 8500 stores. Almost 8600 to 7600 for cvs caremark. But if you look at revenue it is no contest. Much more revenue generated by cvs. They tell stuff that costs more. Why . Because larger percentage of their revenue comes from pharmacy. And that is part of the thrust of this. The clinics, by the way, the take care clinics versus cvs, their minute clinics, a larger number for cjs caremark, 800, versus 370. I want to leave you what i promised you a comparison of the stocks. How they are doing today and how they did yeartodate. The big three walmart, i should say, walgreens, cvs and rite aid, no eckerds is not in there, adam, sorry. Look what they did today. Obviously a hit for cvs caremark. The others are doing better f you look at the oneyear though, cvs was doing great. Today, not so much. Adam eckerds is gone. Mccrorys is gone in coral gables, florida. Exactly. Adam jeff flock, thank you very much. Cheryl the private sector adding 175,000 jobs in the month of january. That is according to adp. We got that this morning but that did fall short of the expected 180,000, that was the estimate. As overall job market struggles to recover, the Technology Sector is helping lead the way in job creation. Could you think that adp has it right this morning . Yeah, there is generally a pretty good correlation but they do different times. I think number will be a little higher from the bls. Hope it is better than december, 74,000 . It cant help but be better than december. Cheryl what do you think about that the january effect wasnt a market claim, it was unfortunately a jobs claim. Trucking companies, construction companies. Couldnt get workers out to the sites. What does that mean . Weather does have an impact. You saw it in car sales. Theres a correlation there too. So i think it will have some damping impact. There are a lost professions unrelated to the weather and technology is one of them. Cheryl technology certainly is. Discuss technology and unemployment, in the 3 range right now. That is currently. Do you expect that to fall in 2014 even 15, 16 . Is it that hot right now . It is that hot. It has been in the threes. Occasionally touches the fours. I expect it to be continuing in the threes. Hard to get a lot lower. Economist was say that is full employment or near full employment. Cheryl do we have enough qualified workers to fill stem jobs, science, technology, engineering, math. Right now we dont. Were not producing enough from colleges and demand for those people is so high, we cant possibly meet it. Cheryl where are the workers going to come from . Im assuming from overseas no. Some is overseas. There is investment at the college and University Level in creating more stem programs. So theres a lot of that happening. Some has to be retraining. We have to retrain people from other profession figureses into technology. Cheryl i was looking at some of the, like the november jolts, data from bls. 446,000 professionals quit in that category. Is this tech specific or do you think that build in professional services weve seen recently is a bigger piece of that number from joots . I think it is tech, not uniquely techspecific but i think tech is a big part of it. You have pentup demand. People are being offered more money. We do a Salary Survey every year. We saw silicon valley, salaries increased by 7 last year which is the highest weve had. Related. But average home in the bay area is what about 500,000 . It is high. Cheryl it is expensive, it is high but you say the salaries are equating to home prices at least in the bay area . Yes. Cheryl silicon valley. So one drives the other. Higher salaries drive demand for higher priced homes. Higher priced homes require salaries to get people to work there. It visiterrous circle. You have a lot of twoincome, twoearner families but the demand is so high that companies are going after the same people. Cheryl well, those people that they come to new york city want to work in our tech sector, get ready for sticker shock with home prices in the new york area. Mike, thank you very much. Appreciate it. Adam bet youre getting tired of this, airport delays galore as yet another snowstorm socks the big cities on on the east coast. Were live at bostons Logan Airport. Cheryl oh, that looks like so much fun. How about driving this around in all that snow . A one wheeled motorcycle . His designer is ahead on why he came up with it. Adam up next, that coat, the man who designed broadway way joes super bowl fur coat joins us and his business is peopling. He may get cheryl to try one on. [ male announcer ] e new new york is open. Open to innovation. Open to ambition. Open to ldids. 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 more jobs, and ows more businesses. Were open to it. Start a taxfree business startupny. Com. Millions have raised their hand. R the proven relief of the purple pill. And that relief could be in your hand. For many, nexium helps relieve heartburn symptoms from acid reflux disease. Find o how you can save at purplepill. Com. There is risk of bone fracture and low magnesium levels. Side effects may includheadache, abdominal pain, and diarrhea if you have persistent diarrhea, contact your doctor right away. Other serious stomach conditions may exi. Avoid if you te clopidogrel. For many, relief is at hand. Ask your doctor abouxium. Adam check this out. Live pictures from seattle where the super bowl champion seahawks are about to enjoy a muchdeserved celebratory parade. Half a million fans are expected to brave temperatures in the 20, its a heat wave, to celebrate the first super bowl victory in downtown seattle. This, cbs has won the right to broadcast eight thursday night nfl games during next season. Those games will also be simulcastton the nfl Network Cable channel. Phil simms will be in the booth for those games. Shares of cbs are up more than 36 in the last year. Cheryl football is such a profitable business, they should put it on every night. Bring in the advertising. Adam then you get saturated. Too much. Cheryl the bilge etf star of the super bowl was Seattle Seahawks Russell Wilson you would be wrong. It was joe namaths flashy new fur coat, first spotted when broadway joe came on the field for the coin toss which he screwed up by the way. It has its own twitter account. Three days later business is booming for the maker of this coat and the flagship store. It happens to be that store here in new york city. Guess who is on set with us . The owner of kaufman furs and designer for broadway joes coat. Mark kaufman is wearing the same coat, correct. Correct. This is the exact same coat we sold joe. Cheryl when did joe buy the coat monday . He was in my place on wednesday. He came in, asked me, said he was doing the to incosmos cost coin toss and wanted something special. What do you have for me . Adam you showed him this originally . What kind of blue is this, so this is blue and dyed, right . That is blue ming. Adam mink you showed him this and this is the first mink i showed him. He picked out half a dozen things. At end of the day he went back to the first piece that. Is 3,000dollar coat . Right. Cheryl how is business . Are more customers coming in . The coat has a itwer account. Im sure you know that by now . Business is booming. How much would you say . I would say 500 . Cheryl really . Because weve got, your partner is modeling that chinchilla coat which is the softest thing that you could ever feel that yyu can talk about in prime time television. And it is, i mean, it is stunning but is it cold weather driving your sales or just the demand for fur coats . The demand is strong. Cold weather is basically the catalyst of fur sales. And basically with me, and all the things were getting on it, my website is blasting. It was five times the amount of hits as normal. Generally give me some nice business. Cheryl i still live on the west coast. One thing i could found interesting you could not wear in fur in San Francisco where i was living. You would be attacked by activists. Here in new york it is much more acceptable. The idea of buying a brand new fur coat and peta and other groups say it is the wrong thing to do . Does that worry you . There is activityies almost everything. Whether it is furs, whether it is health care, whether religion, whether abortion, everything coexists with each other. Cheryl hand me this other coat. It is beautiful. I think this is ladys coat. Yes. Adam expect to see these kind of coats in very cold places, denver, here in new york. But also you were telling me that the big markets for these coats, russia, where else. Russia and china was number one in the world today. Usa was number one but there, new economy in russia and china brought in tremendous. Amount of business. Adam chilly in the studio. Cheryl would like to wear this. Cheryl it is happening, i knowr coats. There is 200,000 fur coats also. Adam you look really good actually. Cheryl that is 8500 . 8500. Cheryl no problem. I get a little belt as well. It is beautiful. Congratulations at least, on. , i mean again you must have been so surprised by what happened. Adam you have diddy and other celebrities. Yes. We won the super bowl twice. Jo got a second ring. Cheryl by the way, have you talked to him since the super bowl . I spoke to his attorney yesterday. Everyone was so happy with the results. Cheryl was he upset about the fact that the coin toss was a little messed up in the beginning . Had inexperience doing it first time. Now second year, had a little problem. Cheryl marc kaufman, kaufman furs. Thanks for bringing coats. Thank you for having me. Never know what happens in pop culture. Adam better get the coat back from her. It is warm and it is cold. Cheryl i will give ii back, i promise. Hold on a 2nd. Adam quarter past. Well check markets and Nicole Petallides on floor of New York Stock Exchange. Im a little chilly. I think i need a fur coat. Just kidding. Elizabeth arden and estee lauder, two names were watching. Elizabeth arden, profit dropped. Weaker sales. Lets see what Elizabeth Arden is doing. 11 1 2 drop for Elizabeth Arden at 23. 70. Good ol estee lauder is down 5. 4 and this is real global story here for Elizabeth Arden. Theyre seeing sales slowing abroad namely in china and also in europe. Theyre seeing it and giving estimates below the Analysts Expect takes. So that is not good news. I left out south korea, another area where theyre seeing slowing. So the forecast here for estee lauder is also weak. Two names were seeing very welcoming under pressure. The dow is up two points. Back to you. Adam nicole, thank you. Cheryl snowpocalypse pushing Natural Gas Prices to multiyear highs. Using to heat many homes at its highest level since january 2010. Look at fiveyear. Adam the snow keeps coming and coming for big cities of the east coast. Another really big storm may be on the way this weekend. Well go live to boston ahead on the costs to business and government. Also an American Idol winner is running for congress in north carolina. That story is ahead in your fox news minute. One of the miller twins has a hearing problem. And shs fed up with the dail hassle of her old hearing aid. So she got a lyric in her life and everything changed. Which one . Youll never know because the lyric is in her ear. 100 iisible. Becayou cant see it,in her ear. And its the only device that works round the clock with zero daily hassle. No batteries to change. No taking off d putting on everyday. In their report, a leading newspaper said lyric appea to have overcome many of the problems associated with traditional hearing aids sound good . Call 1 800 350 3292 now for your risk free 30 day trial. This is the lyric. Its teeny. Its soft. Lyric fits comfortably at the sweet spot right next to your ear drum for truly natural sound quality. In fact, 95 of lyric users prefer lyric sound quality toheir old hearing aid. It sounds like the hearing that i remember hearing when i was young. And finally i was able to hear what people had to say and i hadnt realize id lost that much in those years. The quality and clarity of sound is unlike anything ive experienced. Now the miller twin with lyric can hear and do most everything her sistedoes twentyfour seven. So which twin hears clearly now . Both of us call 1 800 350 3292 right now for your risk free 30 day trial and experience hearing with zero daily hassle for yourself. Lyric is effortless. It gives me complete freedom. Once theyre placed in my ear, i never think about my hearing loss again. Showering is not a problem. Traveling is not a problem. Theyre hassle free, theyre 24, theres no maintenance, theres nothing to do. Theres just absolutely no reason not to try it. 100 invisible hearing is wonderful. Finding one that works 24 7 with no daily hassle is just too good to pass up. So call w and ask abouyour risk free 30 day trial. Get a lyric in your life. At 21 minutes past the hour im Gregg Jarrett with your fox news minute. New developments now in the death of actor Philip Seymour hoffman. Police in new york arresting four suspects who may have supplied hoffman with drugs. The oscarwiining actor was found dead over the weekend inside his manhattan apartment with a syringe still in his arm. Meanwhile the medical Examiners Office says more tests are needed to determine exactly what killed him. Russian president Vladmir Putin insisting that sochi is ready to host the winter games. Russia has taken seven long years and has spent more than any than any other country ever building olympic venue. Two days before the opening ceremonies, some hotel rooms are not finished and electricity outages occasionally disrupting the security measures. Former American Idol contestant clay aiken is running for congress. The 35yearold will seek the democratic nomination for north carolinas conservative second congressional district. That democratic primary is scheduled for this coming may. Those are the News Headlines on the fox business network. Im Gregg Jarrett. Now back to cheryl. Cheryl thank you, gregg. He is no longer invisible. Thats right. Cheryl gregg is saying no idea what the clay aiken song is . I do. Cheryl you have kids. I always forget. Gregg, thank you very much. All right. Cheryl time to take a look at what is hot on foxbusiness. Com. Kate rogers joins us from the newsroom with what is trending right now. Kate . Hey, cheryl. We have a ton of great content as always. Coming in the number three spot right now is that story from cvs this morning, announcing they will no longer be selling cigarettes and Tobacco Products by our Senior Reporter matt eagan. What is interesting that could cost them 2 billion in sales. Huge numbers. Till will be interesting to see what happens there. Our number two story is on adps jobs report today that the private sector added 175,000 jobs in january. And interestingly enough, Small Businesses with 50 or fewer employees actually added 75,000 of those jobs. So small biz leading the way. Our number one story right now is by editor katherine vassl on skills employers wish new College Grads had. You know the number one thing theyre missing . Soft skills. People skills. The ability to communicate back and forth f youre recently out of school, that is something you definitely have to work on. Cheryl using textmessaging and lol. They dont communicate. Dont write letters. Those emote at this cons will not get awe job. Definitely work on people skills. Cheryl kate rogers, thank you, kate. Thank you. Cheryl they dont know how to communicate. Adam like the song inches visible. I was the one who had no clue. Cheryl might be on i ipod. Just saying. Adam coming up on next half hour of markets now, robots replacing soldiers on the battlefield. We have two guests how you can make money on it. Cheryl how about driving this around in all that snow out there . Its a onewheeled motorcycle. The designer of the that motorcycle will be coming up. Adam and were live at bostons Logan Airport where they aree3 cleaning up, as this latest snowstorm stretches budgets for both government and business. We have 90 minutes until the close. We will have walt disney earnings after the bell. You see this kind of green and it almost reminds you lets hope the green is for better reasons than those cruise ships. Nicole i am keeping a close eye on dow component merck. It is down two tenths of 1 at 5341. It is trading as high as 5520. That brings us back to the 20072008 levels. This is all on the idea that they had a newly announced cancer drug partnership. There is a lot of high hopes here for work on this one. Pfizer has been working on a breastcancer drug as well. They really, really can move. Back to you. Thank you so much. Keep it right here on fox business. Liz claman and david allen will have all of the information for you after the bell. How it would fit onto an fantasy may soon become reality. Yes. This is really happening. Colonel peters, i would like to start with you. What is your experience with robots and the battlefield. Robots, robotics and other hightech rules. Be a tremendous health risk. The challenge is getting the balance right between the human and the technological. Myself, i saw the pattern as industry always overselling technology. We end up relying on that. Let me make it clear, defense contractors, and a lot of flavors. They are not all good guys. A lot of it is Congress Funding stuff that the military does not use. Talk about the fact that the industry may or not be suffering from sequestration. Talk about the experience that you have had with robots on the battlefield and what they have done. Sure. Colonel peters is absolutely right. The most important aspect are the men and women that are serving. We invest enormous resources on them. It is also important that we not put them needlessly and what i would call dirty, dangerous or dull situations. That is where i think robotics can really have a real difference. We have over 4000 of our robots in the field. Those are the things that you do not want to put a young man or woman in harms way if you do not have two. There are a lot of situations like that where robotics can be applied. We are talking about bond disposal, recognizance that removal of hazardous material. You produced some of the specialty robots. Do you see a world beyond the military . Absolutely. Many of our large and mediumsized robots were involved in doing cleanup operations. There are all kinds of things. I think in the future you will see robots and robotic type places. They will make their lives more meaningful. As a downside of robotics potentially replacing the men and women that serve our country . In our lifetime, robotics will not replace the combat in this street. They can help us with logistics. They can help us with exactly the scenarios doctor crouch described. The danger comes, cheryl, when you asked it to do too much. Again, it is about balance. If you cut essential personnel to buy stuff because it is made in text, you are doing a disservice to our country. Cheryl where are you manufacturing right now . Both of the boston area and also in the pittsburgh area. We are building for the military. Do you foresee robots being a more crucial part of those operations . Again. My rule for any defense is a ra. It to be appropriate that robust and affordable. There are technologies including those manufactured by doctor crouchs company that can really keep troops alive, help the ieds. The danger is when you ask the robot to do too much or expect too much. Versatility is deeply embedded in the human animal. We had world war ii. Atomic weapons meant that we did not need the input tree. Before 9 11, we could cut two army divisions. We need more info tree. You have to fight past the hype. Let me be absolutely clear on this. They are not the problem. The real legal fees is the defense tried to get away with murderous waste. Cheryl doctor krall, we will have to have you back along with colonel peters. Thank you very much. Appreciate it. Turning to the snow and ice. It is causing a lot of problems for people traveling across the country. Airports getting hit the hardest. Molly joins us from boston airport. Are they digging out . Absolutely. The snow is still coming down. Taking a look at all the flights across the country. There are about 39,000 delays excuse me, 7,000 cancellations and 29,000 delays. The planes here are the roadways. Still very messy. Slowly getting back to normal. The snow is still coming down and occasionally it is becoming this sort of sleepy messy ice. There are a lot of people hopeful that they will get to their destinations. The smith family is trying to get to texas because they want to see their son graduate from the air force. They may have a long wait to get there. We stayed overnight. We are catching an earlier flight, hopefully. The earliest flight that we try to get on has been delayed. They said that they do not expect to land until about 1 00 oclock in the morning and they still have a drive ahead of the. They are hoping that they will be able to get onto some flights. Adam thank you. Cheryl and aging both. Elizabeth macdonald is ahead. Cheryl why that next cup of coffee may cost you a little bit more. Cheryl take a look at how oil just closed for the day. 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 mu well need for a retirement that could last 3years or mor so maybe we ne to approach things dferently, if we want to be ready for aonger tirement. Thes nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makesy life easr. Maybe a promotion is in order. Good news. I got a new title. And a raise . Manament couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ bell ringing, applause ] 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 lowvolumetocks. Breaking into 52we highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ametrade. Dennis i am Dennis Kneale with your fox business brief. The price of coffee has raised 26 . One of the factors is the impact of brazils heatwave on coffee production. Shares down sharply. Ceo defends his company on varney. It is now the time to forgo some expansion in favor of a land grab in market share witch on the other side is greater earning potential. Dennis anheuserbusch buying blue point brewing company. Terms were not disclosed. That is the latest from fox business. Giving you the power to prosper. Adam it is an aging bull market the s p is down more than 5 . The dow is down close to 7 . Is this the beginning of a correction or are stocks that to bounce back . We get to the bottom line with elizabeth macdonald. 855 did we have gone without. That is a really long time. Five weeks into this we have seen two days of 300 plus downward movement. In 2012, just one day. In 2013, just one day. Here is what these guys on wall street watching. Yes, possibly due for a breather. Yes we have an earnings beat already coming in for those Companies Reporting their earnings. That is nicely in line with what the market history has been over the last two or three years. They are seeing Investors Sentiment turned from bullish starting at the beginning of the year now more of those people going neutral. The stock pop is only under half a percent. The day they report positive earnings beat. That is not good for the markets when it is on skittish ground right now. Cheryl a lot of these Companies Already give us lowered forecast going into it. The bar is already set so low. We have always made that joke that Companies Set the bar so low that a puppy could step over it, or a baby could step over it. I think what is happening on wall street is they are saying this. Yes by on a dip when you hear them talking about the volume in certain specific stocks, picturing something to keep in mind as Investors Sentiment seems to be turning at this point in the game. Adam at the end of the day, it is how you feel. If you are a little nervous, you probably will get out of it. At this point in the game, i always like to see what the big guys on wall street are saying. I am not talking about the reports that come out willynilly from analysts. What they are set right now is yes, it is skittish. Go with the strong bluechip names. We really rallied to the summer. That is a good memory to have. Thank you. A quarter till. The dow is hovering right around the flat line. Lets head to the floor of the new york talk exchange. The guys are saying this is something to watch. Maybe one pullback is a healthy pullback. Do you agree with that . I completely agree. We need to have some form of a fiction, a healthy correction. Not a violent one. That is what we have been getting. It does not necessarily, you know, bolster a great story. The stocks are going where they are going. At the end of the day, if we do not see accelerated buying, it could be the same for an upward move. There is not a lot of conviction in the move in either direction. There is a ray of hope. There is some sunshine. There is really a lack of interest. We do not want to see what we saw with greece. Cheryl what is a catalyst for you to buy in . A lot of our viewers sold for tax purposes at the end of the year. What kind of catalyst would you see that you would say, yes, this is it. Well, to be honest, when every headline that you read and everything that is discussed on television, adding are doing now, is saying that it is the end of the world. That is a catalyst i would use to start putting money back to work. My recommendation to people would be do not jump into the deep end with the whole thing. Just stick your toe in the water. Worst case scenario, at least you are participating. You need to use these opportunities as a buying opportunity. Cheryl jason, thank you. Adam one wiehl better than two. We will meet the designer of a one wheeled motorcycle. Cheryl taking a look at some of the winners over on the s p. We have losers to. We will be right back. Quick look at the weather. Nice day, beautiful tomorrow. Tomorrow is fullf promise. We can come back tomorrrow. And we promise to keep it that way. Driven to prerve the environment, csx moves a ton of freight nearly 450iles on one gallon of fuel. What a day. Cant wait til tomorrow. See whats new at projectluna. Com to manage your money. R guy arnd 2 percent thats not muchyou think cept its 2 peent every year. Go to e trade and find out how much our advice and guidance costs. Spoiler alert. Its low. Its guidance on your terms not ours. E trade. Less for us, more for you. P7 traveling to the Grocery Store just got a lot easier. Introducing the rhino. The one wheeled motorcycle. More impressive is the one wiehl. Chris hoffman is the founder and ceo. It is a fascinating new product. Your 13yearold daughter said build this for me, daddy. It was simply, hey, daddy, i saw this one wheeled motorcycle in a videogame. It was not until we really got the first prototype and build it and tried it out riding and around the city that we discovered what this thing actually was. We are looking at video of the vehicle right now. I like four wheels. I am sure this will be impressive for people who use it. I am a little afraid. What is the balance on it like sure mark. Front to back it bounces like a scooter which is proven to be very reliable and safe. Left and right that it steers like a motorcycle. You are just learning how to ride a bike. Adam all electric; rightclick right. That is right. Rechargeable. Very users friendly we are opening at 10 miles per hour. Adam how were you pop a with only one wiehl . 5300 is our target and retail price right now. Adam i think this would be ideal in a place like new york. What kind of interest are you getting from the world . 1500 bikes easy. What we discovered is there is this spread across all of these vertical martex. Kind of a longhaul down the docks. I get calls from guys in russia that want to ride it around on a coal mine. Adam just out of curiosity, you will start selling them very soon. When and where do we get one . April 16 is our launch date. We will ship thereof do a limited amount of dealers. We have sold about 150 bike so far in a month and a half. We will start shipping in the middle of april. Adam that is impressive. We wish you all the best. Adam coming up on countdown to the closing bell, want to know whether the economy is growing. They are in more than two dozen countries around the globe. Liz will ask the chairman and chief executive whether he is seeing a slowdown in china. That interview, a fox business exclusive. I ys say be thman with the plan but with less ergy, moodiness, i had to do something. I saw mdoctor. A blood test showed it was low testosterone, not age. We talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most m. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in womenay occur. Report these symptoms to your doct. Tell your doctorbout all medical conditions and medications. Serious side effects could include increased sk of prostateancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, worsening prostate symptoms, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side efcts include skin redness or irritation where applied, increased red blood cell count, common side efcts include skin redness headache, diarrhea, vomiting, and increase in psa. Ask your doctor out axiron. [ cellphon beeping ] [ cellphone rings hello . [ male announcer ] over 12,000 financial advisors. Good, good. Good over 700 billion dollars in assets under care. Let meust put this away. [ male announcer ] how did edward jones get so big . Could you teach kids that trick . [ male announcer ] by not acting that way. Ok, st quarter. [ male announcer ] its how edward jones makes sense of investing. Gerri day of reckoning, twitter at ceo ready to unveil his first Earnings Report since the companys successful ipo. The high flyers shows signs of profitability or will the share price come back down to worth . A full bear debate over the blue bird. Holy smoke. Cbs snuffing out sales of all Tobacco Products in an effort to position itself as a health store versus the drug store. Could cost the chain 2 billion a year of sales. Will the drug stores follow suit and would be a winning move for investors over the long term . Want to know how the Global Economy is really doing . Check out this trendmaker in 26 countries, the chairman and ceo is our exclusive guest to tell us how building profits more than making trains. Countdown to the closing bell. Good afternoon, i am liz claman, last hour of trading, dow in the commercial break into negative territory so we are watching this closely for you. Any rally we saw today rather feeble. We are waiting to see how the blue bird performs after the bell, talking about twitter and its firstever Earnings Report as a publicly traded company. Those numbers in one hour. The stock is down 1 2 in advance of it. Theres the 9. 4 position on the stock. We will be all over the numbers after the bell but theres a lot more going on between now and then. We need to look at 3d systems plunging today after the 3d printersmaker noaa its guidance to to Software Demand for consumer printers and printer parts. Brady systems, one of the biggest and most talked about in the 3d printing space is scheduled to report Fourth Quarter results at the e