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tv   Markets Now  FOX Business  July 16, 2013 11:00am-1:01pm EDT

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we do care about this. harry reid nuclear auction. threatening to try to break republicans bb pulling up the filibuster. bernanke in question. elon musk, the innovator, he now wants you to get from los angeles to new york and 45 minutes. how in the heck is that going to happen? and the brutal heat wave. little relief in sight. all that and much coming up on this hour of markets now. ♪ connell: markets now. nuclear options, earnings report and baseball this hour.
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dagen: i love you to a baseball interviews because you love it so much. connell: let's go to nicole petallides. nicole: i love the markets. the dow jones industrials down about 23 points. number one, the market is overbought here in the near term. three straight weeks of gains. also there is a wait and see mode. we will get that testimony. a couple of things also worth noting as we see the dow down 22 points, how that plays into the feds cards. the lowest in two years. you have gotten in earnings. names like coca-cola and ups. you put it all together.
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back to you. dagen: some key votes in the senate expected to give way right now. harry reads nuclear option. connell: he wants to vote on some key figures. regulating businesses around the country. he is threatening to invoke what would be a dramatic change in the rules of the senate. that would include yanking the republicans right to filibuster. this kind of inside baseball back and forth all night long. >> especially when you consider both parties were in exact opposite positions and 2005 when the president was a republican.
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public polling was the same thing. right now, they are cobbling together a last-minute deal. they will save us from the nuclear option. it is always a nuclear option or the fiscal cliff or this dramatically dramatic thing. dagen: something poisoning the environment in washington. [ laughter ] dagen: can you really make it much worse than what it is right now. >> the country is getting more polarized or is at least a more
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ideological way. we have a divided government. that is the way that it is structured to be. it is also ugly and not very pleasant to experience. combine that with the responsibility. connell: i do not know if it is worse now than ever. they were talking about meeting in the old senate chamber. it is worse now than in some time. this kind of speaks to the fact that nothing gets done. the idea of the filibuster is you can filibuster just about anything.
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>> i do not know what should be the proper perfect level. i think it is a useful tool in our system, for what is required here, yes, we have this polarization, but we also have this defection from voters of two tribes. they are running away screaming. they are going to have to figure out some kind of way over working and doing business if they will get any kind of public support. having a budget and having hearings and things like that. connell: go nuclear. dagen: exactly. thank you so much for being here. connell: voting against the chairman's policies. in an exclusive interview, peter barnes is standing by in kansas
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city. peter: that is right. let's get right to monetary policy and quantitative easing. we have been reading and hearing a lot from that officials about the future course of quantitative easing whether or not to start to dial it down. some of this information has been confusing. can you help clarify this for us? what is the future of qe? >> well, i will offer my views. quantitative easing has served a role during the course of the crisis, but more recently the open ended program has raised questions for me about its cost relative to its benefit here i think the economy has continued to recover even though that has been slow, we have seen positive
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trends. the discussion about how much longer, when will that outlook for the labor market be sufficient to allow the committee to make adjustments, we have come to that point. the minutes of the most recent meeting have suggested that. the signals to the market after a long period of engaging in this kind of policy will be a bit confusing, may create communication challenges for us. i think creating that dialogue is important. peter: how do you think that this should play out then? are you satisfied with the job growth? do you feel that it is time to start tapering in the next meeting or two? would you support that? >> i think it is time. the labor market have shown now
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for the last six months pretty steady gains, close to 200,000 per month. that is a good indicator that there has been sustained improvement here and that i think it would be appropriate given the size of our balance sheet. peter: when would you like to see those adjustments start? how much adjustment would you like to see? would you like to see it cut to 75 or would you like, as the minutes suggested, and it completely by the end of the year? >> i think that is a discussion that the committee will have to have. i am open to engaging that would like colleagues about the right pace. i think that sooner is appropriate to begin now.
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we have a long way to go if we will do this in a gradual and systemic way. peter: is a path that the chairman laid out at the press conference when he was deputized by the fomc members to try to provide some explanations, guidance, were you comfortable with that path? if job creation continues at this pace, if the economy continues to grow decently and at a healthy pace, you start the tapering later this year and wind it down sometime next year, by the time the unemployment rate hit 7% or would you like to see it done faster and sooner? >> i have been a proponent of doing it faster and sooner. if you are going to move in a gradual way, you may find yourself in 2014.
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whether that corresponds to a 7% unemployment rate, that has been thrown out as a potential target. as people come back into the labor force, you may see that number move around two. my approach would be a more systemic approach. peter: there was a little confusion in the minutes as well. about half of the participants favored ending quantitative easing by the end of this year. how do we caught investors and reporters and consumers, process that information?
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>> when the individual participants on the fomc are preparing those projections, you are doing that based on your own views. you get to see a central tendency. you get to see how those fall out. we just continued to buy at the pace of 85 billion a month. the majority of the committee continues to support speech on waiting on the data as we have heard over and over. wait just a moment, if you will. waiting for the statements on qe. her background is in bank regulation. we will do that on our website.
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if folks plenty of time to click on over. thank you for joining us for the live portion of our discussion. connell: go to the website now and the interview continues there. also, business alert as we move forward. now, this business alert. elon musk is at it again. now supporting a different mode of transportation that he called the hyper loop. it should get you from l.a. to new york city in 45 minutes. wait, what? these are images of a massive vacuum tube that could be constructed for a tenth of a cause of a high-speed rail. they hope to gain support in the effort to completely
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revolutionize travels. it is crazy. he will publish these designed by the 12th of august. looking for critical feedback on it. he believes this kind of travel, listen to this, this kind of travel could cut your time traveling from the u.s. to china to two hours. dagen: remember the old pneumatic tubes that you would use at banks, they use them and like department stores, in theory, it is the same thing. the engineering is based on the same concepts. connell: i am all for it. you can test it out. melissa mayer celebrated her first anniversary at yahoo!. connell: doing pretty well.
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former goldman executive. he is in court. we will have a report on not coming up. dagen: drivers are really feeling it over the last few weeks. the spike in gasoline prices. is relief on the horizon? not so much. take a look at oil. ♪ this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him d win fiy thousand dollars. congratulations you are our one millionth customer.
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dagen: celebrate bristol-myers one year anniversary at yahoo!. nicole: watching the stock here today. it is moving fractional fractionally. year to date, it has been a great performer. up about 40%. i was just checking moments ago,
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$0.25 off of its high. it has been a great year this year. over the long term, i think shareholders are still frustrated. connell: we will be back to nicole at the bottom of the hour. charles: go out and vote up on guns and things like that. looking further down the road, not just one, two, three, four,
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i think it will continue to do extraordinarily well. i see extraordinary value. dagen: we had year after year of record filings for people to get guns. in the short run, cause you said long run, but in the next year, could it be more of what we have seen recently? charles: they announced a buyback. they just recently in the last couple days said we would buy this back. it kind of reminds me of old management. all of a sudden the stock is up 100%. trying to break out. i think it is worth a shot.
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dagen: no pun intended. connell: up next, elizabeth and donald will be here in new york. leading investors to the tune of a billion dollars. dagen: at the intensity that is gripping this country. staying cool and is your power going to go out? ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars.
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♪ >> 24 minutes past the hour. in cairo, at least seven people were killed last night as protest their turn violent. morsi was overthrown by the military. russian federal migration service confirmed that edward snowden has officially asked for temporary asylum in russia. three latin american countries have offered him asylum. putin has refused to send snowden to the u.s.
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he hopes he will leave as soon as possible. in the meantime, more colorful news. a shipwreck that was stuck at the bottom of the sea since 1869. he returned safely after about 30 minutes underwater. those are your headlines. connell: that is just -- wow. dagen: i am just surprised he wasn't shirtless. connell: good to see you. dagen: the high-stakes fraud trial. this is a civil trial. now underway here in new york city. connell: accused of misleading regulators. we have elizabeth mcdonald reporting outside the courthouse today. >> on the 15th floor of this building right behind me, he is
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on trial for securities fraud. this is day two of the civil fraud trial. the judge in the case just instructed the fec to not get around. she wants to keep it tight. she does not want them to get off track. what we are dealing with here is essentially one of biggest fraud cases here in district court. day one of yesterday's proceedings was all about the e-mail. trying to show the jury that this is basically fraud. this is wall street greed at its worse. a case of deception and lies.
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basically, it lost investors a billion dollars. john paulson, he is exacted to testify as well. this will be a three week trial. the judge on the case is saying to keep it tight. back to you. connell: thank you. elizabeth and donald grout the day. dagen: stay on goldman sachs. connell: drivers are really feeling it. gas prices spiking over the last few weeks. we will talk about that and see whether it will continue. here are some of the winners on the s&p 500. ♪ i want to make things more secure.
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dagen: bottom of the hour. stocks now. nicole: earnings will be our headlines constantly. especially for some of the major players. two dow components reporting. johnson & johnson actually hitting a new 52 week high. they did well with drugs and medical devices. that offset some of the consumer prices. they also did very well with a prostate cancer treatment. that did well for johnson & johnson as well. that is why you are seeing it move to the 52 week high. coca-cola sales were weaker than expected.
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they also solve noted that ms. over in europe and asia. wet, cold weather played a part and weaker sales as well. read what did you think when you look at old man's report this morning? >> i liked it, actually. again, most companies are reporting pretty good earnings. what surprised me a little bit was the revenue. topline growth is what everyone wants to see at this stage of the game. we need more than just earnings
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growth. in the case of goldman, i like it. connell: what you are doing with the money. it looks like goldman is being careful. it did not go up as much as the revenue. it appears, if you look fat in there is a stock down almost 2%, for some reason, goldman does not want to send that much money. if you look at it, their revenue of growth have gone up over 50%. their prior training has made them some money.
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i think going forward it will benefit them more. >> here is what to follow at the industry. it sounds like you like paying stocks. >> that is absolutely true. these banks have had free money from the fed for a while now. the book is getting to be pretty solid. if you think about it going forward in a rising interest rate environment, the profit market remained higher.
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connell: thanks a lot, as always for coming on. dagen: coming up next, we will talk to phil flynn from the cme. hurricane season starts next month. look out. connell: power is a big concern. we will talk about that. people trying to stay cool. tim mccarver talks with connell about the business of baseball. take a look at the guild today. all of its recent highs. thankfully. ♪ peace of mind is important when you're running a business.
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goldman has been cut. on the flipside, shares of shuffle entertainment soaring on news of a buyout. the deal was expected to close by the second quarter of next year. that is the latest from the fox business network. giving you the power to prosper. ♪ every day we're working to be an even better company -
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and to keep our commitnts. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. connell: gas prices we were talking about, they are heading higher. dagen: when does it stop? phil flynn standing by the cme.
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>> there is always that possibility if we can keep our refineries running. not only have we seen a spike up in the price of crude oil, but we have also had a situation trying to keep the refineries running right now. i will tell you this, today we have industry executives meeting in front of a senate committee today talking about the rising gasoline prices. we need to have better transparency on when these refineries are going down.
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we had a major refining overhaul. supplies are here and near close. connell: good stuff. dagen: thank you. high gas prices to dangerously high temperatures. the worst heat wave of 23rd team. look at that map. >> it is only 11:41 a.m. eastern time. 91 degrees and washington, d.c. today, part the planes, parts of the midwest will be heating up. especially as we head into this afternoon and into the later evening hours.
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it will be the further story not just today, but as he had into tomorrow. this is one of the longer stretches of hot weather that we talk about. the real problem is not just the temperatures. when you factor in the humidity, it feels even hotter. right now d.c. is already 98 degrees. it should get up to the triple digit in d.c. 104 today, 101 tomorrow. very dangerous for people without air conditioning. this will be a very hot couple
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days. the next couple days staying very hot out there. showers and storms by the end of the workweek. we could be looking at some storms rolling through. the bad news with that is we could be seeing some severe weather with those storms. the good news, of course, the heat will finally come to an end. dagen: at the all-star game in new york city tonight. federal chairman bernanke testified before congress today. how bad can it really be? we were looking at the yield on the ten year. it has calmed down just a little bit. it could create night worries.
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>> about 20 paces points. any testimony that comes out that is not as dovish could potentially -- as it comes into full swing, a lot of the s&p and dow are saying right near these highs. it could serve as a catalyst. it will all be in the tone of how we deliver those comments. dagen: thank you very much. connell: you mentioned the
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all-star game tonight. you can sit at home and watch it on tv. one of the announcers is coming up. he will tell us a lot of things. dagen: in the next hour homebuilder confidence is at a seven year high. gerri howard writes down the report and what it means for everybody. ♪ my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom.
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connell: baseball has is all-star game tonight. we had a good conversation. how baseball is doing as a business right now. >> when the los angeles dodgers are able to be purchased for $2.3 billion, you know why major league baseball owners can shell out contracts to players of $100 million over six or seven years. the money that is being made in baseball is considerable. the franchises continue to rise in value. nobody has ever sold a franchise
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at a loss. baseball is doing very, very well. connell: why do you think now? why do you think baseball is so popular now. >> fewer african american children playing the game. the popularity of the game on television, of course, you know, as far as ratings are concerned, football is way up here. baseball get it fair share of ratings, particularly in the postseason, particularly events for the all-star game. connell: why do you think that is? >> you have these baseball fans
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that may not watch it on a day to day basis from a network standpoint. they do watch it locally. baseball for years has been a great local sport. network ratings are not what they like. they are improving and fox continues to play. connell: a new network based partially on a new network that you have baseball. it is a very popular game. the networks love it. connell: it will be interesting to see it go head to head from a business point. i grew up in new york. channel nine, that was a bit part of how i learned the game. thank you for that.
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>> everyone knows that the yankees in new york city are very popular now. in the 1980s, when the mets were going strong, they owned this city. connell: let me wrap it up by asking some personal memories. >> there are so many things. my first all-star game was in 1966. the last all-star game that year. it had to be 110 on the field.
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obviously, the american league did not score a lot of runs. there are so many memories of games to do. the tide came in 2002. it was ted williams last appearance. he came out in the wheelchair and all the players surrounded him. it was a love fest. it was very moving. we had a three-man booth. we did not say a word for four minutes and for broadcasters like us, that is very unusual. connell: the pictures told the story. will you miss all of this? >> yes, i am.
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joe and i have been together for 18 years. he is a funny guy. he is so talented. a load of work for people who know the businesses. how he does it, i do not know. i have all the respect in the world. connell: the all-star game on fox. the 84th annual games. always a big deal. it is at 7:30 p.m. eastern time. dagen: you will watch. i will watch.
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investigators focusing in on the emergency transmitter as a personal cause of the fire on the boat 787 dreamliner. cheryl and dennis kneale will be a had with aunt all-star panel. connell: gerri howard is coming up as well as markets now continues. ♪ the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments,
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cheryl: i'm cheryl casone. dennis: stocks down, and they are hopeful the dow hits one out of the park on the all-star game day in new york and all-star analysts who says stocks hit
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home runs while gold and treasuries strike out. cheryl: the possible transmitter could be the reason for the fire on the boeing in london. whether the plane itself may be too high-tech for the world's airlines to fly and also to maintain? dennis: what's bugging me? the disability bandwagon. bogus claims on the rise, how many fake it? i'm fed up. what do you have to say? tweet me. more coming up. cheryl: first, we do this every 15 minutes, every hour, stocks now. we're down 42 #. wonder how much is the coca-cola effect, nicole? >> there's a lot going on here. you mentioned coca-cola, weighing on the dow jones industrial, and we heard from esther george a short time ago, eludes to fed tapering, putting a damper on things, and back and forth action in the back and
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forth, and in the thick of earnings season, some which are winners, johnson & johnson pulling back, and dow jones down one quarter of 1 pect, and vix, fear index, to the upside. the dollar is pulling back. that bodes well for the markets, but the vix, you see there is nervousness in the market. back to you. dennis: thank you, nicole. in a fox business exclusive, kansas city fed president, esther george, telling our peter barnes last hour it is time for the central bank to wind down its stimulus program. >> i think it is time to begin to adjust those purchases. the labor market has shown now for the last six months a pretty steady gains, close to 200,000 per month, that is a good indicator that there have been sustained improvement here. dennis: for action, joining us now, we have the ceo of research firm hedge eye, and, keith, say
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ben bernanke is the greatest risk to the market right now and the fed should get out of the way. like what you hear today? >> getting him out of the way would be fantastic. we have to get the dollar up, and pro-growth signals like in 1983 and 1993 and hostage to the planner, and markets are not going to be any more confident as he speaks tomorrow. dennis: you're in favor of shorting gold and shorting treasuries, and yet gold is down from $1700 to the $1200 and treasuries up like a whole point. why short them? have they run already? >> no. back on ben bernanke's back. these are epic bubbles. ben bernanke created the equity bubble, bond bubble a series of bubbles. it would take a while to unwipe these. gold, up double digit, and post college, only the weight went up that period of time, and that's
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not normal. there's a thing in markets called mean reversion. mean reversion's going to occur over an extended period of time, provided berne berne's out of the way by the end of the weir, could be gone, a great thing, and better thing for the bond short. dennis: hold treasuries or sell out in the long term account? >> gone, zero. why would you own a bubble as it is popping? it's crystal clear. i think at this point, just get out. dennis: the aversion to treasury, doesn't that thereby extend to all bonds? all all bonds going to move with treasury rates? >> there's rate riskment go back to 1961, average ten year bond year is 6.75%, 400 points from here, just in mean reversion alone. that interest rate risks poses risk to the junk markets, ect.. be out of all bonds. dennis: investors who don't know, higher interest rates, why not hold on? the point is i bought it at the
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rate agreed, and the price changes, i lost money on what i bought with the piece of paper if i sell it. you're talking to investors and clients today, i think it was, interest rate rises, debt e flags, and asian con they on. that grimes. >> well, asia is becoming a messed up place. japanese will print money and spend brains out. they learned that. that ends in no growth. the market can act okay. japanese stock market can. the risk online in japan is huge. on the chinese piece, that's plainly obvious, liquidity crisis, banks crisis, as growth flows, and final piece, emerging market crisis associated with asian currencies, again, as the dollar strengthens, asian corp sighs are down. late 1990s, asian crisis. dennis: china gdp, we'd kill for
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that, not a tragedy, but a fine growth rate, suspect if? >> not in my model. it's about the slope of the line that's going this way opposed to this way. provided they are going to fix something in gdp, we'll remain bearish on chinese growth, and what's interesting with the u.s. if rates rise and dollar strengthens, u.s. growth curb goes this way when everybody thinks it can't. dennis: well handled, nicely done, thank you for being with us today, keith. >> thanks. cheryl: investigators probe the ethiopia airliner dreamliner fire that happened now saying a transmitter could be one of the several components that started the blaze. initially, when the fire was reported, and we showed you live pictures on fox business, it was, of course, speculate about the battery. there are two batteries on this aircraft. there's the main battery in the front made by a japanese company, and then the ap battery in the back of the plane. again, made by a japanese company. the focus on the transmitter of
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the aircraft in the tail of the aircraft, and i want to show you in particular what we're talking about here. the back of the plane, back of the 787, there's the fin, of course, but if you look at the end here, the tail fin, it's in this section in the gally we talk about where the transmitter made by honeywell international, and they are now, of course, cooperating with investigators in britain. let's get more into this now with the senior analyst, and tom sullivan. gentleman, starting with you, tom, on the issue. is it a long term problem for boeing? tom, you said in the past because the plane is so new, so high-tech, the concern is 5eur8s around the world have a lot to deal with, repair costs, and possibly breakdowns 37 >> and that's the problem, the fact it was not the battery. i'll raise my hand and speculation on the battery, but
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it's the electrical system that boeing's having troubles with. it's worse news for boefact thad you heard this, checial, the fact that all new airplanes have tb. that's true, other than with the 787, almost all of the squawks that have been sent in regarding problems on the plane have been electrical. it goes back, and they had to make sure they worked together, and they are just plugging in electrical pieces, and in your house, breakers go off, but i don't think honeywell has the problem at all. their elt, their transmitter, has been used since 2005 without any problems with the same exact battery. it's the electrical system in the 787 that is not working
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right. cheryl: i think that's interesting what you are bringing up, tom, because, again, and you mentioned the battery and transmitter made by honeywell, that's been around for a decade or so? >> yes. it's a proven piece of equipment. there's no problem with that. the problem is when you plug one instrument in to another instrument in, actually tens of thousands of pieces of the electrical system for a 787, that's where the engineers that used to be in dallas and seattle used to make sure all that worked. they are not there anymore. i think boeing has a quality control problem. cheryl: they have 3,000 planes. initially, looking at this issue coming in on friday and watching the fire putting it out, you know, certainly, looking at the 787 overall, the question is can ethiopia airlines afford to do this repair? yesterday, they said you have to peel back the burnt section,
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relayer the existing carbon fiber on top of the airplane, and it might be a fix so expensive, she was saying, it could be a fix costing more than what the plane is worth. i mean, what do you make of that? >> it's drks boeing had to prove to the faa that because the planes are damaged some way, somehow, they have to repair them. it is more expensive than just putting aluminum or metal back on there, but it is reparable. i think the problem is not the come poz sit. the problem is the fact you have all pieces that are not somehow working together and they are blowing circuits all over the plane. cheryl: what's it mean for air because, tom? they took a safer approach, if you will, how they phrase it, a
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safer approach, building the 380 as well, looking at footage of that right now, paris air show debuted this year, fanfare, and is it a good thing for air bus? >> it's got to help them. they use composite in the materials too, but, yes, they decided to scrap the lithium ion battery problem by just going right to the old standard batteries used in airplanes for years. they are not the only ones who did it. also, the business jets which is my territory, they also scrapped -- they had a new plane coming out, a citation four with a liton ion saying, no, we're going back to the regular battery. cheryl: interesting. tom sullivan, host of the tom sullivan show here on fox business, and a pilot, thank you so much. >> thank you. cheryl: we had technical difficulties, but there's an out perform rating on boeing. his opinion here from an analyst perspective that you should be
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buying the stock at this point. we'll get him back on the show. dennis, back to you for what's bugging you. dennis: i'll tell you what's bugging me, the explosion in disability payments. another case of government entitlements bloated and out of control. we have 1 # 1 # million people on disability. we pay them $140 billion a year and a million more people sign up every year. now, the number of people on disability is up four-fold since 1970 #, but the money we pay them is up eight-fold even adjusting for inflation paying people on disability twice as much per person as we used to. now, people get on disability at an average age of 50 # and stay on it until social security kicks in by age 67. they each receive 300,000 dollars over those years, so who is getting it? look at the chart. barely any increase in the past decade in illnesses like heart disease, hard to fake. look at this chart. the rate of hard to disprove
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mental disorders up 50%. the back pain cases doubled. that sounds to me like a lot of fraud going on as there is whenever taxpayer dollars are handed out like penny candy like food stamps, jobless benefits, free cell phones, college loans, and disability taxes rise for you and your employer unless somebody stops it. your turn to weigh in. tweet me. disability payments out of control? how to fix it at denniskneale coming up. cheryl: builders are building on confidence, hitting a seven-year high. one-on-one with the national association of builders, jerry howard, saying they face head winds. dennis: a yeah on the job for meyer, and charles payne is ahead on whether she made yahoo a buy. cheryl: the real stars of new york city's triathlon sponsored by, take a look at this, fox
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business. everybody was wearing this on sunday, proud to say, i only did the swim, but here's from the athletes, they did the whole thing and rocked it. >> i'm from ohio, my first triathlon, and my time was three hours and 12 minutes. >> i'm danny, i live just on the other side of the park in manhattan, no idea what the time was, but i had the best time, this is my son, max, and i thank fox business for being a sponsor. ♪ my mantra?
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dennis: rich edson is live in washington with the details. rich? >> senior g.o.p. aid says there's a plan on the table right now, top democrats and republicans are talking to ranking file members to see if it's acceptable to them, but, basically, democrats have been complains that republicans were not moving, and the president's nominees fast enough to the u.s. senate, proposedded to change the rules to lower the threshold to get nominees through, and the way forward on this they discuss is president obama would send two new no , nominees up for te national labor relations board, and the two nominees now are the
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same two he appointed in a recess appointment. the court said they were invalid. republicans want the nominees out with two new nominees in. they agree to do that, democrats would agree to take the rule changes off the table, and we'd have a crisis averted. it's still going through the members, not sure if it's getting through now, but that's the plan on the table. if it's agreed to, we averted this one. back to you. dennis: thanks, rich edson. cheryl: nicole is on the floor of the new york city stock exchange. nicole? >> well, cheryl, in the thick of earnings season, and we are focusing on the global company, coca-cola, and you can see here coca-cola's under pressure, down 1.7%, down at 40.331 because the quarterly profit fell. they talked about three things that hit the numbers, ultimately , the economy, weather, wet and chilly, that contributed to the numbers of that were not as good as hoped;
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and, also, the head winds faced in foreign exchange with the u.s. dollar and the like. they saw weaker sales for soda in here in the u.s. and north america in particular. they did have volume on the rise, but overall, the numbers in the outlook are weaker than expected. back to you. cheryl: the ceo came out basically apologizing for the numbers which you don't always see in a quarterly report; correct? >> absolutely. it's interesting. sometimes it's good to get out there say, listen, we're not meeting our own expectations, and noting the weather, hate to blame the weather, but, you know, weather was part of the problem. cheryl: big move, down 37. nicole, thank you very much. ♪ dennis: making money with charles payne. meyer marking the one-year anniversary at the helm. >> stocks doing 40%, more than okay. the whole thing, though, is when they report earnings, they can't blame the weather.
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dennis: yeah. >> here's the thing. she came in with such gusto and she game the chief excitement officer, and wall street gravitated to it. they had -- i don't know why the red carpet was rolled out more for her than crairl. dennis: silicon valley? >> yeah, i guess that's it. you know, here's the thing. the last earnings report was not impressive, you know, the revenue, operating income down 3 fblght, net earnings and 36 a year earlier, revenue, itself, down quarter over quarter, year over year, and so the company's getting the benefit of the doubt. now, listen, they made big acquisitions, making 11 acquisitions, and they made 80 of them in the last decades, and hot jobs, 200 million, overture, 1.6 billion, geocity, flickr,
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the list is on and on and on. dennis: sell a hundred million to nothing. >> had the caller, a brilliant move on his part, stayed a billionaire. if you wrote up 40%, take some off the table and see if the chief executive officer comes through with the rest. dennis: got it, thank you, charles payne. cheryl: requesting asylum in russia, details on life in the airport. coming up. dennis: oil pipelines and energy infrastructure in the cross hairs and how to protect them. ♪ peace of mind is important when you're running a successful business.
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>> now 23 minutes past the hour, this is your fox news minute. russia confirming edward snowden asked for temporary asylum, reviewing the request within three months. snowden said friday he'd seek russian asylum temporarily before going to latin america that offered him permanent asylum like in venezuela or bolivia. look at this here. he went down to explore a ship wreck that was stuck at the bottom of the baltic sea since
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1869, returned safely after 30 minutes underwater. in mexico, officials say they captured the leader of the zeta drug cartel. the 40 #-year-old was arrested by mexican marines near the mexico-texas border. the brutal organized cr was charged with murder, torture, kidnapping, and other crimes. those are your headlines. ♪ dennis: cyber threat to the energy sector, and one of the nation's former intelligence chief issuing a stern warner. former cia director urging oil and gas companies to better protect their facilities from hackers pointing that cyber vulnerable in the pee -- petroleum industry. bill, i remember right after 9/11, a year or two, we ran a cover story said it's the next big cyber threat, watch out.
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it's a decade or more later, and i feel we're just as vulnerable. am i wrong? >> you're exactly right. they say cyber security is wolf, wolf, wolf, talking about how threatening it is, and never happens. i think it is happening. what's happening is a lot of intellectual property is stolen, money's being stolen, and at some point, it's going to turn to taking that information and using it offensively against power grids, refineries, and pipelines and in those areas. >> which is the more likely threat to the infrastructure coming from hackers that are just wanted for profit or terrorists or warfare? >> well, i think they are all three. all three are happening today. organized crimes are usually after money. state sponsored activism after property and testing infrastructure. as we speak. dennis: give me an infrastructure taken down? it happens, but where? >> if you look around the world, other places, it's happened. dennis: such as?
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>> other countries, power grids in terms -- dennis: do you have a specific? >> no. dennis: they don't qualify it? it happened? >> i think it's happened. we've been in our own united states, you know, it's been fairly well reported, one click away from hoover dam, and l.a. power grids so the issue's not just the external hackers as we've seen within nsa, hacked from within is as dangerous as hacked from outside. it's all about the identity masked through cyber, through external remote access. dennis: bigger threat certainly or external? >> both are threats. dennis: you are hired to protect both, but the bigger threat to worry about. >> the bigger throat we have to protect is our own employee, and their access, and what we tell corporations and refineries ect. is assume the bad guys are in, whether they are physically there's a person or whether they
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are in code in the systems. now the question is how do you protect them from turning the bowels to do things? those are the things we got to get corporations in the u.s.. dennis: who is more at fault here? the vendors who make the equipment put into the infrastructure systems or the guys running the infrastructure systems who buy the gear? >> it's an a-symmetric war. it's an arms race where, you know, we're in a global road show talking about mobile versus pc and laptops. peep think the laptop and desk top, actually, it is. if you look at the actual operating system of a mobile environment, those applications are sand boxed and much more protected in the system that
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we've grown accustomed to. dennis: the makers far less secure and protected? >> correct. dennis: more because they were s used to being targets, and now they have to wake up? >> correct. it's the manufacturers as well. dennis: we're not going to fix it until after there's a blackout caused by a hacker that ticks off everybody. thank you for being with us phil connor. >> thank you, dennis. dennis: okay. cheryl: humbled confidence at a seven-year confidence. one-on-one with credit risk, material costs, and more. dennis: reports that apple is working on a service to let owe skip tv commercials while watching the show. what do the networks think of that? that's ahead in media minute. ♪
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♪ dennis: time for stocks now. nicole petallides on the floor of the new york stock exchange. >> reporter: this is a very interesting story. take a look. down about and a half of 1%. we are seeing costco up about half of 1%. and the store your is whether not costco did abate in switch. they're is a loss -- losses now, the message is that his bags were offered in costco advertising at a discount. he set your not authorized to have them, or offer them at a discount. and actually, they said to me yet, we were. that's why. back to you.
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cheryl: he does have great bags and shoes. in a few other things. all right. thank you very much. well, home builder confidence is up for the third straight month. now at its highest level in over seven years. what is behind the rise? is it really all smooth sailing to make joining us now, the national association of home builders. all four regions are higher. i think that is the headline. in a sales are up, prices are out, but every region is throwing -- showing very nice straight. is there any reason that you think is underperforming? >> the northeast always lags behind. that has been the case since it started tracking it years ago. even the northeast is up this month. the west is always a low more exuberant and the rest of the country. the west jumped about 12 points this month. this is the volatility. all things considered, you hit the nail right on the head. this is a home run for housing.
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all four regions are showing strength in all categories. cheryl: i'm looking in most of the homebuilder stocks and their trading higher on the state. capote, lennar, toll brothers, all trending higher. there was a wall street journal blog post that was written back in june talking about the home builders that kind of made the assumption that these companies, because they know that existing home inventories are so tight right now that they are deliberately letting the amount of new homes available. how do you respond to that assertion? >> i don't know of any home builder that is delimit -- deliberately limiting. after remember the matter whether your large or small, it takes time to get permission to build a house. nothing has really been built in numbers to last for five years. takes time to get things moving. so i don't think it's a
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deliberate effort on the part of anybody to constrict the amount of housing in the market. rather, i think conditions have constricted the amount of housing in the market, and i'm concerned that if the builders don't start building much needed housing that the next bubble will come because of a supply shortage. that is not an issue right now but it goes to out pulp and refute the assertion that the journal is making that builders were deliberately constrict. does not make sense. and believe it. cheryl: thank you for responding bank issues is something you and i talked about before. credit quality and credit problems not just for potential homebuyers but also some of the smaller name builders. fannie and freddie are certainly on the residential side. also, how of the bank's looking now with regards to builders that you represent? >> well, i'll tell you, they're caught between a rock and a hard place. a lot of them don't know what the rules will be. regulations have not all been
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issued yet. there is the basel three agreement and international banking agreement floating out there. the banks -- a lot of them are starting to look like private equity and private investment to get their acquisition, the of, and construction loans. in terms of the focus on the consumer side, the mortgage side, right now i think part of the increase in demand for house sales because you're starting to see interest rates pick up. they're starting to jump into the market. cheryl: always great to have you. three months in a row. national association of home builders ceo. above 50. thanks. it is the fox business summer time showdown. are pickers have picked stocks. taken a look. the elimination can begin. this is the fun part. we have been tracking of the place for months.
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back with us this friday this u.s. performed the best, you will want to tune in right here on fox business friday at noon eastern this you comes out on top. the first week of the showdown. results. stay with us. dennis: getting his day in court, the latest on the fraud trial of former goldman sacks trader accused of causes the -- costing investors over a billion dollars. cheryl: the grand slam for ticket sellers. details and the hefty price is for tonight's all-star game. the first, take a look at the ten and 30-year as we go to break. who will bear at back. [ shapiro ] at legalzoom, you can take care of virtually
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♪ >> reporter: i'm tracy byrnes with your fox business brief. consumer staples group more lively than expected. consumption relatively stable. the federal reserve rumored to continue efforts to stimulate the economy. chrysler was selling nearly 46,000 ram trucks because of their electronic stability control system may not turn on the vehicle starts. now, the trucks built between june 26 and 2012 february 3rd are involved in a recall. no accidents or injuries have been reported. vietnam will send its first big mac. branching out into the communist country.
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it will debut its first restaurant in it the hope she men city early next year. as the latest from the fox business network, giving you the power to prosper. re working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
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♪ cheryl: former goldman sachs vp fighting to clear his name. the disgrace executive sending accused of fraudulent activities that cost investors over a billion dollars. dennis: liz macdonald is live with the latest. >> reporter: we have an inside track. i just left the courtroom a short time ago. john paulson, the hedge fund billionaire, is expected to testify, the guy who allegedly jerry pate the assets that were in this bond field where investors lost more than a billion dollars. there were built on sub prime loans in california, nevada, arizona and florida. 99 percent were downgraded
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within one year's time after goldman sachs fabrice tourre started selling the steel. we have more on what the sec is doing. the number two of the trial. very sincerely telling fox business that will build a case on e-mail. it will build typically on memos and vocal recordings. here are the e-mails. i want to give the example. he's intent and the mail saying this is a monstrosity of the deal. is leverage. but the only person standing will be tourre. the sec saying this is indicative of the economy collapsing. other e-mails. we don't have much time to capitalize. goldman sachs sued fabrice tourre. and another e-mail saying he is that feeling guilty in that he jokes that he will be -- here's the deal, one of the jurors is a widow and we advise schoolteacher and of priests
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son. he is suing. well, he is going to be basically focused in on by the sec about the character and the integrity of fabrice tourre you also is expected to testify later in the week. again, the attorneys have fabrice tourre i saying he is a scapegoat, the clear his name and is looking for to telling his side of the story when he takes the stand. it will be about a three week trial. the judge is telling them to keep it tight and not get bogged down in the minutia of derivative deals. cheryl: great stuff from downtown manhattan. thank you. dennis: message to a tv execs. be afraid, be very afraid. reports are that apple is in talks to pitch a service that would let your skip commercials. that will be worked into a premium service and give apple tv subscribers.
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checking apple stock on this report is up may be less than 1%. meanwhile, target stores getting into the reality show. streaming online and nonstop activities of five college-age personalities hold up an asset that the second five ron doran. the nba is that viewers will buy items featured in each dorm room by clicking on them. new jersey governor chris christie rotund and profound will appear on an episode of the new nbc comedy and michael j. fox show. premieres september 26. there is an announcement air date for the episode. the governor is running for a second term. talk to them before that. that is your "media minute." cheryl: all right. a quarter till. market needs and of cruel and execution. we are in full swing here with earnings, but we are selling a little bit. does anything have to do with the upcoming, as we will be getting from them bernanke.
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>> that is absolutely right. even though we are in full swing, the market is still very much dictated by liquidity and comments regarding qe and exactly when that happens. we sought comments early this morning that actually were a bit more hawkish saying that tapering should occur sooner than later in the market drops subsequently thereafter. his comments came out saying we should have continued easing in monetary accommodation. we still have a lot of sectors bumping heads which has caused confusion as to exactly what the right policy is. cost above weeks in the market has been overbought. up 12 of the last 14 days. silver is very much a defensive push. the market has been led by utilities. the most defense -- despite these gains a lot of people and traders in particular are looking at this rally a bit skeptical in the last few days. cheryl: those comments, she spoke exclusively to peter
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barnes on the fox business network. thank you. >> i am afraid. better bill the pier tank. better gas prices will keep on climbing. national average for a gallon of gasoline $3.503, dumping $0.2 overnight, up $0.15 from last week. the trading pits of the cme and phil flynn. >> reporter: gas buyers cannot get a break. right now we have crude oil prices down. you would expect gasoline prices to be falling. not so. gasoline prices and also to have wholesale market were down earlier but a report that a canadian refinery at to get out for maintenance and they are in the cash market right now buying gasoline, reversed the market back to the upside. why is a refinery important? they send the product right in the new york harbor. that is worthy are bought futures are priced. right now are bought futures, up . that's also driving a beating as
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well, believe that not. distillate fields back up to 42. not gas, of course, upon that as well. everything back upon the energy complex except for oil. back to you. cheryl: thank you very much. major-league baseball 804th annual all-star game kicking off right here at 10:00. a ticket prices averaging $800 each, had better be a good game. fox is rick leventhal is live at city feel the head of the big event. i was looking? >> reporter: nuys and breezy and super hot, cheryl. one of the great things about having media credentials, you ought to pay for the ticket and the indigenous and early. rob on the pepsi porch. a great deal of the field -- preview of the field. air seven hours away from the first pitch, but we were down on the field yesterday to watch batting practice. it said just an exhibition game. believe it wins this game gets
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of the -- home field advantage in the world series and a nationally is on the past three all-star games and has also won the past three world series. so we wondered if it was a coincidence and asked the manager that question. >> i think that it's a nice touch to win this game. i think you them by the old saying. there's no place like home. that pretty much sums up. you know, statistically it says that it does give you an advantage. you know, this is a tremendous game. we will do our best to when this can. >> reporter: the tigers, the mets, the first pitch sometime around:00 eastern. cheryl: that is the buzz in new york right now. and stand there will be some special guests. i'm assuming bill riley might be one of them. >> he might be. i'm not aware of that.
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you know, major league baseball has a long history of honoring service members, members of the armed forces and have been doing it all season long. tonight an even bigger honor for a number of them. some 90 service members across the country renominated and fans can vote on them disliked or on the players themselves. special heroes getting a special tribute on the field. the final 31 representing each team, members of the armed forces. we met some of these guys yesterday. airing man who was an rb eric -- army airborne ranger, the first ntt to redeploy to battle. he did five tours in afghanistan after losing a leg in a rock. >> everyone is a three-time volunteer. they volunteered to try to be selected for service within the ranger regiment. i work with a great bunch of guys are really ajar to do. absolute professionalism dedicate to read the will of
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terrorists. >> a well-deserved honor, honored tonight sometime during a pregame which begins a 730. cheryl: are really tough assignment. at stay dry. dennis: a hot dog and a beer. your last chance to get in on what is bugging me. our disability payments out of control? yes. tweet me. your comments are coming up. cheryl: at it again. the man behind tesla is something to give you from new york to l.a. in less than an hour. ♪ >> hi, i'm vivian. this is my first triathlon. ago new york. >> in the awkward for triathlon representing all the fire departments across the country from ryland. this is an awesome race. want to give a shout out test
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fox business. go fox. ♪
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♪ cheryl: time for your west coast minute. shares of bally technologies and shl entertainment hitting new highs. agreeing to buy the automatic cards shuffling maker for just over a billion. the stock has actually been a bright spot already. 29% higher. year-to-date. take a look at that right there. a big win. the state supreme court issued a ruling saying that a photos collect service fees for customers and only a portion to employees the hotels of breaking the law. attorneys say damages to be number $10 million, maybe more. and the law must looking to train -- change transportation.
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forty-five minutes. lhasa is a list of beijing in two hours. seriously. the massive back into. that's u.s.s. minute. dennis: lazy did be set to pay back the money to do security -- and dealing when -- and effectively offering something for free there are far too many business people to the the opportunity. proof of purchase, so -- fortified the and voting. the key plank.
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cheryl: the taper title of -- time lines. the wall street journal's take. he will tell us what we should be watching for. dennis: mortgage rates are rising that things might be a whole lot cheaper. supreme court, chicago, and l.a. i will join lori rothman here next hour on fox business. ♪ ♪
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delayed backache or muscle ache. to avoid long-term injury, seek immedte medical hel for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. dennis: hello, again. lori: i'm lori rothman, the exclusive interview with esther george when she said the fed should taper. reaction from "wall street journal," and what to watch from for ben bernanke tomorrow. dennis: rising mortgage rates not scaring home builders. latest reading on industry confidence crushing the estimates, but even as rates
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rise, there's deals to be had. bank rates greg mcbride joins us as rates are as cheap as standard mortgages. lori: where you read, retailers follow. the eye in the sky watching your every shopping move. introducing you to a company behind the new tracking strategy. first, markets as we do every 15 minutes, back to the floor, annie coal, just glanced at the dow, which is down, and we're on earnings watch too, nicole. >> loutly. so much is going on, you heard the headlines, economic picture, earnings going on, and so right now, we're watching three names right there, johnson & johnson, goldman sachs, and coca-cola. all three mi goldman pulmod back 1.8%, had the quarterly profit, and the stock reacted negatively despite the investment banking.


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