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tv   Countdown to the Closing Bell  FOX Business  July 15, 2013 3:00pm-4:01pm EDT

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for 6 months tdd#: 1-800-345-2550 with qualifying net deposits. tdd#: 1-800-345-2550 call 1-888-283-2407 today. tdd#: 1-800-345-2550 gerri: finally his day in court. he will be drilled about whether he intentionally misled investors in a notorious transaction before the financial crisis. we examine whether his testimony would mean new problems for goldman and the stock price. china accuses pharma giant of bribing officials and doctors with piles of money and sexual payments. we look at which means for the international sales as well as those at other companies doing business in china. and for all of you meat eaters, would you pay for a juicy burger
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grown in a test tube? the worlds first artificially grown burger can change the way we farm and eat red meat. "countdown to the closing bell" starts right now. ♪ liz: good afternoon, everybody, i am liz claman. wwe're watching of course marke, we are very close to or in record territory. also looking at shares of boeing which made a come back today. on friday shares fell by nearly 5%. shares rebounding after it was discovered the fire aboard an ethiopian airlines jet was not caused by faulty lithium battery. there have been problems in the past, everybody jump to conclusions. it is not going to turn out to be the battery.
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sure enough, it wasn't. in many the portfolios are higher. citigroup also getting a boost of the bank reported 42% jump in second-quarter profits help them increase in loans along with emerging market. net income rose $4.2 billion compared to a year ago. shares up 2%. it is a nice day for that stock although the biggest story of the day remains retail sales. we got the number out, just .4% in june, and only .1% if you exclude auto sales. autos made the market look a lot better. that raises the question about the true strength of the economic recovery and the likelihood the federal delay tapering in the bond buying program. let's see what the traders are
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saying. nicole petallides on the floor of the new york stock exchange. if you are looking at the retail sales number, it was a disappointment but certainly not to equities today. >> no, it isn't. the number wasn't good, but i want to see how this pans out over time. auto sales were high, that is retail sales, so that is part of it. i don't want to see how it trays over time, i think it will be better over time. the guidance looks good. watching how the market does going forward. liz: today wells fargo is one of those new highs. what do you think happens?
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>> you will see the same thing. the financials will do well, more importantly earnings is guidance. the guidance seems to be doing well. let's see how the financials do. we will see some surprises to the upside. liz: do you see the temperature? i cannot believe how hot it is in new york city. the heat index is about 120. it sounds good. why is this number flat? >> even though it is very hot on the east coast and it will be for the next week, natural gas has had a hard time staying above $4. we will not see a spike in natural gas prices. you could see a slow grind higher, but you will not see a spike. we probably would have been
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significantly higher than what we are. liz: because we have so much supply, natural gas companies drilling more, certainly means more jobs but that is why the price is not spiking. >> we are exporting a lot that are being produced anyway. i would say we probably could be lower than that if h if you wert exporting a lot of it overseas. liz: thank you, we really appreciate it. the high of the session was up 42, so we are now back up into record territory at the moment looking at a healthy day for equities. shares of boeing flying higher, recovering nearly all of their losses for friday. nicole petallides on the floor of the new york stock exchange. we ask this analyst on friday from a company that hires a lot of pilots to look at the numbers that have come through, they say
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buy this stock now. that was friday. he was clearly right. nicole: absolutely right. looking at all the footage saying it wasn't a lithium ion battery that has now been ruled out as the cause of the fire and with that, the dreamliner's plight. i had to revamp it. now that gives some relief and to have investigators looking into what happened and what caused the fire. more than half of the dow gains are because of bowling itself, so heavily weighted in the dow jones industrial. another thing is honeywell has been on the move, participating in this investigation, it is premature to speculate what caused it, but an emergency locator transmitter on the 787's
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they look that as well that may have been the cause of the fire. liz: it is 100 degrees right now. no wonder, the twinkie trucks. that is what i think of when it is 100 degrees. right by the fox sports wiffleball area. 48 and six. take a shot, get an ice cold twinkie. not really ice cold in the 100-degree weather. things steaming up, the drug giant is accused of bribing chinese officials and doctors with big cash payments along with sexual payments to boost their sales. here in the states, the cash
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part, not the sexual favors partepart. >> for senior executives have been detained for executives in china over this bribery scandal the company is saying is working with china to stop and probe even further. $490 million of that at stake, dating back to 2007. how it was set up, the company used middlemen in china and travel agencies in china. potentially 700 put in for travel, for executives, but instead of using the travels they would basically take the cash instead and bribing the officials in china. this is a huge deal because china is a growing market for pharmaceuticals, expected to triple by 2020.
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also probing five dozen pharmaceutical companies and their units including multinationals. it is saying it is deeply concerned and disappointed by these allegations of fraudulent behavior in this behavior would be a clear breach of their standards of governance that they share the desire to root out corruption and it will cooperate with authorities, but even though they're putting an immediate stop to it, china is going full bore probing possible other scandals involving other drug companies operating in china. liz: 1.5 million on volume, not getting hit too hard. we will watch that story.
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the closing bell ringing in 50 minutes. imax doubles down on to the fastest-growing economies, the ceo is here live to tell us about this global dashboard growth. and a blast from the past for goldman sachs and it is not a welcome one. the civil trial known as the fabulous fab derailed that goldman ceo has pushed so hard for and what will it do to the stock? you may be considering buying it. coming up. peace of mind is important when you're running a successful business.
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liz: so this is interesting, no senior analysis has been charged with any improprieties related to the financial cris but mid-level guys have been
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attacked left and right. goldman sachs has his name all over the newspapers and his trial begins today. charlie gasparino here to tell us what is going on. this is the front page. charlie: i read it every day. liz: if we can take the shot, half angel, half demon. typical of the french. a middle level. charlie: that is the irony here. former head ofywide with those loans they were trying to sell, it is an irony with the
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financial crisis coming down to is a mid-level investment banker at goldman sachs who can make the case this is probably him right now, sorry for that. in a ent iis cing wn to mideveluy, puing t me rlly b-mas toake lkikee kn the ckag of nds wasellg was ckagg mogage putng th in bonds and selling them to investors who knew those bonds are problematic as he put in one of his infamous e-mails, sending e-mails to his girlfriend from his goldman sachs account when everything blows up the only one standing will be the fabulous fab. they believe what he did was purposely put out bad
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investments and they were destined to fail. as you point out goldman settled a civil charges. there was the deception or something along those lines, he refused to settle, that is why he is going to court over this. it was interesting. one of the better class action lawyers out there. he won a huge settlement for shareholders of worldcom. we should point out it is a civil case. the burden of proof with the preponderance of the evidence, the criminal evidence is much higher without a shadow of a doubt. it can put the screws to him, i am not saying what he did is right.
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john paulson, another case that he didn't properly disclose when he was selling this stuff john paulson, the hedge fund manager who shorted the market back in 2007, 2008, was helping goldman put together this deal that was destined to fail. liz: helping john paulson came to them to have the subprime. they knew a bigwig like that was doing that. on the other hand they would have unsuspecting clients say i would like to go along with stuff. they paid a huge fine. they were not disclosing. charlie: the guys on the other side were sophisticated. they didn't bait switch what was inside the portfolio, they did not take it out. liz: it does not pass the smell test. charlie: do you think it should come down to this guy?
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liz: absolutely not. no top banking executive has ever even come near the paper trail is my problem. charlie: i am trained like pavlov dog to mention my book. there is a connection, that is why they went after inside trading. i know this for a fact. it was a case that was on their doorstep when they couldn't bring or didn't want to, spend the resources to go after high-level wall street executives because those are much more difficult cases to prove somebody lied about it. it came down to this, it really is an unbelievable thing. the sec evinces is a bad thing. you cannot say one thing and do something else. remember, it is preponderance of evidence, did he do the right thing.
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he will be thrown out the securities business, he will be fined. this is not a criminal court, this is demonstrated civil court and i would recommend everybody read the "wall street journal," there is a great op-ed in there about this notion of how the sec brings cases, they can bring these cases preponderance of evidence and basically do everything short of putting you in jail, throw you out of business. cannot put you in jail, but can a lot of other stuff. liz: charlie, thank you very much. 40 minutes from the closing bell and we are in record territory. we have all seen summer movies but it is getting even bigger. the imax ceo here to tell us about his latest expansion pla plans, go east, young man, far east. huge ambitions we may entail
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putting chinese movies on screen to get a bigger footprint in that region. we have it in just a moment. and the twinkie is back. the iconic snack getting a second lease on life. giving us his take on twinkie 2.0. it will give him a taste test of the new reform related twinkie. see if he can tell the difference. save a bite for the ceo, please.
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liz: movie time. imax is making a serious step increase in the footprint of the world's second-largest movie market, that is china. here now with this news. you brought a partnership, why is this something that should make us sit up, take notice and consider your stock m portfolio, what will it do overall? >> it is all about network expansion, so take a company
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like hbo with a fixed cost of content and over the years grew the subscriber base leading to the current revenues and earnings. imax is a similar thing. a fixed cost of content and the more theaters to open, bigger earning potential. growing between 100-130 per year the last several years. what investors look for is it to continue. when we signed an agreement, it helps investors get comfortable the growth cycle will continue. liz: 30 of them are in china. china loves imax screens. people were scalping them for some $90 apiece. they have a growing midd to pay the ticket price.
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>> the average ticket price depending on the city is between 13-$16 that is consistent with what ticket prices are in the highest marks around the world. @hat is going on in china is affordable luxuries is something people are willing to pay up for. a few extra dollars equivalent, you get something you couldn't otherwise get, that hits the sweet spot. liz: you've gotten deals there will be chinese content. last year 10 feature films. not just stuff with the lone ranger or doing well in other countries but that brings me to this question, these summer blockbusters have done anything but bust blocks.
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you knew this was coming, you could probably tell, right? >> it is a complicating answer because a lot of it becomes so global. in some cases you are right, but in some cases they find the audience overseas and not domestic. one thing about "pacific rim" i want to mention is even though it did not initially meet estimates, we did almost 20% of the bo box office in just imax. you have to break it down into a more cap located way, but this is a year sequels did better than non-sequels. original movies. liz: i know they said could you come up with better stuff?
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>> "hunger games" is really exciting. relatively soon coming out, part of the hobbit. you look into 2015, "star wars," the next "avengers." there are more blockbusters costing higher budget, crowding each other out. liz: do you remember the first screen you convince them to allow you to pick up? >> it was 2002 in a science center. we started with documentaries but remember the kids reaching out in 3d. we chose china originally because it was politically
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neutral in terms of the kind of content imax provided. you do not have to be controversial bringing in western content. the consumers have learned to love imax. liz: up 15% year to date, it looks very good. you have really come up over the year. thank you so much. we have some breaking news right now out of cairo. egyptian security forces have fired tear gas at pro morsi protesters. the former head of the country. scuffles taking place according to eyewitnesses again, apparently there has been some firings into the crowd. when we get more details, we will bring them to you.
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going back to movies, if you made a movie of 43 of us to this weekend, you could call it man and woman of steel meets fast and furious. team fox business did it. cheryl casone going into the hudson river. there is rich grabbing the timing chip, going to me, i did the like part of it. we hid the hudson hot it early to raise money for building homes. when all was said and done, here they are, the heroes for a home we already built. we already built custom mortgage free homes. wthey were there at the finish line. you should know team fox business came in 36 out of 131 relay teams. the fox business fan camera at
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the finish line, hit the taste of what the fans had to say after the race. >> i am a physically challenged athlete and the legally blind. this is my dog. we had a great race today, really hot and humid. my nice time doing the triathlon. >> i rode today on this young man's bike. i rode his dad spike. >> i just did my comeback race after major surgery. i don't know what my time was. a big shout out to my daughters. >> we did not run as fast as usual, but we are longtime veterans and we have a new member to the family. >> new york city triathlon,
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phenomenal day, cannot ask for anything more weight honestly in a triathlon. fox business, absolutely fabulous, thank you. liz: so he says to me you did not do all three legs of this? i used to, right? thank god for the team, right? thanks to everybody, so many of you donated and we are so proud. go to the website and see how we did, you will see how we did. the closing bell ringing in 27 minutes. imagine a burger that cost more than $300,000 to produce. we will bring you the remarkable story of this one-of-a-kind patty. twinkies are back after near-death experience. the executive that sparked the turnaround and saved the brand by the steps he took. there is a reform related
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trading. year to date oracle has been an liger, down 4%. and then there is tesla that went over to the nasdaq, entering into the nasdaq 100. all of the money managers have to mimic the nasdaq 100 index exactly. they have to buy it. not that they had a problem. doing well with those orders coming in, from consumer report and now they get the nasdaq 100. hitting a new high. liz: that is such an amazing i diitem. your stockpile may be running a little low but the good news is they are back on shelves for the first time today. jeff flock spoke with the man behind the twinkies return,
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hostess brand ceo, he talks about why he was bringing twinkies back. listen in. >> just truly, truly historical brand. clearly obvious the american public has embraced these brands with any experience i have seen. marthaliz: chairman and ceo. what is this like? people are rushing, one of our producers tried at two different places to try and buy some. what is this like here? >> i am very excited about the return of the product. i sold the brand, and it is what being has been fantastic. the marketing things they are doing around this, s social meda and other stuff like that has
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been very effective. liz: could this have happened before? the brand was near dead, one of those iconic brands, but the company you could place blame everywhere, people love to blame the unions, the management groups that struck deal with the unions ended up being negative for the whole company. aside from the fact that they have redone the flavor and the taste. >> that actually started before the sale of the brand. it was in process. people think the half-life of plutonium and it is not. it is not very long. that gives a lot more ability in terms of distribution and how you can get product to the stores, so part of their plan is to go out and borrow on that distribution. liz: they had to streamline the
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company, what they have done at least this time is appear to save the brand. one never knows, it appears they have saved this brand. wouldn't you say they have? >> when you're asked what is different, you're right, every collective-bargaining agreement is a two-part deal. you cannot go one side or the other on blame. the company had no ability to invest, not only in people, but equipment and advertising. liz: was it true you couldn't let one driver deliver twinkies and how house? the union restrictions were so unbelievable tough it was so onerous whe that came to cost. >> there were a lot of crazy rules with 365 collective-bargaining agreements delivered over decades but i will say this, we have resolved those issues.
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the difficult ones at the end where the wage cuts and the pension cuts going forward. liz: you are happy man today. >> i am happy. liz: i want you to do a taste test. we always read books about the executives not eating the junk food. >> i am not one with a discerning taste. liz: the former head of hostess. >> very good. liz: we had to run down to the truck to get more. >> they will be tough to find. 45 days, that is all, but better than 26. liz: thank you very much. chairman and ceo, good luck in your new ventures. >> thank you. liz: the closing bell ringing in
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17 minutes. would you eat a burger that came from a test tube? that is scary. it is not science fiction. we could mean for businesses and your taste buds after the break. snap back to reality on retail sales, they were looking so good month after month, but what drag them down this time and should you change your investment strategy? the multibillion dollars money manager has some ideas. that after the break.
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liz: take a bite out of this story.
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what is that, why are we talking about this? it is going be cooked and eaten in london next mth known for the incredible food. not. the patties being made from thousands of strands, that word alone makes me freak out, strands of laboratory grown meat. the dutch professor is aiming to make cultured meat a viable food source in the future. the cost of the first test tube burger is let's take a look at how the shares of some burger companies are doing right now, they don't appear to be too concerned. all moving higher. that segued perfectly into the retail sales we could than expected retail sales data the
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many wondering is this the time to scale back a bit uncertain stocks? my next guest $350 billion, forget defensive sectors, they will not make you any money. time to turn up the heat. chief investment strategist joining me now from austin. after such a long rally suddenly we see the one data point that looks slightly weak. are you saying that? >> i don't see any reason to give up on the consumer. looking underneath it, hospitality and eating out our week. that is where the hiring came in, so there is an inconsistency there. autos are holding up pretty well. that is an important part of the expansion. the work week is longer, we're getting new jobs and there is a mini cycle, maybe that is what
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was showing up. liz: meaning highs and lows. one of your funds up 10%, let's talk about your strategy when it comes to picking names that should go in it. people can get a sense of why you pick what you picked because you explain the details of that. >> it is fundamentally driven. when you look at the sectors, it is basically driven by a good product in a good space is a good time with a good balance sheet. that drives the selection process. liz: it is with everything, but should not even say rates tightening. we will go back to the discussions, what can people expect, how will that manifest itself, and will your strategy on your screen right now, will
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that change at all when the fed tapers the bond buying program? >> it will deemphasize fixed income which i happen to have some of. iand the duration sensitive pars of the market, very sensitive to rate increases. liz: what will you do with the duration, more or less of the yield curve? >> less of the yield curve. it would be emphasizing more credit and more mortgage related securities within fixed income. my whole thing this year has been on equities and i will stick with that probably even during the phasing in of when that occurs. liz: we had technology outperforming last year, but now financials look to be doing pretty darn well. @s there a sector or two you feel people should be overweight? >> they are my two favorites.
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here is why, typically early super cool expending the balance sheet when it gets going, and the fed raises rates, it hasn't happened yet and tha there hasnt been a lot of loan demand but we we're starting to see wholesale loans increasing and the regional banks are doing more mortgage lending. that'll help the the balance sheet and help the interest market. liz: is there still might be made in real estate? i'm not take the other side with real estate. >> commercial real estate the value is already there. we don't have a lot of square footage coming on, the economy getting better. that evaluation is rich. still money to be made in the secondary play off of residential housing which is still in the early phases of the comeback and that hasn't fully come back yet. liz: come back again and visit us, thank you very much.
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the closing bell ringing in six minutes, the dow, nasdaq and s&p all higher, but still a wedding day. some of the new highs, specific names after the break. don't go away on this monday, "countdown to the closing bell." [ male announcer] surprise -- you're having triplets.
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surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket scienc it's just common sense. from td ameritrade. liz: alert. both the dow and s&p are both in record territory and here who is getting them there. these are all-time highs. google, pepsico, general mills, eat your wheatties, johnson & johnson. those are some of the names. we have 99 stocks in the s&p 500 hitting 52-week highs today. once again the dow, s&p, once again in territory, who is back for the record.
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david asman. >> i wish i could say it was a tan. this is makeup ladies. thank you >> sales in north america will continue to jump. precious metals are pulling back. so the costs help their margins ultimately as well. >> tesla, originally was up this morning by 3%. came down. why? >> it was interesting. you know they bought it.
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they give it back. this is stock up almost 270% this year. went into the nasdaq 100. they have been buying it for a week. it hit a new high. maybe some people said i will take profits here. liz: radioshack continuing to add to friday's gains. this after it got hammered last week earlier. worries about it not going to cease to exist but we like radioshack around here, right? >> we love radioshack. we love the store. it is in talk with investment banks. calls attention to its own strong balance sheet david: we had patrick byrne in before i left from overstock. >> they got nice retail sales. we got closer to all-time high
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of 15,542 on the dow. [closing bell rings] david: it is not so much the number itself. it is positive at all with these negative economic news that we got early this morning. 8:30 a lot of economic indicators including retail sales came in a lot lower than expected. we're having to downgrade economic growth by a significant factor that is not affecting the dow at all. some people think it might have had a positive effect on it thinking bernanke would continue the process as he has been doing all these many months now. all the indices are positive. the dow jones and s&p are in record territory for the third consecutive day. nasdaq, it's continuing to climb higher. had to go up to well over 4,000 before it hits its record, before the dot-com bust. the russell 2000, look at this, .64% gain. that is, continues to be a high for the

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