tv Markets Now FOX Business April 5, 2013 11:00am-1:00pm EDT
connell, it is yours. connell: not a good day for jobs in general. the stock market selling off. only 80,000 jobs were added last month. we have coverage from every angle. stay tuned for that. scott minerd is here. he can tell us what the fed may do with this new information on jobs. after cyprus collapsed, extreme investors turn to this. the big coin. the problem, which we will talk about, it also has the attention of hackers. more deaths reported in china from the new strain of the bird flu. a few different angles on that.
all of those stories are coming up today on markets now. ♪ connell: a busy market now, to say the least. we will get to scott minerd and everything else. let's start off with a number of additions of stocks now with nicole petallides. nicole: good morning. you see the dow jones industrials that about 125 points right now. everyone waits for this jobs number. everyone was here ready their computers. there were gasps. you saw it really trade off. that number came in such a disappointment. 88,000 jobs added. it was even less and worse than the worst numbers on wall
street. that is really how bad it was. we have a fragile economy. we are seeing all the stocks that go along with it. you will be out buying and building? no jobs, no building a copy, you will not feed the stock market jumped. connell: scott minerd is with us. he joins us in studio. always good to see you, scott. >> this, sure, is a bad number for the market. expectations were way too high.
if you look expectations, overall, every number we are seeing, the market has gotten so complacent it expects the best. we will probably get another one next month. it will tell us that the fed is going to keep printing money. connell: that means the stock market goes up. >> that is right. connell: there are concerns about the federal reserve. you are not concerned about the fact getting too involved in this going on for too long? >> well, i am. clearly, the policy of the fed is they will stay to a comedy of too long. their feeling is they can control inflation. they are more worried about deflation.
connell: let's listen to stop in. a former reagan advisor. here is what is. >> what i do know is this market lives and dies by the last word of that and the people at the clue have no idea what they are doing. >> i think that is a bit of an overstatement. i do agree with the prayer budget director that, perhaps, the consequences of this are being severely underestimated. that is, when you look at how much that is expanding the size of its balance sheet, we will probably be $4 trillion before the end of the year. we had never been here.
to think we can reverse this -- connell: we do not really know where that line is that interest rates are low until they are not. couldn't we see a sudden spike in rates at some point? >> i do not think so. they could just intervene. they will not let long-term rates get about 2.5 or 3%. connell: have you changed anything today? changed your mind on anything? anything about opportunities? >> we have liquidated and that of our stock. actually the european stocks. we are looking at this to continue for a while. it will be a buying opportunity at some point.
probably take a look at gold. gold could be a good asset in the next quarter. connell: it has been an interesting week. scott, thanks a lot. scott minerd. another thing with this jobs report, the percentage of americans working or looking for jobs fell. see that number there. it is very important. the lowest number we have seen since the carter administration. going way back to the 70s good morning. people are just giving up. >> i there are definitely job seekers that are frustrated. they probably have dropped out looking seriously for work. the data shows us that certainly
there are still a lot of job opportunities out there. connell: where? >> one of my clients is actually monster.com. i have access to all of their data. there is some great growth happening in florida. specifically in orlando, miami, tampa. that market is really coming back very strong. we have also seen a lot of growth taxes. san antonio, dallas, houston. connell: oil and gas? >> absolutely. also healthcare. sperry it is interesting because i started with that question all-purpose. if another side of it that there are some permanent changes going on here in the way the labor force is constituted?
>> i think there are a few different dynamics going on. employers are hiring differently. they may be using contract labor or temporary labor to give them more flexibility in their work for. as a job seeker, you need to understand that as well. it is a way to get your foot in the door. connell: it sounds like you are pretty positive. some people comment and say this number is a disaster. it was pretty rough in many ways >> yes, it was. it is half of what most people expect it. connell: scott was here just a minute ago. at some point, we need to see that kind of growth. >> yes, we do.
even the revisions that came out today suddenly were positive. over 200,000 jobs have been created. there is some positive news out there. monster are seeing a lot of job seekers. their clients, as well, starting to look again and post jobs. employers want to hire, but they are cautious. they are not pulling the trigger. the biggest reason is all the uncertainty. there is uncertainty with healthcare reform, how that will impact their business, the sequester and how that will impact the additional cuts, economic uncertainty in general. employers are still optimistic. connell: good to see you. thank you. you may not have heard about this next topic. investors are looking for quick
gains. they are getting in big-time. this is an electronic currency. this is a huge rush by investors. bitcoins has the interest to hackers. it is a big day, a busy day in the markets. we will take a look at oil since we were speaking at gas prices. we will be right back. ♪ we went out and asked people a simple question:
how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, ne thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
connell: time to make a little money with charles payne. he is here to follow-up on this coverage. it is a big day for the market and the jobs report. what do you say? charles: i look at it in a larger context. there is sort of malaise in this country. i am calling it the dropout nation. obviously, have a million people dropping out of the labor force speaks forritself. participation rate down to the lowest level since 1979. 350,000 people stopped working part-time. that means it is more attractive to go home and collect a bunch of government money. you have to kind of work
somewhere part, have time, a job you did not like. now, it is an option not to. 9 million people who dropped out of the jobs market in the last four years. connell: some of these numbers seem dramatic. i know they can be revised and the last few months were. who knows. i wonder why this month. charles: well, you know, the payroll number that was up there, the retail jobs are, you know, it felt like maybe, you know, that had a role. again, this is something that has been happening progressively throughout the whole thing. it is pretty clear when you drill into the numbers that it is mostly young people who are dropping out. connell: 25-34.
it looked like they added some jobs. it has been an issue for burly young people coming out of college. charles: 16-19, the unemployment rate came down. twenty-five-54 has been trending higher this year. that rate actually went up month over month. the point is, there is definitely a bifurcation there. a lot of people in the administration says what you see is typically we are older. we have a baby boom or society. actually, the exact opposite has been happening. older people really are not leaving the workforce like you would think they were. connell: some of them cannot. charles: in this environment, as an employer, you know, if you
are running into mcdonald's, you would rather take a 65-year-old with words as like as opposed to someone who does not understand getting to work on time. speak. that is good as always. what about apple today? nicole: we talked about apple. a thousand dollar target. shareholders have been disappointed watching apple thinking. today is no different. it is down over four dollars. we got some news about its big competitor, samsung. operating profit is on the rise. they have the upcoming new model of the galaxy smart phone. you know that is a direct competitor to the iphone.
everyone is trying to decide what is hot and what is not. it is down over 30% over the last 52 weeks. connell: some other news now with rutgers and that scandal there. the athletic director has now been bounced out over this video that surfaced. the coach is already out, mike rice. new details of merge. then, we will get into that story about bitcoins. you may not have heard of them, but the hackers have. that is the problem. that is coming up. we will look now at some of the world currencies. it has been a volatile day on many of the markets. we are coming right back here on markets now. ♪
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this is coming two days after a video surfaced showing rutgers basketball coach, mike rice, verbally and physically abusing players. rutgers has scheduled a press conference for 1:00 p.m. eastern time. north korea is warning diplomats from russia and britain to back evacuate. the british foreign office said it is considering next steps. the russian embassy says they have taken note of the situation. forty-one people were killed when an illegally construction building collapsed. more than 20 people are missing. rescue crews searched the rubble for survivors.
connell: we will talk about the cyber threat. who has ever heard of trance eight? it has been skyrocketing in value. we can thank cyprus for all of this. bitcoin is not without the security vulnerability. one of the major all mine exchanges was hit with a denial of service attacks. pretty much what we have seen on some of the major u.s. banks like jpmorgan and chase. i have to say, i know some people are obsessed with this and have been all over this "phenomenon" could you just
start on telling us what this is and what the dangers are. what is bitcoin? >> what transit is that it is a virtual currency. what does that mean? is 100% untraceable. connell: it is probably too good to be true. we introduce this as a cyber threat segment. what are the big risks? >> bitcoins has a pretty sophisticated algorithm. you are talking about numbers with 77 euros after them. however, you still involved the issue of trust. central banks are relative
trusted. bitcoin takes the inverse approach to that. you rely on the individuals caught your miners, that pulled the money inside their computers. connell: i saw this whole bitcoin deal described as the currency of the future. if it is, too good to be true, the hackers are after this. >> that is a great question. we are seeing a disrupted in technology that is letting the world know people interested in handling money in different
ways. this is nothing new. we have seen various forms of currency from cigarettes to sea shells. it is just a different manner. connell: people rallying about the federal reserve here in the u.s. we talked about david stockman earlier. be careful if you are looking for one of these alternatives. thank you. the headline number, again, in this jobs report has investors on the run. there is this argument that some of the underlying numbers, the number of people retiring, there is some promise despite the weak figure of 88,000 jobs. anthony chan will tell us if there are some positives that we can take away on our friday. more deaths reported from this new strain of the bird flu. we will talk about that.
they said they are revenue would be below estimates. take a look at the components. some of these names that are in the same group. these results are below analyst estimates. as a result, you are seeing them to the downside. of the three that we saw, the nasdaq is down 1.1%. it is the worst of the three. connell: thank you. nicole petallides at the exchange. another big story today is the president's budget. president obama's proposal which will be out next week officially
will target retirement accounts of upper income earners and savvy investors as well. rich edson is live at the white house. rich: the official release is next wednesday. democrats in the white house describe it as a concession, moving to the middle, compromise, republicans say it is not quite that. republicans charge it does so in a way that flows increases in income tax brackets meaning lower incomes and higher brackets then they would over time. it limits our retirement packages. >> what i have seen so far is very consistent with what we have seen in the last four
years. it is mostly spending cuts. tax hikes that are very real. overall, and increase in the scope of government. rich: this budget is missing a lot of detail. the house and senate have already done their work. what is typically supposed to be a recommendation will come after both houses of congress have passed their budgets. back to you. connell: let's bring in rich lowry. thank you for coming in. rich did a good job of detailing what we will learn next week. one of the things i noticed this morning as i opened up my ipad and popped up the "new york times," the lead story was about the president plan.
>> i think one of the purposes was to get that kind of coverage. the changed cpi get about 120, do not quote me on these, 120 savings on cuts and social security benefits over the year. 80% of revenue. it is a so-called balance approach. 200 billion, it is not a ton of money. as rich pointed out in his report, profit wise, it is very strange. those trains have left the station and now you have the president somewhere further down the tracks waving his hands saying, hey, do not forget about me. connell: you do not think that there will be much to that?
>> i think what the house will say and we already have a statement from boehner this morning, okay, fine. you think these things are important for stabilizing the entitlement programs. great. let's talk about that. tactically, i am sure they will say, okay, you control the senate. work it out with harry reid and see what you can pass then come to us. that has been the tactical insight. connell: you mentioned brevet. is there something we can do maybe on tax reform that is not being spoken enough about now? >> 's proposals, the 28% limit on seduction, the limits on iras, the only way these things
will get through congress is if they are part of some other tax reform that lowers rates and makes the system more efficient. there is no sign of that on the horizon. you will get some headlines that the president will like in the next couple weeks. some chatter about how serious he is about this and then it does not go anywhere. connell: rich lowry, thank you. >> are you disappointed? connell: about what? >> that it is going to be a fizzle. connell: not at all. thank you. the bird flu. chinese authorities killing birds. it is ridiculous they have to do that. six people in the country of china have died from the bird flu. basically, they are killing all of these birds. it comes from pigeons. the government there announcing all live poultry markets in the
city temporarily will close down until further notice. all that information, by the way, from what it is worth comes from one of the main chinese media. google taking on the fbi over online privacy. all of those things are coming up. it is a busy day for markets. let's talk about bonds here for a second. 1.7%. it just keeps going down. how low can it go? we will be right back on markets now. ♪ @
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more people may be retiring because as a nation we have recovered most during the credit crisis. because of that, gdp will be up 2.2% for the whole year. anthony chan joins us right now. we thought we would bring you on a little bit later in the hour. the world is not ending. there are some positive things in this report that is why we gave you those 43 minutes to look them up. >> we are seeing the length of the workweek increasing. that is suggesting there is pent-up demand for labor. we will see employment conditions getting a little stronger. we, of course, are some of the temporary help agencies picking up. that is usually a lead economic indicator. we are not arguing that this
report is not disappointed. but there are some aspects out there that are a little encouraging. the labor force participation rate is coming down. at one point, the cause of the huge loss of wealth, many of them were staying in the labor force a little longer. connell: there is a comfort level in retiring. there others that just have to work. maybe this is something to look at. are people comfortable leaving and retiring? >> that would be a very good sign. it says that when people are more comfortable, they are likely to spend a little bit more money. that is much better for the country's economy.
connell: it was a big surprise to see only 88,000 jobs added that 200,000 or what ever the estimates were. >> there are always seasonable factors you can rely on. use all 3000 the client in the manufacturing sector. when that happens, you basically see employers are scrambling to get more output and therefore more workers. they are not likely to be firing workers. it is much weaker, but there are some aspects that are a little bit questionable. connell: questionable, you think some of these numbers may be revised higher? >> i think there is a chance that the number gets revised a little higher. again, even if you look at the prior month, the numbers still
came in below expectations. you will see some bumps along the way. my suspicion is that in the next couple months, you will see much stronger numbers. connell: as always, have a good weekend. thank you for coming on. let's go back to nicole petallides. she is on the floor of the exchange. nicole: i have a story to follow and him off taking a look at the major market averages. our monthly jobs report completely missed the monthly estimates. you can see the dow still down triple digits. down 110 points. all of it earlier lows. it has improved some. i want to talk about a story on the east coast. workers at mcdonald's, kentucky fried chicken and burger king
are demanding more. they have been out protesting here in new york to beef up their paychecks to $15. is this really the right time to be protesting when you see how many americans are unemployed? lawyers are working part-time at a place where they are clearly overqualified. it is a very interesting story. all those fast food work and stocks. connell: thank you for that. let's talk a little bit about the world of tech knowledge he. it looks like google taking on the fbi. what with the reason be? it is about their users information. shibani joshi is here to test more about it. shibani: if there is anyone mighty and powerful and rich enough, it is probably the internet search giant that
google. they have filed a petition for personal data that does not require a quarter. it is not just the fbi, but also google. both of these institutions have come under fire for requests and delivery of electronic information and concerns about privacy. google is trying to take a more transparent stance on the issue altogether. a few years ago, they started issuing transparent reports. if you look at it, we should have some web role here, the company showing that 17,000 requests were made by the government. just to give you a sense of the
numbers. there are questions about the security letters about whether or not they are constitutional or violate the first amendment. just recently, a federal shot down a request by the fbi to get thinking information. google believes this application also applies to data and personal information. google shares are trading a little bit lower today. few people challenge the fbi, but google may be able to do so. connell: a new service that allows you to pay rent and also improve your credit history. do both of those things at the same time. am i getting this right, jeff flock? jeff: you absolutely are, connell. the person who moves in here will be able to build their credit history just by paying their rent on time. i will show you how that is
possible. i will talk to the president of the company taking it possible when we come back here on the fox business network. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone
working. boneless comes at a time when the fast industry is in a state of turmoil. when you think of panera bread and chipolte stealing from these major brands. the gum brand stock price, the parent company, down by nearly 3% today. if you don't have credit, odds are, you will not be able to buy a home. jeff flock is here with more on this story. jeff: it is called william paid. you get credit for paying your rent. i have the founder and president of william paid. how does this work? >> it is pretty simple. any tenant in the u.s. can register to pay online through william paid.
jeff: it goes on my credit report? >> yes. jeff: the latest numbers are out on consumer credit. take a look at where we stood thus far. a huge retrenching in terms of credit. people saying stuff down which is a good thing. people trying to get back into the game. you have a lot of people who lost their homes and went bankrupt? >> they're having a positive trade line like rent, it is a great opportunity. jeff: this is a great time to get into it. we are at historic lows of people that are late on their bill. >> yes. without credit, it is hard to establish new credit. jeff: i appreciated.
the company is william paid. how about that. i got carried away. it is a nice apartment here on the north side of chicago. i have a young daughter, 19. she cannot get a credit card. she needs credit and cannot do it. connell: no history of jeff, thank you. great story. the stocks are down. the week jobs number. it could be worse. traders see more cheap money ahead. cheryl and dennis will be all over this. for the first time in 40 years of polling, majority of americans are saying we should legalize pot. we will take you to miami where agates are trying to get it on the november ballot.yo that and much more ahead.
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dennis: friday high noon. i and dennis kneale. cheryl: i am cheryl casone. 88,000 jobs created in the month of march. the fed could continue to pump money into this economy. oil prices are bumping lower. gas prices also falling at the pump. cheryl: for the first time in 40 years, the majority of americans now say they want to legalize erewhon. we will take you to miami where advocates their are trying to get it on the november ballot.
dennis: nicole petallides is in the middle of the slaughter. nicole: the truth of the matter is, when i came in this morning, we had estimates of 200,000 jobs. we got well pulled out. clearly, a big disappointment for america. we knew we would start to the downside with the dow industrials. down 100 points. that is where we have been all day long. the attack has been very weak this morning. four of the five biggest movers in the dow jones industrials. when you have no jobs in
america, obviously, that will hit every sector. back to you. cheryl: stay with me, if you do not mind. i want to bring in michelle girard. as you look at the market and the selloff we have, many analysts already come out and saying this means the fed will back off alchemy and this is a market positive. >> probably not their next meeting. the fed may decide to scale back a bit. i think that is now off the table. of course that those purchases and liquidity the fed is adding to the system is helping to boost the stock market. a lot of that money is going
into this market. cheryl: you know, we have these big selloffs and by the end of trading, 4:00 p.m. eastern time, you have a market that turned itself around. is there any discussion about the fed? nicole: they are a key component to this market. we have seen the direct correlation. such easy stimulus and policy. it was actually leading. now, in turn, you are having a direct reaction to a headline. they expect that the fed will continue the printing and the like. we heard something different earlier in the week. right now, though, the idea is that the fed is here for us and there is no dow we are trying to market is new record. they actually think a little consolidation is healthy for
this type of market. the big picture is, we need a healthy economy and that is something we do not have. cheryl: you get the participation rate. 1979 levels. 63%. >> first of all, i am surprised waste so much time focusing on this. the population is getting older. our baby boomers are retiring. that ratio will come on. it will keep coming down for years and years. we have the baby boomers moving into retirement age. the other thing is, specifically for this month, we did some digging. we found a lot of the client. a lot of it was a new employment. it may simply be due to the timing of the spring break, if
you believe that. there may be some noise that distorted the numbers. cheryl: we did the january and february revised higher. nicole: absolutely. they did talk about the birth rate versus the baby boomers retiring. we know there will be revisions always. allen takes these numbers with a grain of salt. one had died after another can really be a market moving event. you are making new lows for leiber participation rate. cheryl: michelle. >> looking through the month to month noise, the first quarter arab, it is a lot different. the biggest take away is more of the same for employment. it may not be as weak as the
march numbers up. it is not as strong as we were maybe hoping. cheryl: thank you very much. dennis: bigness in the jobs number rattling traders. james, ahead of the number, you set the idea of a labor market disaster beginning to be priced into markets. >> i definitely think it is now. i do not today is that much of a tumble. to me, i mean, just to take this bitter, it is very hard for me to get too worked up about this number. it was clearly below average. outside of march, things have been looking pretty good, in my
opinion. dennis: you still feel that way? >> i do. i want to qualify the last one. the politicians have a lot of potential to ruin things. the market and the economy is recovering despite of that. they just need to step back and not get in the way. just get out of the way. dennis: you also point out that in the first quarter, stocks rose 11%. more than what analysts were expecting for the entire year. do we still have room to go up more for the rest of the year? >> i think the answer is yes. i also think that your point is well made. i think this is where you are going with it. up 11% in one quarter. you are expected to give a
little bit back before moving higher. in some ways, it is to be expected. dennis: this big job shortfall. we thought it would be 200k. how many disappointments will we see? >> i think you have to start worrying in the first week of may if you see another discipline number. dennis: okay. >> between now and then, dennis, you will have weekly initial jobless claims that will be coming in every week. those are good things to track. dennis: a lot of us fraidy cats have been on that sideline not investing for stocks. tell us about some sectors you point out that still well off the highs. >> let me just back up for a second. the s&p is two-re-% off of this
high. there are a lot that are ten- ten-15%. citigroup comes to mind. the refiners. they have gotten clobbered by some epa announced. down 10% in a week. their business has not changed that much. you can also go with thh hyper cyclicals like the caterpillar's of the world. p5 anymore? >> i will throw one more. take a look at the airlines. the airlines have gotten a lot of press over this past quarter. this past week, they have given back a lot of games for the year. from all the economic data that we are seeing, march was clearly a good month. the picture is still in tact for lower oil prices to flow through the bottom line of airlines and
demand is continuing to pick up combined with things like fact checking and meals and blankets. it is a good place to be, but you have to be risk tolerant p5 when oil goes up, they generally go down. thank you. cheryl: sequester cuts are not the culprit in the jobs number. only down by 14,000 last month. what is the obama administration take? peter: i just want to follow-up on your discussion with james. whether or not, this was caused by politicians getting him by. tax increases kicked in on january 1. the sequester cuts back again on march 1. not 100% clear here. you just mentioned those numbers and government job cuts last month. we did see a half billion people
leave the workforce in march. that helped push the unemployment rate down. the those folks were spooked about all this talk about what tax increases and sequester would do to the economy. let's look at a couple of sirs. the manufacturing sector was down 2000. retail was down 24,000. that may have been because of the payroll tax increase. people had less money to spend so they did not go to stores as much. construction was up 18,000 for the month, but it was up 49,000 in february. maybe some weather-related issues here. the president chief economist decided to accentuate the positive. >> in the first quarter, an
upward revision of over 60,000 this january and february, we added half a million jobs. that is about the pace we have seen over the last two. we want to speed up that pace. peter: house speaker john boehner out today blasting this jobs report and saying the president policies are to blame. back to you. cheryl: peter barnes standing by at the white house. thank you. charles pays up next on jobs. he says people are just sitting out the recovery. dennis: socking it to high earners again. we are live at the white house where fox business learned president obama's budget may target your retirement account. cheryl: the bird flew into. i will go one-on-one with the ceo of starwood hotels on how it may affect him and other businesses in the region.
♪ cheryl: that dell is still down triple digit. mcdonald's is flat. so is verizon and boeing. let's go to nicole petallides on the floor of the new york stock exchange. nicole: i am watching the vix, the fear index. trading is clearly jumping. up about 6%. there are plenty of people who trade. they can get caught one way or another. here it is approaching 15.
there is nervousness here in the market. there is uncertainty in the market. we are talking about the dow 15,000. with that, there is volatility that you are seeing. we are obviously seeing the swing to the downside. over the last week and a half or so, we have one update or one down day. cheryl: thank you. we will see you at the bottom of the hour. dennis: charles payne joins us now. it is politically and incorrect thing to say these days.
>> it is true. and lots of numbers jump out at you. participation rate, the lowest since may of 1999. here is a number that really stood out to me. they top out for a moment. 350,000 people stopped working part-time. why? because they can. they will get some sort of payment. they will make more by sitting at home on the sofa. this is mostly happening with young people, by the way. we have older people. participation rates have skyrocketed while younger people can do to plummet. the bottom line is, you take a part-time job to learn how to work. when you go to work, you things.
i worked at a mcdonald's when i was a kid. i found a job at mcdonald's and i was lucky. the point is, the guy who owned the mcdonald's started out in my position. you do not think about, you know, people right now. these are part-time jobs. they are stepping stones. we are going to have a bunch of young people sitting back. we will have a whole bunch of people who are unprepared.
seizing the biggest scam going is the crazy check. twenty-three years old brag about getting their crazy check. cheryl: there are way they can get out of that hole. >> these numbers underscore a dropout nation. charles: we are giving up on a lot of things. we have to fight through it. cheryl: thank you very much. we will see you on neil cavuto tonight. charles: i cannot wait. dennis: the rutgers athletic director fired. details ahead in your ox news. cheryl: targeting your retirement account. rich edson is live at the white house.
rich: the president interposing changes to retirement accounts and changes to social security. we will break it down coming up. ♪ clients are always learning more (ann) to help me plan my next to make themove,ney do more. i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. becausthey know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage
♪ >> at 24 minutes past the hour, i have your fox news minute. in illinois, one person is dead following an accident with a school bus carrying more than two dozen students. the driver of a jeep wrangler was pronounced dead. all 25 students aboard survived. emergency crews are on scene. a majority of americans say the u.s. should defend south korea. 55% say american should use force to help south korea. 35% said the u.s. should stay out of the conflict. 10% were undecided. tim pernetti is out according to
espn. this comes two days after a video surfaced showing rutgers basketball coach, mike rice, physically and verbally abusing several pairs. jim martelli resigned on thursday. those are your headlines. back to cheryl. cheryl: thank you very much. they very much. president obama is going to release his budget next week. fox business has learned that upper earners retirement account will be taking a big hit. more going after your money. rich: more changes to social security. changes that basically slow the growth in social security
payments along other payments. it increases tobacco taxes. the administration says the white house is offering a compromise. >> i think it is a very bold move by the president. it is what you posted on the web. >> no conception of what we need to do address our debt. that is engaging structural entitlement reform. we need to seriously cut spending. rich: it is supposed to come out on wednesday. in the meantime, the house just passed its budget.
they are both quite different. back to you. cheryl: thank you. dennis: let limit america's savings. great. the selloff on wall street contest. the dow is down 124. smallest number since june of last year. cheryl: 88,000 jobs. of course, the markets are taking a big hit today. stocks are down. there is a big? about earnings. we will take a look at those numbers when we come back. dennis: a new poll shows americans believe pot should be legalized. we go live to marijuana advocates in miami. cheryl: i will go one-on-one with the ceo of starwood hotels on how the bird flu may affect them and other properties to
cheryl: nicole petallides from the stock exchange looking at j.c. penney. nicole: we will take a look at how is doing, it is up 4.5%. it is and testing, got a rare upgrade, lifting it from neutral, business picks up, can't be certain. i love how they phrase it. they can't be certain but think sales of looking better and traffic looking better so they're moving up to neutral
from its sale. a lot of investors are betting there may be improvement. ron johnson came on and also last year we have seen the stock, 52 weeks down 52% and their back to trying to do the promotion and having investors and shareholders and people shopping and getting a bargain and it has been beaten down. >> stocks are getting that of the start of earnings season started rebound. we are joined by john butters. tell us what is the overall consensus estimate for one earnings will do for the first quarter, up or down and how much? >> we're looking at a lackluster quarter this earnings season in terms of growth. the estimate is for a decline of 0.6%, down from an expectation of growth of 2% at the start of the quarter. even if companies beat expectations as they typically do we are looking at only growth of 2% to 3% at best, a
lackluster quarter in terms of earnings growth. dennis: was look at the chance of an upside surprise because i would swear in the past couple quarters wall street has been conservative on earnings estimates and we ended up having a beach and you point out third quarter 2010 wall street expected 26% growth and got 34%, 2011 they expected 15, got 16. any chance for upside on the first quarter? >> one of the concerns about expectations is analysts do tend to overestimate. underestimate. for the second half of the year analysts are calling for a huge pickup in earnings growth. in q3 looking at 10% growth, que 4 looking at 16% growth. the last few years when they the head they tend to overestimate but coming in to the quarter they tend to underestimate so the trend over the last few quarters we have seen 70% of companies beat, no reason not to expect that to continue but the
reason is estimates going forward for q 3 of this year and a few 4 this year because they may be too high. dennis: you think they're too high? is that what you are arguing? >> if you look at the trend over the last few years, in queue 4 of 2012, when analysts are projecting at this point in time the growth rate came in below that. if we look of last year at this point of the analysts were looking at 15% growth thank you 4 of 2012 and finished with only 4%. we are not predicting that is going to happen but that is the trend over the last couple years. dennis: a stir the year too pessimistic and end too optimistic. kind of wonder why earnings estimates guide so much in terms of trade given they are so often wrong to one way or the other but you are seeing some warnings already from companies scanning back the estimates. what sectors are getting the most warnings?
>> in terms of guidance, the most negative quarter we have seen in recent history. in particular we have seen a lot of companies guiding lower with materials, health-care and consumer discretionary sectors and material and consumer discretionary we have seen significant cuts to estimates over the course of the quarter. dennis: if markets are always predicting six months out, months out, that would make you think the real ron above 11% gain in stocks is entirely, and how many markets themselves where you had a big disappointment? >> we have done some analysis and many times on the short-term, the market tends to move in the opposite direction of the estimates of for example discorded the expectations for q 1 came down looking at 2.2% growth. at the start of the quarter will decline of 6%. at the same time the market has gone up. we have seen examples in the past where the market has moved
in the opposite direction of estimate cuts in the short term. dennis: i got to tell you, for the rank-and-file investors all greek to us, you have to keep buying gradually every week in your retirement account and hold on and parade. thanks for being with us today, john butters. cheryl: kfc announcing plans to rollout original recipe boneless fried chicken but he is a risky move for the brand founded 60 years ago and may very well be a public admission their core product is not working. boneless and a time when the fast-food industry is in turmoil. para brand, the national rollout of our original recipe set for april 14th. and in 6578, almost $2. >> have we not learned from mcnuggets.
tracy: a fox burns business brief, the government reported a sharp slowdown. the economy gained 88,000 jobs. right now the dow is down 106 points. a record 8.9 million americans were on disability in march. last time the number of americans collecting disability decrease in january of 1997 and a third disability pay out usually correlates a drop in the labour participation rates. the best monthly sales in march in a brand's history. daimler ag says they are up 6.5% from the same time last year. that is the latest from the fox business network giving you the
tracy: stock but hotels and resorts expanding again this time opening 50 hotels across africa and the middle east. the company moved corporate headquarters to dubai for a month. chris joins me to talk about the expansion. >> remarkable to see the growth, rising confidence every time the come back. and hotel owners, and optimism here, and seeing increasingly traveled throughout the region, and all the travel -- going with them from australia to europe.
it is an example how this has become a global crossroads between africa and europe. cheryl: you moved from sanford for one month and did the same thing in china. and curious what you learned, you have been using instantgramm to share your experience but what have you learned? >> one of the things quite clear to us, importance of relationships. and make sure we use the marketing ideas from here and other places around world so there are things we're doing in these hotels when it comes to guess service that we can bring to other markets. in addition to continue to develop the hotels here requires the support and dialogue with developers in the region. cheryl: your setting records in the amount of hotels your opening up, 45 companies opening
2012, the expansion incredible, 95% of your hotels around world take in chinese travelers, big news we have been falling, the bird flew happening in china. are you concerned what that will do to revenue out of china? >> too early to tell. we have seen events like this, when there is a drop in demand it tends to come back quickly. you have to bear in mind we are in the business of building hotels with an eye towards the long term. we have a contract of 40 years. any drop in demand now is not important relative to the big picture and the growth we're seeing the thirty million people year moving to cities in china, growth in infrastructure, growth in cities is an great source of continued expansion of hotels. >> let me ask about a shift in strategy, and i've would think
they would be better to own the property. why are you shipping the company this way. >> this is the transformation that has been happening ever seven or eight years. if you go back, we're 25% limited earnings from management and franchise. that number is 65%. we will get to over 80%. it is actually quite simple. to manage global hospitality, reservation systems, the things we do on the internet, to build capability to manage hotels, those are global activities. investing in real-estate is the most local business you can imagine. there is no way we can be the best real-estate investor and developer in a hundred companies where we operate. this is a win/win. local developers get the benefit of the systems and we get the benefit of their insight and knowledge about where to develop
the business. cheryl: i want to ask about a global company. sitting on a $12 billion market, stock is up 11%. stock is on a tear but i want to ask about european exposure. once again we have seen problems and issues on the continent as far as the economy. are you worried about europe and how uconn that that region? >> we have not factored in the european business for the last few years. that is prudent. 60 hotels out of 1150 in europe but we also have expansion, another 50 hotels due to growth in central and eastern europe. there are many hotels in europe so operated independently, if there's stress there is an opportunity to convert some of those hotels to our systems and the other thing in europe because they are strong local company, also because there is great tourist interests not just in north america, the occupancies are doing well in europe. better than you would think.
cheryl: starwood hotels and resorts. dennis: nbc's today tumbled again. abc's good morning america ended the first quarter on top in total viewers and the key at the target in the moment, adults ages 25, 54. abc won every week in the quarter, last time they won the first quarter was twenty years ago in 1993 for total viewers. nationwide is on your side, nationwide, an anc series about sexist swelling in the 60s will premiere its sixth season with nationwide as a season long sponsor. one and will rip-off the mad men field featuring nationwide's chief marketing officee. the dealer of cleveland founded in 1842 will cut home delivery to three days and fire 30% of
calfs. a vociferous push back campaign with the facebook page and on buses and billboards and even a plain dealer itself. a 25 year ink stain, i am so sorry to say it didn't work. cheryl: commodities having a mixed reaction, a big jobs report, gold going up. phil flynn in the trading pits of the cme. phil: is that changing of risk perception. investors believe the u.s. economy getting better the rest of the world was going and that has changed. look at oil. it is getting slammed down 62 points. if you look where it is getting hurt is in brent crude. why is brent getting it worse when we get a jazz -- bad jobs report? it is about the dollar and the euro. all of a sudden the dollar is getting hit and the other one going the other way. that is why gold is gonna. a safe haven day.
bonds get along and not when you get a jobs report when you just get 88,000 jobs looking for 200,000. forget about that. is about changing of risk perception. you see very closely in the commodities. cheryl: having a back in the day kind of moment. thank you very much. dennis: fluctuating price of gasoline, a nice drop over the last month. we will see what that means for the nation. cheryl: for the first time in four decades a majority of americans want to make hot legal. there's money to be made if this happens. we have that report but as we go to break take a look at winners, the few we have got on the nasdaq now under 100 points. we will be right back. my mantra?
trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased d blood cell count, headache, diarrhea, vomiting, and increase in psa.
cheryl: time for west coast minute. seattle home prices were higher in march as inventory continued to dwindle. report from the north with multiple lips sync service says the median home price was up 18% versus march of last year. the average home price that $349,000 in the macro seattle area. california gasoline prices are finally moving to lower. the surprise drop, and ago, analysts predict prices will continue to droo thanks to the reopening of a chevron refinery in richmond after a fire idol the big part of the facility
last august. average price at $4 a 4 sense which is $0.17 lower from last month. the biggest gaming companies are appealing to state lawmakers, a new trend in gambling. across the state from strip malls to boss slot machines and sports betting kiosks are popping up and the big casinos are not happy about it. the $170 million, only 600,000 came from the kiosk but big-name still want lawmakers to do something about it. let's look at stocks we like to follow in the gambling sector like the markets. all of them are down today and that is your west coast minute. dennis: for the first time in forty years of polling in new survey shows a majority of americans support legalizing marijuana. piu research says 52% of americans favor legalization. 45% say no. in florida medical marijuana advocates of trying to get on the state ballot. fox's phil keating joins us with
that type dream. phil: they feel the landscape politically and socially nationwide is forever move in their direction so it is no longer a question of if but when. 18 states and washington d.c. allow medicinal marijuana and colorado and washington allow recreational use. >> i am john wooden. phil: a big political fund-raiser for the president and republicans now leaves the florida effort. his motivation his dad used hot medicinal in illegally in his dying days. >> we know medical marijuana works. doctors will tell us fat. we know people's views are changing. they are thinking through it and number 3, the people of florida at the end of the day our compassion and will do the right thing. >> the only florida polls so far
shows 70% of floridians support municipal marijuana to get a constitutional amendment passed, you only need 60% so that looks strong. however put opponents have power in tallahassee. the bills to legalize medicinal marijuana all appear to be dead for this session. dennis: thanks. this sell-off, more to come on that. bob dole will talk to lori next on these job numbers, they will mean a fundamental switch to get something going. cheryl: in the hunt for jobs americans are packing up and moving mayflower ceo on why his residential business is booming. dennis: the next solyndra, growing concern over the future. cheryl: dow down 100 a points. major average of right now, we will take you into another hour after the break.