tv Countdown to the Closing Bell FOX Business April 25, 2013 3:00pm-4:01pm EDT
liz: ceo matchup. two of the most respected chief stopped by to talk earnings. do they believe the economy is coming back? earnings. period amazon reports after the bell. are the wealthy wiser than the rest of us? we will tell you what the smartest people in the nation do for a living. "countdown to the closing bell" begins right now. ♪ liz: good afternoon, everybody. i am liz claman. it is the last hour of trading. we are still up. that is important to point out. among the pieces of news that are now headlines is that the boston bombers apparently had a
plan to attack times square. mayor bloomberg has made a statement. that has not helped the markets. there is belief that experience had been using chemical weapons on their own people. nonetheless, we also have a situation that developed earlier this morning at the chicago board of operations. the trading there was not happening at all. trading at the cboe was completely halted. that started at 9:30 a.m. eastern time. do not blame the hackers. they have attributed the mass to an outage from a "software problem." we also have some earnings. exxon mobil did beat analyst expectations.
what seems to have investors concerned right now is that exxon's profits were driven largely by its chemical business rather than from oil and gasoline production. it is down about a dollar. that is a loss of 1.25%. crude is jumping about $1.80 at the moment. making it the largest two-day gain since august. we have seen a bullish oil supply report over the last 48 hours. there was an oil refinery fire in louisiana. let's get right to the floor show. so much to talk about. every day, gentlemen and nicole, we have breaking news.
apparently, though boston bombers were planning some type of attack here in times square. >> we are always on high alert. we are programmed to always be paying attention to stuff like this as you are walking down the street. it will affect our psyche. it will affect our markets. you started to see some selling pressure on the market. i think investors are just looking for an opportunity to take things off the table. what is a catalyst at this point right now? earlier, you were talking about exxon mobil. we get chevron tomorrow morning. maybe, right now, i do not think we are holding on because investors are looking for two things. amazon after the bell and chevron tomorrow. it may highlight what we will see tomorrow morning. liz: can i just make a point about this apparent attempt who
apparently had this plan to attempt times square. it is literally behind me at fox studios. we are very close. mayor bloomberg said there really was not a formed idea of what to do, but somehow through the questioning they found that the suspect did intend to target times square. i know chicago is a long way away, but were they talking about that on the floor of the cme as well? >> a little bit. we did not have an outlook for our cboe trading today. i hink with the market finally did open, we see some of this start to sell off. i think that was a problem here. thankfully we did not have any big news or events we had to trade on the back of. liz: you have two critical tools that could not be traded.
the volatility and the s&p options. >> yes. back in -- that can cause its own panic. there are other exchanges around the u.s. that trade. knowing the things that have gone totally haywire, at the same time, it is still unsettling when you can't unleash what needs to be done for your customers and your cell. liz: again, they are saying it was a software have seen a decen prices of both wti, but also the crude number here. they are up nearly the same percentage. >> yes. the tiny that we have seen, it is starting to move a little bit more in line. a ton of news stories, with respect to wti.
the refinery fire, the inventory number yesterday was pretty bullish. that is a real indication of whether or not this oil is getting moved around this country. as we have been moving higher, we are starting to see option volatility start to move lower. i think it is a sign we will probably continue to grind higher unless we get big news stories. liz: thank you. all of you. major news flow in the past 32 minutes or so. we are watching this all very closely. that apparent planned attack was in the very early stages, according to mayor michael bloomberg. the boston marathon bombers are the ones that have some type of link to what they dreamed of
doing. we are watching it. they did not succeed. let's get to the nasdaq. if it closes higher today, it will be the longest winning streak since late november. things looking a lot stronger for the nasdaq. will they support the gains? only time will tell, nicole. we are waiting on amazon and starbucks. what else? nicole: this is a big deal. we want to focus on amazon. it is coming out after the bell. we will get it out there. it is up about 2% at the moment. coming out with their quarterly report. it is a winner this year. up over 9%. what will they say about the television? they are supposed to be unveiling a television that will stream video. this will be the next thing for amazon.
we will see whether or not they say something about exactly that. the stock is up 9% this year and hit an all-time high in january. they are not too far off. back to you. liz: are you amazon tribe? nicole: my husband belongs to amazon prime. let's get to these delays at major airports. the faa is apparently attempting to reduce the number of layoffs. nearly 1000 flights took off late yesterday. i mean late, they were late. they came in after the time they were supposed to take off. wrapping up earnings for the major carriers this year, excluding special costs. six of the nations seven biggest carriers did post a profit for the quarter. here are some of the names.
when you see airlines finally posting a profit, you can criticize them for charging and niggling and diming you, if it is working for the company, it will eventually work for shareholders. closing bell ringing and 51 minutes. which companies will benefit th3 most? we talk to the ceo of one of the largest coal producers. that is helping them look a lot smarter than their peers. we are talking to him on the future of energy. that is coming up next in a fox business exclusive. plus, we head out to the cme. all of that and more coming up. we are so glad you are hanging out on "countdown to the closing bell." ♪
thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history...
we're making it. 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, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure youave the moneyou need to enjoy all of these years. ♪
he said the vulnerabilities are still there in the market. they remain there. he is also think that regulators must remain vigilant and overseas markets. you add that to everything we already told you. bernanke is also think that regulatory changes have strengthened the financial markets and therefore must stay in their. keep their hands all the way up to the elbows in their. he believes they have had a positive effect on the markets. the markets are pulling back right now. we have been up more than 92 points for the dow jones industrials. as you can see, now up 24. let's talk about our powerbuilder. we are talking about the trading on the chicago board stock exchange. it was delayed for more than three hours. what truly was the problem, sandra? they are saying it was a
software glitch. sandra: what we have been hearing from a lot of the traders is that there was a software upgrade overnight or hardware update overnight that caused some problems interacting with their systems that lead to the electronic shutdown. the exchange has not confirmed that. what they have confirmed is that the shutdown was due to internal problems. they have ruled out any hacking into their systems. nonetheless, there was a huge delay. they did not open on time. it was not until about noon eastern time that things actually got going. did the exchange is reporting that everything had returned back to normal, but now we are getting reports that the cboe is having trouble delivering some trading messages.
we are staying on that story for everybody. it affects a lot of trading, a lot of people and a lot of options. we are watching movers at the cme group. silver is the biggest winner at the cme. gold prices also spiking. copper prices up. they have been getting hit hard. rbob is out today. only one was really a loser and that is natural gas. that is barely holding onto its losses. lots of green, as far as commodity our concerned. liz: if you hear anything from the traders about bernanke's
comments -- much of this may have to do with bernanke speaking at the financial stability oversight committee. he is giving a thumbs up to dodd-frank legislation. i just checked jpmorgan, goldman sachs, morgan stanley, they are moving higher. vulnerability still remains in the market. we will get more on bernanke's comments in just a few minutes. let's get to coal prices. do you know how much coal costs? about $57 per short ton. they are off the highs from a few years ago. chairman and ceo, brett harvey is joining me now in a fox business exclusive. also some pretty decent numbers when it came to your epf. you matched estimates here.
your stock is looking pretty healthy. it is down today, but you are up way more than your peers, or not getting hammered as much as your peers are. how is the cool part of your business doing? >> it is actually doing pretty well. if you look in a global sense it is doing very well. we are well capitalized here in the united states. we have other fuel to use, so we choose between them. that is good for the business. liz: when mitt romney did not win the presidential election, he said that was it. he was the big friend of cool. the business looks pretty healthy, regardless. >> yes. you have to think of coal in terms of stored electricity.
our company is 150 years old and it will be another 150 years old because the united states has 30% of the world's coal still in the united states. we will figure out how to use it. liz: you get paid to be the smarter guy in the room and to anticipate what this country will use. i guess, it switched around quite a bit lately. especially because natural gas has become less expensive and extracting it has become easier. >> it is growing very rapidly. we took the position about three years ago. we are putting a lot of capital into it. it is in the same geographic footprint as our core business is. if you go 5000 feet deeper, you have gas. we are doing the synergies between the two. we see that the world wants
natural gas. 70% of all electricity comes from these two fuels. we are in a good position. the nice part about it is red, white and blue. it is american energy. it is right here in appalachia. liz: at the forefront of getting natural gas trucks. eventually, things will come together on that level. i think it is trading at $57 for short time. tell us what you see for prices? >> i think coal prices will be pretty steady all year long. the key is to be a low-cost producer right now. even with lower prices, you still make pretty good cash and money. when prices rise again, your margins expand. that is a good thing.
natural gas is rising because there is a signal out there that capital will only come at a certain level. the capital stopped flowing last year. liz: brett harvey, chairman and ceo. the stock is down about 3% year over year. your competitors are down even more. you have kept your costs down and investors seem to like that. thank you very much. we were at the new york stock exchange together at one point. closing bell ringing in 38 minutes. where do the smartest people in the country work? what is their profession? we are breaking down a brand-new study on how i accused mean big bucks. stay tuned. ♪
i invest in what i know. i turned 65 last week. i'm getting married. planning a life. there are risks, sure. but, there's no reward without it. i want to be prepared for the long haul. i see a world bursting with opportunities. india, china, brazil, ishares, small-caps, large-caps, ishares. industrials. low cost. every dollar counts. ishares. income. dividends.
bonds. i like bonds. ishares. commodities. diversification. choices. my own ideas. ishares. i want to use the same stuff the big guys use. ishares. 9 out of 10 large, professionalnvestors choose ishares for their etfs. introducing the ishares core, etfs for the heart of your portfolio. taefficient and low cost building blocks to help you keep more of what you earn. call your advisor. visit ishares.com. ishares. yeah, ishares. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. [ female announcer ] from meeting customer needs... to meeting patient needs... ♪ wireless is limitless. ♪ from finding the best way... ♪ to finding the best catch... ♪
wireless is limitless. ♪ liz: this is the developing story. bernanke, the head of the federal reserve, is speaking before the financial stability oversight committee. he is making some comments, most of them are that regulation is still needed to keep things calm. there was one headline that that the markets far from where they had been. that was up 92 points. there are "vulnerabilities that remain in the markets." it does not mean is it that we
could still see another financial crisis if we do not keep an eye on it from a regulator standpoint, but look what happened. we are still in the green at the moment. we are waiting for earnings from amazon and starbucks. the bigger the brain, the bigger your bank account. duke university decided to see if there was a direct correlation. the smartest 1% of all people in the 1%. what did they find? they found out what they did for a living. they calculated the highest sat and a ct scores. that would illuminate me right away. [ laughter ] liz: forget that. senators are pretty smart. 41% of all senators were in the top 1%. we all know they do not make that much money. 40% of federal judges made the
cut. two portions of the government. it takes brains to lead a major company. 49% are also in the top percent. big brains to pay off. nearly half of all billionaires are smarter than the rest of us. which professions do the smartest people you know have? go to our facebook page. tell me what the gene is you know in your life does for a living. charlie: by the way, before we get into the steve cohen story, this is what he really means. they control 80% of the financial risk in financial assets, baby of the world. when you have that much concentrated risk in those new players, you have a chance of something going bad.
it is a fairly significant chance. is it more than 50%? no. look at what happened with the london whale. insignificant in terms of jpmorgan earnings. guess what, that bad trade with unnoticed. liz: i want you guys to listen to this. this is what bernanke just said. wholesale funding markets remain vulnerable to runs that could in turn trigger destabilizing fire sales. charlie: he is talking about something that happened at mf global where you had investors worried about one for making a trade. john corzine's bet on ical yet and spanish bonds. getting out in the market and then investors -- he made that
that. he made that two years ago. if you kept it for two years, it would have been profitable. because of what happened in europe, people got scared. his creditors, every banks exist because they have credit. they pulled their lines of credit. mf global went out of business. that is what happened during the financial crisis on a big basis. that could happen again. these are all huge companies. they rely on investors. liz: we are about to lose all of our lead for the dow jones industrials. we have been up 92-point. charlie: this is more important that what i reported about. this is key. when you concentrate risks, when you concentrate risks in that
few players, you do have the chance of something blowing up. jamie dimon is a brilliant, the best risk manager on wall street. he had no idea that the london whale was going on. that is key. liz: we have the soundbite. bernanke just finishing. here is what he said. >> they remain vulnerable to runs. it could in turn triggered destabilizing fire sales. to address such concerns, the council recommends that the sec has regulatory action. charlie: he is talking about, it is possible, it is more than their radically possible to have another financial crisis. listing, here is that thing, i do not like dodd-frank.
if you are going to have the banks in the shape that they are now which is combined and huge and, you know -- liz: can we cycle through all the intraday charts? the mix has now turned positive. it was down fractionally. it has moved higher. charlie: this is key. you will have that many big things, that means financial risk is concentrated. you need something to watch over it. you need a dodd-frank. i do not like dodd-frank. i think you should break up the banks. the minute you start talking about -- this is important. what happened with mf global when they imploded, nothing. liz: they were small. charlie: when bear stearns imploded, not so bad. when lehman imploded, then something bad happened.
citigroup, morgan stanley, all of them, merrill lynch, then, guess what, they will lose the financial crisis. that is the problem. bear stearns was not the cataclysmic event. liz: we still have too big to fail. if something happened, there was too much leverage at one of these names. charlie: he is saying there are still vulnerabilities. we can still have another financial crisis. we need dodd-frank. you cannot get rid of it. liz: we are on it. charlie will put his story on fox business.com. charlie: i have to do actual work here? [ laughter ] charlie: go to my twitter page. liz: no, go on my twitter page. closing bell ringing in 26
minutes. 2013 could be one of its best years yet. they have made it through thick and thin. the company reported better-than-expected first-quarter earnings this morning. shares hitting all-time highs. how the company continues to keep on trucking. david congdon will be here. he is grandson of the founder. boy, did he work his way up. he will be here in a fox business exclusive. ♪ ♪
[ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ge has wired their medical hardware with innovative software to be in many places at the same time. using data to connect patients to software, to nurses to the right people and machines. ♪ helping hospitals treat people evebetter, while dramatically reducing waiting time. now a waiting room is just a room. [ telephone ringing ] [ static warbles ] [ beeping ]
red or blue? ♪ hey everybody, hi mom... streaming live with a tour of my new place... knowing you can still reach out. ... and now you've seen it. that's powerful. verizon. get mom a lucid 2 by lg for free. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then tats day afr day... block the acid with prilosec otc
liz: continuing to follow the story of becky's comments of vulnerability in the market. they have shaved most of the gains off of the dow jones industrial average now bringing up the volatility index. as to develop the story to companies under pressure today as sybil's put out forecast below what the analysts expected. with. >> to look at to names we have sold off a lot of the gains but look at qualcomm first. obviously related to use smart phones, a chip maker the forecast is below the estimate of what the analyst was hoping for. and of the full-year numbers
and low-cost doesn't help either. they also have great demand with the competition to its cut into them as well. now talk about zinga down 7% they said give more time for the turnaround plan. but the numbers people using zinga dropped by 13%. that is not good. liz: if not for earl and lillian 30,000 people today may not have the jobs they had earl and billy and founded a trucking company in 1934 with a single truck than between richmond and norfolk virginia it is now publicly traded company with a 3.$2 million market cap and saw 30% growth in the
first quarter. there grandson is now old dominion freight line see ode joining me with a fox business exclusive provider like to point* out you didn't get this handed to you you started off as a mechanic and driver? >> that's right. how are you? liz: they made their kids work to understand the business from the ground up. you hit a new high today. you are a great proxy house the economy is doing with freight and trucking but really what made your profits jumped 30%? that is significant. >> honestly it is a combination of a lot of things and hard work over the last 15 years. we're growing because of the value proposition to provide a premium claim free service
that is winning market share for old dominion and a combination of that market share gains in deficiencies' led to the profit that you saw in the first quarter. liz: you are a proxy for the economy so companies are shipping more things to use old dominion as that conduit? if i would open up your trucks today to the shipping the most? what is in them? >> we are general commodity shippers a you will see everything from clothing to equipment for restaurant, two drums of chemicals, anything and everything to close on the back to the food that we eat you will see that on our trucks. the general economy is still
growing very very slowly and the only reason for our above market growth is the market-share gains with the value proposition. liz: what surprised you the most? what caught you by surprise? >> actually, there is no product in particular that caught us by surprise. we are doing business with over 70,000 customers and we see nice orders and shipments across the entire spectrum and we continue to see growth with our customer base. liz: i thought of you with the gallup poll that two-thirds of people polled polled, that they would vote against a gasoline tax even if it meant they had to drive on roads that looked even worse than the ones that we see now ended at one
to pay for bridges or pot holes. what is your perspective on that attitude about americans when your drivers are using those roads to create jobs and transport products? >> that attitude will not fly. our country was bbilt on the fact we have a superior highway system and it is stretched to the max now and we need funding to repair our highways and bridges and to create additional capacity as well. the trucking industry calls 70 percent of all of the product and 90 percent in terms of value.
and there is no way we cannot have a highway system liz: i hope your truckers stays safe and your stock is up 17% over a -- year over year. we will see you next time. 15 minutes before the closing bell preaching closer to amazon earnings after the bell. will this be the quarter that shareholders get a dividend? profession do the smartest people you know, have? look at some of the answers as we head to break. ♪
liz: in the advance of the amazon earnings coming out after the vote they usually come on up for a 1:00 p.m.. look at the at store it says it is expanding to 200 countries that is the big countries that only seven at the 10 right now how it compares to apple and google. >> cup first to the numbers. at $0.8 per share that is
$0.70 from $0.28 but revenue they hope will grow 22% at 16 point* 1 billion per eupepsia miss that could be trouble for the stock but more broadly, forward p/e is 186 times earnings it seems crazy began his of 2.5 percent today over the past year that stock is up 40%. every time over the last four quarters after earning no matter to the upside between four and 16% but on the bigger picture amazon tv circulating with the set top box business that apple is in and excise -- a spot simply station three. >> they have heard the apple and i pied many they are so cheap and the product is 350
so apple has failed with the apple tv that is there one flaw that could shake up that. they just produced 14 pilots and let the viewers vote which are the best so they can vote but amazon often beats. >> it is also called the dollar''. thank you very much. starbucks is also coming out after the bell. we'll get my favorite the cake pop. the pink one is the best. david tasman and i will have them the second they come out. we also bring in a huge fan of the technology sector. jim swanson was on does show a october 2011 and many seeing over $200 billion. now he has grown the number
at $350 billion here he is joining me now. >> market and the inflow. >> i'll see merit -- my portfolio like that. >> but what is the best investment over that period of time that helps? >> the best investment from growth type stocks with a little defensive player. so not the small cap space but mid cap should grow well liz: what do you like right now? >> look at the forward p/e is weigh less than the market. these companies are making tons of money and you have got to look back at. liz: you say let's get these types of names? >> you can see financials, jpmorgan.
liz: it you look at that? >> there is housing plays, we're not building any more errors where footage of real estate space and everything is on the rise in. liz: what don't you like? >> long duration bonds or high-yield bond. i used to be that guy. but now they are priced to rich. liz: but people go back to utilities. >> i like them but i can get more bang for my book with tech with product revolution, a great balance sheets, and no debt. liz: we were just talking about amazon but what is too expensive? >> staples companies, telecom, you can get cheap stocks with a lot of dispersion the valuation metrics have changed tremendously if you are a stock picker this is your day. the correlations have fallen
liz: it is our past couple of months it has jumped significantly. the local little richard. jim swanson. chief investment strategist. good to see you. closing bell five minutes away and we are following what definitely could be named the significant negative reaction to fed chairman ben bernanke speech right before the top of the hour. stay around for amazon earnings but we are losing much of this team we had driving the market today. ♪
. .. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below...
to the finest comforts above. we're not simply saluting history... we're making it. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com.
bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. david: just looking back here. those numbers used to be double digits.
ben bernanke is a killjoy, ain't he? liz: he just used the word vulnerable. nobody likes that in relation to the market. david: we'll talk about what ben bernanke says. he is still unable to send us into negative territory. buyers outnumber the sellers in this market. nicole petallides at new york stock exchange. let's talk amazon here for a second. it was up a healthy 2%. trimmed that a little bit but all signs that buyers like this stock right now. >> so far so good on amazon. we still see it up 2% right now. the key is online retail business is number one. what will they do with original programing and video streaming. liz: starbucks, coffee giant. we're watching very closely. the k cup numbers create ad business like out of thin air. unbelievable how well this is doing. >> that is doing well. we'll watch for same-store sales growth. international expansion that is something we'll look for in the numbers. david: yesterday's earnings
getting kicked today. qualcomm and zynga both of them down. [closing bell rings] >> both lowering forecast,s. david: zynga is down over 7%. you can here the bells are ringing on wall street. everybody withd breath anticipating what will happen with amazon. amazon you probably know the numbers come out pretty soon after 4:00. so any moment now we will get those amazon numbers. in fact they just came out. we're parsing through the numbers. adam shapiro is going to provide us with details of those numbers. if we could see after-hours what is happening to these numbers as we look at the major indices settled to the upside. dow jones industrials is in single digits. it is now up almost 30 points. nasdaq is up the healthiest of all the indices with the exception of russell 2000, small and mid-sized stocks doing well. numbers are out for amazon. we're parsing through those numbers. let me show you the bid